The World Bank has agreed to provide 5 million US Dollar for alternative energy promotion in the rural parts of Nepal. As  the agreement, World Bank- administered  Global Partnership on Output Based Aid (GPOBA) will provide the sum for the installation of  37 thousands biogas plants in rural Nepal.
 
The representatives of Nepal government and the GPOBA signed an agreement paper to this end on Thursday. Issuing a press release, the World Bank said the GPOBA would co-finance the installation of 37 thousand biogas plants under the fourth phase of the Biogas Support Program (BSP-IV) in Nepal .
 
The World Bank said the Project would be implemented by the Alternate Energy Promotion Center (AEPC). 
 
The Biogas Support Program was started in 1992 by the Netherlands Development Organization SNV together with the Government of Nepal to promote environmentally friendly and affordable energy to remote rural areas, the release said.
 
The Project was initiated in Nepal in a bid to replace traditional energy sources used by the rural population, such as fire wood and kerosene, with modern biogas plants. Biogas plants use anaerobic decomposition of organic material (mostly animal manure) to produce a flammable gas called biogas, which can be used for cooking and light. GPOBA's grant will sponsor new biogas plants ranging in capacity from 4 m 3 to 10m3.
 
"GPOBA's grant in Nepal will incorporate an output-based disbursement scheme that sets a fixed level of subsidies per biogas plant and will only allow for payment once project implementers achieve measurable results." the World Bank said-"Under this arrangement, local biogas firms will not receive compensation until they fully complete new plant installations and meet quality standards."