Result Based Financing for Sustainable Hood-stove Market
Locations: Gorkha, Dhading, Makwanpur, Rasuwa
Date: June 2014 - July 2018
Project Manager: Vishwa Amatya
In rural areas of Nepal where access to grid electricity is limited, people are forced to use wood and coal fires for cooking and heating their homes. Burning these fuels creates toxic smoke which fills their houses and becomes lethal.
The simple technology that we have been implementing across the world is the smoke hood which sits over the fire, drawing smoke straight out through the roof. Combined with an improved biomass cook-stove, this project is delivering clean, efficient and safe cooking solutions to rural households.
Our primary objective is to promote hood-stoves through sustainable market creation and financing. We are using result based financing measures to establish sustainable market of the hood-stoves by promoting private sectors’ engagement in hood-stoves business. The project aims to benefit at least 30,000 households.
By working in collaboration with Nepal Merchant Bank Ltd (NMB), three hood-stove manufacturing companies and four district cooperative associations in the project districts have signed agreements with 20 local cooperatives.
The hood-stove manufacturing companies make upfront investment and develop hood-stove market by marketing, fabrication, transportation and installation of hood-stoves. Currently, three companies are fabricating and supplying hood-stoves while the local cooperatives are providing loan to their members for purchasing.
The project also works to support the development of a Participatory Market System Development (PMSD) map and plan for each project districts for creating sustainable hood-stove market.
More about this project
Practical Action has created a simple, cost effective and efficient solution to face the challenge of indoor smoke pollution. Read more about it here:
This project is being implemented in partnership with GORETO in Gorkha; Multi-Dimensional Resource Centre (MRC-Nepal) in Makwanpur; Indoor Smoke Alleviation and Environment Protection Forum Nepal ( ISAEPF-Nepal) in Rasuwa; and Forum for Community Upliftment System (FOCUS Nepal) in Dhading.