churia forest development project nepal

7/31/2019 Churia Forest Development Project Nepal

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Lahan, Siraha district, Tel.- (+977J-33-60411 S -33-60412; Fax: {+977}-33-60413

Mailing Address. P.O. Box 1457, Kathmandu, Nepal. E-mail: [email protected]

FileNo. G 6

0. 0Mr. Felix E.W. ter HeegdeProgram Manager

Bio-gas Support Programme (SNV)JhamsikhelLalitpur, Nepal

Lahan, January 18, 2000

Re: Study Report on Bio-gas Programme through ChFDP

Dear Mr. Heegde.

Please kindly find attached a study report on "Bio-gas promotion through ChFDP - anAnalysis of Frame-conditions".

In the report, an attempt has been made to study the situation of the project area inSiraha. Saptari and Udayapur in view of promotion of bio-gas programme, and difficultiesfaced in promotion with special focus on Siraha and Saptari. Some recommendations toimprove the situation in the future are also given at the end.

We hope that you will find the report useful and interesting. Your suggestions/comments,and ideas to further intensify the programme in Siraha and Saptari are most welcome.

With best wishes,Yours sincerely,

Peter LaubmeierTeam Leader

Dinesh UpretyNGO Coordinator


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Bio-gas Promotion through ChFDP

An Analysis of Frame-Conditions

Siraha, Saptari and Udayapur Districts

Dinesh UpretySeptember 1999

A Project of Ministry of Forest and Soil Conservation, HMG Nepal, Supported by German Technical Cooperation, GTZ

Tel: (+97/)-33-6UAI2, email. [email protected]

Mailing Address: P.O.Box 1457, Kathmandu, Nepal


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Bio-gas promotion through ChFDP- an analysis of frame conditions

Table of Contents

Chapter 1: Introduction of project, Bio-gas Program and Progress achieved 1-3

1.1 An introduction of ChFDP 1

1.2 Alternative energy program of ChFDP 11.3 ChFDP's involvement in Bio-gas program 2

1.4 Actors involved in Bio-gas promotion 2

1.5 Progress of NGOs to date 2

Chapter 2: An overview of frame-condition of Siraha, Saptari and Udaypur 4-6

2.1 An overview of frame-condition 4-6

2.1.1 Socio-economic conditions 4

2.1.2 Forestry conditions 5

2.1.3 Fuelwood supply and demand Scenario 5

2.1.4 Household energy consumption 6

Chapter 3: An analysis of bio-gas plant installation cost in Siraha, Saptari and Udaypur 7-10

3.1 Presentation of cost structure 73.2 Factors leading to high installation cost in Siraha and Saptari 8

3.3 Major obstacles behind the lack of adequate promotion of bio-gas in

Siraha and Saptari Districts. 8

Chapter 4: Conclusion and Recommendations 11-14

Annex 1; Bio-gas Cost Structure of Siraha, Saptari and Udaypur Districts

List of Tables

Table No.1: NGOs involved in Bio-gas Promotion . 2

Table No:2: Progress of NGOs 3

Table No.3: Overview of Socio-economic conditions 4

Table No.4: Genera! Information about Forestry situation 5

Table No.5: Fuelwood supply and demand scenario 6

Table No,6 Energy Consumption for cooking 6

Table No.7 Bio-gas plant installation cost 7


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Abbreviations

BPGBSPCAFTChFDPCmCPFDCCRTEnFoLFYhahh(HH)ICSKmNGO

PSUSNVtons/aVDC

Bio-gas Promotion GroupBio-gas Support Program of SNVCenter for Agro Forestry TechnologyChuria Forest Development ProjectCubic MeterCommunity and Private Forestry Development CenterCenter for Rural TechnologyEnvironment for LifeFiscal YearHectorHouseholdsImproved Cooking StovesKilo meterNon Government Organization

Project Support UnitNetherland Development CooperationTons per annumVillage Development Committee


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1. Introduction of Project, Bio-gas Program and Progress Achieved

1.1 An Introduction to Churia Forest Development Project

ChuriaForest Development Project was started in 1992 first as an orientation phase (1992-M994) at the

request of HMG, Nepal in order to provide assistance to support the forest [development in South Eastern

Nepal. The core development goal of the Project is to reduce [ecological imbalances of Churia forest.

Since January 1999, the project is in its second implementation phase, which will last up to December

2001. The duration of the German [support is expected to be continued up to 2006 with German

Technical Cooperation (TC) contribution.

