KATHMANDU, Oct 23: The government has begun preparations to access grant assistance of around Rs 3 billion from the Fund for Responding to Loss and Damage (FRLD) following the fund’s decision to support Nepal in recovering from devastating floods.
At its first extraordinary meeting on Thursday, the fund decided to provide grant assistance to Nepal for the relief, rehabilitation and reconstruction of communities affected by floods in the Bhotekoshi and Trishuli river systems on August 26.
According to the Ministry of Agriculture, Forests and Environment, Nepal will initiate the formal process of accessing the funds once the FRLD Secretariat sends an official letter confirming the decision and outlining the procedures.
Dr Maheshwor Dhakal, the ministry’s spokesperson and an alternate member of the fund, said Nepal would prepare and submit a proposal in accordance with the guidelines provided by the secretariat.
After receiving the formal communication, the ministry will coordinate with the Ministry of Finance to prepare for the utilization of the grant. An organization recognized by the fund will then be invited to prepare and submit a detailed proposal, he said.
“The process of preparing the proposal will move forward based on the guidelines received from the secretariat. Nepal will submit a detailed proposal through an authorized organization. The funds will be received and utilized after the proposal is approved,” Dhakal said.
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National priorities, the needs of affected communities and gaps in existing government resources and programmes will guide the preparation of the proposal. The government plans to prioritize the rehabilitation of flood-affected communities and provide support in areas where assistance is most needed.
Dhakal said several options were available for channeling the funds, including through government accounts, national implementing entities or internationally recognized organizations. The appropriate mechanism will be determined based on the secretariat’s formal instructions, coordination with relevant agencies, and the capacity and preparedness of potential implementing organizations.
The timeline for delivering assistance to affected communities will depend on how quickly Nepal prepares the proposal, secures approval and implements the programme, he added.
The fund’s 10th board meeting is scheduled to take place in the Philippines in December, while its 11th meeting will be held in Nepal from March 17 to 19, 2027. Dhakal said beginning the grant implementation process before the meeting in Nepal would allow the government to update the board on progress and provide information about conditions in the affected areas.
The decision to support Nepal was made at a special board meeting on October 22 in response to a request from the Government of Nepal. It was the first special meeting of the fund dedicated exclusively to disaster-related issues in a single country and the first time the fund had decided to provide assistance to Nepal.
Finance Minister Dr Swarnim Wagle and Minister for Agriculture, Forests and Environment Gita Chaudhary had jointly written to the fund’s board on August 31, seeking urgent assistance to address the human and economic losses caused by flooding in the Bhotekoshi-Trishuli river system.
The request was followed by discussions and consultations among board members and alternate members representing developing and developed countries. The Ministry of Agriculture, Forests and Environment also coordinated with regional groups and held consultations with the fund’s co-chairs and secretariat.
Dhakal, who is also a joint secretary at the ministry, presented information on the floods, the damage they caused and Nepal’s need for assistance, while facilitating coordination among the relevant parties.
According to preliminary government estimates, around 1,500 people died in the floods affecting the Bhotekoshi-Trishuli area, while more than 5,000 remain missing. More than 60,000 people from around 15,000 families have been directly affected.
The initial estimate of economic losses stands at around US$2.7 billion, while preliminary assessments suggest that approximately US$4.7 billion will be needed for reconstruction. The government has also highlighted significant social, cultural and other non-economic losses caused by the disaster.
Dhakal said the government would identify local priorities and needs that existing government programmes could not adequately address before proposing interventions. These would focus on rehabilitating affected families, restoring livelihoods and supporting post-disaster reconstruction.
The government will also consider the capacity of national and international institutions, the time required to prepare proposals and the ability of implementing organizations to deliver programmes effectively.
Nepal views the fund’s decision as an important precedent for supporting developing countries that are particularly vulnerable to climate change and need assistance to recover from climate-related disasters.
Although Nepal contributes negligibly to global climate change, the decision sends an important message that countries disproportionately affected by its impacts can receive timely assistance based on their needs.
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