Government Faces Rs 36.3 Billion Burden Due to Uninsured Public Infrastructure

Kathmandu — The government is set to bear a financial burden of more than Rs 36 billion due to the lack of insurance coverage for public physical infrastructure damaged during the Gen-Z movement, according to an official assessment.

As per the Reconstruction Action Plan, an estimated Rs 36.3 billion will be required to rebuild and repair damaged public-sector structures and to purchase and maintain vehicles and other physical assets. Of this amount, Rs 19.98 billion has been allocated for the reconstruction of damaged buildings, Rs 6.16 billion for the purchase of vehicles, and Rs 10.14 billion for the procurement and maintenance of other physical goods.

The report prepared by the assessment committee states that the total economic damage caused by the movement stands at Rs 84.45 billion. This loss is equivalent to 1.38 percent of Nepal’s gross domestic product and 4.30 percent of the national budget for the current fiscal year.

In terms of sectoral impact, the government and public sectors accounted for the largest share of the damage at 53 percent, followed by the private sector at 40 percent. The remaining 7 percent of the losses were recorded in community and other sectors.

Province-wise data show that Bagmati Province was the worst affected, accounting for 66.5 percent of the total damage. In monetary terms, damages in Bagmati Province amounted to Rs 56.23 billion. Koshi Province suffered losses of Rs 10.24 billion, Madhesh Province Rs 4.92 billion, Gandaki Province Rs 4.1 billion, Lumbini Province Rs 5.99 billion, Sudurpaschim Province Rs 2.4 billion, and Karnali Province Rs 620 million.

Beyond physical damage, the report highlights significant economic and employment impacts. It estimates that losses in the production of goods and services amounted to Rs 13.87 billion. The movement directly affected the employment of 2,999 individuals, of whom 2,353 reportedly lost their jobs entirely.

A total of 2,671 buildings were damaged during the movement, with public buildings accounting for 79.8 percent of the total. In terms of asset-wise losses, the report records damages worth Rs 39.31 billion in buildings, Rs 12.93 billion in vehicles, Rs 20.36 billion in other physical assets, Rs 2.81 billion in cash and valuables, and Rs 9.26 billion in temporary assets and personal property.