Nepal’s flood bill could hit $5 billion. Where will the money come from?
Nepal faces a reconstruction bill of up to $5 billion following devastating floods that killed over 1,300 people and caused widespread infrastructure damage. The government is struggling to find funding sources given its existing public debt and fiscal constraints.
Why it matters
The disaster underscores the economic vulnerability of developing nations to climate-related catastrophes and the difficulty of financing long-term recovery.
It's been more than 10 days since a glacial collapse sent freezing water, rocks and debris roaring down Nepal's Bhotekoshi and Trishuli valleys.The death toll has risen to 1,357, while 5,326 people remain missing, according to Nepal's National Disaster Risk Reduction and Management Authority. Rescue teams have so far saved 13,583 people.The disaster has also inflicted an enormous economic cost. Nepal's National Disaster Risk Reduction and Management Authority estimates that the floods caused NPR 387.54 billion ($2.56 billion) in damage to property, housing and infrastructure. The government says its immediate four-month recovery effort will require another NPR 7.95 billion, or about $53 million, for roads, temporary shelters, drinking water and electricity.But that is only the beginning.Nepal's finance minister Swarnim Wagle told Reuters that the eventual reconstruction bill could reach $4 billion to $5 billion, roughly a tenth of Nepal's annual economic output.
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