Nepal business, finance and trade news, every Wednesday.
Rasuwa Floods Damage 27 Hydropower Projects
Floods in Rasuwa have brought damage to 27 hydropower projects and their transmission cables. Twelve projects were active and generating power, 15 of them were still under construction. Estimated losses are Rs 150 billion ($987 million), which is more than 90 percent of the Nepal Electricity Authority's entire revenue last fiscal year. The Rasuwagadhi plant has flooded three times in 15 months, most recently after a rock and ice avalanche on Langtang Lirung in August. The government thinks it can keep its target of 30,000 MW by 2035, but water expert Ajaya Dixit says the repeated damage should be cause for Nepal to reconsider the goal.
Read more: The Kathmandu Post
Investment Board Clears Upper Karnali Construction
Investment Board Nepal has given the go-ahead to India's GMR Group so that they can start building the 900 MW Upper Karnali Hydropower Project. The developer has five years to finish the project, but they say they are waiting to begin until they get the official letter in their hands. GMR said India's IREDA had given a positive indication on its request for an INR 65 billion loan (Rs 103.94 billion, $684 million) to support the build. Nepali banks have also given preliminary approval for Rs 20 billion ($132 million) of financing. GMR's stake has been reduced from 73 percent to 34 percent to equal the share that’s held by India's state-owned SJVN.
Read more: The Kathmandu Post
Inflation 6.34 Percent as Floods Raise Food Prices
Nepal's consumer inflation was reported to be 6.34 percent in mid-September, which is more than triple the rate it was a year ago and continuing to move the wrong way as it is even up from 5.96 percent in mid-August. Disruptions from floods and landslides helped drive the increase.
Read more: myRepublica (inflation by province), Asian News Network (apple shipping costs)
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China Reopens Tatopani for Three Days
China has reopened Tatopani for Dashain imports, although maybe only for three days since no commitment has been made to restart regular trade. Chinese Ambassador Zhang Maoming told Nepal’s Commerce Minister Deepak Kumar Sah that a longer reopening would need an assessment of security, logistics and landslide risks. Nepali officials say Beijing is worried about Tibetan refugees crossing the border and taking part in anti-China activity in the area.
Read more: The Kathmandu Post (Beijing's security concerns), Tibetanreview (border policy history), The Kathmandu Post (stranded festival cargo)
UN Fund Weighs Flood Recovery Money
The board of the UN's Fund for Responding to Loss and Damage is expected to vote tomorrow on setting aside $20 million for Nepal to support recovery from the August floods that killed more than 1,400. The motion is expected to pass and would be the first time the fund has set aside money for a specific disaster. Nepali officials say the amount is not enough, and will be mostly symbolic when measured up against the government's $4.78 billion reconstruction estimate. Kathmandu will be required to put forward a proposal for board approval. The entire fund has only $350 million available and it is currently considering about 180 requests worth $2.8 billion. The Cabinet has declared five areas in Gorkha, Dhading and Baglung disaster zones for three months. In Gorkha, the Budhi Gandaki flood swept away 200 homes and five bridges, damaged three hydropower plants and left at least six people missing. Families of up to four people who get housing that’s outside the government shelters that have been set up will be able to get Rs 15,000 ($99) a month for six months, plus Rs 2,000 ($13) for each additional family member. The Nepali Army has airlifted 1,044 people, including 70 foreigners. The Cabinet also accepted emergency grants of 298 million yen from Japan and 20 million euros from Germany.
Read more: Climatechangenews (proposed funding), Ua News (board meeting), myRepublica (COP31 priorities), myRepublica (Nepal's aid request), France 24 (UN recovery view), AFP (climate context), myRepublica (disaster-zone relief), myRepublica (airlift totals)
Health Federation Chief Arrested for Worker Fees
Police have picked up and arrested Nepal Health Professionals Federation president Kailash Khadka and three other medical service providers on charges of fraud and organized crime. The Central Investigation Bureau claims that they collected an extra "biomedical service charge" from workers that were on their way to Malaysia, although Labor Ministry officials say the charges had been properly approved. The Department of Foreign Employment has also (separately) issued arrest warrants for operators of the 25 agencies Malaysia chose as its main recruiters. Malaysia told Kathmandu that beginning November 6 it is only going to accept workers through agencies already registered in its system.
Read more: The Kathmandu Post
Remittances Rise, New Labor Approvals Fall
Remittances were up almost a quarter (23.9%) early in fiscal 2026/27, at Rs 436.36 billion ($2.87 billion). New approvals for foreign employment fell to about 78,000 from 90,000 a year earlier, and re-entry approvals for returning workers were up to about 52,000 from the previous 46,000.
Read more: myRepublica
Nepal and World Bank Explore Quake Bond
Nepal and the World Bank have agreed to explore a catastrophe bond that could result in the provision of up to $190 million in the aftermath of a “major” earthquake. The fully collateralized bond could give Kathmandu quick access to recovery money, although nobody hopes the fund will ever need to be tapped. The World Bank is going to look into the structure in concert with the government and market players to see if the thing might be viable, but there’s been no talk yet about cost or anything resembling a specific timeline.
Read more: Reuters (government mandate), Businessinsurance (possible bond size)
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