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BSP is overall responsible for the implementation of the biogas programme. Its main responsibilities are
quality assurance/control and maintenance of constructed plants, operation and maintenance training to the
biogas users, technical training to the company staff, subsidy administration, overall biogas promotion and
marketing, research and development, and institutional strengthening.
Proposed BSP Phase IV
Phase IV is planned from 1 July 2003 to June 2009 with the following objectives (BSP. 2003):
The overall objective of BSP-IV is to further develop and disseminate biogas as a mainstream Renewable
Energy Technology in the rural areas of Nepal. The specific objectives contributing to its overall objectives
are:
■ To develop a commercially viable and market-oriented biogas industry;
■ To further strengthen institutions for sustainable development of the biogas sector;
■ To stimulate internalisation of all benefits of the biogas plant, focusing on gender related impacts of
the technology;
■ To implement Clean Development Mechanisms (CDM) arrangements for biogas sector in Nepal;
■ To increase the number of quality biogas plants with 200,000;
■ To ensure the continued operation of all biogas plants installed under BSP; and
■ To conduct applied R & D in order to optimise plant operation.
14.4 FINANCIAL INSTITUTIONS
As said, mainly three banks namely Agricultural Development Bank (ADB/N), Nepal Bank Limited (NBL),
and Rastriya Banijya Bank (RBB) are involved in providing the loans to farmers for the construction of
biogas plants. ADB/N has been the pioneering institution involved in financing biogas programme.
Established in 1968, it has a network of more than 700 offices spread strategically all over the country to
provide its services at grass-root level. It has been providing services in biogas sector right from the very
start of the programme in 1974/75. After 1995, above-mentioned two commercial banks (NBL and RBB)
have joined in providing the loans to farmers for the construction of biogas plants. The annual interest
rates charged by these three banks on biogas sectors also vary to some extent.
Currently, about 60 local based Micro Finance Institutes (MFI) are involved in lending biogas loans to the
poorer section of society with lower interest rates. Involvement of MFIs in biogas lending and promotion
seems promising (BSP, 2003).
14.5 (I)NGOS AND OTHERS
As the SNV/BSP's third phase programme was planned to be terminated by the end of 2002, it is imperative
that appropriate institutions should be involved to lake up its activities. Thus keeping this view in mind,
SNV/BSP has supported the establishment of NPBG as an umbrella organization of biogas companies,
which is already been involved in biogas promotional activities. Some (I)NGOs are also involved in
biogas promotion.
Various donors such as United Nations Children Educational Fund (UNICEF), UNCDF (United Nations
Capital Development Fund), Save the Children/USA, Plan International and FAO, etc had been involved in
the past to promote biogas technology in Nepal. Their involvement was mainly for providing financial
support and the necessary technical assistance.
14.6 BIOGAS COMPANIES
While BSP was established, it started opening the opportunities for private sector for biogas construction.
Currently, 57 biogas companies have been involved in biogas plant construction and maintenance. Biogas
companies also provide training to the users on operation and maintenance and training on maximum
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