The program activities of the ChFDP are guided by three-pronged core strategies of the project:

- increase production of forest product (fuelwood, timber)

- decrease consumption of forest products- alleviate poverty by creating alternative opportunities for (off forest) income.

Promotion of bio-gas and improved cooking stoves and other fuelwood saving technology comeunder the

strategy of decreasing consumption of forest products.

1.2 Alternative Rural Energy Programof ChFDP.

The focus of the ChFDP under alternative rural energy program is on the introduction of viable I

fuelwood saving technologies in the project area in order to reduce consumption of forest products.

However, ChFDP has not seen much option till date for a realistic fuelwood saving technologies, which is

low-cost, feasible for poor households, and which can contribute to a reduction in household energy

requirement.

The first step taken by ChFDP was the introduction of improved cooking stoves (ICS) during the period

of 1995-1996. The lCS introduced by CRT (Center for Rural Technology) was a low cost technology and

widely used in other parts of Nepal by several development agencies. However, 5 the evaluation of the

program after one year revealed that there are lots of cultural barriers in the adoption of technology by

the beneficiaries, which were not given due consideration in the course of project implementation..

Further, it was revealed that the improved cooking stoves designed by CRT could not actually save

fuelwood compared to ordinary stoves. Hence, very few people became ready to adopt the technology

After the failure of improved cook stoves, ChFDP has taken initiation to implement bio-gas program

since early 1998 especially for Siraha and Saptari Districts. Studies are also going on also to introduce

low cost and acceptable fuelwood saving technologies for the project area.


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1.3 ChFDP's involvement in Bio-gas Program in Siraha and Saptari.

Plants for Life, a partner NGO of ChFDP1, was involved in bio-gas promotion since 1995 in Tapeshwori

VDC of Udaypur district. With the technical support of Gobar Gas and Krishi Bikash Company, the NGO

assisted the farmers to install some 30 bio-gas plants. From 1996, Holistic Development Service Center,

another partner NGO of ChFDP, became involved in facilitating bio-gas program in Basaha VDC of

Udaypur. But all these attempts were, however, concentrated in Udaypur district only not in Siraha and

Saptari.

During this period, it was observed that Siraha and Saptari Districts also have high potential for bio-gas

plants . Likewise, the problem of forest degradation for fuel wood and loss of soil fertility due to the use of

animal residue for cooking purpose were observed in massive scale and very much severe in these two

districts compared to other parts of Nepal2. However, very little attempts were seen to promote bi-gas in

these two districts. The report of BSP (1997) shows "that in Saptari alone there is a potential of 56,258

bio-gas plant installation while only a total of 106(.19%) plants were installed by then. This percentage is

the lowest of al! terai districts and f there has been very few further addition in the number of plant

installation since then. Siraha 'District shows a bit higher percentage of installation (.66 % or 367 plants).

Whatever plants have been installed in Siraha and Saptari, this has been through a very long -time efforts

of Bio-. Gas and Krishi Bikash Company based in Siraha. This Company is working since past 10/12{years in Siraha and Saptari but has not been able to bring positive results due to very poor economic

conditions of people and difficulty in motivation than other parts of the country. ChFDP observed that if

the works continue in the same trend, the same prevailing condition will exist in this area even after 10

years.

Therefore, ChFDP-PSU took initiation in early 1998 to facilitate bio-gas program in these two districts in

close cooperation with SNV-BSP. To begin with, bio-gas promotion training was organized in January

1998 for the NGO partners of ChFDP with the help of SNV-ESP.

1.4 Actors involved in Bio-gas Promotion in the Project Area of ChFDP

Under the umbrella of ChFDP, following NGOs are involved in bio-gas promotion at present:

S.N NGOs Working area Dates Started

1 CAFT Siraha, Saptari and Udaypur Jan.1998

2 CPFDC Siraha and Saptari Jan.1998

3 EnFoL Saptari and Udaypur Nov. 1998

Table no. 1: NGOs involved in Bio-gas promotion

Private companies associated with NGOs are Gobar Gas and Krishi Yantra Bikash Company situated in

Lahan Siraha and Krishi Gas Company Pvt. Ltd. in Mirchaiya Siraha.

1.5. Progress of NGOs in Bio-gas Promotion

Since January 1998, the NGO partners of ChFDP involved in bio-gas promotion have achieved thefollowing progress:

1ChFDPs partnership with Plants of Life ended on July 1997.

