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Jan 14, 2015 Luke A. Colavito, PhD, IDE Nepal, Country Director
Madan Pariyar, PhD, iDE M&E and Program Development Director
Public Private Partnership Approach to Facilitating Private Sector Investment for Climate Change Adaptation in the Nepal
INTERNATIONAL CONFERENCE ON CLIMATE CHANGE INNOVATION AND RESILIENCE FOR SUSTAINABLE LIVELIHOOD:
Introduction
Over the last 10 years iDE has developed a smallholder commercial pocket approach supported primarily by USAID, UKAID, and the European Union.
Under the USAID supported Initiative for Climate Change Adaption (ICCA, 2012-17) project iDE has built on the past investments for a PPP climate change adaptation approach.
CBA8 Delegates visit an
ICCA Multiple Use Water
System (MUS)
USAID ICCA Project
Implemented by iDE with partners RIMS-Nepal and Rupantaran in 8 Districts. Coordination with USAID Hariyo Ban Project and Feed the Future.
Increasing the incomes of 20,000 HHs thru climate resilient agriculture including micro irrigation, multiple use water systems (MUS), IPM, essential oil crops, and coffee.
Developing 50+ Local Plans of Adaptation (LAPA) covering 100,000 HHs (500,000 people) integrating resilient agriculture.
Weak Market Context
Nepal agriculture is highly subsistence, only 13% of agricultural produce is marketed
Private sector present mostly in district capitals
Most private companies in agriculture are small, lack technical capacity, and function as distributers of imported inputs
Nepal has good markets but there is a basic market failure constraining private investment:
Free rider problem: if company A organizes and trains smallholders, companies B,C,D reap the returns
Commercial Pocket Approach
Over the last 10 years iDE has developed an approach to commercialize smallholder agriculture
Key features are creating sufficient volume of production in a rural community to establish:
A community managed collection center for market access
Local private sector marketing inputs, equipment, and providing embedded training
iDE has developed over 200 commercial pockets serving over 150,000 HHs. The approached is mainstreamed with GON/donors and expanding.
Collection Centers (CC)
100 to 1,000 HHs organized in groups of 20 HHs
Farmers elect a Marketing and Planning Committee (MPC) to establish and manage a collection center. The MPC includes/advised by input suppliers, traders, GON extension, and other stakeholders
The MPC selects an entrepreneur(s) to manage the CC, overtime many CC become cooperatives:
Services provided include: marketing, detailed crop calendars, technical support, inputs, credit, linkage to government services, advocacy…
CC are sustainable farmer organization key to CBA
Collection Centers!
Public Private Partnership (PPP)
Public Sector: Infrastructure (collection centers, irrigation/multiple use water systems), initial support to organize and train smallholders, extension services.
Private Sector: Access to inputs/technology and embedded services, market access and support to collection centers/farmer organization, credit, crop insurance, and other services. National companies (Seeds, Micro irrigation, IPM, others) providing commissions to village based suppliers.
PPP Mechanism: Thematic groups include private sector and MPC members. In several districts we have developed apexes of rural CCs at the district level
Commercial Pockets provide access and make feasible both HH level and Community Level Technologies Key to Resilience
Selected Technologies:
250,000 Micro Irrigation Systems Sold
Over 250 Multiple Use Water Systems Covering more than 50,000 people
Working with IWMI, and GON to Institutionalize the MUS Approach
IPM Packages using Safe Bio Pesticides thru USAID IPM Innovation Lab Working with NARC
USAID Administrator Dr. Shah meeting a local service providers trained by IPM IL marketing bio products.
Climate Change Adaption
Collection Center farmer organization representation:
For Local Adaption Plans of Action (LAPA)
To assess climate change impacts and solutions
Facilitate/provide access to finance and insurance
Piloting use of collection centers using SMS to provide actionable information to their members
Collection centers to date primarily for vegetable subsector, also developed for goat subsector, essential oils, coffee, fisheries and recently integrating cereal crops / conservation agriculture into cropping calendars
Way Forward!
The approach outlined will be expanded in Nepal thru support from USAID (Food for Peace), UKAID (BRACED, GPAF), the EU, and in partnership with GON to over 300,000 HHs in the next few years in the vegetable, livestock, essential oil, and other subsectors.
The approach represents an important opportunity to reach poor and marginal in weak markets, it would be great to work universities/others to document/analyze.
We’ll be presenting the approach at the CBA9.
We are developing a platform for introducing climate resilient agriculture, great to learn and work with the USAID Innovation Labs and other programs to integrate climate adaptive technologies/approaches.
For more information: www.idenepal.org
Emails: [email protected] and [email protected]
Photos by Bimala Rai Colavito, iDE Volunteer
Thank
You!
CBA9 Field
Visit Team
