Kathmandu: Nepal will receive $20 million in aid from a UN climate damages fund to support relief and rehabilitation in the Himalayan nation in the aftermath of the Bhotekoshi floods that killed over 1,500 people.
The decision was made during a special meeting of the Fund for Responding to Loss and Damage (FRLD), as reported by the Ministry of Agriculture, Forest and Environment.
The Nepal government had formally requested assistance on August 31 to address the significant human and economic toll of the floods, which affected over 60,000 individuals across approximately 15,000 households.
The floods that struck the region on August 26 caused extensive damage and loss of life. Preliminary estimates indicate that around 1,500 people reportedly lost their lives, while more than 5,000 remain missing.
The FRLD has approved a grant of $20 million (Nepalese rupees 3 billion) to Nepal for relief and reconstruction efforts following severe flooding in the Bhotekoshi and Trishuli river regions.
Maheshwar Dhakal, joint secretary at the ministry, informed that extensive discussions among board members from both developed and developing nations facilitated the approval of Nepal's request.
To access the funds, Nepal is required to submit a detailed project proposal aimed at supporting the flood-impacted communities. Preliminary assessments reveal that the August 26 floods caused initial economic damages estimated at $2.7 billion.
The total reconstruction costs are projected to reach $4.7 billion. The fund's decision is regarded as a crucial step in addressing the vulnerabilities of developing countries to climate-related disasters and is expected to advance the implementation of climate justice initiatives.
The FRLD represents a UNFCCC-mandated financial instrument that was established during COP27 proceedings and subsequently operationalised at COP28 to provide assistance to economically vulnerable developing nations confronting climate-related economic and non-economic losses.