II 

114TH CONGRESS 

1ST SESSION S. 1882 

To support the sustainable recovery and rebuilding of Nepal following the 

recent, devastating earthquakes near Kathmandu. 

IN THE SENATE OF THE UNITED STATES 

JULY 29, 2015 

Mr. CARDIN (for himself and Mr. KIRK) introduced the following bill; which 

was read twice and referred to the Committee on Foreign Relations 

A BILL 

To support the sustainable recovery and rebuilding of Nepal 

following the recent, devastating earthquakes near 

Kathmandu. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Nepal Recovery Act’’. 

5 SEC. 2. DEFINITIONS. 

6 In this Act: 

7 (1) APPROPRIATE CONGRESSIONAL COMMIT8 TEES.—The term ‘‘appropriate congressional com9 mittees’’ means— 


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1 (A) the Committee on Foreign Relations of 

2 the Senate; 

3 (B) the Committee on Appropriations of 

4 the Senate; 

5 (C) the Committee on Foreign Affairs of 

6 the House of Representatives; and 

7 (D) the Committee on Appropriations of 

8 the House of Representatives. 

9 (2) INTERNATIONAL FINANCIAL INSTITU10 TION.—The term ‘‘international financial institu11 tion’’ means— 

12 (A) each of the institutions listed in sec13 tion 1701(c)(2) of the International Financial 

14 Institutions Act (22 U.S.C. 262r(c)(2)); and 

15 (B) the International Development Fund 

16 for Agricultural Development. 

17 SEC. 3. FINDINGS. 

18 Congress makes the following findings: 

19 (1) On April 25, 2015, an earthquake meas20 uring 7.8 on the Richter scale and a subsequent 

21 earthquake on May 12 measuring 7.3 on the Richter 

22 scale and numerous aftershocks— 

23 (A) devastated Kathmandu, Nepal and the 

24 surrounding areas; 

25 (B) killed more than 8,700 people; 


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1 (C) injured hundreds of thousands addi2 tional people; 

3 (D) destroyed or damaged more than 

4 770,000 homes, leaving the families who had 

5 been living in those homes without shelter; 

6 (E) damaged or destroyed more than 

7 47,000 classrooms; 

8 (F) damaged or destroyed over 1,000 

9 health facilities including primary health care 

10 centers and birthing centers; 

11 (G) left many people with newly acquired 

12 disabilities, including lost limbs and other phys13 ical and mental trauma; 

14 (H) severely impacted livelihoods and food 

15 security for millions of people, including the de16 struction of stockpiled grains and the loss of 

17 more than 17,000 cattle and 40,000 smaller do18 mesticated animals; and 

19 (I) disrupted social structures and families 

20 through death, injury, and relocation. 

21 (2) The earthquake devastated Nepal’s infra22 structure, including homes, offices, factories, roads, 

23 bridges, communications, and other facilities. 

24 (3) American citizens were also killed in the 

25 widespread destruction caused by the earthquake. 


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1 (4) Six American service members and 2 mem2 bers of the Nepalese Army lost their lives in a heli3 copter accident while working to relieve the suffering 

4 of the Nepalese people following the earthquake. 

5 (5) The World Bank and the Government of 

6 Nepal conducted a post disaster needs assessment 

7 that estimated almost $6,700,000,000 in sector spe8 cific damage, losses, and recovery needs. 

9 (6) In Nepal, which is one of the poorest coun10 tries in the world— 

11 (A) an estimated 25 percent of the popu12 lation lives on less than $1.25 per day; 

13 (B) there is a 46-percent unemployment 

14 rate, with the majority of the population en15 gaged in subsistence agriculture; 

16 (C) only 25 percent of Nepalese participate 

17 in the formal banking system, with the majority 

18 of Nepalese severely lacking access to credit 

19 and financial services, making accessing credit 

20 for rebuilding difficult; and 

21 (D) has one of the slowest economic 

22 growth rates in the region. 

23 (7) Nepal bears a significant burden of national 

24 debt, which hinders recovery. 


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1 (8) Some of the investments created from loans 

2 to Nepal were lost in the earthquake, but the coun3 try is still obligated to pay off the loans. 

4 (9) The geography of Nepal poses a significant 

5 challenge to relief, reconstruction, and development 

6 that requires extraordinary efforts and assets to 

7 overcome. 

8 (10) The United States Government, the Gov9 ernment of Nepal, and civil society organizations 

10 have invested in disaster risk reduction efforts for 

11 nearly 20 years. Those efforts have reduced suf12 fering and prevented greater loss of life and prop13 erty. 

