WB to fund biogas plants in rural Nepal

The World Bank has agreed to provide assistance of $ 5 million to co-finance the setting up of 37,000 biogas plants in rural areas of Nepal.

The WB-administered Global Partnership on Output Based Aid (GPOBA) has signed a grant agreement with the government under the fourth phase of the Biogas Support Program (BSP-IV).

The Project will be implemented by the Alternate Energy Promotion Center (AEPC).

The grant signed on Thursday is also funded by the United Kingdom 's Department for International Development (DFID). "The Project complements user contributions by the target group with an output-based subsidy in order to foster local ownership and to increase the reach of donor funding," states a press release by the WB.

"The Project aims to replace traditional energy sources used by the rural population, such as fire wood and kerosene, with modern biogas plants."

"Switching to biogas reduces carbon emissions as well as deforestation and decreases the frequency of respiratory infections that result from burning sooty fuels in poorly ventilated households. The Community Development Carbon Fund estimates that families will also save approximately three hours of labor per day from the conveniences of gas in addition to financial savings from not purchasing other fuels and fertilizers. Women and girls, who are traditionally responsible for colleting firewood and cooking, will be among this project's primary beneficiaries. Furthermore, access to biogas will enable families to use gas lanterns after sunset to provide light for children's studies or other household activities," the release adds.

The Biogas Support Program was started in 1992 by the Netherlands Development Organisation (SNV) together with the Government of Nepal to promote environmentally friendly and affordable energy to remote rural areas. The project has also received substantial funding from KfW. Since 2006, the BSP-IV is benefiting from funding form the World Bank's Community Development Carbon Fund in exchange for reductions of emissions of greenhouse gases.

Since 1992 the Biogas Support Program has helped to install 150,000 biogas plants in rural Nepal. The local non-governmental organisation Biogas Sector Partnership – Nepal (BSP-N) is serving as project implementing agency. nepalnews.com Oct 04 07