Kathmandu, Oct 15: Nepal and the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group, have signed a mandate agreement to explore the development of a catastrophe bond that could help the Himalayan nation secure rapid access to funds in the event of a major natural disaster.

The agreement marks the beginning of a collaboration to assess the feasibility and potential structure of a catastrophe bond, under which Nepal could transfer part of its disaster risk to international capital markets and strengthen its financial preparedness for natural disasters, the World Bank said in a statement.

Under the agreement, the World Bank Group Treasury will work with the Nepal government and market participants to evaluate the proposed transaction.

The initiative comes as Nepal seeks to strengthen its capacity to prepare for, withstand and recover from natural disasters in the wake of devastating floods in the Bhotekoshi and downstream Trishuli river basins on August 26. The floods have killed nearly 1,500 people, while more than 5,000 remain unaccounted for, according to the National Disaster Risk Reduction and Management Authority.

Triggered by an avalanche near the Nepal-China border that blocked the river’s flow, the floods swept away several human settlements, a dozen hydropower projects, a solar plant, and several roads and bridges. Physical damage is estimated at 1.66 billion US dollars, according to the World Bank’s Global Rapid Post-Disaster Damage Estimation report.

According to the World Bank, Nepal is highly vulnerable to earthquakes, floods, landslides and other climate-related hazards, which can cause extensive damage to infrastructure, disrupt economic activities and place considerable pressure on public finances.

A catastrophe bond is a financial instrument that allows governments or other entities to transfer specific disaster risks to investors. Depending on the terms of the bond, investors may lose some or all of their principal if a specified disaster occurs, allowing the funds to be used to support the affected entity.

“Such instruments can provide an alternative source of disaster financing, potentially enabling governments to access funds more quickly than relying solely on budget reallocations or post-disaster assistance,” the World Bank said.

The initiative is part of the World Bank Group’s established catastrophe bond programme, which has helped countries access international capital markets to transfer disaster risks and secure financial protection against natural hazards.

The World Bank helps countries increase their financial resilience to disasters by supporting disaster risk financing programmes and offering contingent financing and insurance solutions.

It also assists countries in designing, developing and implementing comprehensive disaster risk financing strategies.

“A risk financing strategy helps clients determine a balance between retaining risk, for example, through a contingent financing product, and transferring risk, for example, through an insurance product,” the World Bank said.

A range of financial products can be used to address the financial risks of disasters, and the optimal mix of approaches depends on the types of risks faced by a country and the frequency and severity of disaster events, it said.

Developing countries are particularly vulnerable to the economic and fiscal consequences of disasters because of factors such as gaps in insurance coverage, inadequate infrastructure resilience, and the concentration of populations and economic activities in exposed areas.

“Following a major disaster, governments often have to redirect budgetary resources towards emergency response, relief and reconstruction, potentially affecting other development priorities,” the World Bank said.

Patna, Oct 14: In a major tragedy, at least 13 children drowned after a boat carrying passengers capsized in the Ganga River near Rampur Shyamchand village under the Raghopur police station area of Bihar’s Vaishali district on Tuesday evening. The search is on for missing passengers.

Even more heartbreaking is the fact that seven of the deceased children belonged to the same family, turning the incident into a huge tragedy for the family and the village.

According to preliminary reports, around 20 to 30 people were travelling by boat to attend a feast in a neighbouring village.

The boat reportedly lost equilibrium after reaching the main current of the Ganga and overturned, throwing passengers into the water.

The accident triggered panic in the area, as cries for help were heard from the river.

Local residents rushed to the spot and began rescue efforts before the district administration, police and State Disaster Response Force (SDRF) teams joined the operation. Local divers also assisted in the search.

Seven of the deceased children were reportedly from the family of Rampravesh Rai, alias Raja, a resident of Rampur Shyamchand village.

The deaths have left the affected families and the wider village in deep mourning.

The group was travelling to a neighbouring village, crossing the river and a nearby low-lying waterlogged area locally known as a dhab.

Several children were aboard the boat, while the total number of passengers was estimated at between 20 and 30.

Authorities have been working to establish the exact number of people on board and determine whether anyone remains missing.

Angry residents protested against the district administration following the tragedy.

Villagers alleged that the boat was old and in poor condition and claimed that requests for its replacement had been submitted earlier, but no action was taken by the authorities.

