Bangladesh: microfinance agencies enable entrepreneurs to provide more sanitation technology options

Over the last five years in Bangladesh, more than 90 million people have moved away from open defecation. While 88 percent of the population now have access to, and are using latrines, ensuring the quality and sustainability of these latrines is crucial. Without ready access to micro-credit and in the absence of well marketed technology options, many households are under pressure to move from very low cost to very high cost technology options with a significant debt burden.

In July 2009, the Association for Social Advancement: ASA (a leading Micro-Finance Institute) signed a Memorandum of Understanding with Dhaka Ahsania Mission (a national non-governmental organization) to provide loans at low interest to local small entrepreneurs for producing, marketing, and promoting appropriate sanitation technology options.

Dhaka Ahsania Mission will pilot the new financing mechanism in Jamalpur Sadar Upazilla (a sub district) with trained entrepreneurs. The Water and Sanitation Program (WSP) facilitated this process of linking local private manufacturers with micro-finance agencies to bring finance and technology together to make available a range of affordable sanitation options for households.

Source: WSP Access, Oct 2009

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One response to “Bangladesh: microfinance agencies enable entrepreneurs to provide more sanitation technology options

  1. Md.Masum Hossain,District Project Coordinator,Dhaka Ahsania Mission,SSTSB Project,Jamalpur,Bangladesh

    Dear All
    Please read the journey of new financing mechanism.
    Dhaka Ahsania Mission
    Scaling up & Sustainability of Total Sanitation Project in Bangladesh
    Jamalpur

    The Journey of New Financing Mechanism Piloting at Jamalpur

    1. Concept note develop on NFM :
    In last August, 2008 reviewed the project proposal & developed a concept note by the SSTSB central team with the support of WSP-WB to new financing mechanism introduce in Bangladesh for improve sanitation technology installed at community level. (Anex-1-is already submitted to WSP)

    2. LE identified form developed:
    Assigned by Project Manager of SSTSB a preliminary form has been developed by SSTSB Jamalpur team for local entrepreneur identification including primary selection criteria of local entrepreneur.(Anex-2 ,already submitted to WSP)

    3. LE list down & synthesis:
    Last year the September & October,2008 we have been collect data of local entrepreneur in Jamalpur and 83 nos. LE listed by Union Parishad from three Upazilla (Jamalpur Sadar-15 Union,Melandah-12 union & Baksigonj-4 union) .(Anex-2 already submitted to WSP)
    4. LE workshop:
    Three batch workshop has been done in separately in three Upazilla as on 16th February at Jamalpur Sadar ,17th February at Melandah & 18th February ,2009 at Bakshigonj . (Anex-3 –alrady submitted)

    5. LE select for training:
    According to LE workshop and classified of Local entrepreneur’s demand we have been arranged a training course for capacity building of LE on sustainable & improve sanitation technology what was organized by DAM and facilitated by BASA & MIDAS on 28-30 March,2009 (Anex-4 already submitted to WSP)

    6. Concept Note Develop on demand creation to NFM Piloting :
    A concept note has been developed by SSTSB central team with the close touch support of WSP-WB about this.(Anex-5 already submitted )

    7. Exposure of Peoples Representatives :
    An exposure visit has been organized by us for peoples representatives to mobilize them and mind set up to improve sanitation .Total 45 representatives from difference level participated in this exposure on 20 -22 April,2009 .The representative of WSP –WB was attend in this exposure.(Anex-6 already submitted)

    8. Area Select for NFM Piloting :
    At first we have been select 3 wards of 3 unions of Jamalpur Sadar and they are Baschara ,Kendua & Digpaith union for piloting of NFM through the discussion with local government division of Jamalpur .After that we have been increased another 2 wards form another two unions ( Ranagacha & Ghoradhap).(Anex-7)

    9. Local Resource Select for Training:
    Two batches local resource training has been organized by us and they are working devotedly.(Anex-8 already submitted )

    10. Upazilla Workshop on NFM:
    A Upazilla workshop has been organized by us and there are about 80 persons were participate in this workshop. Upazilla Chairman & UNO & Executive Engineer of DPHE were present there as chief guest & special guest. (Anex-9 already submitted)

    11. Union Parishad Sharing Meeting on NFM:
    Concern Union Parishad has been arranged union sharing meeting on new financing mechanism and it is continued.
    12. Ward Taskforce Sharing Meeting on NFM:
    Concern ward member organized ward sanitation taskforce sharing meeting and discussed the issue as their interest .In present it is continued.

    13. Para Select for NFM Piloting:
    In present there are 6 para of 5 wards in 5 unions the NFM activities are on going and result is tremendous. (Anex-10)

    14. Demand Creation Session at Community:
    Firstly we have been facilitated demand creation session at 4 para of 3 unions but result was very poor .The then we rethink what we have to do .Time to time we sat with union parishad and ward taskforce but they told us that it will possible if user get finance support from any where .In a team we go here & there and discussed with local financing organization about financing support to LE or user but respond of MFO was not positive. (Anex-11already submitted & 12)

    15. Special endeavor by Jamalpur team:
    After complete the demand creation session we observed that progress is not up to the mark .Then we again sit with union parishad and others stakeholders and try to reach our destination. (Anex-13)

    16. MoU with MFO (WSP- ASA-DAM):
    A unique example has been created by WSP –ASA & DAM on NFM to installed improve sanitation option in community level.(Anex-14 already submitted)

