Nepal flash flood losses could run into ‘few billions’, says minister; seeks ‘different fundraising campaign’

“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,” the minister said.

The losses from the flash floods in Nepal could run into at least “a few billion dollars”, the country's finance minister Swarnim Wagle said, while seeking a “different fundraising campaign” for reconstruction.

This comes even as the Nepal Police said at least 547 people were killed in the flash floods. (ANI Video Grab)

“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 in an interview with Bloomberg Television.

This comes even as the Nepal Police said at least 547 people were killed in the flash floods which surged through the border region between Nepal and Tibet, sweeping away entire villages, AFP reported. The disaster has prompted the $45 billion economy to seek international funding for the massive reconstruction efforts.

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‘Losses and damages to be quantified in a week, preliminary estimates worrying’

Wagle said the losses and damages from the tragedy “will be finally quantified in a week or so” and “will amount to at least a few billion dollars”. The Nepal minister termed preliminary estimates as “quite worrying.”

Tracing the disaster management following the floods, Wagle said the first phase involving rescue and relief is currently underway. In the second phase, according to Nepal's finance minister, the country's government is planning to put in place temporary shelter. This would also include providing basics like food, water, electricity, and telecommunications, and “possibly “cash for work initiatives.””

The minister highlighted the global aid, saying multilateral institutions including the World Bank and Asian Development Bank have committed funds for humanitarian needs. He said neighbouring countries including India and China had also provided supplies and financial assistance.

“The World Bank has committed to siphon off at least 10% of its un-dispersed allocation for other projects to these humanitarian needs. So that will amount to about $160 million…Similarly, the Asian Development Bank has committed $5 million,” Wagle told Bloomberg.

New Delhi has sent more than 10 tonnes of supplies including medicines, tents and solar lamps, which was followed by another 35 tons aboard an Indian Air Force heavy transport aircraft on Thursday.

Nepal businessman says ‘won’t be surprised' if rebuilding costs hit $5 billion

Wagle's remarks come after Nepal’s billionaire businessman Binod Chaudhary told Bloomberg News that he wouldn’t be surprised if rebuilding costs hit $5 billion. The businessman owns the Chaudhary Group, which spans 12 business verticals, from food and telecom to infrastructure and banking.

The finance minister said Nepal has an established bilateral mechanism for channeling aid from both the Indian and Chinese government. When asked about warnings of a second outburst, Wagle told Bloomberg that Nepal's government was aware of them and people were being evacuated to safer places.

“Right now, the river basin that might be potentially be affected is really uninhabitable,” he said, adding that there was “no one there” at present.