Government Faces Rs 36 Billion Reconstruction Burden After Gen-Z Protest Damage

Kathmandu — The government is set to bear more than Rs 36 billion in reconstruction expenses after extensive damage caused by the recent Gen-Z protest, as government structures were not insured prior to the incident. A committee formed to assess the destruction has estimated that rebuilding government infrastructure alone will require Rs 36.3 billion.

The committee, led by National Planning Commission Secretary Ravilal Pantha, submitted its detailed report to Prime Minister Sushila Karki during a Cabinet meeting held today at Singha Durbar. The report outlines the full scale of losses as well as a reconstruction action plan to guide the government’s recovery efforts.

According to the assessment, the total physical damage from the protest amounts to Rs 84.45 billion, impacting 2,168 public bodies and institutions across the country. A total of 2,671 buildings were damaged, with losses valued at Rs 39.31 billion. The protest also resulted in damage to 12,659 vehicles, causing an additional loss of Rs 12.93 billion.

The government and public sector experienced the highest losses, with damages amounting to Rs 44.93 billion, while the private sector recorded losses of Rs 33.54 billion. Community and other sectors faced damage worth Rs 5.97 billion. Among the three tiers of government, the federal government accounted for 68 percent of the total damage, followed by 10 percent at the provincial level and 22 percent at the local level.

The reconstruction plan estimates Rs 19.98 billion will be needed to restore damaged buildings, while Rs 6.16 billion will be required for vehicles. Another Rs 10.14 billion has been allocated for the restoration of other physical assets. In terms of responsibility, the federal government is expected to oversee reconstruction worth Rs 24.69 billion, while provincial governments will require Rs 3.74 billion and local levels will need Rs 7.86 billion to rebuild.

In light of the financial burden exposed by the Gen-Z protest, the government has begun implementing insurance coverage for key state properties. The first phase of insurance for Singha Durbar has already been launched for the coming year, and insurance has been arranged for 20 vehicles under the Ministry of Finance through the state-owned Rastriya Beema Company.