iDE has developed a public-private partnership (PPP) approach to facilitate private sector investment in climate change adaptation in Nepal. The approach involves organizing smallholder farmers into "commercial pockets" centered around community-managed collection centers. These collection centers provide farmers access to inputs, training, credit, and market linkages from local private sector partners. Over 200 commercial pockets have been established serving over 150,000 households. The approach is being expanded to reach 300,000 households through projects supported by USAID, UKAID, and the EU to promote climate-resilient agriculture technologies like micro-irrigation, multiple use water systems, and integrated pest management.

1. Jan 14, 2015Luke 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:

2. 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)

3. 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.

4. 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

5. 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.

6. 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

7. Collection Centers!

8. 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

9. Commercial Pockets provide
access and make feasible both
HH level and Community Level
Technologies Key to Resilience
Selected Technologies:

10. 250,000 Micro Irrigation Systems Sold

11. Over 250 Multiple Use Water Systems
Covering more than 50,000 people
Working with IWMI, and
GON to Institutionalize the
MUS Approach

12. 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.

13. 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

14. 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.

15. For more information: www.idenepal.org
Emails: lcolavito@idenepal.org and mpariyar@idenepal.org
Photos by Bimala Rai Colavito, iDE Volunteer
Thank
You!
CBA9 Field
Visit Team