Devastating Nepal flood damage may cost up to a tenth of economy to rebuild

Nepal is facing a potential $4-$5 billion bill to rebuild following devastating floods this week, according to Finance Minister Swarnim Wagle. The initial estimate is between $4-$5 billion, but Wagle clarified that this would be much less than the $9 billion spent after the country's worst disaster, the 2015 magnitude-7.8 earthquake.

The earthquake killed nearly 9,000 people, destroyed over half a million homes, and caused losses estimated at about a third of Nepal's economy. However, Wagle did not provide details on why the reconstruction cost for the recent floods is expected to be lower. The recent floods, triggered by a glacier collapse on Wednesday, swept through Himalayan mountain river systems, killing over 600 people in Nepal and China's Tibet, with more than 2,000 still missing.

The floods devastated towns in the border area, destroying bridges and roads, and damaging major hydropower stations. The floods will be a significant setback for an economy heavily reliant on remittances, tourism, and hydropower, as the damage to power projects accounts for more than 12% of national generating capacity.