The government has estimated that Nepal will require between US $4 billion and $5 billion to reconstruct infrastructure damaged by the devastating Bhotekoshi-Trishuli floods last Wednesday.
Speaking to international news agency Reuters on Saturday, Finance Minister Swarnim Wagle said the preliminary estimate suggests that reconstruction could require investment equivalent to nearly one-tenth of Nepal’s gross domestic product. However, he added that a detailed assessment of the damage and losses is still underway.
The disaster was triggered by a glacier collapse that sent a massive torrent of rocks, ice, mud and debris through Himalayan river systems, causing widespread destruction in Nepal and China’s Tibet. The floods swept away settlements, bridges and roads and severely damaged major hydropower projects.
More than 600 people were reported dead across Nepal and Tibet, while over 2,000 others remained unaccounted for.
Minister Wagle said the reconstruction cost from the recent floods could still be lower than the approximately US $9 billion spent on rebuilding Nepal after the devastating 2015 earthquake. The earthquake killed nearly 9,000 people, destroyed more than half a million homes and caused economic losses equivalent to around one-third of the country’s economy.
Nevertheless, the floods are expected to deal a significant blow to Nepal’s economy, which relies heavily on remittances, tourism and hydropower. The damage to hydropower infrastructure alone is particularly concerning, as the affected projects account for more than 12 percent of the country’s national electricity generation capacity.
The government is expected to determine the full scale of reconstruction needs after completing a comprehensive assessment of the disaster’s impact.