14 (11) In recent years, the Government and peo15 ple of Nepal have taken important steps forward to 

16 resolve civil conflict, reconcile, and promote economic 

17 growth and development. 

18 (12) Nepal has qualified for the Millennium 

19 Challenge Corporation Threshold Program and has 

20 been selected for a Millennium Challenge Corpora21 tion Compact, based on its performance on key se22 lection criteria. 

23 (13) United States trade preference programs, 

24 which extend duty-free tariff treatment, could accel25 erate Nepal’s efforts to reestablish economic growth. 


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1 (14) The earthquake has significantly increased 

2 the costs and uncertainty of doing business in 

3 Nepal. 

4 (15) A strong and unequivocal commitment 

5 from the United States is needed— 

6 (A) to help Nepal offset the costs of doing 

7 business in Nepal; 

8 (B) to preserve the gains made with 

9 United States assistance; and 

10 (C) to encourage buyers and investors to 

11 stand with Nepal through this crisis. 

12 SEC. 4. STATEMENT OF POLICY. 

13 It is the policy of the United States, in partnership 

14 with the Government of Nepal and in coordination with 

15 the international community— 

16 (1) to support the sustainable recovery and re17 building of Nepal in a manner that— 

18 (A) encourages greater economic growth; 

19 (B) embraces the independence, resilience, 

20 and democratic governance of Nepal; 

21 (C) supports collaboration with the Gov22 ernment of Nepal and consultation with Nepa23 lese and international civil society and including 

24 the participation of affected communities in 


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1 planning and implementing recovery and recon2 struction; 

3 (D) is transparent and equitably reaches 

4 the most severely affected communities, particu5 larly those in hard-to-reach areas or who are 

6 otherwise marginalized; 

7 (E) dedicates significant resources to ad8 dressing the vulnerability of young girls and 

9 boys who are often at much higher risk of traf10 ficking, sexual exploitation, child labor, and 

11 other forms of abuse during emergencies; 

12 (F) prohibits the participation of the 

13 United States in any construction effort, which 

14 uses forced or child labor, unregistered recruit15 ment agencies, or pays wages through means 

16 other than directly to the laborer or to their 

17 bank account; 

18 (G) promotes— 

19 (i) the utilization of full-time, Nepa20 lese laborers that are paid not less than a 

21 living wage; and 

22 (ii) compliance with Nepalese labor 

23 law and International Labor Organization 

24 core labor standards, including workplace 

25 health and safety; 


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1 (H) incorporates the potential of women 

2 and men to contribute equally and to their max3 imum efficiency; 

4 (I) harnesses the energy of youth, who 

5 make up 33 percent of Nepal’s population, to 

6 rebuild Nepal; 

7 (J) rebuilds in ways that foster resilience 

8 to future earthquakes, landslides, and other 

9 natural disasters that threaten Nepal; 

10 (K) enables a rapid return to school for 

11 children, including the rapid construction and 

12 effective utilization of medium term temporary 

13 school structures; and 

14 (L) coordinates activities with the Millen15 nium Challenge Corporation and other agencies 

16 to assure the optimal effectiveness of United 

17 States efforts. 

18 (2) to strongly encourage the completion and 

19 ratification of a new constitution that will serve as 

20 a strong foundation for Nepal to build back the sys21 tems and infrastructure even better than before the 

22 disaster; 

23 (3) to encourage all international donors to con24 tribute and coordinate in a transparent manner and 

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1 nisms to enable the most efficient allocation of all 

2 reconstruction resources; 

3 (4) to ensure that previously ongoing develop4 ment investments in health, education, economic 

5 growth, food security, and other areas continue, 

6 where appropriate, and are not diverted to other 

7 purposes, and additional resources are dedicated for 

8 earthquake recovery; 

9 (5) to support debt relief for the Government of 

10 Nepal in order to expand and hasten government-led 

11 reconstruction; 

12 (6) to affirm and build a long-term partnership 

13 with Nepal in support of providing a foundation for 

14 economic growth and sustainability through invest15 ments— 

16 (A) in essential infrastructure, including 

17 transport, financial services, and energy; 

18 (B) to rebuild Nepal’s competitiveness and 

19 private sector in order to foster employment 

20 generation, including policies to encourage in21 vestment and open world consumer markets to 

22 Nepalese exports; 

23 (C) in food security and rural and agricul24 tural development, particularly of food staples 


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1 and other crops that provide economic growth 

