Nepal may need between $4 billion and $5 billion to rebuild after the devastating floods that hit parts of the country this week, Finance Minister Swarnim Wagle said Reuters on Saturday. The Nepal minister stressed that the figure is only an initial estimate and that authorities are still assessing the full extent of the damage.
"Nepal may require $4 to $5 billion to rebuild after catastrophic floods triggered by a glacier collapse, the Finance Minister said.
The disaster, which occurred on Wednesday, unleashed rock, ice, mud, and debris across Himalayan river systems, killing over 600 people in Nepal and Tibet and leaving more than 2,000 missing. Entire towns along the border were leveled, with infrastructure such as roads, bridges, and significant hydropower stations severely damaged.
The estimated reconstruction cost is nearly 10% of the nation’s economy but still less than the $9 billion required after the 2015 earthquake, which killed nearly 9,000 and destroyed over half a million homes. The latest floods pose a significant setback for Nepal, whose economy depends heavily on remittances, tourism, and hydropower, the latter of which has sustained damage to facilities that account for more than 12% of national power capacity. Damage assessment is ongoing."
The floods were triggered by a glacier collapse that sent huge amounts of rock, ice, mud and debris through river valleys in the Himalayan region. More than 600 people have been killed in Nepal and Tibet, while thousands remain missing. The disaster, which occurred on Wednesday, unleashed rock, ice, mud, and debris across Himalayan river systems, killing over 600 people in Nepal and Tibet and leaving more than 2,000 missing.
Entire towns along the border were leveled, with infrastructure such as roads, bridges, and significant hydropower stations severely damaged. The estimated reconstruction cost is nearly 10% of the nation’s economy but still less than the $9 billion required after the 2015 earthquake, which killed nearly 9,000 and destroyed over half a million homes.
The latest floods pose a significant setback for Nepal, whose economy depends heavily on remittances, tourism, and hydropower, the latter of which has sustained damage to facilities that account for more than 12% of national power capacity. Damage assessment is ongoing.
The disaster caused widespread destruction in Nepal’s border areas, damaging towns, roads, bridges and major hydropower projects. Some hydropower facilities affected by the floods account for more than 12% of Nepal’s electricity-generating capacity, adding to the economic impact.
Rescue and relief operations are continuing, while the government is seeking specialised technical assistance from other countries. Authorities are also working to assess the damage and determine the resources needed to rebuild affected communities and infrastructure.
The government now faces the major challenge of restoring damaged infrastructure and helping affected families rebuild their lives.