Microfinance boosts latrine purchases in rural Cambodia | Source: WaterSHED, Sept 27, 2013 |
An innovative way to integrate micro-finance and sanitation marketing is resulting in a truly Hands-Off success story and helping to scale up access to safe toilets by the rural poor.
Many proponents of market-based sanitation programs around the world are keen to explore financing as a way to make toilets more accessible to the rural poor. The most repeated complaint by rural villagers when discussing toilet adoption in Cambodia, like elsewhere, is aut louy or “no money”.
Cost is also one of the major roadblocks in offering sanitation financing: loan assessment, disbursement, and payment collections are expensive activities. Because loans for toilets are relatively small, the interest (even at high rates) is not likely to offset the operating costs of the micro-finance institution (MFI). Furthermore, MFIs typically prefer to offer ‘productive’ loans as a opposed to ‘consumptive’ ones because of their lower risk of delinquency or default (a loan to buy a sewing machine for a small business that will generate revenue to make payments as opposed to a loan to repair the roof of a house). Loans to purchase toilets and water filters are considered consumptive.
Cash Rewards Spur Poor Communities to Pay for Sanitation Projects | Source: by Nicole Wallace, Philanthropy.com – Sept 11, 2012
An international aid charity is taking an unorthodox approach to helping people in Cambodia and Vietnam improve sanitation and hygiene: It asks beneficiaries to help pay for the construction of latrines and hand-washing stations, but then gives them cash rewards when they get results. The effort will now spread, thanks to a $10.9-million grant from the Bill & Melinda Gates Foundation.
Children try out a new hand-washing station. (Photograph by East Meets West Foundation)
The East Meets West Foundation, in Oakland, Calif., works with local groups to provide hygiene education, train masons to build high-quality latrines, and broker low-cost loans that families can use to install latrines and hand-washing devices. Families receive a $10 rebate to help offset construction costs after an independent group has verified that the latrine is in place.
Communities also get incentives: They receive cash awards to be put toward public-works projects, such as roads and sanitation facilities in schools, when the percentage of households that have latrines and hand-washing devices hits 30 percent, and the communities receive more money when those rates reach 95 percent.
Live & Learn Environmental Education Receives Grand Challenges Explorations Funding
- Contact: Rob Hughes, Project Manager & Lead Engineer, Live & Learn Environmental Education Cambodia, and Volunteer with Engineers Without Borders Australia, E: email@example.com
November 17, 2011, Phnom Penh – Live & Learn Environmental Education announced that it will receive funding through Grand Challenges Explorations, an initiative created by the Bill & Melinda Gates Foundation that enables researchers worldwide to test unorthodox ideas that address persistent health and development challenges. Rob Hughes and colleagues, together with the Ministry of Rural Development, will pursue an innovative global health research project, titled “Energy Recovery & Waste Treatment with Floating Biodigesters”.
Grand Challenges Explorations funds scientists and researchers worldwide to explore ideas that can break the mold in how we solve persistent global health and development challenges. Mr Hughes’s project is one of 110 Grand Challenges Explorations grants.
WaterSHED’s sanitation marketing program takes a “Hands-Off” approach to sanitation marketing. Pioneered in Cambodia, the Hands-Off approach recognizes that with creative social marketing, targeted support to local enterprises and the brokering of effective public-private partnerships, sanitation markets can grow without on-going external intervention. The Hands-Off program plays the role of catalyzing facilitator, using in-depth research into demand and supply to inform simple but effective strategies aimed at linking consumers to suppliers, and then staying out of their way.
WaterSHED is a Global Development Alliance led by the University of North Carolina Gillings School of Global Public Health and supported by USAID’s Regional Development Mission-Asia (RDMA).
WaterSHED, which stands for Water, Sanitation and Hygiene Enterprise Development, is a public-private partnership designed to bring effective, affordable water and sanitation products to market in Cambodia, Laos and Vietnam.
Introductory Guide to Sanitation Marketing, 2011.
Print and Online Toolkit, by Jacqueline Devine and Craig Kullmann, Water and Sanitation Program.
Download Full-text (pdf) and view Online Toolkit
Sanitation marketing is an emerging field with a relatively small group of practitioners who are learning by doing. With an Introductory Guide to Sanitation Marketing and a companion online toolkit the Water and Sanitation Program (WSP) seeks to contribute to the field by sharing practical guidance on the design, implementation, and monitoring of rural sanitation marketing programs at scale in India, Indonesia, and Tanzania, plus additional projects implemented in Cambodia and Peru.
The online toolkit includes narrated overviews, videos, and downloadable documents including research reports, sample questionnaires, and more.
Sanitation marketing, together with Community-led Total Sanitation (CLTS) and behaviour change are the three core components WSP’s approach to scaling up rural sanitation, which also includes strengthening the enabling environment.
Posted in Africa, East Asia & Pacific, Economic Benefits, Hygiene Promotion, Latin America & Caribbean, Publications, South Asia, Web sites
Tagged Cambodia, changing behaviour, finance, India, Indonesia, Peru, sanitation marketing, Tanzania, Water and Sanitation Program
As part of the new Country Partnership Strategy (CPS) for 2011-2013 for Cambodia, the Asian Development Bank (ADB) is planning a US$ 27 million loan and a US$ 800,000 technical assistance grant for the Rural Water Supply and Sanitation III project.
Source: ADB Country Operations Business Plan : Cambodia 2011–2013. June 2011. Download full plan ; ADB, Cambodia Announce $500 Million Three-Year Partnership Strategy, ADB, 07 Jul 2011
Dr Val Curtis
“The most cost-effectiveness intervention for improving public health [is] improving hygiene promotion [and] without change in hygiene behaviour, we get none of the benefits of water, none of the benefits of sanitation”. This was one of the messages that Dr Val Curtis conveyed in her introduction to the session on “Behavioral change and social sustainability” at the WASH Conference 2011 (download audio of her presentation).
Some 224 conference delegates from over 100 organisations in 40 countries came to Brisbane, Australia for the WASH Conference 2011. Below is a selection of the presentations on sanitation – powerpoints + audio files – given on 16-17 May. (If you have never heard him speak before, don’t miss the presentation by CLTS-guru Kamal Kar). The presentation streams dealt with institutional, environmental, social and financial sustainability respectively.
Most of the presentations were about Asia, the focus area of conference co-organiser/sponsor AusAid. There were also a few presentations from Africa, a region where AusAid is looking to expand its WASH activities (see AusAid focus regions/countries).
WASH Conference 2011 presentations on sanitation
Community Led Total Sanitation (CLTS), Origin, Spread and Scaling up
Presented by Kamal Kar
Slideshare presentation | Download audio
Planning Behaviour Change: Chances and Challenges
Presented by Dr. Christine Sijbesma, IRC
Slideshare presentation | Download audio
Posted in Africa, Campaigns and Events, East Asia & Pacific, Economic Benefits, Hygiene Promotion, Sanitary Facilities, Sanitation and Health, South Asia
Tagged Bangladesh, Cambodia, changing behaviour, finance, Indonesia, Nepal, Rwanda, Timor-Leste, Uganda, Viet Nam, WASH Conference 2011, Zimbabwe