The Biogas Support Programme was initiated in July 1992 to develop and promote the use of biogas in Nepal.

For the first two phases of the programme, BSP I and II, programme support was provided by Government of Nepal, the Netherlands Development Cooperation in Nepal (SNV/N) and the Netherlands Development Agency (NEDA). With the start of the third phase of the programme (BSP III: 1997 - 2002), the German Government, through KFW, enforced the programme's support with financial assistance to the subsidy and credit component.

Implementation of BSP III is done jointly with three banks (Agricultural Development Bank of Nepal, Rastriya Banijya Bank, and Nepal Bank Limited), and 50 recognized private biogas companies.It has completed first and second phases and has been operating in the third phase since March 1997. The third phase is scheduled to end in December 2002.

Goals of the Third Phase

To promote and develop biogas as a sustainable source of energy throughout rural areas of Nepal.