Sustainable Electric Transport for Nepal (SET4NPL)

Currently, the only public transport medium in Nepal are diesel buses, especially many mini- and microbuses. Offered transport services are unreliable, costs of imported fuel are high, and the diesel buses contribute to poor air quality and cause high GHG emissions.
Electro mobility is regarded the most promising solution, also because the country’s hydropower electricity generating capacities can be used to power a carbon neutral, green electrification. However, higher upfront cost for electric mini- and microbuses, a lack of experience, uncertanties about charging options, and unfavourable financing schemes hinder the uptake of e-mobility in the public transport sector.
SET4NPL introduces prequalified electric mini- and microbuses, business and financing models, and a charging and ticketing ecosystem to enable a shift from combustion to electric vehicles in Nepal’s public transport sector. The project works together with public transport operators, the private sector, financing institutions, ministries, and the national electricity authority.

SET4NPL will unlock private investments for electric mobility by introducing four primary financial instruments: A subsidy mechanism to kick-start the uptake, a loan and a hire-purchase (leasing) scheme to offer fair and affordable financing conditions, and a partial first loss guarantee to increase willingness of banks to finance the new technology.

By supporting only electric mini- and micro bus models that fulfil minimum quality criteria the project assures good performance of the vehicles and will demonstrate the benefits, making electric mobility the preferred option. Simultaneously, digital charging and ticketing solutions including real time data, modern payment options, and safety features amongst others will improve public transport services. The measures will lead to a sustainable transformation of the sector and create environment, health, and mobility benefits.

Implementing partners:

  • Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
  • Global Green Growth Institute (GGGI)

Funders:

Countries: Nepal

Government Partners:

  • Ministry of Physical Infrastructure and Transport (MoPIT)
  • Ministry of Forests and Environment (MoFE)

Duration: 2023-2028

Contacts:

Diego Senoner, diego.senoner@giz.de

Lasse Ringius, lasse.ringius@gggi.org

Links: