Kathmandu, Oct 6: The devastating August floods in Nepal are expected to have a material negative impact on the country’s economic prospects in the short term, the World Bank said on Tuesday as it lowered its economic growth projection for the Himalayan nation.

The global development lender said Nepal’s economic growth is projected to slow to 3.7 per cent in the current fiscal year 2026-27, which began in mid-July, from the 4.2 per cent projected in April, reflecting disruptions to industry and services.

In its report titled Nepal Development Update: Building Back Differently for the Future, released on Tuesday, the World Bank said the August 2026 floods are expected to affect Nepal’s economy through four primary transmission channels: energy, transportation, trade and tourism.

“Agriculture and banking and insurance are also channels through which the economy would be affected, but with relatively lower potential impact,” it said.

According to the bank’s report, energy, particularly hydropower, is the most critical transmission channel. The floods affected 12 hydropower projects, including seven operational projects with a combined capacity of 256.1 MW and five projects under construction with a combined capacity of 395.02 MW, as well as a 25 MW solar facility.

“Damage to transmission infrastructure disrupted an additional 149.6 MW, bringing total affected generation and transmission capacity to approximately 430.7 MW, equivalent to 10.6 per cent of Nepal’s FY26 installed hydropower and solar capacity,” the bank said.

Transportation and trade are other key transmission channels, given the concentration of Nepal’s international and domestic trade along a limited number of corridors, according to the World Bank.

As many as 1,455 people have been confirmed dead and 5,285 remain missing to date following the disaster, which destroyed communities and infrastructure along the Bhotekoshi and Trishuli river corridors, according to the National Disaster Risk Reduction and Management Authority.

According to the Rapid Disaster Needs Assessment (RDNA) report prepared by a joint technical team of the National Planning Commission and the National Disaster Risk Reduction and Management Authority, the recent floods are estimated to have caused physical damage worth 274.48 billion Nepali rupees (about 1.93 billion US dollars), while overall losses and damages have reached 408.28 billion rupees (about 2.87 billion US dollars).

The preliminary assessment suggests that more than 723 billion rupees will be required for the reconstruction and recovery of affected infrastructure and assets. The Nepali government is now working on a Post-Disaster Needs Assessment involving a more extensive assessment of the damage.

The World Bank said industry is expected to be the main drag on growth, reflecting extensive damage to hydropower, solar energy, electricity transmission and transport infrastructure, which will constrain electricity generation and production and disrupt the movement of goods.

“For instance, it took nearly a year to fully restore generation at the 111 MW Rasuwagadhi Hydropower Project, which was severely damaged by the July 8, 2025, Bhotekoshi (Lhende River) flood,” it said.

The same project has once again been badly affected by the August floods.

“This illustrates the potential for flood-related damage to disrupt electricity supply and impose substantial reconstruction costs,” the global development lender said.

“Hydropower construction in areas not directly affected by the flood is expected to continue, although projects could face higher insurance premiums, financing reassessments, and cost overruns,” it added.

“Services are expected to be affected through disruptions to trade, transport, tourism, and financial activity, while agricultural losses are expected to have limited effects on aggregate output but significant impacts on livelihoods in affected areas,” the bank said in the report.

Tourism is expected to face a potentially prolonged impact, reflecting both physical disruptions and heightened perceptions of travel risks, according to the report.

It said more than 200 hotels and restaurants were damaged across the affected districts, while access to major trekking and pilgrimage destinations—including Langtang, Gosaikunda and the Kailash Mansarovar corridor—has been disrupted.

However, economic activity is expected to gradually recover in fiscal year 2027-28 as reconstruction activity begins to gain momentum and damaged infrastructure and productive capacity are progressively restored, the bank said.

Kathmandu, Oct 5: The Nepali government has decided to call off the search and rescue operations launched following the deadly floods that struck the country on August 26, as hopes of finding survivors have faded, the Prime Minister’s Secretariat said on Monday.

Forty days after floods in the Bhotekoshi and Trishuli rivers devastated communities and infrastructure along the river corridors, the government has now prioritised reconstruction and rehabilitation efforts.

The decision was taken based on recommendations from district security committees, district disaster management committees, the Executive Committee of the National Disaster Risk Reduction and Management Authority, and findings from field inspections, the Prime Minister’s Secretariat said.

A total of 1,455 people have been confirmed dead and 5,285 remain missing following the disaster till date, according to the National Disaster Risk Reduction and Management Authority.

The meeting also decided to recommend a budget of NPR 559.18 billion ($3.62 billion) to the Ministry of Finance for 504 plans and programmes aimed at reconstructing and rehabilitating areas affected by the August 26 disaster and other monsoon-related disasters.

According to the Rapid Disaster Needs Assessment (RDNA) report prepared by a joint technical team of the National Planning Commission and the National Disaster Risk Reduction and Management Authority, the recent floods are estimated to have caused physical damage worth NPR 274.48 billion, while overall losses and damages have reached NPR 408.28 billion.

The preliminary assessment suggests that more than NPR 723 billion will be required for the reconstruction and recovery of affected infrastructure and assets. Now, the Nepali government has been working on a Post-Disaster Needs Assessment with an extensive assessment of damages.

The council directed the National Disaster Risk Reduction and Management Authority to recommend additional budgetary arrangements once details are received for projects whose cost estimates have not yet been determined or which have yet to be prioritised.

Prime Minister Balendra Shah said disaster management efforts had been carried out through coordination among the federal, provincial and local governments, adding that reconstruction and rehabilitation would also proceed through the same mechanism.

The meeting expressed sorrow over the loss of lives and property caused by the Bhotekoshi-Trishuli floods and other monsoon-related disasters. It paid tribute to those who lost their lives and expressed condolences to their bereaved families.

The council also thanked security personnel, elected representatives, civil servants, private-sector organisations, volunteers and media personnel involved in search, rescue, relief and rehabilitation operations, as well as donor countries and development partners that assisted during the crisis.

Patna, Sep 30: A schoolgirl lost her life, and four other students were injured after a staircase collapsed at Jatadhar Mishra Primary School in Amani Panchayat under Mansi block of Khagaria district in Bihar on Wednesday.

The deceased has been identified as Ritika Kumari, daughter of Manoj Yadav, a resident of Amani Panchayat.

According to initial reports, students were present on the school premises when the staircase suddenly collapsed, leaving several children trapped under the debris.

Ritika sustained critical injuries to her head in the incident. She was rushed to a hospital for treatment, where doctors declared her dead.

Three other students injured in the collapse were admitted to Sadar Hospital in Khagaria.

They are undergoing treatment and remain under medical observation.

The incident triggered panic at the school, with family members and villagers rushing to the spot after receiving the information.

Agitated residents questioned the condition of the school building and the staircase and demanded action against those responsible.

The incident also raised concerns about the structural safety of the school premises and whether adequate measures had been taken to ensure the safety of students.

Police reached the school after being informed about the incident and took steps to control the situation.

The body of the deceased student was taken into custody for post-mortem examination.

The District Magistrate of Khagaria has directed the District Education Officer (DEO) to conduct a thorough investigation into the incident and take appropriate action against those found responsible.

The district police are currently recording statements from the injured students to ascertain the exact sequence of events.

Police are also examining the structural condition of the school building and staircase to determine whether any structural deficiencies contributed to the incident.

Based on the findings of the investigation and the reports submitted by the concerned authorities, the State Education Department is expected to take appropriate action against those responsible.