Nepal faces NPR 723 billion flood reconstruction bill

Nepal will require an estimated NPR 723.315 billion for reconstruction and recovery after deadly floods devastated infrastructure across five districts. The RDNA report estimates major requirements for energy, transport, social infrastructure, productive sectors and disaster risk reduction

Kathmandu: An estimated NPR 723.315 billion ($4.74 billion) will be required for reconstruction and recovery following the deadly floods in the Bhotekoshi River in Nepal’s Rasuwa district on August 26, the Prime Minister’s Secretariat said on Thursday.

The estimated resource needs are based on a Rapid Damage and Needs Assessment (RDNA) report prepared by a joint technical team comprising the National Planning Commission and the National Disaster Risk Reduction and Management Authority. The Post-Disaster Needs Assessment (PDNA) report following the 2015 earthquake had estimated Nepal’s resource needs at $6.69 billion.

---

The massive resource requirement was estimated after the floods killed 1,377 people and left 5,130 people missing as of 11 am Thursday, while devastating infrastructure along the Bhotekoshi and Trishuli river corridors, including more than a dozen hydropower projects.

According to the RDNA report, the infrastructure sector suffered the largest share of the damage, requiring $3.1 billion (NPR 473.572 billion) for recovery, equivalent to about 75 per cent of the total estimated recovery needs.

The energy sector has been particularly hard hit, with the floods affecting 13 hydropower projects with a combined capacity of 759 MW and five solar plants with a total capacity of 24 MW.

As many as 917 people associated with 11 hydropower projects in the flood-affected Bhotekoshi and Trishuli river corridors remain out of contact, according to the Independent Power Producers’ Association, Nepal (IPPAN), a representative body of private-sector power developers.

Rescue teams are continuing efforts to determine whether those out of contact have been trapped inside hydropower tunnels.

The report estimates that $2.56 billion (NPR 390.623 billion) will be required to restore the energy and power-grid systems.

The disaster also caused extensive damage to transport infrastructure. About 69 km of roads were damaged, while 33 motorable bridges were washed away and four others suffered partial damage. Of the 64 suspension bridges in the affected areas, 53 were damaged.

The report estimates that $481 million (NPR 73.343 billion) will be needed to restore transport infrastructure.

The floods also caused significant damage to homes and other social infrastructure in Rasuwa, Nuwakot, Dhading, Gorkha and Chitwan districts.

A total of 7,570 private houses were damaged, along with 48 public buildings, 18 schools, seven health facilities and 30 cultural heritage sites. The recovery of the social sector is estimated to require NPR 103.55 billion.

The productive sector, covering trade, businesses, banking and agriculture, has also suffered substantial losses. The floods affected 1,806 hectares of agricultural land, 17 bank branches and 4,800 business establishments, according to the assessment. The report estimates that NPR 50.775 billion will be required for its recovery.

Among the 15 local governments affected across the five districts, Bidur Municipality in Nuwakot recorded the highest number of damaged houses, with 3,026 homes affected.

The government has also estimated that NPR 94.753 billion will be required for disaster risk reduction and river management, while NPR 515.4 million will be needed to clear mud and debris.

The RDNA report has divided the reconstruction process into short- and long-term phases. It estimates that NPR 8.735 billion will be needed over the next six months for immediate relief and short-term reconstruction.

A further NPR 714.58 billion will be required for long-term reconstruction, highlighting the enormous financial burden the disaster has placed on the government and affected communities.