Flood damage to Nepal’s hydropower sector could run into billions
Summary
Devastating Bhotekoshi floods may have caused hundreds of billions of rupees in losses across Nepal’s hydropower projects and transmission infrastructure. The disaster has also hit the stock market, with hydropower and non-life insurance shares falling sharply amid fears of large reconstruction and insurance costs.
Key Points
- The Nepal Electricity Authority says flood damage across hydropower projects and transmission lines could run into hundreds of billions of rupees.
- At least 13 hydropower projects in Rasuwa and Nuwakot have been damaged, including the Rasuwagadhi and Chilime projects.
- Insurance coverage will be key to reconstruction, but officials say some government-owned assets may not be fully insured.
- The flood shock has also dragged down hydropower and non-life insurance shares on the Nepse, while construction-related stocks gained.
