NRA exploring sources for reconstruction budget

Kathmandu, Nov. 19: As the National Reconstruction Authority (NRA) re-estimated the total post-quake reconstruction cost at Rs. 938 billion, it is exploring possible sources and modality for the arrangement of the budget.

NRA chief executive officer Sushil Gyawali said that the reconstruction body had been in consultations with the Ministry of Finance to finalise the possible amount that the government could contribute to the reconstruction over the next five years period.

"After we get to know the exact amount of budget that the government can manage for the post-quake reconstruction works, we will finalise the money expected from the international community, and develop programme to raise the funds," said Gyawali.

In the immediate aftermath of the devastating earthquakes in May and April 2015, the government had organised International Conference on Nepal's Reconstruction (ICNR) where bilateral and multilateral agencies and other international agencies had pledged about Rs. 410 billion.

However, the actual pledged amount was Rs. 343 billion as Rs. 67 billion was for regular programmes.

According to the NRA, of the total support pledged for reconstruction and recovery, Rs. 270 billion had been confirmed through memorandum of understandings till now.

"Donors are committed to provide the money they pledged during the conference and have expressed their interest for additional support. But, there should be significant progress in the reconstruction drive," said Gyawali.

This is the third time the total cost of reconstruction has been readjusted.

The Post Disaster Need Assessment (PDNA) had estimated Rs. 669 billion budget for the reconstruction of quake-damaged houses and other infrastructure.

In July this year, the reconstruction body had prepared Post-Disaster Recovery Framework (PDRF) with detailed plan of action with the projection of Rs. 838 billion budget for five years.

The PDRF said that the budget would be spent in the areas such as private housing, public buildings, tourism, health, industry, education, heritage sites, disaster management and employment generation initiatives.

But, as the government, in September, decided to increase the housing grant by Rs. 100,000 for each recipient of housing support, the total cost for reconstruction and rehabilitation went up again.

"Apart from the additional housing grants, the government is considering to spend Rs. 100,000 for retrofitting. This will add another Rs. 80 billion to the PDRF estimate, estimating the total number of recipients at 800,000," said the NRA.

Pledges and agreements (dollars)

Agreement made         2.72 billion

Total Pledge                4.11 billion

Grant                           1.97 billion

Soft Loan                    2.14 billion

New Pledge                2.74 billion

Existing Reallocation  1.33 billion