Nepal has secured US$20 million (Rs 3 billion) in climate finance under a global mechanism for disaster-prone countries, officials said Wednesday, as the government works out how to pay for a flood recovery bill that could reach $5 billion.
The funding was approved under the Barbados Implementation Modalities, part of the architecture of the Fund for responding to Loss and Damage (FRLD), based on proposals Nepal submitted earlier this year, according to Maheshwar Dhakal, an alternate member of the FRLD Board and the focal point for climate change at the Ministry of Forests and Environment. The Alternative Energy Promotion Centre must still address reviewers' comments before the money is released, Dhakal said.
The application predates the August 26 disaster, but officials say the funds could still help Nepal respond to the damage caused by the floods. Separately, Nepal filed an urgent request with the FRLD Board on August 31 specifically for flood response, which remains under review. Dhakal said that request has drawn written support from board members representing small island developing states, as well as the Group of Latin America and Caribbean Countries, who have pressed developed-country members from Asia and Europe to schedule a decision.
The $20 million is a fraction of what Nepal needs. A Rapid Damage and Needs Assessment after the flood put losses to public and private property at more than Rs 400 billion (roughly $3 billion), and officials expect a more detailed Post-Disaster Needs Assessment due within five weeks to raise that figure by around 30 percent. That would put the total closer to $4-5 bill
ion.Foreign Minister Shisir Khanal has said the government prefers grants over loans, citing the debt Nepal took on after the 2015 earthquake, but has not ruled out borrowing to close the gap. The National Planning Commission's assessment will form the basis of a donor conference the government plans to convene once the figures are finalised.
The floods, triggered by a glacial lake outburst on August 26, killed more than 1,350 people, according to Nepal Police figures reported in early September, with thousands more affected and homes, roads, bridges and hydropower plants destroyed along the Bhote Koshi-Trishuli corridor. Search, rescue and identification work continues more than two weeks on.
For Nepalis abroad
The government's main channel for public donations is the Prime Minister's Disaster Relief Fund, which by law can only be spent on rescue, treatment, relief, rehabilitation and infrastructure restoration not administrative costs and is audited annually. Nepali missions abroad, including the Embassy in Washington and the Consulate General in New York, have been circulating official bank account and QR code details published by the Prime Minister's Office.
Aid officials caution that fundraising scams are common in the days and weeks after a disaster. Before transferring money, donors should verify account details only through official embassy or consulate channels not through forwarded social media posts or unofficial links.
ICN staff report
