Kathmandu is seeking loans and grants for infrastructure and reconstruction projects following August’s devastating floods
Nepal is seeking more than $2 billion in loans and grants from India to rebuild flood-damaged infrastructure, and finance energy and transportation projects, the Kathmandu Post reported on Wednesday.
The devastating Bhotekoshi-Trishuli floods that struck the Himalayan country in August swept away settlements, and damaged roads, bridges, and hydropower facilities. Recovery and reconstruction costs are estimated at $4.74 billion.
The proposed package includes more than $1 billion in concessional loans for electricity transmission lines and other infrastructure projects, $500 million for flood reconstruction, and a $500 million grant to upgrade the Siddhartha Highway connecting the Indian border with the city of Pokhara.
New Delhi provided emergency relief supplies and technical support to Nepal following the disaster, in which around 1,500 people are confirmed dead and nearly 6,000 remain missing.
The funding request comes as Indian Foreign Secretary Vikram Misri is in Kathmandu on a two-day visit, ahead of an expected visit by Nepali Prime Minister Balendra Shah to New Delhi later this month.
Shah’s visit, his first bilateral trip to India since taking office, is also expected to feature Indian-backed infrastructure projects, including the Lower Arun hydropower development and a petroleum pipeline linking India’s Siliguri with Nepal’s Jhapa. Neither government has formally announced the dates of the visit.
The funding request has not yet been approved, with negotiations expected to continue ahead of a possible announcement during Shah’s visit, the report said.
Nepal’s finance minister, Swarnim Wagle, sought Indian support for post-flood reconstruction during a meeting with his counterpart, Nirmala Sitharaman, in New Delhi.
India also provided $1 billion toward Nepal’s reconstruction following the 2015 earthquake.
