Much of the aid to Nepal is delivered in cooperation with the Asian Development Bank. Japan is one of the largest aid donors to Nepal. As of May 2009, Japan has provided the following level of financial assistance and donations to Nepal:
Loans: 58.4 billion yen
Grants: 13.6 billion yen
Technical Cooperation: 42.6 billion yen
Examples of Japanese assistance include:
Japan has offered a loan of up to 5,494 million yen for the construction of the Mahankal-Melamchiwater treatment plant, thereby providing the people of Kathmandu with a pure and plentiful water supply.
In 2004, Japan committed a loan of USD160 million (50% of total foreign assistance to the project) for Nepal's biggest hydroelectric project called Kaligandaki "A"
In 2004, Japan agreed to write off a loan of about $200m to Nepal, which was used to fund development projects. The money was to be diverted to poverty alleviation schemes.
In 2007, in cooperation with the Asian Development Bank and the Dutch Government, Japan provided USD600,000 to develop the water supply and sanitation sector in small towns in Nepal.
In 2008, Japan granted USD750,000 to assist Nepal in preparing a project design to improve the quality of air transport services.