Sichuan quake damage likely cost $20bn

15 May 2008 03:43  [Source: ICIS news]

SINGAPORE (ICIS news)--The cost of damages from the massive earth quake in Sichuan in southwest China is likely to exceed $20bn, disaster modelling and consulting firm AIR Worldwide said late on Wednesday.

The firm’s estimates were based on the level of insurance coverage as well as property data in the disaster struck zone, taking into account the losses for residential, industry and construction properties.

The total value of property in Chengdu, the capital district of Sichuan, is estimated to be over CNY800bn ($114bn), of which only a small portion is covered by insurance, the firm added.

More than 40,000 people were dead, missing, or buried amid the wreckage from the earthquake, which measured 7.9 on the Richter scale, that hit Sichuan on Monday, latest estimates showed.

With damaged land transport links already overused by relief efforts, Chinese Premier Wen Jiabao has ordered the armed forces and civil aviation department to deploy 90 more helicopters for rescue missions in the quake-stricken Sichuan province, state media said on Thursday.

These helicopters will join the 20 that has already been dispatched to the quake-hit areas for reconnaissance, food and water airdropping, transporting injured people and delivering rescuers. 

Meanwhile, the Shanghai Composite Index fell 1.8% to close at 3,560.24 on Wednesday as the quake raised fears of price hikes due to supply disruptions.

$1 = CNY 7.00

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By: Bohan Loh
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