Key facts
- Nepal's floods caused an estimated $2.56 billion in damage to property, housing, and infrastructure.
- The early recovery cost for essential services like roads and electricity is projected at $52.6 million.
- Rebuilding efforts could cost between $4 billion and $5 billion, according to the Finance Minister.
- The disaster was triggered by a glacier collapse, leading to over 600 deaths and thousands missing.
- Major hydropower stations were damaged, impacting national generating capacity.
Nepal faces an estimated $2.56 billion in losses from catastrophic floods that occurred last week, according to Dharma Raj Upreti, chief of the National Disaster Risk Reduction and Management Authority. The disaster, triggered by a glacier collapse, has resulted in over 600 deaths and thousands of people unaccounted for in Nepal and China's Tibet region.
Upreti stated that the initial cost for early recovery efforts, focusing on essential infrastructure like roads, temporary shelters, and utilities, is projected to be around $52.6 million. However, Finance Minister Swarnim Wagle told Reuters that the total rebuilding cost could range from $4 billion to $5 billion, a figure that represents a significant portion of Nepal's economy.
The floods have severely impacted major hydropower stations, which account for over 12% of the nation's generating capacity, further straining the economy which relies on remittances, tourism, and hydropower. While the rebuilding costs are substantial, Wagle noted that they are expected to be less than the $9 billion spent after the devastating 2015 earthquake.