EXECUTIVE
The
Partnership Programme), funded by the Directorate General for International Cooperation (DGIS)
under the Netherlands Ministry of Foreign Affairs. ABPP is part of a broader objective of DGIS
targeting the provision of sustainable energy to 10 million people by the year 2015. It is being
supported by DGIS through two Dutch development NGOs, the Humanist Institute for Cooperation
with Developing Countries (Hivos) and the Netherlands Development Organisation (SNV).
The overall objective of the Programme is to contribute to the achievement of the Millennium
Development Goals (MDGs) through the dissemination of domestic biogas plants as a local,
sustainable energy source through the development of a commercially viable, market‐oriented
biogas sector. ABPP targets to facilitate the construction of about 70,500 biogas plants in the six
participating countries, providing about half a million people access to a sustainable source of
energy.
The
taken by the Kenya National Federation of Agricultural Producers (KENFAP), in its capacity as the
National Implementing Agency (NIA) for KENDBIP. Sector development implies the close
collaboration
levels:
as the “sector leader” tasked with the stimulation of commercial interaction between the biogas
households (potential customers), Biogas Construction Enterprises (BCEs) and Biogas service
providers.
sector
development of the domestic biogas sector in Kenya.
This PID proposes that KENDBIP be implemented based on private sector market oriented principles,
but relying on governmental support for a favourable regulatory and policy environment, as well as
general buy‐in promotion and extension. KENDBIP will stimulate the installation of 8,000 domestic
biogas plants country wide, largely of 6m3 to 12m3 capacity, over a period of 4½ years (July 2009 to
December 2013). It will establish biogas plants through over 100 biogas‐related enterprises engaged
in construction, appliances and parts.
The programme adopts and customizes the approach to biodigester dissemination developed by
SNV – the ‘multi‐stakeholders sector development approach’. This approach, which has been
successfully implemented in Asia, is based on the establishment, over time, “of a market for
domestic biogas installations and accessories, in which a well‐informed demand side – i.e. in which
clients who know what they want, recognize quality and value for money – links up with an equally
capable supply side that provides the market with quality products at competitive prices and with
adequate after sales services. Such a market should be able to reach a volume that allows a
significant number of constructors and credit providers to maintain an economically sound and
profitable level of turnover. In the process towards market development, the government, civil
society organisations, and other players in the public and private domain have a role to play in
addition to the main actors in the market.”1
KENFAP will operationalise a ‘Biogas Office’, which, once set up, will go through a participatory
envisioning process to ensure effective delivery of goods and services under KENDBIP. The Biogas
Office will be responsible for among others, promotion and marketing, training of Users and
Contractors,
monitoring and evaluation, quality assurance, sector coordination and subsidy management.
Depending on the need, existing organizations or institutions will be identified by KENFAP to take
responsibility for the sound execution of these functions.
KENDBIP
financial facilitation by SACCOs, MFIs, banks, formal and informal groups, and end‐users’ capital
from savings, current income, donations, family remittances, etc.
Promotion and dissemination will prioritise high potential regions identified by the Kenya Biogas
Feasibility Study2. Rural development NGOs as well as governmental and private agricultural and
livestock extension services are integrated in the programme plan.
To reduce the investment cost barrier of domestic biogas installations, the programme will provide
an investment subsidy, with each biogas plant under KENDBIP being allocated a subsidy at a flat rate
of KES 25,000 (about EUR 240), irrespective of the size. The subsidy is critical in order to achieve the
right balance between cost of biogas plants and forecasted demand. Having a flat rate subsidy will
ensure that users of smaller biogas plants achieve a proportionately higher subsidy‐cost ratio.
In addition, financial institutions will be encouraged to partner in the programme to provide loans to
the end users and the government will be approached to offer investment incentives. Bio‐slurry
application in agriculture will be used to enhance economic benefits.
End users will be protected against construction errors through a Code of Ethics for Biogas
Contractors and documented biogas plant performance warranties and appliance guarantees lasting
up to three years. A quality control protocol will be put in place to ensure that 100% of complaints
and requests for repairs are solved during the first 5 years after completion and that 97% of
biodigesters are still in use when the programme terminates.
KENDBIP will utilise a total budget of EUR 10.443 million, out of which EUR 5.049 million or about
48% will be contribution from ends users, and EUR 4.939 million from ABPP (Hivos: EUR 3.498
million
will be approached to provide leverage of EUR 454,806 or more. Funds from Hivos will have three
components:
It is expected that KENDBIP will lead to savings of 37,388 tones of fuelwood, valued at KES 194.4
million3
EUR 2.4 million). An estimated 73,623 tonnes5 of CO2 equivalent emissions will be avoided, and the
health of over 15,000 men and women and over 38,800 children will be significantly improved.
Approximately 15 to 18 million6 hours per annum (equivalent to about 2,000 person‐years) will be
saved for women and children fetching firewood and other biomass sources for cooking and heating.
In
about 7,760 households, representing over 15,000 men and women and over 38,800 children7.
Employment
in addition to other direct and indirect employment in extension, promotion, credit, microfinance,
etc. – mostly targeting youth and incorporating women.
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