Archive · 27 Aug 2026
Nepal Flood Hits Hydropower Projects and Stock Market
A major flood hit Nepal’s Rasuwa district on Wednesday morning.
The water damaged roads, a customs point, businesses, and hydropower projects.
Around 13 hydropower projects were reported to have been affected.
Together, these projects can produce or are being built to produce about 748 megawatts of electricity.
Some of the projects belong to companies traded on Nepal’s stock market.
Investors worried that the damage could cost these companies and their insurers money.
As a result, hydropower and insurance shares fell.
Reinsurance companies are expected to cover part of the insurance losses.
The full damage is still not known.
Flooding in Nepal’s Rasuwa district damaged infrastructure, businesses, and several hydropower projects.
About 13 hydropower projects, representing 748 megawatts of capacity, were reported affected.
The NEPSE index fell as much as 35.92 points during Wednesday’s trading.
The hydropower sub-index dropped 2.84%, while the non-life insurance index fell 3.90%.
Insurers may face claims, but much of the risk is transferred to domestic and international reinsurers.
- Who
- Residents, businesses, hydropower companies, insurers, reinsurers, and investors were affected or concerned.
- What
- Flooding damaged infrastructure and hydropower projects and contributed to declines in Nepal’s stock-market indexes.
- When
- The flood struck on Wednesday morning, with the market impact reported during Wednesday’s trading.
- Where
- Rasuwa district, Nepal, particularly along the Bhotekoshi and Trishuli rivers.
- Why
- Investors feared that physical damage could reduce hydropower companies’ finances and create insurance claims.
- Affected projects
- Information was received about damage to around 13 hydropower projects.
- Affected capacity
- The projects represent about 748 megawatts: 354 megawatts already operating and 394 megawatts under construction.
- NEPSE movement
- The Nepal Stock Exchange index fell as much as 35.92 points on Wednesday.
- Hydropower index
- The hydropower sub-index declined 104 points, or 2.84%.
- Insurance index
- The non-life insurance group index fell 404 points, or 3.90%.
- Reinsurance for projects under construction
- Around 80% of the insurance burden is typically transferred to reinsurance companies.
- Property reinsurance
- Insurers may retain up to 50% of property-insurance risk and reinsure the rest; 30% of transferred property-reinsurance amounts must be placed with domestic reinsurers.