Tag Archives: results-based financing

Building a Sustainable Market for Biodigesters in Vietnam – SNV World/EnDev

Since 2003, SNVWorld, with funding from the Netherlands Ministry of Foreign Affairs (DGIS), have been working to develop the biogas and biodigester sector in Vietnam. SNV to date have been providing technical assistance and developing financial capacity in conjunction with the country’s Ministry of Agriculture and Rural Development, with the Department of Livestock Production under the MARD acting as the implementing partner for the project. Vietnam is particularly suitable for the development of biodigester technology, given the high prevalence of livestock farming and the large heads of animals present in the country. In 2016, over 26 million pigs were raised in the country, and utilising the waste products from this livestock farming can provide significant benefits to the economy, as well as sustainability objectives. As of March 2017, the project has installed over 150,000 biodigesters in the country, with a further 80,000 having been installed under spin-off projects implemented by the MARD.

The project has not only focused on installations, but has sought to develop the capacity for a functional, self-sustaining market for biodigester technology in the country. To that end, as of March 2017 the project has created over 2,500 new jobs in rural areas of the country, and trained over 1,700 masons in the construction of biodigesters. The consumer-side has also been targeted by the project, with over 160,000 households receiving both pre-installation training on the use of biodigesters, and post-installation training on the maintenance of the digester chamber and the use of bio-slurry in agricultural applications.

Dome-type biodigester in rural Vietnam. Image: SNVWorld

One of the innovative measures used to assist in developing a sustainable biogas sector in the country was implemented by the NGO EnDev in partnership with SNVWorld and the MARD. The NGO has recently implemented a Results-Based Financing (RBF) scheme in the country to promote the acceleration of biodigester construction, through empowering the supply-side of the biogas market to keep up with demand through subsidy. A financial incentive is provided for the construction and verification of each new biodigester, starting at US$50 for each new digester and falling over time. The intention is that the suppliers who receive this incentive can then reinvest the extra income in attracting more staff and scaling their businesses. The verification system is implemented through a novel online application developed in partnership with SNVWorld and AVKO, combining input data, photos and GPS locations translated to maps that are automatically updated with new information from the field. This system has replaced the traditional hard-copy form submission system for verification of new installations, streamlining the process for both EnDev and installers. The system is currently in use by 146 active installers in 18 provinces in Vietnam, and to date has verified over 35,000 biodigester installations.

In terms of capacity-building, SNV are currently partnering with MARD to continue the training of government installation and verification partners to build capacity in the biodigester sector, in an effort to better support a viable, private-sector supply and distribution market. Government technicians are also being trained in communicating about benefits of biogas technology, supporting enterprises in identifying suitable households and providing them with extension services on the use of bio-slurry.

– Daniel Kerr, UCL

References

SNVWorld (2018) Vietnam Biodigester Programme. Available at: http://www.snv.org/project/vietnam-biogas-programme [Accessed 11th March 2018]

Teune (2017) Igniting a Self-Sustaining Biogas Market in Vietnam. Available at: http://www.snv.org/update/igniting-self-sustaining-biogas-market-vietnam [Accessed 11th March 2018]