September 19, Kathmandu.
Finance Minister Swarnim Wagle expressed gratitude to Indian Prime Minister Narendra Modi, the Government of India, and the people of India for their assistance in rescue and relief efforts following the devastating floods and landslides. He stated that Nepal would require significant international support for post-disaster reconstruction.
Speaking to the Indian news agency ANI, Wagle mentioned that India has assisted Nepal this time as well, similar to its support after the 2015 earthquake. He noted that the damage caused by the recent disaster is a serious challenge not only for Nepal but for all of South Asia.
According to Wagle, the latest preliminary damage assessment indicates physical damage in Nepal amounting to approximately 2 billion US dollars. Similarly, there is a preliminary estimate of an additional 1 billion dollars in economic losses. He stated that if the goal is to ‘Build Back Better,’ meaning to construct safer and more sustainable structures, the reconstruction cost could exceed 4.5 billion to 5 billion US dollars in the coming years.
Wagle stated that Nepal expects support for reconstruction from international partners, including India. He mentioned that Nepal does not wish to specify a definite amount of assistance expected from India. Recalling that India provided 1 billion dollars in assistance when Nepal requested approximately 4 billion dollars from the international community after the 2015 earthquake, Wagle noted that 25 percent of that was a grant and the rest was a concessional loan.
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Nepal will also initiate discussions on using innovative financial instruments for reconstruction, including ‘Debt for Recovery Swaps.’ He stated that creative financial options would be sought with international partners and neighboring countries based on needs and circumstances. Wagle informed that approximately 1,400 people died and over 5,000 went missing due to the disaster. Among the missing, about 190 were Indian citizens, he added.
Stating that such disasters could increase further in the coming days due to climate change, Wagle emphasized that the international community’s attention should be focused on vulnerable and high-risk countries like Nepal. He noted that despite Nepal’s low greenhouse gas emissions, the Nepali people are experiencing the impacts of climate change.
As part of the campaign to mobilize international assistance, Wagle is preparing to hold discussions with various countries and organizations, including Doha, New York, and Washington D.C. He stated that he would discuss reconstruction and financial assistance with the Asian Infrastructure Investment Bank, the World Bank, and the United Nations.
He also mentioned that he would participate in the annual meeting of the Bretton Woods institutions in Bangkok in October. Wagle stated that Prime Minister Balen Shah would also raise the issues of disasters faced by Nepal, climate-related risks, and the need for international assistance for reconstruction at the United Nations General Assembly. Wagle said that starting his first international visit from New Delhi demonstrates the importance of India’s cooperation in the reconstruction process. ANI
For more: Finance Minister Calls $5B for Nepal Reconstruction
