Nepal faces a massive reconstruction challenge as fresh flooding threats complicate rescue efforts and damage estimates run into billions of dollars
Nepal could face a reconstruction bill of at least $5 billion after devastating floods tore through its mountainous border region with China, the country’s only billionaire Binod Chaudhary told Bloomberg TV.
The estimate came as rescue operations continued in areas hit by flash floods on August 26.
In a latest development, Nepal Police said a dam in Tibet had burst and urged security personnel, rescue workers and members of the public involved in relief efforts to move to safer locations.
“All security personnel, rescue workers, and the general public deployed in rescue and relief operations are requested to remain alert and immediately move to a safe location,” police said in the warning.
The development threatens to further complicate an already difficult rescue operation. A lake formed by debris from the earlier disaster has also raised concerns about renewed flooding, with authorities warning people in vulnerable areas to move to higher ground.
At least 469 people have been confirmed dead in Nepal, while around 1,000 people remain missing across Nepal and Tibet, according to the latest reports. The toll is expected to change as rescue teams reach remote and badly damaged areas.
More from BusinessNepal could face $5 billion rebuilding bill
The scale of the disaster is now turning attention from rescue operations to the enormous reconstruction task ahead.
Binod Chaudhary, chairman of Chaudhary Group and Nepal’s only billionaire, told Bloomberg TV that he would not be surprised if the eventual cost of rebuilding the country’s infrastructure reached $5 billion.
“I wouldn’t be surprised” if the eventual costs climb to that level, Chaudhary said, according to Bloomberg News. He stressed that the challenge was not only the financial cost but also the time required to rebuild in Nepal’s difficult geography.
“It is a huge issue in front of us,” he said, referring to the rehabilitation process and the need to restart economic activity.
The floods tore through Nepal’s mountainous border region with China on August 26, sweeping away villages, roads and bridges. Power infrastructure was also damaged, adding to the disruption caused by the disaster.
The full scale of the economic damage is still being assessed.
Finance minister warns of billions in losses
Nepal’s Finance Minister Swarnim Wagle has separately warned that the country could face losses of at least a few billion dollars.
“Cumulatively, I think the losses and damages, when they will be finally quantified in a week or so, will amount to at least a few billion dollars,” Wagle said, according to Bloomberg News.
He described preliminary estimates as “quite worrying”.
The comments from Wagle give added weight to concerns over the eventual reconstruction cost, although the $5 billion figure cited by Chaudhary remains an estimate rather than an official government assessment.
Nepal’s geography presents an additional challenge. Much of the affected region is mountainous and difficult to access, while the floods have destroyed or damaged some of the very infrastructure needed to transport people, equipment and supplies.
Fresh threat puts rescue operations at risk
For now, however, the priority remains finding survivors and accounting for the missing.
The fresh warning over the dam burst in Tibet adds another layer of danger for rescue teams already working in unstable terrain. A lake formed by debris near the Nepal-China border has overflowed, forcing rescuers to withdraw from some areas and temporarily halt operations.
The disaster has already destroyed roads, bridges and power facilities and swept away entire settlements. More than 3,200 people have been airlifted from affected areas, according to the Associated Press.
With the immediate rescue effort still underway, Nepal is already confronting the scale of the task that will follow: restoring infrastructure, rebuilding homes and businesses and reviving local economies in some of the country’s most difficult terrain.
