Key Points

In a press conference on Thursday, Minister for Physical Infrastructure and Transport Kulman Ghising publicly announced the establishment of a high-level committee and a dedicated fund to facilitate the reconstruction. The move aims to provide necessary financial resources for repair, rehabilitation, and economic restoration following widespread destruction.

"During the Gen-Z movement of Bhadra 23 and 24, 2082 (September 8 and 9), the physical infrastructure of the nation was set on fire and vandalised, causing great loss of property and lives. With the aim of assessing and reconstructing such damage to physical infrastructure, the Government of Nepal, in accordance with the decision of the Council of Ministers dated 2082/06/05, has approved and implemented the Physical Infrastructure Reconstruction Committee (Formation) Order, 2082. The said formation order has constituted a committee named Physical Infrastructure Reconstruction," Kulman Ghising, the Minister for Physical Infrastructure and Transport, announced.

As per the minister, the fund will support reconstruction, repair, economic revival, relief, and rehabilitation programs.

Due to the significant structural damage caused by arson and vandalism during the Gen-Z movement, the government has called for immediate financial resources for reconstruction, repair, relief, and rehabilitation.

"This committee will formulate and approve the reconstruction action plan for the physical structures damaged by the movement. This committee will also approve the programs to be spent from the fund. Similarly, this committee will also regularly monitor and supervise the programs. This formation order mentions that the Ministry of Urban Development will have a secretariat and staff management. The formation order has made provision for a fund for the reconstruction, rehabilitation, relief and rehabilitation of the physical structures damaged by the movement," Ghising said.

The committee's term is initially one year, with a possible six-month extension if required. During the Gen-Z protests on September 9, several key government offices, including Singha Durbar, the President's Office, and the Supreme Court, were damaged by violent groups. For this purpose, a dedicated fund will be created to finance the rebuilding effort. Contributions will come from the federal, provincial, and local governments, as well as donations from individuals in Nepal and abroad.

The fund may also receive in-kind or financial assistance from foreign governments, international organisations, donor agencies, and corporate social responsibility programs, with prior approval from the Finance Ministry required for any foreign or international support. Funds will be used to restore damaged infrastructure, purchase essential equipment, furniture, and machinery, and support recovery, relief, and rehabilitation programs.

The interim government, led by Prime Minister Sushila Karki, has formed a five-member committee for reconstruction, headed by Finance Minister Rameshore Khanal. The Home Minister and the Minister for Urban Development are also its members.

The committee is responsible for preparing and approving the action plan for the reconstruction of physical structures damaged during the Gen-Z movement. It will approve the program, along with the amount of money to be spent from the fund, and will also assign responsibilities to the authorities for the reconstruction of damaged structures. The Finance Ministry stated that the committee will be responsible for operating the fund and monitoring programs operated with it.

This initiative marks a significant step toward restoring infrastructure damaged during the protests, while also encouraging national and international support for Nepal's reconstruction efforts. Government and private sectors are assessing the damage and destruction inflicted during the Gen-Z movement that could amount to over NRs 200 billion.

"Regarding the details of the damage, we are currently assessing the financial damage that has been incurred. We just have preliminary assessments about the number of infrastructures that have been damaged permanently and those which can be repaired and brought to use. Final estimation is yet to be prepared, but tentatively we have estimated the damage to be above one kharba (One Trillion)," Ghising said as he held the press conference alongside Finance Minister Rameshwor Khanal.

According to records with the Nepal Insurance Authority (NIA), a total of 1,984 claims have been filed as of Thursday, with almost all of them linked to private businesses and properties. With public structures uninsured, companies are spared from additional exposure except for government vehicles under third-party liability coverage.

Some insurers are facing unprecedented pressure. Oriental Insurance, a private insurance company, has received claims worth NRs 5.147 billion alone. Another private insurance company, Siddhartha Premier Insurance, has received 258 claims totalling NRs 4.93 billion, while Shikhar Insurance faces 366 claims amounting to NRs 2.39 billion.

The losses have also impacted the government-owned Nepal Reinsurance Company (NRIC), which now carries liabilities of NRs 11.77 billion from 14 non-life insurers. Among its biggest burdens are reinsurance provisions linked to some of the country's most prominent institutions and businesses. These include Bhat-bhateni Superstore, Kantipur Media Group, Ullens School, CG Impex, United Distributors, the looting of 18 kg of gold from Rastriya Banijya Bank's New Baneshwor branch, as well as claims from Pokhara-based Bagaicha Hotel and Hotel Sarobar.

- ANI