Nepal flood damage may cost up to a tenth of economy to rebuild

Nepal faces a daunting reconstruction bill of up to $5 billion following devastating floods that swept through the Himalayan nation, Finance Minister Swarnim Wagle announced Saturday. This figure represents nearly a tenth of the country's economy, highlighting the profound impact of the disaster.

The floods, unleashed by a glacier collapse on Wednesday, have claimed over 600 lives in Nepal and China's Tibet region, with thousands more still unaccounted for. Towns were flattened, bridges and roads washed away, and critical hydropower stations suffered damage, impacting more than 12% of Nepal's generating capacity.

While Wagle noted the reconstruction costs are expected to be less than the $9 billion spent after the catastrophic 2015 earthquake, the current floods still represent a significant blow to Nepal's economy. The nation relies heavily on remittances, tourism, and hydropower, making the damage to infrastructure particularly concerning.

The finance minister stressed that the $4 billion to $5 billion figure is an initial estimate, and the full extent of the loss and damage is still being assessed. The focus now shifts to recovery and rebuilding efforts in the wake of this natural disaster.

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The initial estimate is between $4-$5 billion. Just an estimate. We will require much less than what we needed for the 2015 earthquake. Loss and damage is being assessed.