Building Barpak’s first financial institution, and disbursing loans to local businesses:
The setting up of a community cooperative was a major milestone for Barpak, which never had a banking institution of its own. The cooperative, which took substantial efforts to start up, will eventually help in the revival and growth of the local economy. Initial capital investment provided through the Nat Geo grant was crucial in making this happen.
Working with the Barpak Rural Electrification consortium, Gorkhaly Foundation facilitated formation of a community cooperative also for the disbursement of US$ 30,000 to Local Businesses provided through the Nat Geo Grant. The community cooperative was registered under the laws of Nepal and of the Nepal Rastra Bank to serve as an intermediary to mobilize soft loans. With guidance from the village advisory committee, the cooperative shortlisted 13 local businesses and approved loans to them referring also to the business plans. The loans will be disbursed during the first Annual General Meeting of the cooperative on May 1, 2017. The loans will support local business in securing initial capital cost for construction, rehabilitation and for purchase of major equipment. An advisory council in the village that will be responsible for ensuring that the cooperative adheres to the terms and conditions agreed upon with related parties. Gorkhaly Foundation further commissioned Business plans to estimate rehabilitation expenses and conducted it jointly with The Kings College of Kathmandu.
The purpose of the business plans were to:
Our aim in Barpak was to restore the local economy through investments in rehabilitation of electricity, as well as local businesses that would then consume electricity.