Up to $600 Million Could Be Spent on Nepal Flood Reconstruction: Who Is Contributing What?
Image source, Reuters
The National Disaster Risk Reduction and Management Authority recently released preliminary data indicating that the Bhotekoshi-Trishuli floods caused approximately NPR 38.6 billion in damages. However, Finance Minister Swarnim Wagle has stated that reconstruction in a more resilient manner could cost over NPR 90 billion.
He emphasized that rather than simple restoration, strengthening flood resilience and reconstructing in a robust way could escalate costs to around “6 billion dollars.”
Minister Wagle noted that resilient reconstruction would significantly increase costs compared to ordinary rebuilding efforts.
Preparing for the Donor Conference
Image source, AFP
The government is conducting a rapid damage assessment initially, followed by a comprehensive post-disaster damage evaluation.
“We are currently engaged in rapid damage assessments. Within the next one to one and a half months, we plan to conduct a detailed Post-Disaster Needs Assessment (PDNA),” said Dr. Gunakar Bhatt, Vice Chairman of the National Planning Commission.
For the PDNA, on-site inspections will utilize information technology, artificial intelligence (AI), and other resources, he added.
“This disaster differs in nature from the 2015 earthquake. We are preparing a distinct plan accordingly,” Bhatt explained.
Despite estimates of damages in the billions of rupees, the actual figures and required resources will be clearer only after the PDNA. Following that, the government is seriously considering a donor conference, said Foreign Minister Shisir Khanal.
“The Ministry of Finance and the Ministry of Foreign Affairs are in coordination on this matter. After the PDNA, we will engage with friendly countries,” Khanal stated.
Following the 2015 earthquake, a PDNA and donor conference were held in Kathmandu, through which the government received $450 million in aid against damages totaling $700 million.
India pledged the largest assistance at $100 million, while China, Asian Development Bank, World Bank, Japan, and the United States also committed substantial support.
In this recent flood, damage to the hydropower sector alone is estimated to be over NPR 10 billion. Approximately 74,500 homes have been damaged. In addition, 40 kilometers of road and more than 30 bridges have been washed away.
Current Aid Contributions
Image source, MEAIndia
Following the Bhotekoshi floods, many countries and multilateral donors have provided assistance. Over NPR 1 billion has been collected in the Prime Minister’s Disaster Relief Fund.
Additional support is expected after the initial relief and rescue phase for reconstruction.
“Since the day the flood struck, friendly countries have been providing various forms of support. They have stood firmly with us in our time of distress,” Prime Minister Balendra Shah wrote in a Facebook post.
India has dispatched relief items and rescue teams in several phases. China has also supplied relief materials and immediately provided NPR 30 million assistance.
Sri Lanka, Pakistan, Bangladesh, and the United States have also extended support. Australia has committed to giving $1 million USD in cash assistance and sent expert teams and drone operators.
According to the Prime Minister’s Secretariat, the United Arab Emirates has already provided 83 tons of essential relief supplies and pledged $10 million USD in aid. Qatar has supplied 40 tons of relief materials.
The United Kingdom announced a donation of £500,000. The European Union has provided €2 million and is preparing to send an additional €500,000.
“Switzerland has pledged $1 million, Denmark 3.5 million Danish kroner, Germany $2 million, Ireland €500,000, the Czech Republic 2.5 million Czech koruna, and Norway 12.7 million Norwegian kroner,” the Secretariat stated.
Many other countries have also offered relief materials and financial contributions.
US technology company NVIDIA has donated $10 million.
The World Bank is planning to provide a concessional loan of $16.7 million. The Asian Development Bank has committed $500,000 in grants and additional technical support.
United Nations Appeal
Image source, Reuters
On September 26 (Bhadra 10), the United Nations and humanitarian partners launched an emergency appeal for more than $5 million (NPR 750 million) to deliver immediate life-saving assistance to over 84,000 people affected by the Bhotekoshi and Trishuli floods.
“The four-month plan, developed under the leadership of the National Disaster Risk Reduction and Management Authority, addresses the government’s identified immediate priorities. It aims chiefly to reduce further hardship and prevent communicable diseases in high mountain settlements ahead of winter,” the UN statement said.
“The destructive floods and landslides in the Bhotekoshi and Trishuli rivers have caused families to lose members, homes, and livelihoods in a very short time,” said Lila Peters Yahia, UN Resident Coordinator for Nepal.
“The main priority of this appeal, led by the government, is to deliver shelter, medical care, clean water, and cash support to extremely remote areas before winter begins.”
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