Crisis looms

Funding constraints

Financing is a major constraint. Nepal lacks a dedicated funding mechanism for IWRM, and its financing score dropped from 32 in 2020 to 30 in 2023.

Most water-related infrastructure is publicly financed, except for some hydropower projects. Irrigation and drinking water withdrawals are not subject to user fees, and irrigation service fee collection remains weak, failing to cover operating costs.

Pollution charges are absent, and a petroleum surcharge originally intended for water infrastructure has not been used for that purpose.

Environmental degradation continues to worsen, driven by pollution, deforestation, encroachment, and poor enforcement of mandated environmental flows.

Climate change is amplifying floods, droughts, and landslides, further weakening the already stressed ecosystems. The report stresses the need for land use zoning, flood risk mapping, pollution control, and nature-based solutions to restore ecosystems and strengthen water storage.

Across Asia and the Pacific, more than 60 percent of the population -around 2.7 billion people — has been lifted from extreme water insecurity over the past 12 years.

But these gains are increasingly at risk due to environmental decline and severe financing gaps. Wetlands, rivers, aquifers, and forests are deteriorating rapidly, while climate-intensified weather events -including storm surges, sea-level rise, and saltwater intrusion -threaten long-term resilience.

Recent months have seen devastating floods across parts of South and Southeast Asia, reinforcing the region's vulnerability. The ADB estimates that $4 trillion will be required through 2040 — about $250 billion annually — to meet basic water, sanitation, and hygiene needs alone.

"Asia's water story is a tale of two realities, with monumental achievements on water security coupled with rising risks that could undermine this progress," said ADB Senior Director for Water and Urban Development Norio Saito.

"Without water security, there is no development. This report shows we need to act urgently to restore ecosystem health, strengthen resilience, improve water governance, and deploy innovative finance to deliver long-term water security, especially for the neediest communities."

THE KATHMANDU POST, NEPAL