Earthquake relief promises made by Nepal government, organizations and individuals

South Asia Check / July 22, 2015

Children at an earthquake-damaged school in Jogimara village in Dhading district. The red poster on the wall says the school building is unsafe.

Upendra Mahato (Rs 150 Million)

Non-resident Nepali billionaire businessman Upendra Mahato has promised to provide Rs 150 million in assistance for the relief and rehabilitation of the earthquake victims. He has announced to spend Rs 120 million for the reconstruction of schools in areas severely affected by the earthquakes whereas the remaining amount was meant for distributing relief packages to the victims. He announced to do all these works through a charitable organization, Phul Kumari Mahato Memorial Trust established in memory of Mahato’s mother.

Confederation of Nepalese Industries

Confederation of Nepalese Industries has promised to build 100,000 houses for the people rendered homeless by the earthquake. CNI has promised to build these houses in collaboration with the Habitat for Humanity.

Chaudhary Group

Chaudhary Group has promised to build 1,000 transitional houses for the people made homeless by the earthquakes. For this, the CG has announced to spend Rs 10 million.

CG has also promised to build another 9,000 homes for the displaced in collaboration with the national and international agencies. The Group has also announced to rebuild 100 community schools damaged by the earthquake and has announced to spend a total of Rs 250 million in the long run.
Golchha Organization

Golchha Organization has promised to build 1,000 houses for the people made homeless by earthquake in collaboration with the Habitat for Humanity. For this, the organization has announced to spend Rs 530 million. The organization also has promised to bring more programs for the victims in collaboration with other agencies.

Higher Secondary Education Board, Nepal

Higher Secondary Education Board (HSEB) has announced scholarships for the students of grade 11 and 12 who were made victim by the earthquake. HSEB has announced to waive off fee to such students and has also decided to offer boarding facility to the needy ones.

HSEB has announced that scholarship will be offered to those students who were injured or lost their parents or whose houses were destroyed by the quake. For this, HSEB has asked the students to submit a recommendation letter from the VDC or ward office of the municipality, school and the District Disaster Relief Committee.

Government of Nepal

Prime Minister Sushil Koirala, while addressing the parliament on 25 Baisakh, 2072 [ May 8], made the following announcements:

1. The government will provide Rs. 40,000 per family for performing the death rituals of their kin who lost their life due to earthquake and aftershocks.
2. The government will provide monetary support of Rs 100,000 per family that lost its family members due to the earthquake and aftershocks.
3. To provide treatment to people injured by the earthquake free of cost in all public and private hospitals.
4. Children in the quake-hit districts, who have lost their relatives and have become homeless, will be provided residence and free education.
5. Those who wish to repair their houses partially-damaged by the earthquake will be provided Rs 25,000 per family as an immediate relief.
6. The farmers in the areas affected by earthquake will be provided seeds for summer crops free of cost, and fertilizers will be provided at concessional rates. People in the earthquake-affected districts will get full waiver on land tax for year.
7. The government has decided to waive off loans of up to Rs 50,000 and the interest to earthquake victims, depending upon the losses suffered by the victims.
8. Rs. 200,000 will be provided to those victims whose houses were destroyed and who wish to reconstruct their houses themselves in line with the standard set by the government.
9. Earthquake victims from inside and outside the Kathmandu Valley who wish to reconstruct their houses destroyed by the earthquake will be provided loans of up to Rs 2.5 million and Rs. 1.5 million respectively at a concessional interest rate of 2 percent per annum.
10. The historical, religious, archeological and cultural heritages destroyed by the earthquake will be restored to their original state within five years.

Budget Speech

Finance Minister Dr. Ramsharan Mahat, while tabling the budget for the fiscal year 2015/16 in parliament on July 14, 2015 made the following announcement on behalf of the government:

1. The Government is moving ahead with strong commitment for the completion of reconstruction work within next five years.
2. Reconstruction Authority will be fully operational soon with highest level leadership, special authority, guaranteed financial resources, specific terms of work, provision of citizen’s feedback mechanism and efficient professional structure.
3. The cost for the first phase of reconstruction will be Rs. 667 billion according to the Post Disaster Need Assessment (PDNA) conducted by the National Planning Commission. Such expenditure will be managed from the “National Reconstruction Fund” for moving forward the reconstruction works expeditiously. Under this fund, projects will be carried out by the internal and external resources and cash along with the collected amount by issuance of the “Reconstruction Bond” to enhance ownership and participation of the general public in the reconstruction works. I have managed to collect the savings in this Fund obtained during the middle of the Fiscal Year. I have allocated Rs. 74 billion in this fund for the next Fiscal Year. Out of this, Rs. 50 billion for housing, Rs. 3 billion for public buildings, Rs. 2 billion for archeological structures, Rs. 7 billion for other physical infrastructures, Rs. 6 billion for production sector and Rs. 6 billion for the social sector will be spent.
4. Until the works started by the Reconstruction Authority, I have provisioned to carry out the works related to rehabilitation and reconstruction of individual houses, governmental buildings, schools and health institutions, archeological and cultural heritages and physical infrastructures by the sectoral ministries and agencies. I have allocated Rs. 17 billion for this purpose in addition to the expenditure made from National Reconstruction Fund.
5. I have make arrangements to provide upto Rs. 200,000 on the basis of approved procedures for those who wish to construct the completely damaged houses by the earthquake on their own under the specified norms. Similarly, it has already been provisioned Rs. 2.5 million for the Kathmandu Valley and Rs. 1.5 million for outside the Valley as “special housing loan for earthquake affected” to those affected households who wish to reconstruct their houses by this loans with a 2 percent concessional interest rate from the banks and financial institutions under the simple procedures formulated by the Nepal Rastra Bank.
6. Economic Rehabilitation Fund will be established under the Nepal Rastra Bank for providing refinancing facility and interest subsidy for the sectors including earthquake affected residential home, agriculture, business and tourism. Already announced measures, such as the loan loss provision, loan rescheduling, additional time for the account keeping of income and expenditure and capital calculation for the earthquake affected, will be continued.
7. I have allocated necessary budget for the immediate reconstruction and restoration of damaged infrastructure of water supply and sanitation in earthquake affected area to address the adverse effect to the sources of water supply. I have made the provision to bear 30.0 percent of the local contribution by the government in water supply and sanitation projects.
8. For the reconstruction of damaged structures, skill development trainings on various subjects like mason, plumbing and electricians will be provided to 50 thousand youths in the district level through skill development centers. Such skill and knowledge will be accredited. Skill development centers will also evaluate the trainings conducted by non-government organizations.
9. Rehabilitation and resettlement will be done immediately for the displaced peoples from their own residential areas to another place due to the earthquake. Relocation will be done from the high risk geological locations to the safe and closer place as much as possible with appropriate policy and plans after conducting the detail study.
10. Historical heritage, temples, Monasteries, mosques and infrastructures, damaged by the earthquake, will be constructed maintaining their original and cultural shape with new technology. For this, local goods and labor will be utilized as far as possible. For such construction, “Ours Heritage-Ours Responsibility” campaign will be launched. For this, a separate Heritage Fund will be provisioned under the National Reconstruction Fund to make possible to deposit amount by the Nepalese residing in Nepal and abroad. In order to enhance ownership and contribution by the general Nepalese people, I have made the provision of additional one percent telecommunication service fees which will be deposited in this Fund. Construction permission will be given to national and foreign institutions if they wish to construct the cultural heritages with a condition to use shape, design and maintain quality as approved by the Government of Nepal. Individual houses around the damaged archeological and cultural heritages will be encouraged to reconstruct in such a way that they should reflect the cultural importance of that place.

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