What is Clean Cooking?
In a move to support the government of Rwanda’s target of reducing the percentage of households that use firewood for cooking from a baseline value of 79.90% in 2017 to 42% by 2024, we have launched a Clean Cooking Results-based Financing subsidy scheme. This scheme will be implemented by BRD and EDCL.
The subsidy is designed to address the affordability of clean cooking technologies through the reduction of system prices at varying amounts allocated for Ubudehe 1, 2, and 3 categories, and aiming to reach up to the lowest income population in Rwanda. The subsidy window is co-financed by the World Bank’s Clean Cooking Fund through Rwanda Energy Access and Quality Improvement Project (EAQIP). The CC-RBF expects to trigger at least 500,000 households (of which 25% are supposed to be female-headed households) gain access to clean cooking technologies. The RBF will benefit 2.15 million people.
A large portion of the price will be paid for through the RBF subsidy, as summarized in Table 2. The remaining portion will be paid by the customer, as a customer contribution. For example, if an Ubudehe 1 customer purchases a Tier 3 stove with a price of RWF 45,000, CC-RBF provides RWF 40,500 subsidy and the customer will pay RWF 4,500 as customer contribution. The customer may pay in cash or pay in instalments if the PAYGO service is offered by the Clean Cooking Company.
The customers should pay their contribution only through a trackable payment system such as Mobile Money, cheque, or bank transfer. In cases where the Clean Cooking Company is dealing with clients that do not own a telephone set, payments can be made on cash basis, but the Clean Cooking Company should issue a receipt showing all the details of the sale for the stove including subsidy amounts among others to the client and keep a copy.
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Are you an individual?
The subsidy will be provided only to Ubudehe 1, 2, and 3 households.
The Clean Cooking Result-Based Financing subsidy will only be provided to a household once.
Each household is eligible for a double-burner, or two single burner cooking set up (given by the same Clean Cooking Companies at the sales dates).
Households currently benefitting from other stove subsidy (i.e., grants that lowers end-user pricing) programs are not eligible.
Households already fully using a clean Cook stove without stacking (i.e., using a traditional stove) at the time of registration, are not eligible.
Are you a private institution?
Companies should have a valid domestic company registration at RDB and should be duly licensed with a tax identification number assigned by RRA. The company must be in full compliance with relevant national regulations pertaining to tax, legal and accounting norms. The owners and managers of the enterprise must be ‘fit and proper’.
Companies must have a valid Memorandum of Understanding (MOU) with EDCL. 16
Companies should have a defined funding strategy with no obvious gaps or constraints on additional funding. BRD will review the progress of the company in subsidy mobilization every 6 months after the signing the subsidy agreement. BRD will have right to cancel or revise the subsidy agreement if the company does not show any progress within 6 months after signing the subsidy agreement.
Companies must demonstrate that the end-user will directly and fully benefit from the RBF subsidy.
Companies should have a sound business plan with proven resources to efficiently carry out operations at the functional level, including organization, management, staff, financial and others.
Companies should be selling cook stoves/cooking technologies that have been tested, evaluated, and certified by the stove testing lab of the Rwanda Standards Board. The eligible list of Cook Stoves/cooking technologies is published and updated by EDCL.
Companies must offer a warranty for at least one year and have an established and active after-sales service capability and operations.
These companies who are involved in delayed payment (such as PAYGO) services should have good accounting, bookkeeping, management and adequate system software support.
Companies should have at least 10% of the workforce employed, represented by women, and be able to demonstrate that they apply the principle of ‘equal pay for equal work’.
- Clean Cooking Results-Based Finance Information Deck
- Clean Cooking Operations Manual
- List of eligible stoves
- Call for clean cooking companies to express interest of cooperation
- Call for clean cooking companies to join the RBF Program
- Template for Clean Cooking RBF application form
- Clean Cooking RBF Application Letter
- Claim Form Template