2 and build lasting food security; and 

3 (D) that recognize and address how obsta4 cles related to gender limit, hinder, or suppress 

5 the economic productivity and gain of women; 

6 (7) to reduce barriers to fast and effective re7 covery and reconstruction including by limiting or 

8 eliminating unnecessary importation duties or re9 strictions on relief and recovery commodities that 

10 will be provided to Nepalese in need and not sold; 

11 (8) to ensure, with the Government of Nepal, 

12 that affected children are protected from potential 

13 violence, abuse, neglect, and exploitation and have 

14 the ability to access child protection services, includ15 ing psychosocial support; 

16 (9) to support, in coordination with other do17 nors— 

18 (A) the institutional development and ca19 pacity building of the Government of Nepal at 

20 the national, local, and community levels so 

21 that the Government of Nepal can ensure basic 

22 services for its population, including health 

23 care, education, and other basic social services; 

24 (B) significant contributions to a multilat25 eral trust fund that will be established to enVerDate Sep 11 2014 04:57 Jul 30, 2015 Jkt 049200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1882.IS S1882

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1 hance the reconstruction and rebuilding of 

2 Nepal; 

3 (C) the Government and people of Nepal to 

4 lead the vision for reconstruction and rebuilding 

5 of Nepal; and 

6 (D) communities to fully participate in the 

7 recovery and reconstruction process, by employ8 ing local labor and consulting local leaders, af9 fected communities, and civil society for their 

10 experience and vision; 

11 (10) to address the stateless populations in 

12 Nepal displaced by the earthquake including people 

13 who— 

14 (A) are least likely to receive support 

15 through the regular government systems; and 

16 (B) may have particularly greater needs; 

17 (11) to prioritize the provision of excess defense 

18 articles, including small aircraft, to Nepal to assist 

19 in search, relief, and rescue efforts related to earth20 quakes and future humanitarian crises; and 

21 (12) to utilize every regulatory and administra22 tive flexibility available to minimize bureaucratic re23 quirements and expedite all relief and recovery ac24 tions. 


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1 SEC. 5. FINANCIAL ASSISTANCE. 

2 (a) DEBT RELIEF FOR NEPAL.— 

3 (1) CANCELLATION OF DEBT.—The Secretary 

4 of the Treasury should direct the United States Ex5 ecutive Director to each international financial insti6 tution to advocate, by voice and vote, in such institu7 tion— 

8 (A) the cancellation of any and all remain9 ing debt obligations of Nepal, including debt ob10 ligations incurred after the date of the enact11 ment of this Act; 

12 (B) the provision of debt service relief for 

13 all remaining payments of Nepal until the debt 

14 can be cancelled; and 

15 (C) to the extent practicable, the extension 

16 of any new assistance to Nepal primarily in the 

17 form of grants instead of loans. 

18 (2) SECURING OTHER RELIEF FOR NEPAL.— 

19 The Secretary of the Treasury and the Secretary of 

20 State should use all appropriate diplomatic influence 

21 to secure the cancellation of any and all remaining 

22 bilateral debt of Nepal. 

23 (b) TRUST FUND FOR INFRASTRUCTURE INVEST24 MENT.—The Secretary of the Treasury should support the 

25 creation and utilization of a World Bank trust fund for 

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1 tributions and promote bilateral donations to such a fund 

2 for the purpose of promoting transparency, donor coordi3 nation, and Nepalese ownership, and consultation with 

4 civil society, particularly when making investments in Ne5 pal’s infrastructure, such as— 

6 (1) electric grids; 

7 (2) roads; 

8 (3) water and sanitation facilities; 

9 (4) agricultural infrastructure, 

10 (5) historical heritage sites; and 

11 (6) other critical infrastructure projects. 

12 (c) NEPAL RECOVERY PRIVATE INVESTMENT

13 FUND.— 

14 (1) IN GENERAL.—The United States Govern15 ment may establish a Nepal Recovery Private Invest16 ment Fund (referred to in this subsection as the 

17 ‘‘Fund’’), made available from existing appropria18 tions, to provide loans, equity investments and other 

19 forms of support to small- and medium-sized private 

20 enterprises with the purpose of— 

21 (A) promoting the development of Nepal’s 

22 private sector, particularly small- and medium23 sized enterprises; 


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1 (B) promoting and testing innovative poli2 cies and practices to strengthen Nepal’s private 

3 sector; 

4 (C) enhancing domestic engineering, con5 struction, and accounting capacity; 

6 (D) advancing good governance and trans7 parency in Nepal, particularly within the pri8 vate sector; 

9 (E) creating jobs; and 

10 (F) fostering greater adherence to Nepal’s 

11 tax code. 

