download (pdf, 6MB) - SNV

More documents

Recommendations

Info

20.1 INTRODUCTION CHAPTER XX FINANCING OF BIOGAS PLANTS 13 Financing of the biogas plants is the most important part, since the decisions to invest in a new project necessitates financing the investment. Affordable financing is the key element in the promotion of biogas plants. Financing procedure is two-fold process; one with provision of direct financing in cash and the other through loans from the banks. In the first case the household desiring to install a biogas plant approaches recognized Biogas Company and pay the cash amount claimed by the concerned company. The planning of construction schedule for implementation proceeds thereafter. The total cost incurred for installation is calculated for the settlements of the accounts after the deduction of subsidy. This is followed by claim to be made for reimbursement to BSP by the company. In the second case, the interested household approaches for loan from the commercial banks. 20.2 ROLE OF COMMERCIAL BANKS Commercial banks play important roles in financing biogas plants to the interested farmers/people to install biogas plant. In Nepal, the three commercial banks namely Agricultural Development of Nepal (ADB/N), Rastriya Banijya Bank (RBB) and Nepal Bank Limited (NBL) and other financing companies have been involved in providing loan for installation of biogas plants. Formally rural financing began with the phased implementation of the land reform programme in the mid 1960's in the form of Land Reform Savings Cooperation (LRSC). However, this institution had a narrow financing mandate. With a broader financing mandate including individual households, Agricultural Development Bank Act was enacted in 1967. ADB/N began its rural financing operations from 1968. LSRC was also merged into ADB/N within few years of its operation, Over the past few years, two major commercial banks NBL and RBB also came up with its own Banking for the Poor (BWP) programme. These banks are active in the alternate energy technology sector including credit programme in biogas sector mainly stimulated through the priority sector credit programme. These commercial banks provided loans for installation of biogas plants. Bank credit mixed with government subsidy has made the biogas technology very popular among the people, especially for the people residing in the rural areas of the country. More than 80 percent of the biogas plants were installed under the financing mechanism; that- is loan and subsidy programme in Nepal. These banks provide loans to the farmers for the construction of biogas plants. The construction companies collect demands from interested households to install biogas plant with all the required documents and collateral approach (along with quotation). The bank approves the loan based on the quotation of the company and issues coupon to the concerned company for the construction of the biogas plants. Finally, the bank credits the amount in the name of the household by deducting the subsidy amount. 20.2.1 Agriculture Development Banks of Nepal (ADB/N) ADB/N is the largest financing institution in providing rural finance services including loan to the biogas plants. To implement the biogas programme more efficiently Gobar Gas and Agricultural Equipment Development Company (GGC) was established in 1977 under a joint venture of Agricultural Development Bank (ADB/N) and United Mission to Nepal (UMN). The credit programme from ADB/N started for the first lime in 1983 with the subsidy programme from UNDP to the community biogas. Since then, ADB/N has been involved in administrating loan and subsidies in biogas sector, It provided loan to install the biogas plants according to loan disbursement regulation. Of the total provided loan to the biogas plants, the share of ADB/N is about 92 percent. As said in the preceding chapters, ADB/N has also been involved in the promotional activities mainly in information dissemination and training in addition to channelling loan and subsidies. 13 This chapter is based upon the write, up of-Dr: Mangala Shrestha, Associate Professor, Patan Multiple Campus, Tribhuwan University, Nepal. 162
