Kathmandu, October 23 (H.S.): The Loss and Damage Fund, established to address the devastating consequences of climate-related disasters, has approved a grant of USD 20 million for Nepal to help the country recover from the destruction caused by catastrophic flooding. The grant is equivalent to approximately 3.02 billion Nepalese rupees, according to the Ministry of Agriculture, Forests and Environment.

In a statement, the ministry said the funding would be used to support relief, rehabilitation and reconstruction for families and communities affected by the devastating floods that struck the Bhotekoshi and Trishuli rivers on August 26.

The floods have claimed more than 1,500 lives, while over 5,000 people remain missing. More than 60,000 people belonging to approximately 15,000 families have been directly affected by the disaster.

The initial economic losses caused by the floods have been estimated at around USD 2.7 billion, while reconstruction is expected to require approximately USD 4.7 billion.

With the objective of expediting assistance to flood-affected areas, Nepal’s Finance Minister Dr. Swarnim Wagle and Agriculture Minister Geeta Chaudhary made a special request to the Fund’s Board on August 31. Following their appeal, formal and informal discussions were held in several stages among Board members representing developed and developing countries, least developed countries, small island developing states, and regional groupings from Asia-Pacific, Africa, Latin America and Western countries.

Dr. Maheshwar Dhakal, Joint Secretary at the Ministry of Agriculture, said the decision to extend assistance to Nepal was finalised at a special meeting of the Fund’s Board held on October 22. Representing Nepal, Dhakal, who also serves as the ministry’s spokesperson, played a coordinating and supporting role during the process.

To access the approved funding, Nepal will prepare and submit a proposal to the Fund under the procedures of the Barbados Implementation Modalities.

Meanwhile, the ministry announced that the Fund’s 11th Board meeting would be held in Kathmandu from March 17 to 19, 2027.

Dr. Dhakal, Nepal’s national contact point and an alternate Board member of the Fund, described the grant approval as the beginning of a new chapter in the country’s climate finance efforts.

He said the decision represented an unprecedented and historic development in Nepal’s climate finance history. According to Dhakal, the outcome was not only of exceptional significance for Nepal but also marked the opening of a new chapter in the history of the Loss and Damage Fund itself.

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Hindusthan Samachar / Jun Sarkar