Nepal Clean Air and Prosperity (NCAP) Project

pipeline

The proposed Nepal Clean Air for Prosperity (NCAP) Project aims to reduce PM2.5 and precursor emissions from priority sources, defined as industrial and commercial sources in this project. These objectives will be achieved through the following project activities: Component 1: Adopting Cleaner Production Technologies to Reduce PM2.5 Emissions. The objective of this component is to support enterprises (industrial and commercial) to adopt cleaner technologies, including boilers and furnaces operating on cleaner fuels, such as electricity and pellets, and emission control devices. The project will focus predominately on micro, small and medium enterprises (MSMEs) in the following categories of industries: food and beverage, textile, chemical, pharmaceutical, steel, hospitality, and hospitals. These industries have been identified as the main operators of boilers and furnaces using fossil fuels (coal, diesel, and oil), as well as inefficient boilers and furnaces using biomass. Component 2: Strengthening Air Quality Management and Monitoring. This component will strengthen the GoN’s air quality management systems by reinforcing regulatory foundations, enhancing institutional capacity for enforcement, improving monitoring of existing pollution sources and strengthening domestic and regional collaboration. Component 3: Project Management, Monitoring, and Capacity Building. This component will support the establishment of the Project Steering Committee (PSC) chaired by the Ministry of Industry, Commerce and Supplies and Project Implementation Units (PIUs) at Department of Industries and Department of Environment respectively. This component will support the costs associated with hiring key project staff and day-to-day functioning of the PIUs, office set up and equipment, and other incremental operating costs. In addition, this component will also finance service providers to support day-to-day implementation of the project activities, coordination, reporting and monitoring and evaluation requirements of the project.Component 4: Contingent Emergency Response Component (CERC). The CERC is one of the Bank’s contingent financing mechanisms available to governments to gain rapid access to Bank financing to respond to a crisis or emergency. Following an eligible crisis or emergency, the Borrower may request the Bank to re-allocate project funds to support emergency response and reconstruction. This component would draw from the uncommitted credit resources under the project from other project components to cover emergency response.