© 2025 International Bank for Reconstruction and Development / The World Bank1818 H Street NWWashington, DC 20433Telephone: 202-473-1000Internet: www.worldbank.org ATTRIBUTIONPlease cite the report as:World Bank. 2025.The World Bank Group in Nepal, 2014–23.Independent Evaluation Group. World Bank. COVER PHOTOAdapted from Shutterstock/Gani_Prastowo EDITING AND PRODUCTIONAmanda O’Brien GRAPHIC DESIGNRafaela Sarinho This work is a product of the staff of The World Bank with external contributions. The findings,interpretations, and conclusions expressed in this work do not necessarily reflect the views ofThe World Bank, its Board of Executive Directors, or the governments they represent.The World Bank does not guarantee the accuracy of the data included in this work. The bound-aries, colors, denominations, and other information shown on any map in this work do not implyany judgment on the part of The World Bank concerning the legal status of any territory or theendorsement or acceptance of such boundaries. RIGHTS AND PERMISSIONSThe material in this work is subject to copyright. Because The World Bank encourages dissem- ination of its knowledge, this work may be reproduced, in whole or in part, for noncommercialpurposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to WorldBank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax:202-522-2625; e-mail: pubrights@worldbank.org. February 4, 2025 ContentsContents Abbreviationsv Acknowledgmentsvi Overviewvii 1.Introduction���������������������������������������������������������������������������������������������������������������1 Background and Country Context3Evaluation Questions and Methodology5 2.The World Bank Group in Nepal������������������������������������������������������������������������������7The World Bank Group’s Strategies8The World Bank Group’s Portfolio8Implementation Challenges13Results16Collaboration, Coordination, and Convening17 Collaboration, Coordination, and Convening171783.Federalism���������������������������������������������������������������������������������������������������������������22 Context23Strategy and Internal Readiness24Portfolio and Engagements24 4.Private Sector Development and Jobs������������������������������������������������������������������31Private Sector–Led Growth32Job Creation50 5.Resilience to Natural Disasters�������������������������������������������������������������������������������56Country Context and Evolution of the World Bank Program59Disaster Response and Recovery62Disaster Risk Mitigation66Disaster Preparedness68 Bibliography����������������������������������������������������������������������������������������������������������������75 Boxes Box 2.1.Fast and Large Responses to Major Shocks but Without Much Useof Social Protection11Box 3.1.Geographic Inequities of World Bank Investments26Box 4.1.Verification of Select Roads and Trade Outcomes47 Figures Figure 1.1.Remittances as a Share of GDP in the South Asia Region, 1980–20224Figure 2.1.World Bank Commitments by Instrument and Fiscal Year9Figure 2.2.World Bank Commitments by Sector, FY14–2310Figure 2.3.Use of Lending Instruments: Nepal Versus World Bank Average,FY14–23 Commitments13Figure 2.4.Disbursements and Undisbursed Balances, FY10–2314Figure 2.5.Foreign Aid Disbursements Transferred to Subnational Government19Figure 2.6.World Bank Group’s Share of Total Development Partner Financingby Engagement Area19Figure 3.1.Distribution of World Bank Per Capita Commitments, FY14–2326Figure 3.2. Multidimensional Poverty and World Bank Per Capita Commitments27Figure 4.1.Channels for Supporting Private Sector Investments and Growth33Figure 4.2.Number of Banks and Financial Institutions and CapitalAdequacy Ratio35Figure 4.3.Factors Contributing to Ending of Load Shedding38Figure 4.4.Nepal Electricity Authority’s Profits and Losses over the Decade39Figure 4.5.Foreign Direct Investment in Hydropower40Figure 4.6.International Development Association Support to Transport in Nepal45Figure 4.7.Channels for Supporting Jobs52Figure 5.1.Results Chain for World Bank Support to Strengthening Resilienceto Natural Disasters58Figure 5.2.Disaster Resilience: Evolution of Nepal’s Policy and InstitutionalFramework61 Table Table2.1.Development Partners’ Commitments, 2013–2118 Appendixes Appendix A.Methods84Appendix B.Portfolio Review92Appendix C.Geospatial Analysis99 Abbreviations ASAadvisory services and analyticsCPECountry Program EvaluationCPFCountry Partnership FrameworkCPSCountry Partnership StrategyDPCdevelopment policy creditDPOdevelopment policy operationDRMdisaster risk managementEHRPEarthquake Housing Reconstruction ProjectGRIDGreen, Resilient, and Inclusive DevelopmentIDAInternational Development AssociationIEGIndependent Evaluation GroupIFCInternational Finance CorporationIPFinvestment project financingNEANep