🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Aid-dependent Nepal says needs $6.6 billion for post-quake rebuilding

Published 13/06/2015, 12:59
© Reuters. A woman covers herself with a shawl as dust blows while the wreckage of a house damaged in an earthquake is demolished in Bhaktapur

By Gopal Sharma

KATHMANDU (Reuters) - Earthquake-battered Nepal will ask international donors to support a reconstruction plans that is expected to cost $6.6 billion (4.2 billion pounds) over five years, the government said on Saturday.

Two quakes on April 25 and May 12 killed 8,787 people and destroyed more than 500,000 homes, affecting 2.8 million of the Himalayan nation's 28 million people.

Losses to the economy from Nepal's worst disaster on record stand at $7 billion, including from tourism, the government said in a Post Disaster Needs Assessment (PDNA) report.

Suman Prasad Sharma, a senior finance ministry official, said 36 countries and 24 donor agencies had been invited to a conference on June 25 to pledge support for reconstruction.

"We have expectations of a very handsome and good support from our donors during the conference," Sharma said at a function in Kathmandu. Currently, Nepal gets two-thirds of the cost of its economic development in international aid.

Government officials said some donors who cannot pledge more aid could still help Nepal by writing off debt the country owes or delaying repayment schedules. Nepal does not have commercial borrowings from international lending agencies.

Concessional loans mainly from the World Bank and the Asian Development Bank account for 18 percent of Nepal's gross domestic product, according to the officials. The government spends $300 million in debt repayment every year.

Local donors say post-disaster reconstruction must be more accountable in a country that ranked 126 of 176 nations surveyed in Transparency International's corruption perception index in 2014, compared with 116 a year earlier.

Nepal's annual economic growth is expected to slow down to 3.04 percent, the lowest in eight years, from 4.6 percent estimated earlier, according to its statistics bureau, due to the impact of the earthquakes on tourism and infrastructure.

One in every four Nepalis lives on a daily income of less than $1.25.

© Reuters. A woman covers herself with a shawl as dust blows while the wreckage of a house damaged in an earthquake is demolished in Bhaktapur

The quakes have also set back Nepal's efforts to fight poverty by increasing the number of poor by 700,000 to 7.78 million, according to Govind Raj Pokharel, vice chairman of the National Planning Commission.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.