Nepal seeks grants, not loans, for flood recovery after deadly glacier disaster

Nepal's Prime Minister Balendra Shah advocated for grant-based international support at the United Nations General Assembly to aid the South Asian nation in its recovery from a devastating glacier flood that claimed at least 1,450 lives. The economic impact of the disaster has been substantial, with estimated recovery and reconstruction costs amounting to around 10% of Nepal's GDP. Shah stressed that vulnerable countries should not be burdened with additional debt to rebuild from catastrophic climate events.

In his plea, Shah emphasized the need for a more comprehensive and equitable approach to disaster recovery, advocating against the use of loans as the sole solution. He urged the international community to provide adequate grant-based assistance to Nepal, highlighting the urgent need for a coordinated international response to address the growing risks posed by climate change.

Shah also called for enhanced cooperation between Nepal, India, and China to bolster climate resilience. He proposed the establishment of a Himalayan mechanism aimed at sharing satellite data, monitoring glacial lakes, strengthening early-warning systems, and coordinating disaster responses across borders. The recent flood, which he described as a stark warning of the escalating risks associated with climate change, resulted in the destruction of roads, bridges, schools, homes, and livelihoods, thus disrupting Nepal's development progress.

The flood, triggered by the collapse of a glacier near the border between Nepal and China's Tibet Autonomous Region in late August, caused landslides and a flash flood that swept through downstream valleys. As of now, more than 6,000 people remain missing, with the possibility that many may never be found. The World Bank recently allocated up to $170 million in emergency financing to aid Nepal in its response to the disaster and to initiate recovery efforts.