12 (2) SEED CAPITALIZATION.—The United States 

13 Agency for International Development may provide a 

14 seed investment to capitalize the funds to be 

15 matched or exceeded by investments from private eq16 uity firms, as well as private funds raised from other 

17 limited investors. 

18 (3) ADMINISTRATION.—The Fund shall be ad19 ministered by an entity, either established or des20 ignated by the United States Government for this 

21 purpose, which is under the supervision of a board 

22 of directors consisting of 4 private citizens from the 

23 United States and 3 private citizens from Nepal. 

24 (4) DURATION.—The Fund should liquidate its 

25 assets and dissolve not later than April 25, 2030, 


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1 unless the Secretary of State determines that the 

2 Fund should be extended. Any long-term profits 

3 from the Fund shall be used in Nepal to further the 

4 purposes of disaster risk reduction and prepared5 ness. 

6 (d) FAST-TRACK OF INVESTMENT FEASIBILITY AND

7 ASSESSMENT STUDIES.— 

8 (1) IN GENERAL.—The Director of the United 

9 States Trade and Development Agency shall 

10 proactively explore and may provide accelerated re11 sponse in Nepal for— 

12 (A) project identification and investment 

13 analyses; 

14 (B) trade capacity building and sector de15 velopment activities, including technical assist16 ance and feasibility studies that support invest17 ments in infrastructure that contribute to over18 seas development; and 

19 (C) trade capacity building and sector de20 velopment assistance supporting the establish21 ment of industry standards, rules, regulations, 

22 market liberalization, and other policy reform 

23 with a particular focus on engineering and con24 struction. 


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1 SEC. 6. REPORTS. 

2 (a) REPORT ON IMPACT OF DISASTER RISK REDUC3 TION EFFORTS.—Not later than 1 year after the date of 

4 the enactment of this Act, the Administrator of the United 

5 States Agency for International Development (referred to 

6 in this section as the ‘‘Administrator’’) shall submit a re7 port to the appropriate congressional committees that— 

8 (1) analyzes how the United States investments 

9 in Nepal during the last 20 years in disaster risk re10 duction and earthquake resilience saved lives, re11 duced suffering, and reduced property damage and 

12 economic losses during the earthquake and subse13 quent aftershocks; and 

14 (2) includes a set of recommendations for how 

15 disaster risk and recovery programs can be improved 

16 in Nepal and other countries with substantial dis17 aster risk and recovery programming. 

18 (b) REPORT ON HUMANITARIAN RELIEF EFFORTS.— 

19 Not later than 1 year after the date of the enactment of 

20 this Act, the Administrator, in consultation with the Sec21 retary of Defense, shall submit a report to the appropriate 

22 congressional committees that describes the cost, effective23 ness, timeliness, and impact of the international humani24 tarian assistance provided to Nepal. 


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1 SEC. 7. AUTHORIZATION OF APPROPRIATIONS. 

2 (a) AMOUNTS AUTHORIZED.—In addition to funding 

3 previously dedicated to development in Nepal and any 

4 international disaster assistance resources made available 

5 for immediate humanitarian response activities, there are 

6 authorized to be appropriated, either as part of the regular 

7 appropriation process or as part of supplementary appro8 priations, to carry out the policies and objectives set forth 

9 in this Act— 

10 (1) $200,000,000 for fiscal year 2016; 

11 (2) $200,000,000 for fiscal year 2017; and 

12 (3) $100,000,000 for fiscal year 2018. 

13 (b) TRANSFERS.—Of the amounts appropriated for 

14 each fiscal year pursuant to subsection (a)— 

15 (1) the Department of the Treasury and the 

16 United States Agency for International Development 

17 may contribute to a multi-donor trust fund for re18 construction and recovery expenses related to Nepal 

19 following the earthquake of April 25, 2015, subject 

20 to the regular notification procedures of the appro21 priate congressional committees; and 

22 (2) amounts may be transferred to the ‘‘Devel23 opment Credit Authority’’ account of the United 

24 States Agency for International Development for the 

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1 standing the otherwise applicable dollar limitations 

2 on transfers to such account. 

3 (c) AVAILABILITY OF FUNDS.—Amounts appro4 priated for each fiscal year pursuant to subsection (a) 

5 shall remain available until expended. 

Æ 


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