    17. Refreshers to LE:
    We have been organized a refreshers meeting with LE and we think it was key point for IST installation at community level.(Anex-15)

    18. Select LE for Loan Disburse:
    There are seven persons select for loan disburse and they are :

    Name LE Address Amount
    of loan received Date of Loan received name of Option/
    options proposed against
    loan Place of installed
    Md. Khorshed Alam Ma Sanitation, Lahirikanda Bazar 50,000/= 01/08/09 Viti Pacca offset pit, Hand washing device. TW platform, Twin pit & cage
    compost HH level of Mohanpur Baypari Para
    Md. Amran Hossain Bappi Sanitation, Ghoradhap 1,50,000/- 06/09/09 HH level of East Ghoradhap
    Md. Iman Ali Uzzal Sanitary, Nandina Bazar 1,00,000/- 03/11/09 HH level of Ranaghacha Madha para
    Md. Monayem Hossain Jui Enterprise, Chontia Bazar Loan not Received N/A HH level of Jamaler para
    Elias Uddin Akandha Loan not Received N/A HH level of Dowani para of Kendua Kalibari
    Tajul Hossain Do N/A Sreepur Union
    Hafiz Uddin Sitol Kursha Samaj Unnayan Prakalpa Do N/A Sharifpur

    19. Continuous Support to LE & Community by DAM & WSP-WB to develop NFM :
    Each & every day we and LGI representatives continuously visit at community and given support to LE & user on software & hardware. For smoothly implement of program activities each month we prepared a plan for field support. Following activities were done in six month under different component of the Program:

    o NGO office visit to collect information regarding capacity building facilities/support on Improve sanitation options for Local Entrepreneur.
    o Discussed with UNO/SAE for Local Entrepreneur Workshop on Improve Sanitation options in Jamalpur Sadar, Melandha & Bokshiganj.
    o Invitation letter confirmation to selected Local Entrepreneur for workshop on Improve Sanitation options.
    o Sharing with DC, DD-LG, DPHE & UNO to organize PRSP Workshop in Jamalpur.
    o Discussed with UP Chairman, UNO for Local Entrepreneur Training on Eco-toilet, Bio-gas & Composting in Tangail
    o Invitation letter confirmation to selected Local Entrepreneur for Training on Eco-toilet, Bio-gas & Composting in Tangail
    o Discussed with UNO of Jamalpur Sadar about Exposure visit for in Gazipur & Comilla on Improve Sanitation options
    o Invitation letter confirmation to selected Participants for Exposure visit for in Gazipur & Comilla on Improve Sanitation options
    o Discussed with UP Chairman for Local Resource Training on Improve Sanitation options
    o Invitation letter confirmation to selected Participants for Local Resource Training on Improve Sanitation options
    o Individual discussion with Community people along with Community leader as they can take initiatives to install Khacha Compost. Eco-toilet & Bio-gas.
    o Discussed with UP Chairman regarding implementing process of Improve Sanitation options
    o Facilitate Meeting with PAT about the mechanism to install Eco-toilet & other Improve Sanitation options
    o Meeting with Unnayan Sanggah about the financing mechanism to install Eco-toilet & other Improve Sanitation options
    o Review & Sharing meeting with LE for community demand creation
    o Incorporate new Union for NFM piloting (Ghoradhap & Ranagacha Union)
    o Demand creation session at Ghoradhap East Para & Ranagacha
    o Re-demand creation session at para level at Beparipara at Bashchara Union & Jamalerpara of Digpaith Union
    o Bilateral discussion with LE & Local resource at Piloting area
    o Loan disburse to LE (3 Persons,Tk.3,00,000/=)
    o Pictorial Baseline prepared at three para out of 5 para
    o Assist Experience sharing visit by LE & Local Govt. Representatives
    o Assist to LE to prepare documents for NFM
    o Case story
    o Regular Field support & follow up

    20. Procurement System Develop for IST (User Vs LE):For NFM we have to develop procurement system among user & LE .Maximum LE & users are illiterate so they are required our support about this .(Anex-16)
    21. Progress of Improve Sanitation Technology :(Anex-17)
    22. Media Coverage : (Already submit to all).

    Some Recommendations for new project formulation:

    1. Ministerial acknowledgement and circular
    2. Lead role should be LGI(Upazilla & Union )
    3. Capacity building activities of all stakeholders
    4. More Exposure activities for new project for all stakeholders
    5. For non-sanitation coverage areas required more community mobilization activities
    6. PIP prepare considering on time constraint & social & national consequence
    7. Project activities set up through field level learning
    8. Scope to innovation & replication
    9. Target set up considering phasing out
    10. Activities Budget should be present market cost and scope to review always
    11. Staff benefits should be remarkable
    12. Scope to recruit quality staffs
    13. Event base out comes
    14. Scope to direct benefit for community people
    15. Project should be decentralized
    16. Project name should be very user friendly.
    Thanking you
    Best regards
    Md.Masum Hossain
    District Project Coordinator (DPC) & Regional Focal Person (RFP)
    Scaling up & Sustainability of Total Sanitation in Bangladesh (SSTSB)
    Dhaka Ahsanai Mission
    Jamalpur Region
    Cell Phone:01712159834
    e-mail: masum_hossain71@yahoo.com

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