2A detailed analysis is made in the latter section of this paper


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From January 1998 to March 1999

NGOs/Districts Siraha Saptari Udaypur Total

A Completed Plants 6 15 11 33CAFTCPFDCEnFoL

6 573

7

4

1877

B Under Construction 2 4 6CAFTCPFDCEnFoL

24 4

2

C Plan for FY 1999 25 30 23 78CAFTCPFDCEnFoL

205

15105

158

501513

Table No.2: Progress of NGOs from January 1998 to March 1999

Out of 50 Bio-gas plants planned for 1999 by CAFT, 17 plants are now already under banking process.

Construction of the plants will be started as soon as the banks make loans available.


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2. An Overview of Frame-conditions of Siraha, Saptari and Udayapur

The objective of this overview is to make the concerned readers aware of the frame- conditions of the

project area, the complexity of the problem in three districts in the promotion of bio-gas program and to

make suitable policy decisions accordingly. It is an attempt to show the status and correlation among

three districts in terms of supply and demand scenario of forest products, timber and fuelwood

consumption, and the resultant effects due to the lack of promotion of bio-gas or measures similar to it.

2.1. An overview of frame-conditions2.1.1

Socio-economic conditions

The overall population of the three districts amounts to 1.2 million people with 210,006 household

according to the National Census of 1991. The annual population growth has been 3% on the average for

three districts. However, this population growth is heavily affected by the in-migration in the three

districts. A glimpse of the socio economic frame conditions of the three districts is presented in the table

below.

Factors Siraha Saptari Udaypur

Population 1991/no. of hh 460,746/83,716 465,668/85,720 221.256/40,570

Population 2001/no. of hh 592,709/107,765 599,117/110,948 298,550/54,282

Area (km2) 1226 1237 2187Households below poverty line 67% 69% 83%

Land less and nearlandless household (


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2.1.2 Forestry Conditions

Persistent deforestation and rapid degradation of forest are the main characteristics of the forestry

situation in the project area. High population pressure with increased illegal encroachment of forest for

firewood, timber and agricultural land are the main reasons for the degradation. Uncontrolled and

excessive grazing by ever increasing livestock population is another preventing factor for a natural

regeneration process of the forest. This rapid deforestation process has resulted in the depletion ofalmost all forest resources in the plain Terai upto Indian border.

Siraha Saptari Udaypur

Average annual deforestation 1.8% 2.4% 0.8%

Average forest area per capita 0.05 ha 0.07 ha 0.76 ha

Forestry User household (of total HH) 3.45% 1.09% 28.08%

Table no.4: General Information about forestry situation4

The total forest area of the three districts is approximately 145,000 hector, which is about 30 percent of

the total district area. However, only 12% of this (about 17,500 ha) are dense forest and are mainly found

in Udaypur District. Siraha and Saptari comprise only about 14,000 ha of forest in each district entirelylocated in the Churia hills to the north of the districts.

2.1.3 Fuelwood supply and demand scenario.

Fuelwood for cooking is the major source of household energy in all three districts. In Udaypur district,

almost 99% of household energy requirements are met by fuelwood while in the southern part of Teria

Districts, the use of farm manure for cooking purpose is predominant. It is estimated that almost 95% of

fuelwood are consumed by households in all three districts and 5% by the commercial establishments

like brick kilns, tile factories and roadside hotels. The use of other alternative energy is negligible (for

example, use of kerosene and other energy is 1 % in Udaypur and 3% in Siraha and Saptari).

Udaypur Siraha Saptari Total DeficitYear

Supply(tons/a)

Demand(tons/a)

Supply(tons/a)

Demand(tons/a

Supply(tons/a)

Demand(tons/a

All Districts(tons/a)

1991 226,836 205,083 21,744 31,084 22,996 60,208 -24,8711996 213,275 240,168 20,025 35,321 21,707 68,592 -89,0732001 199,715 276,447 18,307 39,749 20,419 77,270 -155.025

2006 186,155 313,935 16,588 44,450 19,130 86,379 -222,891

Table No. 5: Fuelwood supply and demand scenario5

In 1991, Udayapur District still featured a fuelwood surplus of about 22,000 tons per annum, while the

annual deficit in Siraha and Saptari amounted to 9000 and 37,000 tons per annum respectively. The case

of Siraha and Saptari is revealed to be much more serious. In 1997, the amount of fuelwood removed

was estimated at 210,000 tons where as the supply amounted to 70,000 tons only in Siraha and Saptari.

4Data taken from Reversibility Study Report of ChFDP, 1996, and Development Indicators, 1997 by ICIMOD and SNV.

