Re: Micro-finance in Nepal

Allen Inversin (mailto:nreca@ACCESS.DIGEX.NET)
Sat, 3 Jun 1995 21:25:17 -0400

Message-ID:  <Pine.SUN.3.91.950603202748.21902A-100000@access1.digex.net>
Date:         Sat, 3 Jun 1995 21:25:17 -0400
From: Allen Inversin <mailto:nreca@ACCESS.DIGEX.NET>
Subject:      Re: Micro-finance in Nepal
To: Multiple recipients of list DEVEL-L

On Fri, 2 Jun 1995, Frank F Kroger wrote:

> Angus Barnes <mailto:Angus_Barnes@AUSAID.GOV.AU> writes:
>
> > I am interested in researching micro-finance projects in
> > Nepal.
>
> World Neighbors, working with Tamakoshi Sewa Samiti in Ramechhap, Nepal,
> has a micro-banking element built into the process of helping villages
> construct gravity-flow drinking water system.

The United Mission to Nepal and Butwal Power Company are involved in rural electrification in an area between Butwal and Pokhara. Using new organizational and technical designs, they have managed to electrify the first villages for about $150/consumer, considerably below the usual cost for rural electrification around the world. Part of the cost savings is due to the reliance on users' organization to help build and manage the systems. The monthly tariff is collected by one individual from all consumers and deposited in the electric utility's local bank account. Villagers pay from about $0.40 to $2.20 per month for electricity. Consumers are largely subsistence farmers and annual collections are approximately 5% of system costs, a fraction of which is used to cover the cost of the collecter. The system is still subsidized although subsidies are MUCH less than for usual rural electrification.

Further details can be found in "New Designs for Rural Electrification; Private-Sector Experiences in Nepal". Contact me for further information if you are interested in this publication.

Allen

----------------------------------------------------------------- Name: Allen R. Inversin E-mail: mailto:nreca@access.digex.net Phone: 202-857-9615 Fax: 202-857-4863 Postal Mail: International Programs Division National Rural Electric Cooperative Association 1800 Massachusetts Avenue, NW Washington, DC 20036-1883 -----------------------------------------------------------------