There are also suspicions that the boat may have been carrying more passengers than its holding capacity.

However, the exact cause of the accident and the boat’s condition remain subject to investigation.

Union Minister Chirag Paswan expressed grief over the deaths, describing the incident in Raghopur Diyara, which falls within his parliamentary constituency, as deeply distressing.

Paswan said he had spoken to the District Magistrate to seek details about the rescue operation and discuss assistance for the affected families through the Bihar and central governments.

Paswan also announced that he would visit the accident site to meet the bereaved families and enquire about the condition of the injured.

He added that injured passengers had been sent to NMCH for further treatment.

The Bihar Congress also expressed deep sorrow over the deaths of the children and conveyed condolences to the bereaved families.

The party prayed for peace for the souls of the departed children and strength for their families to cope with the loss.

Further details regarding the final casualty count, the number of missing passengers and the circumstances leading to the capsizing are awaited.

Kathamandu, Oct 14: A massive landslide in the high Himalayas of Nepal Gorkha district on October 11, which triggered devastating floods in the Budhi Gandaki River, generated energy equivalent to that of a 3.5-magnitude earthquake, according to a preliminary assessment by the Department of Mines and Geology.

The landslide occurred in the upper reaches of the Ungdilung Khola, a tributary of the Budhi Gandaki River, triggering destructive flood surges after a large volume of debris blocked and subsequently released river flows, the technical report said.

The report provides an initial explanation of how the high-altitude landslide and the repeated blockage and release of river flows contributed to the flooding downstream.

The National Disaster Risk Reduction and Management Authority (NDRRMA) said in a social media post, citing the department’s report, that the Budhi Gandaki River experienced repeated flood surges in a single day following the massive landslide involving snow, water and glacial debris in the high Himalayas.

The latest disaster left at least five people missing and destroyed several hydropower projects, roads and bridges, according to the NDRRMA.

The October 11 flooding was the second major flooding disaster, which occurred around one and a half months after devastating floods struck the Bhote Koshi and Trishuli rivers on August 26, which killed nearly 1,500 people and left more than 5,000 missing while devastating communities, houses, hydropower plants, roads and bridges along the affected rivers, the authority said.

Citing the department’s technical report, the NDRRMA said the largest of the repeated flood surges reached an estimated height of 20 to 25 metres.

The incident occurred at around 4:20 a.m. in the upper reaches of the Ungdilung Khola, between Chamar Himal and Syerangi Himal, in Chumnubri Rural Municipality, which borders China.

According to the report, an avalanche originated at an altitude of approximately 6,000 metres in the Tibetan Tethys Himalaya, an area characterised by relatively weak rock formations, and a landslide occurred at around 5,500 metres.

“The massive landslide, comprising a mixture of snow, water and debris, flowed southward along the Ungdilung Khola, depositing a large volume of debris at the narrow confluence of the Ungdilung Khola and Syar Khola, another tributary of the Budhi Gandaki River, at an altitude of around 2,000 metres,” the authority said in its social media post.

The debris repeatedly blocked and released the flow of the Syar Khola, potentially generating successive flood surges. A similar process may also have occurred at the confluence of the Syar Khola and the Budhi Gandaki River, contributing to repeated flooding downstream, it said.

However, the report suggests that the enormous volume of debris carried by the Ungdilung Khola played a more significant role in generating the largest flood surge than the water accumulated behind the blockage of the Syar Khola.

The first mud-laden flood reached the Salleri area at around 4:30 a.m., where a camp for the 341-MW Budhi Gandaki Hydroelectric Project was located.

“The largest surge arrived at the hydropower camp in Salleri at around 6:30 a.m., reaching an estimated height of 20 to 25 metres before sweeping away the camp,” the report said.

The powerful surge caused major damage downstream, particularly in the Jagat area along the Budhi Gandaki River, where several buildings were affected. Permanent bridges over the Soti Khola and the Budhi Gandaki River were also among the damaged structures, the report said.

Field observations further indicated that the flow of the Syar Khola had stopped following the landslide approximately one hour before the largest flood surge arrived.

“Water had accumulated over a stretch of around 1.5 kilometres in the upper reaches of the river. Smaller flood surges continued even after the largest surge had passed,” the report said.