5Table taken from Pre-Feasibility Study Report of 1996, by AGEG


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2.1.4 Household energy consumption

The consumption patterns of household energy differ markedly for the three districts. The table below

shows that there is still a marked difference in the use of energy pattern even in the south and north belt

of the Terai district. This can be explained through the distance of forest in the south and the increasing

scarcity of fuelwood.

Udaypur Siraha SaptariEnergy Consumption

North South North South North South

Av.Kg/annum/HH wood collected 6331 5816 1638 697 3139 376

% HH using wood 100% 99% 52% 20% 93% 43%

AV.kg/annum/HH of dung 0 0 1386 2579 806 3137

% of HH using dung 0% 0% 83% 95% 57% 95%

% of HH using crop residues 74% 43% 65% 84% 87% 97%

Table No. 6: Energy consumption for cooking6

The use of dung in mass scale for cooking purpose has resulted in the severe reduction in the soil

fertility in Siraha and Saptari. According to the reversibility study report, 38% of the household useonly 6% of available dung and 48% of HH use 15% of dung for manuring fields in Siraha and Saptari

respectively . The rest is used for cooking purpose. While in Udaypur, 90% households use 90% of

dung in the field. The case of Saptari North area looks more serious as the study report shows that

93% of people here still use fuelwood for cooking purpose.

6 The percentage figures do not show the exact consumption of wood, or dung by HH, rather it presents thecombination of energy consumption pattern of all energy available. For example, if 83% of north Siraha peopleuse dung, this does not mean that they only use dung. But they use it in combination of wood and crop residues.So the same HH is again counted in data collection if they also use wood of crop residues.


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3. An analysis of cost of Bio-gas plant in Siraha, Saptari and Udaypur

Under almost same level of poverty conditions in the district of the study area, it became pertinent for

us also to study the real cost of bio-gas installation. The purpose of this analysis is to know the real

cost of bio-gas installation to be paid by Users in the three districts of the project area. This couldbecome a good basis, along with the findings of previous chapter, to recommend to introduce suitable

subsidy or incentive measures for Siraha and Saptari by the concerned agencies.

3.1 Presentation of Bio-gas Plant Installation Cost7

The cost presented below are based on the cost received from plant makers of the project area

through NGOs. Since the cost varies in some headings from village to village even within one district,

an average cost is estimated based on samples of each plant capacity. As we found that there is very

little variation in the installation cost in Saptari and Siraha, same cost structure is established for both

districts.

A. Cost with Subsidy

Plant Capacity 6 Cm 8 Cm 10 Cm

Siraha/SaptariUdaypur foothill

Rs.Rs.

12,3206,759

17,90011,580

23,45016,960

Cost Excess byin Siraha/Saptari Rs. 5,561 6,320 6,490

B. Cost without subsidy

Plant Capacity 6 Cm 8 Cm 10 Cm

Siraha/SaptariUdaypur foothill

Rs.Rs

19,32016,759

24,90021,580

30,45026,960

Cost excess byin Siraha/Saptari

Rs. 2,561 3,320 3,490

Table No. 7: Bio-gas plant Installation cost to be paid by Plant Owner

The subsidies given by the SNV-BSP are 10,000 for hilly area and7000 for terai region. The logic

behind the high subsidy for hilly regions is clear and reasonable- high transportation cost, high price

of raw materials compared to terai regions.

7For detail breakdown of cost, please see the Annex 1


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However, these subsidy rates are adopted equally at par for all terai regions and for all hilly districts

irrespective of situation of poverty, level of fuelwood consumption, forest degradation etc. of the

district in question. (It is also understandable that it is difficult for SNV-BSP to take into account

situation of all districts because of lack of information). The situation of Siraha and Saptari now

reveals this fact that the level of poverty and high cost in plant installation are equally sever (or moresever in case of forest situation) like hilly districts and also the major obstructions for the effective

promotion of bio-gas program.

The above table reveals that the cost of bio-gas plant installation is comparatively higher in Siraha

and Saptari than Udaypur foothill even without subsidy. In an average, the people of Siraha and

Saptari have to pay Rs. 6123 more than the cost that occurs in Udaypur foothill. The cost of bio-gas

plant installation without subsidy in Siraha and Saptari also comes to an average of Rs. 3123 more

than the cost of Udaypur. This clearly reveals that if equal rates of subsidy are given to all concerned

districts, for example, the cost of plant installation will still be higher by Rs. 3123 in Siraha and Saptari

districts.

3.2 Factors leading to high cost of plant installation in Siraha and Saptari.

The obvious factor that makes the plant owner to pay more on plant installation in Siraha and Saptari

is the less amount of subsidy granted to these districts. The subsidy here falls short by Rs. 3000 than

the hilly districts which means that given the equal rates of plant's materials and equipment, the

people of Siraha and Saptari have to pay Rs. 3000 more additionally l ike other parts of terai region.

