In the wake of last month's devastating monsoon disaster, the World Bank has approved $150 million in emergency financing for Nepal. The funds will be available in the event of natural or climate-induced disasters or health emergencies in Nepal.

The approval was made in Washington on Wednesday.

"The Nepal Disaster Resilience Development Policy Credit with Catastrophe Deferred Drawdown Option (Cat DDO) operation supports policy and regulatory reforms to increase disaster resilience and strengthens institutional mechanisms for effective disaster response," the multilateral funding organisation said in a statement on Wednesday. "It also supports the government in improving early warning systems and building the policies, institutions, and regulatory frameworks needed for risk reduction and risk informed investment in critical infrastructure as well as increasing preparedness for public health emergencies."

The Cat DDO offers quick funds after a disaster, giving the government an additional tool for response and recovery, the bank stated, adding that these resources are crucial for disaster recovery at all levels of the federal system.

World Bank Regional Country Director for Maldives, Nepal, and Sri Lanka David Sislen, referring to the flooding and landslides of September last week, said that Nepal is grappling with a polycrisis of natural disasters, climate hazards, and health emergencies and this has increased the risk of financial shocks.

“This operation supports the government’s reforms to build resilience against these escalating risks and provides a line of credit that can be accessed immediately following a disaster or public health emergency to ensure a timely and effective response,” the World Bank statement quoted Sislen as saying.

Likewise, the UN and the humanitarian country team said that it is setting out an urgent plan to support the ongoing efforts of Nepal to respond to the deadly floods and landslides.

The Nepal Floods Response Plan prioritises 193,000 people, with an immediate funding requirement of US$ 17.5 million to provide urgent assistance to the most vulnerable and most affected people and communities, the UN office In Nepal said in a statement.

The floods and landslides have caused nationwide havoc just ahead of the Dashain festival killing at least 244 people. Nineteen people are still missing while 179 were injured in the disaster that affected dozens of districts.

Thousands of families have been displaced, with over 10,000 households sheltering in overcrowded temporary camps, struggling to access basic needs like clean water, sanitation, and healthcare.

“Families and communities in Nepal are reeling from devastating floods and landslides that have compounded existing vulnerabilities to disasters and climate shocks. This response plan is a unified commitment of the Humanitarian Country Team to provide lifesaving assistance to the communities who need and deserve our support to face the devastating consequences of the global climate crisis. We need to stand by them as we globally face a very real, yet uncertain, climate future” said Hanaa Singer-Hamdy, UN Resident Coordinator and Humanitarian Coordinator in Nepal.

The Nepal Floods Response Plan supports the government's 'build-back-better' strategy, focusing on urgent food, water, shelter, and protection needs. It prioritises vulnerable groups—women, children, the elderly, and people with disabilities—ensuring equitable access and addressing risks like disease, protection issues, and food insecurity, the statement added.

In close collaboration with the government of Nepal, the Humanitarian Country Team, UN agencies and partners will intensify efforts to provide life-saving relief and restore livelihoods, ensuring communities have the resilience to rebuild in the wake of yet another climate-driven disaster, the statement said.