Kathmandu, 06 November (H.S.): The Nepal government has initiated efforts to mobilise $4 billion to $5 billion required for reconstruction and rehabilitation in the aftermath of the Bhotekoshi-Trishuli disaster.

Finance Minister Swarnim Wagle said on Friday that the government was holding discussions with India, China, the World Bank and the Asian Development Bank (ADB) to secure the necessary financial resources. Addressing a meeting of the Parliamentary Special Committee on the Impact of Climate Change in the Himalayas, Climate Justice and the Bhotekoshi-Trishuli Disaster at Singha Durbar, Wagle said the government aims to mobilise the required funds over the next three to five years. It expects to secure approximately 80 per cent of the total requirement from these four sources, while the remaining 20 per cent is expected to come from other development partners and donor agencies.

According to the Finance Minister, discussions are under way with India on a special financial assistance package for reconstruction and development projects. He expressed hope that agreements on the matter could be reached during the Prime Minister’s forthcoming visit to India.

Wagle said negotiations with China cover post-disaster reconstruction, the development of modern infrastructure and the expansion of alternative trade routes. Discussions also include developing infrastructure connecting the Rasuwa, Tatopani and Korala border crossings. The proposed infrastructure plans envisage the construction of railway lines, tunnels, viaducts and modern customs facilities.

He said Nepal does not intend to restrict the improvement of its existing roads connecting the country with China to routine repairs and maintenance, but instead wants to upgrade them using modern technology.

Wagle added that intensive discussions were also being held with the World Bank and the Asian Development Bank to arrange the financial resources required for reconstruction. He noted that, for the first time in 39 years, a Nepali Finance Minister had held a direct meeting with the President of the World Bank, describing the engagement as having laid a new foundation for high-level cooperation.

According to the Finance Minister, assurances have been received that financial commitments of up to approximately $1 billion could be secured, as required, through various World Bank institutions and concessional financing mechanisms. He said Nepal also expected a similar level of support from the Asian Development Bank.

Wagle observed that grant assistance was declining globally, making it essential for Nepal to use concessional loans with considerable caution and prudence. He said the country had previously relied heavily on grants to finance its development projects, but such assistance had been steadily diminishing.

Hindusthan Samachar / Jun Sarkar