Nepal Government Seeks Foreign Aid for Reconstruction After 'Gen-Ji' Protests Damage

Kathmandu. The government is preparing to seek assistance from donor agencies to reconstruct structures damaged during the 'Gen-Ji' protests. According to the Ministry of Finance, the move to secure resources from development partners for reconstruction is being made due to pressure on financial sources.

The Ministry of Finance has formulated a plan to engage in diplomatic efforts to mobilize contributions from development partners and the Non-Resident Nepali community for reconstruction. The federal government alone is spending NPR 4.34 billion in the current fiscal year to rebuild structures damaged by the 'Gen-Ji' protests.

The report mentions a situation where NPR 10.18 billion annually will need to be spent over the next two years. Similarly, provincial governments are spending NPR 812.5 million in the current fiscal year and an annual average of NPR 1.4652 billion over the next two years. Local levels are scheduled to spend NPR 1.4247 billion in the current fiscal year, with plans to spend an annual average of NPR 3.2192 billion over the next two years.

Currently, the government is adopting austerity measures to mobilize resources for reconstruction, such as cutting small and fragmented projects, the federal government refraining from projects smaller than NPR 30 million, and tightening restrictions on vehicle purchases. The Ministry of Finance has initiated discussions with donor agencies regarding the shortfall in resources for reconstruction.

The semi-annual review report recently published by the Ministry of Finance states, "Diplomatic efforts will be made to mobilize contributions from development partners and the Non-Resident Nepali community for reconstruction." According to the report prepared by the committee chaired by the Secretary of the National Planning Commission, physical property damage totaling NPR 84.4577 billion occurred due to the 'Gen-Ji' protests. This was estimated to include NPR 44.9373 billion in damage to government and public sectors and NPR 33.5487 billion in the private sector.

For the reconstruction of the public sector alone, an expenditure of NPR 36.3021 billion is projected, with NPR 19.9898 billion allocated specifically for building reconstruction. The reconstruction work plan for the damage caused by the 'Gen-Ji' protests, formulated by the government, emphasizes maximum mobilization of internal resources, coordination among all three tiers of government, and the construction of disaster-resilient (resilient) infrastructure as key principles of reconstruction. The plan aims to repair structures with minor damage using the current fiscal year's budget and complete the reconstruction of partially or fully damaged structures within three years.