Nepal requires $5 billion for post-flood infrastructure reconstruction

Nepal faces a monumental task of rebuilding its infrastructure, with estimates suggesting a need for at least $5 billion (RM20 billion) to recover from the devastating floods that struck the country this week. The figure was put forth by Binod Chaudhary, Nepal's sole billionaire and Chairman of Chaudhary Group.

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I would not be surprised if the cost eventually reaches that level.

Chaudhary described the recovery effort as a significant challenge, citing the substantial costs, lengthy timelines, and the country's difficult geographical terrain. "I would not be surprised if the cost eventually reaches that level," he stated, emphasizing the scale of the disaster. The Chaudhary Group, with diverse business interests including food, telecommunications, infrastructure, and banking, is collaborating with the government and military on relief and reconstruction efforts.

Nepal's Finance Minister, Swarnim Wagle, echoed these concerns, estimating that the nation would need several billion dollars to cover losses and damages. "Overall, I think the total losses and damages when fully assessed in a week or more will reach at least several billion dollars. The initial estimates are very worrying," he said.

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It is a big issue that we are facing.

The severe floods, which occurred on August 26 along the Nepal-China border, submerged villages and destroyed roads and bridges. Official reports confirm at least 475 deaths, with approximately 1,200 people still missing, including hundreds of foreign tourists. Preliminary investigations suggest that glacial melt may have been the primary cause of the catastrophic event.

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Overall, I think the total losses and damages when fully assessed in a week or more will reach at least several billion dollars. The initial estimates are very worrying.

Chaudhary noted the "complete disruption" caused by the floods, which also damaged several power generation stations. His group is mobilizing its staff to establish relief centers for displaced residents and will subsequently assist in rebuilding homes, businesses, and schools. This reconstruction effort is expected to surpass the group's spending during the 2015 earthquake recovery.

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We are witnessing complete disruption.