Nepal

Active Grants: 7

GDP (current US$): 24.47 billion (2017)

Population: 29.3 million (2017)

Major Partners

World Bank, Asian Development Bank (ADB), European Union (EU), Japan International Cooperation Agency (JICA), United Nations Development Programme (UNDP) 

INFORM Risk Rating: 5.1

Risk data from INFORM, a global open-source risk assessment for humanitarian crises and disasters, uses a scale from 0-10, with 10 as the highest level of risk.

Primary Hazards

For additional information on the natural hazard risk profile, visit ThinkHazard.

Context

Natural Hazard Risk

In Nepal, approximately 80 percent of the country is vulnerable to multiple natural hazards. Kathmandu Valley is the world’s most at-risk seismic urban area. High urban density and largely unimplemented building codes compound potential earthquake risk. Nepal has experienced significant earthquakes every few generations, with the most recent high-magnitude earthquakes occurring in April and May 2015 when epicenters outside the Kathmandu Valley caused damage and loss of over $7 billion and needs of $6.9 billion.

Flooding of the Kosi River, the largest in Nepal, and other rivers is common. Furthermore, glacier thinning and retreat in the Himalayas has resulted in the formation of new glacial lakes and the enlargement of existing ones. These lakes are inherently unstable and subject to catastrophic drainage and Glacier Lake Outburst Floods (GLOF). Recent surveys indicate that many glacial lakes in Nepal are expanding at a considerable rate, increasing the risk of the danger they pose.

Government Priorities

Nepal has taken steps to advance disaster risk management (DRM) and improve climate resilience. It approved a National Strategy for Disaster Risk Management in Nepal in 2009 and launched a Nepal Risk Reduction Consortium in 2011, an arrangement that united humanitarian, development, and financial partners with the government to reduce disaster vulnerability. Following the 2015 earthquakes, the government created the National Reconstruction Authority (NRA) to take a more centralized approach to recovery efforts.

To further reduce risks and advance its DRM agenda, national priorities include:

  • Improving school and hospital earthquake safety; 
  • Enhancing preparedness and response capacity at all levels; 
  • Building capacity for climate resilient infrastructure and flood risk management; 
  • Building the role of communities as local first responders and risk reducers; and,
  • Strengthening the government’s capacity to implement DRM policies, such as land use  planning and building codes.
GFDRR progress to date

Since 2008, GFDRR has enabled efforts to understand and manage seismic and flood risk in Nepal, as well as rebuild more resiliently after disasters.

Current GFDRR activities are facilitating efforts to improve the safety and quality of Nepal’s school infrastructure. Activities have conducted a damage and structural integrity assessment of school facilities and developed a long-term reconstruction plan that will serve as a basis for a future comprehensive investment. Additionally, GFDRR has been providing capacity building and technical assistance to government agencies in Nepal in several areas, including the evaluation of high value hydrology, radar, lightening detection, and related procurement packages. Technical assistance has also been provided to support the design of the Nepal Agrometeorological Management Information System (AMIS).

Following the 2015 earthquakes, GFDRR helped the Government of Nepal identify reconstruction and recovery needs, access large-scale funding, and begin rebuilding more resiliently. This included support for a government-led post-disaster needs assessment and post-disaster recovery framework, which helped Nepal secure over $4.1 billion for reconstruction and recovery, including $200 million from the World Bank for housing reconstruction. GFDRR support also helped guide preparations for $300 million in additional World Bank financing for housing reconstruction.

Early grant support helped Nepal better assess its natural hazard risks such as flooding at the district level. In 2012, GFDRR and the World Bank launched the Open Cities Kathmandu Project, which trained volunteers to create base maps of the Kathmandu Valley. These preparedness and risk reduction efforts were utilized and expanded following the 2015 earthquakes by the Nepal military, Red Cross, and other organizations. 

GFDRR anticipates continued demand for activities that:

  • Enhance the resilience of critical infrastructure to climate change and natural disasters, including geo-hazard and landslide risk management in transport sector;
  • Strengthen capacity for hydromet monitoring, forecasting, and the delivery of quality climate services;
  • Support rebuilding schools, homes, and other infrastructure following the 2015 earthquakes; and,
  • Strengthen the Government of Nepal’s institutional capacity to manage disaster risk, recovery and administer the NRA.