20.2.2 Rastriya Banijya Bank Rastriya Banijya Bank (RBB) is one of the financing institutions providing loans to the people in the rural as well as urban areas for the various purposes. In this connection, it is also being served as loan providers for those willing install biogas plants in their houses. It provided loans to the farmers for the construction of biogas plants since the year 1995. In the year 1998, it invested about 10 million rupees for commissioning about 400 biogas plants. 20.2.3 Nepal Bank Limited Nepal Bank Ltd. (NBL) is also playing an important role in financing development projects of the country including small loans to the individual farmers. It was involved in financing biogas programme since the year 1994/95. Up to the year 1999, the bank has financed about 340 biogas plants and the total out standing loan in this sector was reached to about 8.72 million rupees in 1999. At present, NBL and RBB are found less interested in the promotional activities of biogas plants except for providing loan. 20.3 REPAYMENT OF LOAN One of the important features of the BSP has been its innovative financial engineering and judicious application of consumer subsidies to help develop the market for biogas plants. With this provision of loan, biogas installation has been quite attractive to the construction companies as well as to the farmers. Commercial banks feel comfortable, as repayment of loan in biogas is high compared to other loans. Biogas loan ranks as second good loan after tea and coffee. Commercial banks feel comfortable in collection of lent money (repayment), The loan repayment period ranges from 5 to 7 years. The repayment rate is fixed to the collection as a percentage of disbursement. However, the lengthy and cumbersome procedure still adopted by the banks in loan approval needs to be simplified. 20.4 INTEREST RATE The annual interest rates charged by three commercial banks (ADB/N, NBL and RBB) on biogas sectors vary. ADB/N charges interest at the rate of 16 percent, while NBL and RBB charge 11.5 and 15 percent respectively. All three banks have also rebate schemes if the interest amounts are paid on time. ADB/N provides a rebate of 10 percent on the interest amount if it is paid on monthly basis. Similarly, NBL and RBB provide a rebate of 1 percent if the interest is paid quarterly. Therefore, if the interest amounts are paid regularly and on time the effective interests are 14.4 percent for ADB/N loans, 10.5 percent for NBL loans, and 14 percent for RBB loans (Kane!, 1999). 20.5 SUBSIDY In the beginning, the biogas programme was primarily based on external assistance. This included community biogas plants built under Small Farmer Development Programme (SFDP) of ADB/N, which were funded by UNDP, UNICEF, USAID and UMN. The government of Nepal for the first time announced a provision of subsidy on biogas plant in 1975 on 'Agricultural Year'. The subsidy was 50 percent on the interest of bank loan. A grant was made available from the UNDP to provide subsidy on community biogas plants for the year 1983, 1984 and implemented under the ADB/N credit programme. During fiscal year 1985 and 1986, a 50 percent interest subsidy was provided on bank loans, but this provision was discontinued in fiscal year 1987. Again, a 25 percent capital subsidy for 6 and 10 m 3 plants was available during fiscal year 1988 and 1989, and it too was withdrawn in fiscal year 1990 during the interim government after the advent of multi-party democracy. The fund for the subsidy programmes was available from the UNCDF, Asian Development Bank, Manila (ADB/M), Funded Forestry Programme and own resources of HMG/N. Realizing the necessity to promote rapid development of biogas sector in Nepal, the government had set a target of commissioning 30,000 plants during the Eighth Five Year Plan (1992-97). With the introduction of <strong>SNV</strong>/BSP in fiscal year 1992, the subsidy was fixed at three levels (for the Terai, Hill and Remote Hill districts). The announcement of a flat capital subsidy of NRs 7000 and NRs 10,000 in the Terai and Hills, the installation rate for all sizes of biogas plants increased rapidly. The subsidy on biogas meets a substantial 163
Page 2 and 3:
BIOGAS As Renewable Source of Energ
Page 4 and 5:
FOREWORD I have the pleasure to go
Page 6 and 7:
EDITORS NOTE Since its inception fr
Page 8 and 9:
IBS IEIA IOE INGO IQC IRR JBT KfW K
Page 10 and 11:
TABLE CONTENTS FOREWORD EDITOR'S NO
Page 12 and 13:
13.5 Long-term Government Policy 11
Page 14 and 15:
List of Tables Table 1.1 Table 1.2
Page 16 and 17:
Figure 5.6 Figure 5.7 Figure 5.8 Fi
Page 18 and 19:
CHAPTER I CHARACTERISTICS OF BIOGAS
Page 20 and 21:
Figure 1.1 clearly indicates that t
