On 18th August 2008, Kosi River burst through its eastern embankment about 13 km upstream of the Kosi Barrage in Nepal, 8 km north of the Indian border, and created a major flooding in Nepal and India – specifically in the state of Bihar, India. According to official figures, a total of 3.3 million people were affected in Bihar alone.  A total area of close to 3700 sq. km, 30 percent of the affected districts in Bihar was inundated, affecting 412 Panchayats (local bodies) and 993 villages. Nearly 500 people died.

The World Bank received a request for reconstruction assistance in December 2009 and immediately initiated the preparation of an emergency recovery project beginning with a Needs Assessment. A World Bank/GFDRR team in close cooperation with the Government of Bihar undertook the Needs Assessment. As the Government of Bihar requested the assessment team to focus on the worst-hit sectors and since comprehensive data was not available at the time of the assessment, some sectors that are normally covered in typical Needs Assessments were not covered. It was also not feasible to deploy the UN-ECLAC Damage and Loss Assessment Methodology.  Instead the assessment team used an empirical methodology of assessing damages in key sectors (housing, roads & bridges, water resources, agriculture & livestock, health, education, social, and environment) and determining needs based on disaster risk reduction elements and under the overall reconstruction paradigm of building back better.

The assessment found that the housing sector sustained an estimated damage of US$134.9 million whereas the roads and bridges sector sustained an estimated damage of US$129 million. Water resources, agriculture and livelihoods, health, education, social, and environment sectors also sustained heavy damages.  Immediate reconstruction needs in the housing sector were estimated at US$225 million for 157,428 houses declared eligible for assistance. The need for reconstruction of roads and bridges was estimated at US$317 million taking into account the need for multi-hazard resistant and better quality construction to “build back better” after the disaster. Recovery needs in the livelihoods sector was estimate at US $36.9 million, in education sector at US$28.4 million, and in health sector at US$16.6 million.  A two-phased approach was recommended in order to address the short, medium, and long-term needs of recovery and reconstruction. Acombination of structural and non-structural measures including the development of an state-wide holistic flood risk management master plan was recommended to ensure risk reduction from future flooding of the Kosi river.