Nepal's infrastructure repairs to cost billions of rupees

May 15, 2007, 8:51 GMT

Kathmandu - Nepal's government Tuesday said the preliminary cost of rebuilding infrastructure destroyed during the country's decade-long Maoist insurgency could top several billion rupees.

Newly formed Ministry for Peace and Reconstruction said the estimates, based on details provided by concerned ministries and departments, put the initial cost of rebuilding at 5.11 billion rupees (about 74 million dollars).

   The ministry said the final cost is likely to go up as more data is gathered.

   Repairing and reconstructing police posts alone would cost the country over 2.4 billion rupees according to Ramesh Kumar Sharma, spokesperson at the Ministry of Peace and Reconstruction.

Constructing local government buildings, government offices and telecommunication felicities would cost another 1.3 billion rupees, the ministry said.

During the decade-long Maoist insurgency, hundreds of police posts were systematically destroyed by the rebels to prevent their presence in rural areas.

The Maoist also targeted and destroyed government buildings and telecommunication facilities.

The ministry said the government would pay for the reconstruction through its peace fund which has already received assistance worth nearly 320 million rupees from Britain, Norway and Switzerland.

Maoists suspended their armed rebellion in late April 2006 after King Gyanendra gave up his direct rule in the face of mass demonstrations for democracy across the country.

In November, the Maoists signed a formal peace agreement with the government which paved the way for them to join the government and the interim legislature.

With five ministers in Nepal's interim government, the Maoists are now faced with the task of rebuilding infrastructure which they had destroyed as rebel force.

Nearly 15,000 people died in the 10 years of fighting which also displaced hundreds of thousands of people.