Kathmandu Ecological Urban Renewal Project Preparation
Country: Nepal
City: Lalitpur, Kathmandu
Key Stakeholders and PartnersKathmandu and Lalitpur metropolitan cities (KMC and LMC)
Project Preparation Study PeriodAugust 2023 - May 2026
CDIA SupportUS$ 675,000
Expected Downstream FinancingAsian Development Bank
Infrastructure sectorsMulti-sector
CDIA priority impact areasClimate Change Mitigation and Adaptation; Environmental Improvement; Good Governance; Poverty Reduction
Key Development Issues:
Kathmandu Valley struggles with ecological and cultural preservation challenges amid unregulated urban growth. Encroachment harms parks and heritage sites, informal settlements along flood-prone riverbanks worsen water quality and pollution issues, untreated wastewater discharges continue to pollute rivers, and loss of native vegetation and aquifer damage intensify degradation, threatening livability and resilience. Municipalities within the valley have taken action, but weak enforcement and limited funds hinder their progress.
Details of Cooperation:
To help address these issues, CDIA has proposed integrated measures to restore the valley’s ecological balance while ensuring urban resilience and inclusivity. It provided initial solutions for Kathmandu and Lalitpur metropolitan cities to demonstrate a model for other cities within the Kathmandu Valley. It focused on renewing the Bagmati River corridor by shifting from river channelization to a “sponge city” approach, thereby applying a more adaptive, climate-sensitive design. Complementing the ecological measures, CDIA proposed the consolidation of the existing wastewater interceptor system to reduce the sewage discharge into the river system.
Expected Development Impacts:
The project will support a more resilient, livable, and climate-responsive Kathmandu Valley through ecological restoration, improved water resource management, and nature-based solutions. It is expected to strengthen climate adaptation and flood resilience, improve environmental quality, enhance public spaces and urban ecosystems, and develop investment-ready solutions that support sustainable urban development and long-term urban resilience.
