Kathmandu, Nov 6: The government is working to mobilise $4 billion to $5 billion over the next three to five years for reconstruction and rehabilitation following the Bhotekoshi-Trishuli disaster, Finance Minister Swarnim Wagle said on Friday.
Addressing a meeting of the parliamentary special committee on climate change impacts in the Himalayas, climate justice and the disaster, Wagle said the government was in talks with India, China, the World Bank and the Asian Development Bank (ADB) to secure funding.
The government expects these four sources to cover around 80 per cent of the total requirement, with the remaining 20 per cent coming from other development partners and donors.
With India, discussions are under way for a special financing package for reconstruction and infrastructure development. Wagle said some agreements could be signed during the prime minister’s upcoming visit to India.
Talks with China cover disaster reconstruction, modern infrastructure and alternative trade routes, including connectivity through Rasuwagadhi, Tatopani and Korala. Proposed works include railways, tunnels, viaducts and modern customs facilities. Nepal also wants to upgrade existing roads linking the two countries using modern technology.
The World Bank and ADB are discussing financial support. Wagle said the World Bank had indicated the possibility of securing up to $1 billion through its agencies and concessional financing facilities. He also expects comparable support from the ADB.
Wagle said Nepal had secured a $20 million grant from the Loss and Damage Fund following an emergency meeting requested by the government five days after the disaster. He described it as the first grant awarded by the fund since its establishment.
Although small compared with reconstruction needs, the grant would strengthen Nepal’s case for climate justice internationally, he said.
The government is also focusing on disaster preparedness. Nepal has joined a catastrophic disaster insurance system, becoming the first South Asian country to do so. The scheme provides substantial payouts following major disasters in return for relatively small premiums.
Wagle said concessional loans would also need to be used prudently as international grant assistance declines.
The government will initially redirect allocations from the current fiscal year’s budget towards reconstruction rather than seek additional funding. More resources could be included in next year’s budget.
Citing the 2015 earthquake, Wagle recalled that the national budget increased from Rs 518 billion to Rs 619 billion in the following year to support recovery.
He said reconstruction would follow a three to five-year plan, with local governments leading implementation in coordination with provincial governments, ministries and security agencies.
Wagle acknowledged that, despite the rapid restoration of electricity, telephone services and temporary bridges, assistance had not reached all affected areas equally. He urged the parliamentary committee to prioritise residents’ needs and develop clear procedures and policy recommendations for managing future disasters.
People’s News Monitoring Service
Login to add a comment