A Memorandum of Agreement has been made between Shree Eco Visionary Pvt.Ltd., a local electric vehicles manufacturer and Clean Air Network Nepal to manage and coordinate policy, advocacy and education activities under UNDP Small Grant Project named as "Reducing Transport Sector CO2 emissions through Market Segment and Geographical Diversification of Electric Vehicles".

Vehicular emission is the major cause of outdoor air pollution in urban areas of Nepal particularly in Kathmandu Valley. Environment Friendly Transport means such as electric vehicles (Safa Tempos, Trolley bus, Rope ways and so on) can have dual benefits. Firstly, they use domestic renewable hydropower energy thus lessening country’s high dependency over the imported fossil fuel. Secondly, use of clean fuel in transport sector culminates environmental and social cost associated with air pollution caused by vehicular emission.

Since the last ten years more than 600 batteries operated electric three wheelers "Safa Tempos" are in operation thus setting an exemplary success story. But the number of these vehicles has not increased significantly as compared to other fossil fuel run vehicles. The major reasons behind this are:

- The lack of diversification in terms of market segment or geography;
- Less sufficient awareness, policy and advocacy strive targeted for various stakeholders.

In this context, SEV has been awarded with project entitled "Reducing Transport Sector CO2 emissions through Market Segment and Geographical Diversification of Electric Vehicles" by UNDP, GEF Small Grant Program. The project duration is from August 1 2007 to August 30 2008.The main purpose of this project is to increase the number and application of electric vehicles through effective market diversification as a means to reduce transport sector dependence on fossil fuels and the associated CO2 emission. The major components of the project include:

I. Reduce barriers to geographic and market segment diversification of EVs through policy research and advocacy, technology robustness assessment and setting standards and guidelines for EVs promotion and conversion.

II. Build capacity and partnership for effective marketing among tourism industry, schools, offices and private use.

III. Demonstrate new market feasibility in Dharan, Waling, Tourism sector, schools, offices and private use.

IV. Increase Investments of private sectors and financial institution by devising innovative financing mechanism


Role of CANN

· CANN has agreed to coordinate and manage the activities described in the project proposal which has been approved by the National steering committee of GEF/SGP;
· CANN will assign its coordinator Mr Gopal Raj Joshi as a focal person to implement this agreement;
· CANN shall use its own network and contact to meet the objectives of project;


Responsibility of SEV

· SEV agrees to provide payment of funds to cover the salary of CANN coordinator (part time) and other incidental expenses made by CANN coordinator for project activities such as communication, travel and meeting and so on.
· SEV shall provide CANN coordinator with necessary resources, manpower, information, contact and network to implement activities planned under the project