How Much Could Nepal Have To Spend To Rebuild After Flash Floods?

Nepal could face a reconstruction bill running into several billion dollars after devastating flash floods swept through its mountainous border region with China, Finance Minister Swarnim Wagle said, as the government looks to international funding for the recovery effort.

"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 told Bloomberg Television.

“Preliminary estimates are quite worrying,” he added.

The comments came as Nepal began assessing the scale of damage from the floods, which have, as of 1 pm on August 28, killed at least 469 people and left more than 1,500 people missing across Nepal and China.

Roads, bridges, settlements and other infrastructure have been severely damaged.

The disaster has revived memories of Nepal’s 2015 earthquake, which killed nearly 9,000 people and triggered a multi-year reconstruction effort costing billions of dollars. The impact from a similar flood disaster in 2024 was also estimated to be over NPR 6 billion.

How Much Will It Cost To Rebuild?

Nepal’s only billionaire, Binod Chaudhary, has separately estimated that rebuilding could cost at least $5 billion.

Speaking to Bloomberg TV, Chaudhary said he “wouldn’t be surprised” if the eventual costs reached that level.

“I wouldn’t be surprised” if the eventual costs climb to that level, Binod Chaudhary, chairman at Chaudhary Group, said.

“It is not only the money, but the amount of time it takes and the difficult geography,” he added.

Chaudhary said the disaster had caused widespread disruption, including damage to power stations. His Chaudhary Group is working with the government, local partners and the army on rehabilitation efforts, including support for displaced people, homes, businesses and schools, per the report.

Nepal Seeks International Support

Wagle said Nepal’s immediate priority was rescue and relief, followed by temporary shelters and restoration of basic services such as food, water, electricity and telecommunications. The government may also consider “cash for work initiatives”.

Wagle said Nepal would need a “different kind of a fundraising campaign” for infrastructure reconstruction and would consult the International Monetary Fund on the disaster’s impact on the country’s external finances and possible support.

The World Bank has committed to redirecting 10% of its undisbursed allocation for other projects towards humanitarian needs, amounting to about $160 million, Wagle said. The Asian Development Bank has reportedly committed $5 million.

India and China have also provided supplies and financial assistance. India has sent relief material including medicines, tents and solar lamps, with a second consignment delivered by the Indian Air Force (IAF).