Nepal looks for grants for flood recovery, but loans may be unavoidable
Summary
Nepal is weighing grants and soft loans to finance reconstruction after the August 26 Bhotekoshi floods devastated Rasuwa, Nuwakot and Dhading. The damage could exceed Rs400 billion, with officials also seeking support from the Loss and Damage Fund and other international sources.
Key Points
- The government is assessing whether reconstruction after the Bhotekoshi floods should be financed through grants, aid or loans.
- The National Planning Commission is preparing a Post-Disaster Needs Assessment to determine the full scale of damage and recovery costs.
- Initial estimates put damage at more than Rs400 billion, and the final bill could reach $4-5 billion or more.
- Officials say Nepal may also seek help from the Loss and Damage Fund and other philanthropic or international sources, while hydropower projects have suffered major losses.
