Donors’ meet proposed to raise reconstruction funds

  • Concept laid at a time when the government has not been able to utilise funds pledged in the past

Kathmandu, February 3

The National Authority for Reconstruction has proposed to hold another international donors’ conference to raise additional funds for post-earthquake reconstruction and rehabilitation works.

The proposition was made by NAR CEO Sushil Gyewali during a meeting held today with Prime Minister KP Sharma Oli and Cabinet ministers in Baluwatar.

Although Gyewali could not be contacted for comments, NAR Acting Secretary Madhu Sudan Adhikari said the proposal was laid after ministries started demanding more funds than estimated by the Post Disaster Needs Assessment conducted right after the earthquakes of April and May.

“But it is just a concept and nothing has been finalised yet,” Adhikari told The Himalayan Times.

The proposal, surprisingly, comes at a time when the government has not been able to prepare plans to utilise $4.11 billion pledged by development partners during the International Conference on Nepal’s Reconstruction held in Kathmandu on June 25.

During the ICNR, the donor community operating in Nepal had pledged to extend $1.97 billion in grant and $2.14 billion in soft loan to rebuild structures damaged by devastating earthquakes and rehabilitate quake victims.

The funding pledge secured at that time was 61 per cent of the country’s total reconstruction and rehabilitation needs of $6.7 billion.

However, of the $6.7 billion that is required to execute the entire reconstruction and rehabilitation works, only $3.8 billion is government’s obligation. The rest of the cost has to be borne by individuals and the private sector.

This means funding pledges of $4.1 billion made by development partners during ICNR is more than enough to execute work related to reconstruction and rehabilitation.

“So, the NAR’s proposal to hold another donors’ conference does not sound logical,” said former finance minister Ram Sharan Mahat, who played a crucial role in bringing around 300 delegates from around 60 countries and agencies to the country during the ICNR. “Instead, focus should be on fulfilling past commitments by expediting implementation of reconstruction projects.”

It’s been more than seven months since the ICNR was held. But even till date the government has not been able to fully roll out reconstruction and rehabilitation projects. As a result, many earthquake victims are forced to spend chilly winter nights in temporary shelters, while other physical infrastructure damaged by quakes are yet to be restored.

These are indications that the government has reneged on its promise, made during the ICNR, to swiftly conduct rehabilitation and reconstruction work. This has made donors unhappy.

One of the reasons for the delay in execution of reconstruction and rehabilitation work is delay in formation of the NAR.

But even after it came into operation in the last week of December, it has not been able to do much, apart from saying full-fledged reconstruction work would begin from April 24.

As a result, the government, so far, has been able to sign agreements to secure only around 25 per cent of the $4.11 billion pledged by development partners.