The use of the type of materials has played an important role in increasing the cost. Due to the

unavailability of stones in Siraha and Saptari, the construction of the plant depends on the use of

brick. Bricks are almost twice costly than stones, while the Udaypur people have easy access to

stones at very cheap prices, and which are also found to be in use in Udaypur in 99 percent cases.

Likewise, the rates of pebbles, sand and unskilled manpower are also high in Siraha and Saptari

compared to Udaypur. All these factors have together led to an increase in the cost of plant

installation in Siraha and Saptari. The table No. 7 above reveals that due to the high cost of materialsand manpower, the cost in average is higher by Rs. 3123 irrespective of whether subsidy are given or

not.

3.3 Major obstacles/reasons behind the lack of adequate promotion of Bio-gas in Siraha and

Saptari.

The Project has found following major difficulties in relation to such a slow rate of promotion and

extension of bio-gas program in Siraha and Saptari.

1. Lack of adequate promotion of the technology

In Siraha and Saptari and specially to its southern belt, people are found almost unknown about thebio-gas program. Some of them have heard about it but they do not know about the cost, size of

plants and the benefits related to the plant installation. Even if some were found interested to install

bio-gas they did not know from where the services could be taken. Many of them who have heard

about it just took it for granted that bio-gas could be an extremely costly affair and nobody ever

approached to such person for providing adequate suggestions. Such


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absolute lack of information on the part of people in these districts is found to be one of the main

obstacles in the promotion of bio-gas program.

2. Inadequate Bio-gas companies for the two districts.

Since past 10/12 years until recently, only one bio-gas company had been working for these two

districts based in Lahan, Siraha. Due to the lack of adequate manpower and large size of the area,

this company could not become effective in promoting the technology. The reluctance of Siraha and

Saptari people to adopt bio-gas due to the high cost of technology and poverty also forced the

company to concentrate its effort more to such an area where price of technology was comparatively

cheap and people showed willingness to adopt the technology. So gradually the company started to

focus more on adjoining Udaypur and Sindhuli Districts where subsidy was high and cost of materials

were cheap compared to Siraha and Saptari. Although some plant installation work continued for

some rich people, the middle level people of Siraha and Saptari who could also afford to the

technology with due persuasion remained mostly neglected.

The performance of this company in Siraha and Saptari also became an indicator for other private

companies in order to be able to prioritize to establish their offices in these two districts. It's onlytowards the middle of 1997 that two bio-gas company namely Public Bio-gas and Krishi Bio-gas

opened up their offices in Mirchaiya, Siraha. However, keeping in mind that the selection of office

location in Siraha becomes more convenient to provide services to Udaypur and Sindhuli districts

rather than Saptari and Siraha.

3. Poverty viz. high cost of technology

Due to high cost involved in the installation of bio-gas plant, SNV-BSP has provided subsidy to the

farmers and provision of bio-gas loan through banks are also made available to them. However,

poverty is such prevalent in this areathat the installation cost that comes after the subsidy becomes

a very big amount for them. Although the adoption of this technology is targeted toward middle level

farmers, the very low agricultural yields and lack of other alternative income opportunity except

agriculture leaves them no savings at all to invest on new endeavours. One of the common features

of the people here is that they are very much reluctant to take loan from banks. It can be attributed to

their illiteracy, unable to understand the bank documents and forms, and mainly their negative

experience with banks due to their bureaucratic processes and commissions. The chances of

becoming indebtedness on the part of people after taking loan also made them reluctant to take bank

loans.

4. Cultural Barriers

Joint family system is one of the main features ofthis area. In such family in average 15 to 16 people

stay together. It means that plant capacity of at least 10 Cm is needed to sufficiently provide bio-gas

to cook two times meals and morning breakfast for such big family given that the family also have

sufficient cattle to generate gas. Installation of high capacity plants involves high cost, which

becomes one of the obstructing factors for the poor family. Further, even if the plant is installed itbecomes a point of debate within family when there occurs division of family later on as to which

member should own the plant. The division also reduces the number of cattle to provide necessary

dung to generate gas, which affects efficiency of gas generation.

Many families are found who simply do not like to cook their meals on bio-gas. However, continuous

persuasion from NGO Worker has helped to solve this problem to a greater extent.


