Kathmandu, Nepal: With a devastating flash flood sweeping through the Himalayan border region between Nepal and Tibet, the government has moved to mobilize around Rs 20 billion in immediately available resources for rescue, relief and disaster management, while seeking additional financial support from international development partners.
The disaster, which struck on Wednesday after the collapse of a glacier and a massive flow of ice, rock and mud, has caused widespread destruction along the Nepal–Tibet border. Roads, power infrastructure and settlements have been damaged, while rescue teams have been working to reach people trapped or displaced by the sudden surge of floodwater. Reuters reported that at least 157 people had been confirmed dead as of Wednesday, with the number expected to rise.
Against the backdrop of the rapidly unfolding humanitarian emergency, the government has begun arranging financial resources that can be deployed immediately to support affected communities.
The Ministry of Finance has said resources available through the Prime Minister’s Relief Fund, the Ministry of Home Affairs and other government mechanisms will be mobilized according to the requirements on the ground.
The immediate focus is on saving lives, reaching stranded people and providing essential assistance to families whose homes and livelihoods have been affected.
Government preparing resources before needs grow
Finance Secretary Dr. Ghanshyam Upadhyay said the government is working simultaneously on disaster response and the mobilization of additional financial resources.
“We are focused on disaster management and resource management. We are continuously in dialogue with donor agencies,” Upadhyay said.
The approach reflects the scale and uncertainty of the disaster. While rescue and relief operations are the immediate priority, the government expects the financial requirements to increase as the full extent of damage becomes known.
Officials are therefore working to ensure that money is available not only for the first phase of emergency relief but also for the restoration of essential services and infrastructure.
The approximately Rs 20 billion identified by the government is expected to provide an initial financial cushion for emergency operations. Further resources will be arranged depending on the damage assessment and the needs of affected communities.
World Bank ready to mobilize up to Rs 25 billion
In a major effort to strengthen Nepal’s financial capacity to respond to the disaster, the World Bank has indicated its readiness to mobilize up to Rs 25 billion in emergency assistance.
The World Bank’s support is being considered through disaster-response financing mechanisms, including the Catastrophe Deferred Drawdown Option (Cat DDO) and other available financing channels.
The World Bank has explained that Cat DDO is designed to give governments rapid access to financing following a major disaster, providing immediate liquidity while additional resources are mobilized for recovery.
Recent reporting said World Bank Country Director for Nepal David Sislen contacted Finance Minister Dr. Swarnim Wagle following the disaster and conveyed the Bank’s readiness to mobilize up to Rs 25 billion for emergency response and restoration of damaged infrastructure and essential public services.
The amount, therefore, should not be understood as funds already deposited in the government’s account. Rather, it represents financing that the World Bank has indicated can be mobilized through the appropriate mechanisms and procedures.
Funds needed beyond immediate rescue
For families caught in a sudden disaster of this scale, the first need is often basic: finding missing relatives, securing shelter and obtaining food, water and medical assistance.
But the financial consequences extend well beyond emergency relief.
The destruction of roads and bridges can isolate communities and make it difficult for rescue teams to deliver supplies. Damage to electricity and communication systems can leave affected settlements cut off from the rest of the country. Water infrastructure may also require urgent repair to prevent additional public-health problems.
The government will therefore have to balance two immediate demands—providing assistance to people in distress while restoring the infrastructure needed to make that assistance possible.
Accounts opened through 10 banks
The government has also made arrangements involving 10 banks to facilitate the management and coordination of funds for disaster response.
The resources will be directed according to the needs identified by the responsible government agencies. The intention is to ensure that money required for rescue, relief and other emergency operations can be made available without unnecessary delays.
As the damage assessment progresses, the government is expected to determine which areas require the greatest financial intervention and where additional resources will be needed.
International assistance becoming increasingly important
The government has also intensified discussions with development partners and donor agencies as it prepares for the possibility that the disaster will require considerably more resources than are currently available.
The international response is already beginning to take shape. The United Nations has said it is mobilizing supplies and personnel to support affected communities, while India and South Korea have also been coordinating assistance and rescue efforts.
For Nepal, the immediate challenge is not only to bring relief to affected people but also to coordinate these offers of assistance so that resources reach the areas where they are most urgently needed.
Full cost of disaster still unclear
The government has not yet established the total financial cost of the disaster. That figure is likely to become clearer only after rescue operations are completed and technical teams are able to assess damage to homes, roads, bridges, hydropower facilities and other infrastructure.
The scale of the destruction reported along the border suggests that recovery could require substantially more money than the resources needed for the first phase of emergency relief.
The World Bank has previously worked with Nepal on disaster-risk financing, including a Cat DDO operation designed to provide rapid access to financing following major disasters. World Bank documents describe such contingent financing as an important component of Nepal’s disaster-risk financing strategy.
Focus now on saving lives
For the government, however, the immediate priority remains the people caught in the disaster.
Rescue teams are working in difficult terrain, while damaged infrastructure, flood debris, power outages and difficult access are complicating operations. Reuters reported that helicopters were unable to land in some severely affected areas because of the conditions.
The financial arrangements being made by the government are intended to ensure that rescue and relief efforts do not stop for lack of resources.
The approximately Rs 20 billion in domestic resources and the up to Rs 25 billion in potential World Bank financing will provide an important starting point. But as the waters recede and the extent of the destruction becomes visible, Nepal is likely to need further assistance for rehabilitation, reconstruction and the restoration of livelihoods.
For thousands of affected families, the real test will begin after the immediate emergency has passed—when damaged homes and infrastructure have to be rebuilt and communities have to find a way back to normal life.
