Himal Press 
KATHMANDU: The government on Sunday approved a concessional loan worth $90 million from the World Bank and the Asian Development Bank to implement the ambitious Nepal Digital Transformation Project.
The main objective of the project is to modernize data infrastructure, strengthen digital public systems, and improve citizen services.
The World Bank will contribute $50 million while the Asian Development Bank will provide the remaining $40 million.
The project has three major components: securing data infrastructure ($37 million), building core digital public infrastructure ($28 million), and digitizing high-impact public services ($20 million). An additional $5 million has been allocated for project management and implementation support.
A significant share of the financing, about $27 million, will go toward upgrading government data infrastructure, particularly the Integrated Data Management Center (IDMC) and its disaster recovery systems. The investment aims to modernize and expand the government’s data hosting capacity, making it more resilient, secure, and capable of handling growing demand from ministries, departments, and agencies.
The project will also support the development of a hybrid Government Cloud (GovCloud), combining public-sector infrastructure with private cloud services. This is expected to provide a secure environment for critical government systems while allowing scalable, cost-effective cloud adoption.
Similarly, $10 milion has been allocated for cybersecurity to enhance Nepal’s ability to detect and respond to cyber threats. The investment will establish key infrastructure, such as a Security Operations Center, a Network Operations Center, and a Digital Forensics Lab under the Ministry of Communication and Information Technology. A Cyber Response Contact Center will also be set up as a single reporting point for cyber incidents. In addition, the project will fund capacity building for cybersecurity personnel across federal, provincial, and local governments, as well as nationwide awareness campaigns targeting citizens and businesses.
Another $10 million will be invested in strengthening the National ID (NID) system. This includes upgrading the authentication infrastructure and developing a new, more robust digital identity system integrated with civil registration. The reform is expected to improve service delivery by enabling secure and reliable identity verification across government platforms.
The project is also spending $5 million for an Integrated Social Protection System (ISPS), which will create a unified digital platform for managing social protection programs. The rollout will begin with social security allowances and gradually expand to other programs.
To support paperless governance, $4 million will be utilized to establish a government-led electronic signature infrastructure. This includes setting up a certification authority to issue legally recognized digital certificates. According to the project document, this will enable secure online transactions for citizens, businesses, and government agencies.
Similarly, $4 million has been set aside to upgrade the Nagarik App into a fully transactional platform. The app will evolve into a one-stop digital portal where users can access and complete government services online. Planned improvements include integration with digital identity systems, support for digital wallets, and the introduction of verifiable digital credentials for documents such as licenses and certificates.
The project is also investing $5 million to set up the National Data Exchange that will serve as the backbone of the country’s digital ecosystem by enabling secure data sharing across government agencies and authorized private entities. It is expected to reduce duplication, improve efficiency, and support better decision-making through standardized and high-quality data.
Likewise, $15 million will be spent on business process reengineering (BPR) for 12 high-impact public services, including business registration, passports, driver’s licenses, tax identification numbers, and foreign employment services. The reforms aim to simplify procedures, eliminate manual steps, and integrate services with digital platforms such as the NID system, Nagarik App, and National Data Exchange.
The government plans to prioritize sectors such as business and transport services in the initial phase, with further expansion based on readiness and demand.
Additionally, $5 million will be used to pilot the digitalization of land administration. This includes digitizing cadastral maps and ownership records, and developing online services for land transactions such as transfers and subdivisions.