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But to convince people to attach toilet with plant is still a remote matter. The problems of big family

after the installation of plant are not also small. Once they start to cook meals in bio-gas, they find that

their big pots to cook meals for the big family are not suitable on the small oven provided by the bio-

gas company. So either they have to change their pots or again they start cooking meals on the

traditional oven using firewood.

Therefore, not only the pre-installation promotion is necessary but also post-installation persuasionand advises to the farmers becomes equally important in the context of this area.

5. Effect of the failure of previous bio-gas model.

Towards 1980s, several old drum system bio-gas plants were constructed particularly in Siraha

District. These old model plants due to the immature technology of that time could not last long and

had also several difficulties in operation. Because of their failure, many people got the impression that

bio-gas is not a dependable technology and it will only be the waste of their money. In order to

overcome such impression, lot of promotion of the new model is required and reliability of the

technology needs to be guaranteed by the promoter.


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4. Conclusion and Recommendations.

4.1 Conclusion

In relation to the promotion of bio-gas technology, we observe that not only economic but alsocultural, social and promotional factors play an important role. The bio-gas technology is directly

concerned in the conservation of forest resources, particularly fuelwood. Therefore, seriousness in

the promotion of this technology in Siraha and Saptari needs to shown as early as possible in order

not to let the rapidly degrading forest of this area further degrade. The seriousness of the issue in the

context of Siraha and Saptari could be concluded under the following summarized points.

1. Poverty, overpopulation, in migration and high concentration of land ownership by few

people are the main social features of Siraha and Saptari Districts. While poverty restricts

people to afford to alternative means of household energy, high population pressure

combined together is making the forest situation worst in search for fuelwood, which is the

only traditional means of rural household energy. For many poor landless people, fuelwood

collection has become a means for their survival and it will remain so until the demand for

fuelwood continues from the middle and rich class people. In such situation, in order toreduce consumption of fuelwood it becomes necessary to target the middle and rich class

people to motivate them to adapt technology like bio-gas. Likewise, there is also an equal

need to promote low cost fuelwood saving technology for the poorer sector.

2. The data that 85% fuelwood of Siraha and 57% fuelwood of Saptari are collected by women

shows the major burnt of household energy problems borne by women. It takes one full day

for women to collect fuelwood from forest and back to home. When the time of majority of

women is being spent on collection of household energy, it becomes difficult to generate

women's participation in the natural resource management and other social development

processes as intended by the project. Without alternative means for firewood and thus

reducing the household energy problems of women, the situation of women as well as the

forest condition of the project area will not improve.

3. The supply and demand situation of timber products in Siraha and Saptari is characterized

by an immense deficit with about 40,000 cubic meter per annum. In the year 1996, the supply

and demand situation of fuelwood had a deficit of 62,181 tons per annum. If the

same trend continues, it is estimated that in Siraha and Saptari there will be a total deficit of 78,

293 tons fuelwood per annum by 2001.

This trend clearly shows that the forest products, which are good for timber, are also

being used for firewood purposes due to over demand of fuelwood than the forest's

capacity of its natural re-growth. And if this ever increasing demand for firewood isnot

alternatively met by the introduction of other effective fuelwood saving technologies,

any resources put for the increase of forest productions will also be easily nullified.

4. The poverty of Siraha and Saptari people is considerably related with very low agriculturalproductivity. Beside lack of irrigation, reduced scale of soil fertility of the agriculture land is one

of the major reasons for low agriculture yields. This is evident from the fact that in

Siraha and Saptari south, almost 95 percent people use dung for cooking purpose in mass

scale. Scarcity of firewood and distant forest from south has resulted in the immense use of

dung thus depriving the land from the use of organic fertilizer.


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In order to improve soil fertility, the trend of using dung for cooking needs to be reversed by

offering people other alternative household energy. In this context, promotion of bio-gas

technology has two-fold benefits. It saves the forest by not using firewood while the slurry that

comes after the generation of gas is proved to be a very good organic fertilizer for the land.

Therefore, promotion of bio-gas is not only related with the conservation of forest but also to

help people to increase land productivity and their income.

5. While the promotion of bio-gas is very much urgent in Siraha and Saptari, it's promotion is

largely obstructed by its high installation cost which is beyond the affordability of the majority of

middle level farmers of this area. In the co text of high level of poverty and rapid forest

deforestation prevalent in the area, the project and/or the agencies involved in the promotion of

bio-gas program should introduce measures to reduce plant installation cost besides the

subsidy given by SNV-BSP. Without introduction of such measures, there seems hardly any

chance to promote this technology as intended and to help reduce the ever increasing fuelwood

deficit of the area.

