NRA estimates Rs 394.55bn funding gap in reconstruction
Jul 18, 2017-
Kathmandu – The National Reconstruction Authority (NRA) has estimated a shortfall of Rs 394.55 billion to complete reconstruction of structures devastated by the earthquakes of April and May in 2015.
According to NRA, there will be shortage of Rs 201 billion for the purpose of housing and resettlement of the public. The earthquakes had destroyed more than 800,000 houses. Out of the total 744,620 identified beneficiaries, 583,621 have received the first tranche of housing grant worth Rs 50,000 so far.
Meanwhile, 40,849 beneficiaries have taken the second tranche worth Rs 150,000 and 2,173 have received the third instalment worth Rs 100,000, shows the data maintained by NRA.
“Based on the Post Disaster Reconstruction Framework (PDRF), we expect a huge funding gap for reconstruction activities,” said Govinda Raj Pokharel, CEO of NRA.
“However, the yearly budget allocated by the government and the loan and grant from donors could help bridge the gap.”
In preparing the PDRF just after the earthquake, the NRA had assumed that it would cost altogether Rs 838 billion to complete the reconstruction of affected structures and rehabilitation of the affected households. However, as the government raised the housing grant by Rs 100,000 to a total of Rs 300,000 per household, the estimated cost of reconstruction also went up by Rs 100 billion to Rs 938 billion.
Till date, NRA has received Rs 543.45 billion from the government and donor agencies.
According to NRA CEO Pokharel, the authority has taken the initiative to finalise the process of loan with World Bank and EXIM Bank India to fulfil the gap of funds.
The NRA data reveals huge shortfall in funds for reconstruction of educational institutions, including schools and university buildings. More than 4,600 school buildings are yet to be rebuilt out of the total 8,680 destroyed across 31 districts of the country. NRA said it is facing a shortage of Rs 127.08 billion for reconstruction of schools at present.
The authority has received much assistance for reconstruction of heritage sites, health institutions, government buildings and water, sanitation and hygiene projects.
At a glance
||Total required fund
||Expenditure last F/Y & ensured allocation in current FY
|Housing and resettlement
|School, university building
|Water, sanitation and hygiene
||Amount in Rs billion; Source: NRA