Nepal has estimated that at least US$5 billion will be required for reconstruction and recovery following last week’s devastating floods, which caused widespread destruction across the country and neighboring Tibet. The preliminary estimate was shared by Finance Minister Swarnim Wagle, who said a comprehensive assessment of the damage is still underway and the actual cost could change once detailed evaluations are completed.
Speaking to international media, Wagle explained that the current figure is only an initial projection based on the scale of damage observed so far. Authorities are continuing to collect information on losses to infrastructure, public facilities, energy projects, and local communities before determining the full financial requirement for recovery efforts.
Although the disaster has inflicted severe damage, the finance minister noted that the reconstruction cost is expected to be lower than that of the devastating 2015 earthquake. The 7.8-magnitude earthquake, one of the deadliest natural disasters in Nepal’s history, claimed nearly 9,000 lives, destroyed more than 500,000 homes, and required approximately US$9 billion for reconstruction. The economic losses from that disaster were estimated at nearly one-third of the country’s total economy at the time.
The recent flooding was triggered after a glacial collapse in the Himalayan region released a massive flow of rocks, ice, mud, and debris into river systems that eventually surged downstream. The resulting floods affected both Nepal and China’s Tibet Autonomous Region, causing extensive destruction. More than 700 people have reportedly lost their lives, while hundreds remain missing as rescue and search operations continue.
The floods severely damaged settlements in border areas, washing away roads, bridges, and other critical infrastructure. Several major hydropower projects were also affected, raising concerns about the long-term economic impact. Since hydropower facilities account for more than 12 percent of Nepal’s total electricity generation capacity, disruptions to energy production could have significant consequences for industries, businesses, and households.
The disaster presents a major challenge for Nepal’s economy, which relies heavily on remittances, tourism, and hydropower. Damage to transportation networks, power infrastructure, tourism facilities, and local economic activities is expected to slow economic growth and increase pressure on public finances. As a result, the government will need to mobilize substantial resources for relief, rehabilitation, and long-term reconstruction.
Meanwhile, international donors and neighboring countries have begun extending support to help Nepal address the humanitarian crisis and rebuild affected communities. The Asian Development Bank (ADB) has approved a grant of US$5 million (approximately NPR 760 million) through its Asia Pacific Disaster Response Fund. The funding will support emergency rescue operations, medical supplies, food assistance, safe drinking water, temporary shelters, sanitation materials, debris clearance, emergency repairs, transportation, and relief management activities.
ADB President Masato Kanda reaffirmed the institution’s commitment to supporting member countries during times of crisis. He stated that the assistance would help provide essential services and humanitarian support to affected populations. In addition, the bank is preparing to provide up to US$150,000 through another facility to support post-disaster needs assessments, recovery planning, and future reconstruction efforts.
The World Bank has also initiated discussions on emergency assistance for Nepal. According to the Ministry of Finance, World Bank Country Director David Sislen informed Finance Minister Wagle that the institution could mobilize up to NPR 25 billion from various funding sources to support emergency response and recovery initiatives.
As authorities continue assessing the full extent of the disaster, both national and international efforts are expected to play a crucial role in helping Nepal recover, rebuild damaged infrastructure, and restore livelihoods in the affected regions.