Grants Awarded by GFDRR 2007 - Present

World Bank Engagements 2012 – Present

Project Description
Building Resilience to Climate Related Hazards
$31 million | Start date: 01/2013 (Ongoing)

The project development objective is to enhance government capacity to mitigate climate related hazards by improving the accuracy and timeliness of weather and flood forecasts and warnings for climate-vulnerable communities, as well as developing agricultural management information system services to help farmers mitigate climate-related production risks.

Nepal Agriculture and Food Security Project
$58 million | Start date: 02/2013 (Closed)

The project development objective is to enhance food and nutritional security of targeted communities in selected locations of Nepal. Food security will be realized through increased food availability, made possible by increasing productivity of agriculture, both crop and livestock. Nutrition security will be realized through improved dietary intake, made possible by promotion of diversified diets, and improved feeding and caring practices for pregnant and nursing women and children up to 2 years of age.

Nepal-India Regional Trade and Transport Project
$99 million | Start date: 06/2013 (Ongoing)

The project development objective is to decrease transport time and logistics costs for bilateral trade between Nepal and India and transit trade along the Kathmandu-Kolkata corridor for the benefit of traders by reducing key infrastructure bottlenecks in Nepal and by supporting the adoption of modern approaches to border management.

Nepal: Pro-poor Urban Regeneration Pilot
$2.75 million | Start date: 10/2013 (Ongoing)

The project development objectives are to (a) contribute to improving the living conditions of poor and vulnerable households in selected wards of the historiccore of Lalitpur City by piloting urban regeneration activities, and (b) demonstrate the feasibility of an integrated urban regeneration approach to decision-makers in the Kathmandu Valley.

Rural Water Supply and Sanitation Improvement Project
$72 million | Start date: 05/2014 (Ongoing)

The development objectives of the project are to: (i) Increase sustainable access to improved water services and promote improved sanitation and hygiene practices in rural areas; and (ii) Develop and implement a long-term support mechanism to promote the sustainability of water supply schemes in selected districts.

Second Post Disaster Financial Sector Stability Development Policy Credit Project for Nepal
$100 million | Start date: 06/2015 (Closed)

The development objectives of the proposed credit are to support the financial sector medium-term reform program initiated by the Nepalese authorities to reduce the vulnerability of the banking sector and increase its transparency.

Earthquake Housing Reconstruction Project
$200 million | Start date: 06/2015 (Ongoing)

The project development objective is to restore affected houses with multi-hazard resistant core housing units in targeted areas, and to enhance the government's ability to improve long-term disaster resilience.

Additional finance to Road Sector Development Project
$55 million | Start date: 08/2016 (Ongoing)

The objective of the Second Additional Financing for the Road Sector Development Project for Nepal is for the residents of beneficiary districts to have all season road access thereby reducing travel time and improving access to economic centers and social services. This constitutes both a scale up of project activities and a restructuring of components to address post-quake needs, further capacity development, and resilience enhancements.

Nepal School Sector Development Program
$185 million | Start date: 03/2017 (Ongoing)

The Program Development Objective is to improve the quality, equitable access, and efficiency of basic and secondary education in Nepal by supporting the Government's School Sector Development Program.

MDTF Funding for Earthquake Housing Reconstruction Project
$10 million | Start date: 08/2017 (Ongoing)

The Project Development Objectives are to restore affected houses with multi-hazard resistant core housing units in targeted areas and enhance Nepal’s ability to improve long-term disaster resilience.

NP: Additional Financing Earthquake Housing Reconstruction
$300 million | Start date: 12/2017 (Ongoing)

The development objective of the Earthquake Housing Reconstruction Project for Nepal is to restore affected houses with multi hazard resistant core housing units in target areas and to enhance the government's ability to improve long-term disaster resilience.

NP Modernization of Rani Jamara Kulariya Irrigation Scheme - Phase 2
$66 million | Start date: 03/2018 (Ongoing)

The objectives of the Second phase of Modernization of Rani Jamar Kulariya Irrigation Scheme Project for Nepal are to improve irrigation services and to promote improved farming practices for farmers in the irrigated areas of the Rani Jamara Kulariya Irrigation Scheme.

Nepal Fiscal Reforms DPC
$200 million | Start date: 03/2018 (Ongoing)

The proposed operation will support the Government of Nepal (GoN) in its efforts to establish a framework to move towards fiscal federalism and improve public financial management.