Bhotekoshi-Rasuwa flood: energy sector losses near 150 billion, financial recovery needs about 65 billion

A preliminary assessment by the National Planning Commission shows that the flood that struck Bhotekoshi on Bhadau 10 caused damage worth about 133 billion rupees to the energy sector.

According to the commission's post-disaster needs assessment, 14 hydropower projects, 6 substations, and transmission and distribution lines in Rasuwa and Nuwakot were damaged. Of the affected projects, half belong to the private sector and half to the Nepal Electricity Authority and its subsidiaries.

The commission estimates that about 219 billion rupees will be needed to revive the energy sector. Energy Ministry spokesperson Mohan Kumar Shakya said discussions are underway on reconstructing and redesigning the projects.

Bijaya Mohan Bhattarai, secretary of the Independent Power Producers' Association, Nepal (IPPAN), said a special package with loan restructuring, extended time and concessions is needed.

The commission estimates that restoring the financial sector will cost about 65 billion rupees. According to the Nepal Bankers' Association, 15 of 17 branches belonging to 12 banks in the flood-hit area were completely damaged.

The association said those branches had about 78,000 depositors, around 4.5 billion rupees in deposits, and about 2.43 billion rupees in loans.