The Government of Nepal has applied for US$120 Million in additional financing from the Asian Development Bank for the Rural Connectivity Improvement Project.

The total estimated cost of the project amounts to US$255.72 Million, which includes additional financing of US$120.00 Million. Out of this, the Asian Development Bank (ADB) will provide a concessional loan of US$100.00 Million from its ordinary capital resources. The remaining US$20.00 Million of the proposed additional financing project will be financed by the government.

The proposed additional financing aims to expand the project's impact by adding 324 km of rural roads under output 1. It will also enhance capacity support to effectively fulfill the roles and responsibilities within a federal system, as outlined in Output 2. The project will construct about 388 km of rural roads to all-weather standards covering 16 priority rural development districts.