Electrifying Public Transport in Nepal

Context

Public transport in Nepal is provided by numerous small private companies who offer their services by running diesel buses. These buses contribute to poor air quality and high greenhouse gas (GHG) emissions.

Given that Nepal generates clean hydropower, electric mobility offers a promising solution to reduce emissions. Moreover, electric Mini- and Microbuses (EMBs) are cheaper to operate. However, high upfront costs, uncertainties about charging options, and the absence of favourable business models as well as financing mechanisms make it hard for public transport operators (PTOs) to purchase EMBs.

Objective

PTOs in Nepal have introduced 3,500 EMBs while digital ticketing and online route planning make public transport more accessible. Improved charging infrastructure supports the overall shift to electric mobility in the country.

Approach

The project promotes electric mobility in public transport with interventions in the areas financing, passenger comfort and charging infrastructure by:

• introducing a scrapping incentive for old diesel mini- and microbuses as well as hybrid loan and leasing models that improve financing conditions,
• developing and introducing digital ticketing and an app for planning and visualising routes,
• supporting the extension and digitalisation of public charging infrastructure.

By supporting only pre-qualified EMBs, the project assures good performance of the vehicles.

The project is financed by the Mitigation Action Facility and jointly implemented by GIZ and the Global Green Growth Institute (GGGI).

Last update: January 2025