In a significant step toward advancing electric mobility in Nepal, Kumari Bank Ltd. and Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (GIZ Nepal) have signed Memorandum of Understanding (MoU) under the Sustainable Electric Transport for Nepa (SET4NPL) project.

This collaboration supports a dedicated financial mechanism and digital innovations designed to accelerate the adoption of electric public transport, particularly Electric Micro- and Mini-Buses (EMBs), by improving access to affordable financing for Public Transport Operators (PTOs). Through SET4NPL, several digital components, including mobile applications, GPS device, LED route display and open loop e-ticketing systems, are being introduced to make public transportation more efficient and convenient for everyone.

The SET4NPL project is a collaborative initiative implemented by GIZ Nepal and the Global Green Growth Institute (GGGI) in close cooperation with the Ministry of Physical Infrastructure and Transport (MoPIT) and other government and sector partners. It is financed by the Mitigation Action Facility (MAF).

The program seeks to facilitate the deployment of approximately 3,500 electric minibuses (EMBs), aiming to promote a cleaner and more sustainable public transportation network in Nepal.

By addressing financial constraints, the initiative is designed to accelerate the shift from conventional fossil fuel-powered vehicles to environmentally friendly electric alternatives.

As part of this strategic partnership, PTOs will benefit from a range of subsidies when acquiring EMBs, complemented by tailored loan packages provided by Kumari Bank.

These financial tools are structured to reduce initial capital requirements and enhance the affordability and long-term financial viability of electric public transport operations.

By lowering equity thresholds and operational costs, the initiative intends to make electric mobility not only accessible but also economically sustainable for transport entrepreneurs across the country.

Kumari Bank, a prominent player in Nepal’s banking sector, supports this endeavor through its expansive network of 302 branches, 50 extension counters and 48 branchless banking units.

The Bank’s robust digital infrastructure - powered by the FINACLE Core Banking System - enables a full suite of services including Internet and Mobile Banking, Visa Debit/Credit Cards (domestic and international), as well as access to 317 ATMs and over 1,100+ POS terminals nationwide.

Renowned for its customer-centric approach, technological innovation and commitment to transparency and good governance, Kumari Bank remains a key enabler in Nepal’s transition toward clean and sustainable transport solutions.