Nepal's Physical Infrastructure Minister Sunil Lamsal has announced that preliminary estimates indicate the recent floods have caused over $1.3 billion (NRs 200 billion) in infrastructure damage. This figure represents a significant blow to the Nepalese economy, which was already projected to experience slower GDP growth of 2.3% to 3% in FY2025-26. The World Bank has offered to mobilize up to NRs 25 billion in emergency assistance, highlighting the substantial gap between available aid and the estimated reconstruction costs.
The most severe damage has been inflicted upon the country's transportation and energy networks. Reports indicate that 35 concrete bridges and 45 suspension bridges have been swept away. A critical 40-kilometer stretch of road connecting Betrawati to Rasuwagadhi, a vital trade route with China, has been completely destroyed, severely disrupting cross-border commerce. The Rasuwagadhi customs point has also been fully damaged, affecting goods worth billions of rupees imported for upcoming major festivals. Additionally, six transmission lines have been disrupted, and the 220 kV Trishuli substation has been destroyed, impacting the power supply.
The floods have extended their impact beyond physical infrastructure to affect trade, tourism, and humanitarian efforts. Hundreds of cargo containers, vehicles, and business personnel at the Rasuwagadhi border point were caught in the floods. The Nepal Tourism Board reported 403 tourists out of contact in the Rasuwa region. The government has declared three flood-affected districts as crisis zones, appealing for international assistance, with India already sending 10 tonnes of humanitarian aid. The full economic impact will depend on a detailed damage assessment, the speed of reconstruction, and the effective utilization of external assistance.
