Nepal Faces $4-5 Billion Rebuild Bill After Floods Devastate Economy
Economic and Human Impact of Nepal's Recent Flood Disaster
By Saurabh Sharma
Estimated Cost of Reconstruction
Aug 29 (Reuters) - Nepal may need $4 billion to $5 billion to rebuild after this week's devastating floods, Finance Minister Swarnim Wagle told Reuters on Saturday, a bill equal to nearly a tenth of the economy.
"The initial estimate is between $4-$5 billion. Just an estimate," Wagle said. "We will require much less than what we needed for the 2015 earthquake. Loss and damage is being assessed."
Details of the Flood Event
Glacier Collapse and Immediate Consequences
A glacier collapse on Wednesday unleashed a huge torrent of rock, ice, mud and debris through Himalayan mountain river systems, killing more than 600 people in Nepal and China's Tibet, with more than 2,000 still unaccounted for.
Infrastructure Damage
The flood levelled towns in the border area, sweeping away bridges and roads and damaging major hydropower stations.
Comparison with 2015 Earthquake
Reconstruction Costs and Losses
Wagle did not elaborate on why the reconstruction bill was expected to be less than the $9 billion spent after the 2015 magnitude-7.8 quake, Nepal's worst recorded disaster. It killed nearly 9,000 people, destroyed more than half a million homes and caused losses estimated at around a third of Nepal's economy.
Economic Implications
Impact on Key Sectors
Wednesday's floods will nevertheless be a major blow to an economy reliant on remittances, tourism and hydropower, damaging power projects that account for more than 12% of national generating capacity.
Reporting Credits
(Reporting by Saurabh Sharma; Writing by Sakshi Dayal and Aftab Ahmed; Editing by YP Rajesh)
