Nepal's SAARC neighbors, friendly countries and development partners have pledged a total of $4.4 billion—to come in the form of 50% grants and 50% concessional loans— in the International Conference on Nepal's Reconstruction to help the country in its rebuilding and reconstruction efforts in the aftermath of the recent devastating earthquake. The conference, held on 25 June 2015 in Kathmandu, Nepal, was described by Finance Minister Ram Sharan Mahat as “highly successful.” Total pledges exceeded initial expectations of around $4.01 billion, which amounts to 60% of the estimated reconstruction need of $6.69 billion. This estimate comes out of Nepal's Post Disaster Needs Assessment, conducted by a collaboration of more than 200 international experts

India pledged aid amounting to $1 billion to be used for rebuilding physical infrastructure including schools, roads, hospitals, and key heritage sites. 25% of the this amount will be in grant form, and will be over and above an existing $1 billion bilateral developmental assistance. External Affairs Minister Sushma Swaraj emphasized that from "the debris of destruction a stronger united and more confident Nepal will rise” during the aid announcement, and reiterated India's strong commitment to helping Nepal. Sri Lanka also committed aid amounting to $1.5 million, and promised to reconstruct two heritage temples damaged by the earthquake. Pakistan likewise pledged $1 million. Bangladesh and Bhutan also promised assistance.

Asian Development Bank (ADB) President Takehiko Nakao said ADB is ready to provide up to $400 million in further assistance, in addition to the $200 million emergency assistance allocated for the rebuilding and restoration of schools, roads, and public buildings, bringing ADB's total assistance to $600 million.

The additional $400 million in funding from ADB includes a $3 million disaster relief grant, $30 million in budget support for rural finance, and a $15 million grant from the Japan Fund for Poverty Reduction. ADB can also allocate up to $350 million from its existing projects without affecting ongoing and planned development programs for the subsequent phase of reconstruction.

In his speech, President Nakao underscored five principles crucial to effective reconstruction: (a) build back better, (b) inclusiveness, (c) the need for a robust institutional set up for reconstruction, (d) importance of improved capacity of the government, and (e) effective donor coordination and government ownership.

The World Bank also made a commitment to provide assistance of up to $500 million.

Other foreign government pledges received by Nepal include a $760 million grant assistance from China, a $260 million aid package from Japan to be used in building earthquake-resistant schools, $130 million for total emergency relief and recovery assistance from the United States, and a $112 million grant from the European Union. The World Bank also made a commitment to provide assistance of up to $500 million.

Related Links:

• ADB Offers $600 Million Assistance to Help Nepal Rebuild After Earthquake
• $4.4 billion announced to rebuild Nepal
• India announces $1 billion aid for rebuilding Nepal 
• Sri Lanka pledges US$1.5million in aid for the recovery of Nepal
• Pakistan pledges $1m aid for reconstruction work in quake-hit Nepal
• Nepal Earthquake: See How Much Foreign Economies Have Pledged
• Donors pledge 4.4 billion for Nepal's post-earthquake reconstruction