World Bank Approves USD 52 Million Loan for Nepal's Clean Air and Prosperity Project

The World Bank has approved a concessional loan of USD 52 million (approximately NPR 6.9 billion) to Nepal to support efforts to reduce air pollution and strengthen air quality management systems. The project, named 'Nepal Clean Air and Prosperity Project', aims to reduce harmful particulate emissions from boilers and furnaces used in industrial and commercial sectors. The project will primarily target areas in the Kathmandu Valley, Terai, and hilly regions, where the risk of air pollution is particularly high.According to the World Bank, air pollution in Nepal is responsible for more than 6% of the country's GDP due to the associated health costs and decreased productivity. This project will help reduce that economic burden by providing concessional loans and technical support to industries, thus reducing operational costs and improving their competitiveness. David Sislain, World Bank’s Division Director for Maldives, Nepal, and Sri Lanka, stated that the project would encourage Nepali industries to move towards clean production and contribute to long-term sustainable development. The project is part of the World Bank's regional air quality management program for the Indo-Gangetic Plains and Himalayan foothills.