Nepal pegs flood reconstruction costs at $4.78 billion

Nepal has put the reconstruction requirement from the devastating August 26 floods at about $4.78 billion, sharply exceeding the government’s initial estimate of direct physical damage and economic losses.

The Ministry of Foreign Affairs said the figure came from a Rapid Damage and Needs Assessment prepared after floods tore through northern river valleys, destroying homes, transport links, hydropower facilities and other critical infrastructure. The assessment estimated direct damage at about $1.8 billion and associated losses at roughly $883 million.

Of the reconstruction requirement, about $57.67 million will be needed for short-term recovery and rebuilding over the next six months, while approximately $4.71 billion is expected to be required for longer-term reconstruction, the ministry said at a briefing on September 11.

The government is also carrying out a more comprehensive Post Disaster Needs Assessment to establish the full scale of losses and determine recovery, rebuilding and reconstruction priorities. That exercise could refine the preliminary figures as authorities gain access to damaged areas and complete sector-by-sector evaluations.

Search and recovery operations were continuing more than two weeks after the disaster. The foreign ministry said 1,385 bodies had been recovered by September 11 and about 5,130 people remained missing, including roughly 600 foreign nationals from around 35 countries. A total of 13,676 people had been rescued, including more than 320 foreign nationals. Officials cautioned that the figures remained subject to verification and updating.

The flood struck the Bhote Koshi system at Rasuwagadhi near Nepal’s border with China before surging downstream through Rasuwa, Nuwakot, Dhading and other districts. Water, mud, rocks and debris swept through settlements and infrastructure along the Trishuli river corridor. Authorities have continued technical work to establish the precise sequence and causes of the disaster after a glacier collapse high in the Himalayan border region was identified as a key trigger.

Damage to power infrastructure has become one of the most serious economic consequences. At least 12 hydropower projects were hit by mud and debris, while roads, bridges, electricity connections and telecommunications were severed across affected areas. Government teams have been clearing roads and restoring basic services, including reopening a crossing over the Tadi River at Devighat after installation of an Acrow bridge.

The reconstruction estimate underscores the gap between immediate humanitarian financing and the longer rebuilding task. The United Nations and humanitarian partners launched a $49.6 million emergency appeal on September 4 to support more than 84,000 people, focusing on urgent needs such as shelter, health, food, water and protection as winter approaches in high-altitude communities. The four-month plan operates under government leadership through the National Disaster Risk Reduction and Management Authority and targets gaps in relief delivery and disease prevention efforts.

Kathmandu has sought additional international assistance for specialised rescue and recovery work. Tunnel rescue teams from India, China and South Korea have been working with the Nepali Army, while teams from the United Arab Emirates, Malaysia and Australia have supported search operations. Nepal has also requested equipment including high-capacity drones, LiDAR systems, Bailey bridges, underwater drones, surge pumps and DNA-testing supplies.

Prime Minister Balendra Shah is expected to make the disaster and climate finance a central part of Nepal’s case at the United Nations General Assembly in New York. The foreign ministry said Shah is scheduled to address the General Debate on September 24 and will press for greater access to the Fund for Responding to Loss and Damage, climate finance and technology for resilient infrastructure and climate-smart agriculture.

Nepal’s government argues that the country’s limited contribution to global greenhouse-gas emissions contrasts with its exposure to rapidly changing Himalayan conditions. The August disaster has intensified concern over glacial instability, extreme rainfall and the vulnerability of settlements, roads and hydropower installations in steep mountain valleys.