Page 22 and 23:
CHAPTER II DESIGN CONCEPT AND RELAT
Page 24 and 25:
Chinese model fixed dome biogas pla
Page 26 and 27:
2.2.4 Other Designs Figure 2.4: Dee
Page 28 and 29:
Anaerobic Filter: The anaerobic fil
Page 30 and 31:
■ Suitable foundation condition -
Page 32 and 33:
Solution: From Table 2.2: 1 cow yie
Page 34 and 35:
2.6.2 Volume Calculations for Chine
Page 36 and 37:
The resultant force is as follows:
Page 38 and 39:
CHAPTER III MICROBIAL ACTIVITIES IN
Page 40 and 41:
substances are solubilized into sim
Page 42 and 43:
3.4 FACTORS AFFECTING MICROBIAL ACT
Page 44 and 45:
CHAPTER IV VARIOUS USES OF BIOGAS A
Page 46 and 47:
Figure 4.5: Sketch of Ujeli Biogas
Page 48 and 49:
The volume of water form the 5 HP p
Page 50 and 51:
. Availability of Fertilizer Cattle
Page 52 and 53:
d. Needs Match Sticks More matchsti
Page 54 and 55:
In which Q = rate of heat loss, (en
Page 56 and 57:
. Integration of Solar Energy Integ
Page 58 and 59:
5.4.1 Biogas Reactor at Lukla/Mosi
Page 60 and 61:
Figure 5.8: The Flat View of the Pi
Page 62 and 63:
CHAPTER VI BIOGAS IN RELATION TO OT
Page 64 and 65:
Table 6.1: Impact of Biogas on vari
Page 66 and 67:
Chinese experience shows that if th
Page 68 and 69:
7.2 NITROGEN CYCLE Bio-slurry is ri
Page 70 and 71:
7.4.2 Nutrient Content of Bio-slurr
Page 72 and 73:
To avoid the loss of ammonia (NH 4
Page 74 and 75:
Experiment with Bio-slurry on Maize
Page 76 and 77:
stated that cucumber yielded double
Page 78 and 79:
7.8.5 Philippines In the Philippine
Page 80 and 81:
Cross Section—B-B Figure 7.4: Mod
Page 82 and 83:
CHAPTER VIII BIOGAS PRODUCTION FROM
Page 84 and 85:
■ ■ ■ Excreta available /day
Page 86 and 87:
It is to be noted that the settling
Page 88 and 89:
8.43 Operation of Biodigester After
Page 90 and 91:
9.1.2 Raw Materials Utilized for Fe
Page 92 and 93:
help design large anaerobic digeste
Page 94 and 95:
Inlet and outlet of the biodigester
Page 96 and 97:
CHAPTER X IMPLICATIONS OF BIOGAS ON
Page 98 and 99:
10.43 Substitution of Agricultural
Page 100 and 101:
10.8 CARBON EMISSION SAVED FROM THE
Page 102 and 103:
industrial, military or other organ
Page 104 and 105:
apidly. The techniques that have fo
Page 106 and 107:
11.2.7 Contingency Approach The ess
Page 108 and 109:
have to deal not only with one leve
Page 110 and 111:
REFERENCES [1] CES/IOE (2001) Role
Page 112 and 113:
. Internal rates of return (IRRS) a
Page 114 and 115:
Other assumptions made while calcul
Page 116 and 117:
Table 12.1: Summary of Financial Ra
Page 118 and 119:
Table 12.4: Summary of Financial Ra
Page 120 and 121:
Table 12.7: Financial Rates of Retu
Page 122 and 123:
IRRs are higher when increased nutr
Page 124 and 125:
CHAPTER XIII BIOGAS POTENTIAL AND F
Page 126 and 127:
would be available since the number
Page 128 and 129:
13.2 FUTURE PERSPECTIVE IN NEPAL 13
Page 130 and 131: 13.3.1 Institutional Strengthening
Page 132 and 133: ■ ■ Reducing dependency on impo
Page 134 and 135: CHAPTER XIV ROLE OF VARIOUS ACTORS
Page 136 and 137: ■ ■ ■ To construct 13,000 bio
Page 138 and 139: utilization of bio-slurry as fertil
Page 140 and 141: and NBPG. Sometimes a company may b
Page 142 and 143: CHAPTERXVI IMPACT OF BIOGAS ON USER
Page 144 and 145: of dung, On the other hand, 33 perc
Page 146 and 147: CHAPTER XVII IMPACT OF BIOGAS ON HE
Page 148 and 149: Figure 17.1: Perceived Reduction in
Page 150 and 151: 27 percent of households with bioga
Page 152 and 153: Majority of biogas households (95.5
Page 154 and 155: Table 18,1: Sampling of Biogas Hous
Page 156 and 157: as the probable reasons for non-ope
Page 158 and 159: Table 18.7 shows that majority of t
Page 160 and 161: variations. Assuming that 1 hour of
Page 162 and 163: Status Table 18.15: Comparison of t
Page 164 and 165: contributes to the saving of Rs. 6.
Page 166 and 167: Table 18.22: Kerosene Replacement a
Page 168 and 169: The survey results on Carbon emissi
Page 170 and 171: CHAPTER XIX WORKLOAD OF WOMEN AND G
Page 172 and 173: Looking into the division of activi
Page 174 and 175: 19.3 STUDIES OF BIOGAS USERS WITH F
Page 176 and 177: co-operative manner so that the wea
Page 178 and 179: Biogas user women perceived that bi
Page 182 and 183: portion of the construction cost of
Page 184 and 185: CHAPTER XXI CONSTRAINTS AND PROBLEM
Page 186 and 187: 21.6.4 Mosquito Breeding after Biog
Page 188 and 189: (FAOm:P/Nep/4451-T). [33] CMS (1996
show all

download (pdf, 6MB) - SNV

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?