World Bank signs $300m loan for Nepal quake reconstruction

2018-01-22 08:04
Family members break down during the cremation of earthquake victims in Bhaktapur near Kathmandu, Nepal. (File, Niranjan Shrestha, AP)

Family members break down during the cremation of earthquake victims in Bhaktapur near Kathmandu, Nepal. (File, Niranjan Shrestha, AP)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Kathmandu - The World Bank on Sunday approved a $300 million loan for Nepal as the impoverished nation struggles to raise money to rebuild almost three years after an earthquake killed thousands and flattened homes.

Nearly 9 000 people died when a 7.8-magnitude quake struck in April 2015, destroying more than half a million homes.

Only one in ten of those homes has been rebuilt as the third anniversary of the disaster looms and Nepal faces a $1.2 billion shortfall in reconstruction funds, the World Bank said.

"The gap has decreased" through this loan, said Kamran Akbar, a disaster risk management specialist at the global financial lender.

"We understand that there is still a requirement but there are also others who are supporting Nepal," he told AFP.

Kathmandu estimated the recovery bill from the devastating quake at $6.7 billion but costs quickly spiralled.

The government has faced mounting criticism over the slow pace of reconstruction.

Political wrangling meant Nepalis who lost everything waited nearly a year before receiving their first instalment of a promised housing grant.

In September 2016 the government increased the housing grant by 50%, sending costs soaring.

The National Reconstruction Authority is currently distributing the second tranche of three payments.

International donors pledged $4.1 billion for reconstruction after the quake - the strongest to hit Nepal in 80 years - and the World Bank approved a $200 million loan at the time.

The deal on Sunday also includes $80 million for a livestock project and another $60 million credit for vocational training.

"These three agreements are important for Nepal because they boost job creation, including for many women," said Qimiao Fan, World Bank country director for Bangladesh, Nepal and Bhutan, in a statement.


Read more on:    nepal

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.