Nepal flood damage may cost around $5 billion to rebuild
Photo: REUTERS
The glacier collapse on the Nepal-China border unleashed a massive torrent of rock, ice, mud, and debris through the Himalayan mountain river systems, killing 626 people.
Nepal’s National Disaster Risk Reduction & Management Authority (NDRRMA) confirmed the death toll. Search and rescue teams still seek more than 2,400 people still missing after the disaster.
Finance Minister Swarnim Wagle told on Saturday that Nepal might need $4-5 billion to fund reconstruction efforts following the historic deluge, a sum that represents nearly a tenth of the country’s economy.
Sharing the preliminary figures, Wagle said, “The initial estimate is between $4-5 billion. Just an estimate. We will require much less than what we needed for the 2015 earthquake. Loss and damage is being assessed.”
The floods leveled entire towns along the border area, sweeping away critical roads and bridges while damaging major hydropower stations.
Wagle did not provide further details on why the reconstruction bill will remain below the $9 billion spent to recover from the 2015 magnitude-7.8 earthquake, which stands as Nepal’s worst recorded disaster.
That devastating earthquake killed nearly 9,000 people, demolished more than half a million homes, and inflicted losses equal to nearly a third of Nepal’s economy. Despite the lower projected cost, Wednesday’s deluge deals a heavy blow to a national economy that depends heavily on remittances, tourism, and hydropower.
The disaster damaged key power projects that generate more than 12% of Nepal’s national electricity capacity.
Source: Reuters (adapted)
