Increasing Access of Poor Nepali Communities to Biogas Technology to Strengthen Livelihoods and to Enhance Environment Management

Duration: August 2007 to August 2011
Project Location: Gorkha, Sindhupalchowk, Dolakha, Ramechhap, Dang, Salyan, Sukhet and Dailekh
Partners: Federation of Community Forest Users, Nepal and Nepal Biogas Promotion Association (NBPA)
Focal Person: Mr. Suman Dhakal
Status: Completed
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It is anticipated that a much higher percentage of future biogas plants will be sold to the poorer and more remote communities, access to credit will be essential. Though there has been relatively more success in promoting biogas through credit in Terai, access to biogas loans in the mid hills of Nepal has been limited due to a number of reasons, primarily because:

  • The benefits of biogas adoption have not been widely disseminated to mid hills households
  • Despite higher government subsidies for biogas installation in hills compared to the terai, the upfront costs of biogas installation is still too high for most households because transportation costs of construction materials is very high in the hills (as most mid hill areas are not well served by roads)
  • Low awareness of benefits and high costs means there has been limited demand for biogas demands, consequently microfinance institutions either do not exist for biogas promotion in mid hills, or where such institutions exist, they have not invested in biogas promotion.

CFUGs are one of the very few institutions in Nepal which organizes a sizeable number of households to undertake conservation and development activities. CFUGs have increasingly larger networks at village development committees, range post levels, district, and regional to national and international levels through FECOFUN. FECOFUN is an ideal institution to promote biogas, particularly in the mid hills of Nepal as they can reach thousands of households organized as more than 15,000 forest users groups.