4.2 Recommendations

In order to efficiently extend the bio-gas program in the districts of Siraha and Saptari, two-fold

extension strategies are recommended.

1. Increase promotional activities2. Reduce plant installation cost

4.2.1 Increase promotional activities

To aware the people about the cost and benefits of bio-gas technology requires sufficient promotion.

In Siraha and Saptari, lack of promotion of technology is one of the major reasons behind such slow

expansion. There are several promotional materials developed by SNV-BSP like posters, pamphlets,

audio-visual etc. On the top of that there is a need of such materials and services like billboards,

cinema slides, mass education through target group orientation, workshops and even door to doorvisit to potential plant makers. Some form of such promotion is being done by the Bio-gas

Companies, however, their intervention is in a very limited scale. The need is to promote technology

in a mass scale which not only aware people about the bio-gas but also provides necessary

information of the installation processes, cost, benefits and so on in cooperation with Bio-gas

Companies and NGOs.

Together with promotional activities, training component of the program is also equally important.

One type of training could be technical training with the help of SNV-BSP to produce sufficient

technical manpower as plant makers for Siraha and Saptari who will also provide services in repairing

and maintenance of plant after installation. There is evidently lack of such manpower in the districts.

Second type of training is for extension workers to provide them knowledge on methods of social

mobilization and promotion of program in the field. Another form of training is for operation,

maintenance of plant and slurry management to plant owners.


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Although one-day trainings for this purpose are under the provision of bio-gas Company, they are

apparently not sufficient due to very short time span. The need is to provide them practical and a bit

detailed knowledge in plant operation, and especially in slurry management which has multiple

benefits for the farmers.

For the promotion of bio-gas, a close cooperation with SNV-BSP and existing bio-gas companies is

also equally important, for they are the agencies mainly responsible for the promotion of bio-gas inNepal.

4.2.2 Reduce plant installation cost

It is not possible to extend bio-gas program in Siraha and Saptari without introducing some measures

which reduce the economic burden of plant installation borne by the beneficiaries. In order to do that,

some ways of reducing cost are priority-wise suggested below.

a. Increase rate of subsidy (Option No. 1)

In the view of high installation cost to be borne by beneficiaries and the existing level of poverty of

Siraha and Saptari people as presented above, the subsidy rate of Rs. 7000 provided for all terai

region does not take into account the above features of this area. Therefore, there is a need to

readjust this rate giving due consideration to the factors that have become hindrances for such a slow

promotion of this technology in this area compared to other districts of Nepal.

SNV-BSP and Nepal Bio-gas Promotion Group are the main responsible bodies to decide on the rate

of subsidy. Therefore, we request both of these agencies to consider all risk of the two districts that

the people are facing/ going to face in natural resources and agriculture productivity due to the

absence of efficient promotion of this technology. From our analysis, we recommend that it would be

a great relief for the people of Siraha and Saptari if subsidy rate is increased from Rs. 7000 to

Rs.10,000. The frame-condition analysis presented in this paper could be very much helpful to

facilitate the concerned agencies to reach this decision.

b. ChFDP provides the subsidy (Option No. 2)

This option is valid only if SNV-BSP and Bio-gas Promotion Group do not agree to increase the rate

of subsidy. In that case, it is very important that Project provides this subsidy to promote this

technology and thus achieve Project's objectives. However, the subsidy to be provided by the Project

should be in kind equal to about Rs. 3000 per plant, but not in cash. The type of materials to be

provided in kind and the mechanism to provide it requires further discussion.

Nevertheless, Project prefers and recommends that subsidy rate is adjusted by the concerned

agencies responsible for making subsidy policy since this could only be a lasting solution compared

to the subsidy provided by the Project. In that case, Project would be. more responsible for

promotional and training activities,

c. NGOs work through its own developed bio-gas technicians instead of bio-gas company

(Option No.3)

This option is valid only when option No.1 does not work and the Project also declines to

provide anything in the name of subsidy under option No.2. But feels easier to provide

assistance in other forms.


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This option may look somewhat radical but is also possible under certain understanding with SNV-

BSP. The clue of reducing cost under this option is that Bio-gas Companies are profit-making

companies. In plant construction, they charge the customers such cost like Rs. 3500 for construction

and technical services, Rs. 600 for guarantee fee and Rs. 500 as promotion fee. Thus a total of Rs.

4600 is to be borne by the plant makers as their service and other fees. If any of the partner NGO of

ChFDP develops bio-gas technician certified by SNV-BSP or hire them, the service cost of technician

comes around Rs. 1600 only including transportation cost to the plant sites. Since service cost ofNGO staff are already borne by ChFDP and they are not profit making institution, there will be a net

saving of Rs. 3000 for plant makers. However, following conditions need to be fulfilled in order to

implement this option.

1. ChFDP agrees to financially support technician development training (in collaboration with

SNV-BSP) and provides necessary additional manpower to the NGO to coordinate

implementation of bio-gas program.

2. SNV-BSP agrees to provide an equal status like bio-gas company to the NGO

recommended by ChFDP (but of course not as a profit-making institution as long as NGO

remains partner of ChFDP). Otherwise, it will be difficult for NGO to avail bio-gas loan from

banks for the farmers.

1. SNV-BSP should look it as a separate model or trial program and provide all services to the

NGO as it is providing to the Bio gas Companies. If such experience already exists with

SNV-BSP, it can share the experiences and suggest to ChFDP.

2. There should be a strict and regular quality monitoring of constructed plants by SNV-BSP.

4.3 Suggested mechanism to facilitate bio-gas program by ChFDP.

The promotional and implementation role of bio-gas program should be entrusted to the intermediary

institution. For this purpose, the partner NGOs already working in the bio-gas program are the

appropriate institutions: Their responsibility will be to motivate and inform the local people about theprogram, conduct promotional activities and link farmers with local bio-gas companies and agriculture

banks for necessary implementation processes. They are also responsible to provide necessary User

level plant operation and slurry management training. In this context, the role of local NGOs also

needs to be explored, as they are more familiar with the area than any other NGOs or Institutions.

The role of ChFDP will be to develop linkage with SNV-BSP and concerned agencies in Bio-gas

Promotion to facilitate implementation at field level. It wilt be responsible to organize necessary

technical and promotional training for NGO extension workers, develop bio-gas technicians in the

district as required, avail already developed promotional materials to the NGOs. It's main role will be

to support NGOs financially for extension and promotional activities and play the role of advisor,

organizer as in the case of other ChFDP supported programs.


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Annex 1Average Bio Gas Cost Structure

Udaypur foot hill area

6 Cm) 8 Cm) 10 Cm)Materia used Quantity Rate Amount Quantity Amount Quantity Amount

Rs. Rs.

1. Materials

a. Stone 3 tractor 600 1,800 4 tractor 2,400 6 3,600

b. sand 1 tractor 400 400 1.5 tractor 600 2 800

c. Pebbles .5 tractor 300 150 1 tractor 300 1.5 . 450

d. Cement 14 bags 285 3,990 18 bags 5,130 24 6,840

e. Rod 12 kg 27 324 15 kg 405 20 540

2. Unskilled Labour 20 MD 50 1,000 28 md 1,400 36 1,800

3. Transportation

a. Cement 14 bags 15 210 18 bags 270 22 330

b. Rod 12 kg 5 60 15 kg 75 20 100

4. Amount submitted to Bio-gas Company 8,825 11,000 12,500

(for stoves, pipes etc.(average)

Sub-total 16,759 21,580 26,960

5. Subsidy 10,000 10,000 10,000

Net expenditure per plant 6,759 11,580 16,960

For Siraha and Spatari

6 Cm) 8 Cm) 10 Cm)Materia used

Quantity Rate Amount Quantity Amount Quantity Amount

1. Materials Rs. Rs. Rs.

a. Brick 1400 pc 2.5 3,500 1850 4625 2200 5,500

b. sand 1 tractor 600 600 1.5 900 2 1,200

c. Pebbles 0.5 600 300 1 600 1.5 900d. Cement 13 bags 285 3,705 16 4560 22 6,270

e. Rod 12 kg 27 324 15 405 20 540

2. Unskilled Labour 20 md 60 1,200 28 1680 36 2,160

3. Transportation

a. Cement 13 10 130 16 160 22 220

b. Rod and other 12 3 36 15 45 20 60

c. Bricks 1400 0.5 700 1850 925 0.5 1,100

4. Amount submitted to Bio-gas Company 8,825 11,000 12,500

(for stoves, pipes etc.(average)

Sub-total 19,320 24900 30,450

5. Subsidy 7,000 7,000 7,000

Net expenditure per plant 12,320 17.900 23,450

Cm = Cubic Meter

Notes: 1) Costs of Sotnes, sands and pebbles are inclusive of transportation cost.

2) Amount submitted to BGC is the deposit amount by the beneficiaries.

3) Rates are established based on average of 5 real cost structures of each capacity and are based on market

rates of 1998/99

churia forest development project nepal

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