Proceedings 2 23971 November 2000 National Workshop on Water and 0Q Sanitation 9 l Program 00 An internotionol partnership to help the poor gain sustained access to improved water supply and sanitation services August 31, 2000 oa Region -$ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~7 ffi >' ' 5,<;t - + q 1 ' '1.n1. ' ___ _" __"__' W |; L, , , 3 r 8. - 0. 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Proper '.'"'t ; > >.>>> Facknowledgement will be appreciated. - - R-.- N~~~~~~ ~ ~~~~~~~~~~~~~~~~~~~ \'Ci . p; Introduction and Bangladesh, including representa- Module prepared by MHT and WSP-SA tives of the international aid agencies, was presented during session four. housing finance institutions, micro- This document records the proceed- I'The growing number of slums finance institutions, government and ings of the workshop. It is divided into r- in Indian cities are characterized NGOs participated in this workshop. two parts. Section I summarizes the ' by low levels of access to safe The workshop is part of a joint on- presentations made during sessions drinking water and inadequate or going effort by WSP-SA and MHT, one, three and four. (See Annexure 1 complete absence of sanitation Ahmedabad, to highlight the role of for the Agenda.) Section 11 documents services. State-mandated service pro- microfinance institutions in providing the Action Plan and other issues high- vision for community infrastructure has infrastructure credit and services to the lighted during group sessions. by and large failed - the sector is informal sector. It builds on the national plagued by problems such as inad- level study titled 'Credit Connections: equate coverage, investments in Meeting the Infrastructure Needs of the W elcom e inappropriate facilities and poor main- Informal Sector through Microfinance in Add ress tenance of the available services. The Urban India' conducted by WSP-SA and successful provision of community MHT in 1999 and is a follow-up to the Renana Jhabvala, infrastructure, including water and workshop on 'Housing Finance for Executive Trustee, Mahila sanitation services to the urban poor, Women in the Informal Sector' held in Housing SEWAtrust is a growing challenge. March 1999.1 Housing SEWA Trust The active participation of consum- The workshop was divided into five ers in financing infrastructure is widely sessions. Sessions two and five were Renanaben stated that this recognized as a key component of long- brainstorming sessions during which the -'jworkshop would take up the term sustainability of services. For the participants, who were divided into vari- ___ issues highlighted in the last work- poor, an increased financial stake can ous groups, discussed exciting develop- shop on 'Housing Finance for Poor guarantee improved delivery and ments and identified sector gaps in Women in the Informal Sector' held in operation of services. To facilitate such infrastructure investments. Presentations 1999. Follow-up action to the previ- financial participation, poor communi- on the recent/proposed initiatives on ous workshop included the setting up ties often use small-scale credit services. microcredit and community infrastruc- of a National Task Force on Housing There is enough evidence on the ground ture were made during sessions one Finance, and an internal working about the enormous potential of and three. The Microfinance Training group within the Housing and Urban microcredit in improving service deliv- Development Corporation to stream- ery at the lowest income levels. --- line guidelines and procedures for Considerable interventions in ser- OBJECTIVES providing housing finance to NGOs/ vice delivery have been made in a num- . microfinance institutions, as also the ber of cities using these principles at the The main objettives of the work- compilation of a national microfinance individual settlement level. However, _ _j . - institutions' database with details of shop were;: ;~ scaling up these efforts to bring them to s op wI over 100 microfinance institutions . To share Gucwrren experiences prvdn hosgmiofacet city levels has proved to be difficult. It thtproviding housing microfinance to therefore becomes important to identify that highighi the growmg the poor. the constraints in unleashing the full sector of microfinance in Self-employed women need potential of this intervention and to infrastructure. economic security, social protection, and explore the best modalities of partner- * To identify sector gaps and a voice to organize them, in order to ships in order to effect improvements in challenges to effective commu- combat poverty. Crucially, these women urban infrastructure. nity infrastructure investments. need housing and infrastructure includ- In response to these trends, the * To explore appropriate steps ing a pucca dwelling, and associated Water and Sanitation Program-South for capacity building, including facilities such as water, drainage, elec- Asia (WSP-SA) and Gujarat Mahila the imparting of training to tricity and sewage connections, toilets Housing SEWA Trust (MHT) jointly orga- microfinance institutions/ and street lighting. There is a direct nized a workshop on Microfinance for microfa aintitti o nss correlation between better housing and Infrastructure: Recent Experiences, on NGOs for facilitating access to infrastructure facilities, on the one hand, August 31 2000, in New Delhi, India. infrastructure credit, and increased income levels, improved Over 90 delegates from India, Pakistan health and decrease in poverty, on the 'Mahila Housing SEWA Trust, Ahmedobad in partnership with the Housing and Urban Development Corporation and WSP-SA organized the workshop in New Delhi in Morch 1999. The objective of the workshop was to highlight the housing and infrastructurol needs of women in the informal sector and to chart out strategies to deliver offordable housing to them. "In today's.globaihzed world, of this process of change - it matters if building highways, bridges, dams, where decisions taken in Wash^ the person managing the service is a power and solid waste management ington affect theJfurthest village man or a woman. The third important plants, among others; but it is only at in Kutch, we would like it to be a development is the 'revolution of decen- the community level that infrastructural two-way process, where what tralization', which is aiding the transi- programs such as sanitation, street light- happens in Ahmedabad, Kanpur tion from large infrastructure projects to ing, or rural electrification can be taken and Chennai [would also] affect community-driven investment programs. up successfully. Back-up support is thus global decisions. The workshop should address essential to ensure the community's col- important issues such as the institution- lective action and value-addition to a alization of the community delivery particular project, which in turn will other. Microfinance is one of the key strengthen the infrastructure sector. tools for effecting these improvements "The challerge4odayis to main- Ms Bhott emphasized the need for in the status of the poor. stream the _fikqhd4of revolution' continuous monitoring of investments in In the current environment, - to institutionalize these infrastructure to ensure the latter's opti- infrostructural investments should focus modes of delivery .... Our role as mal utilization, and for capacity build- on community infrastructure, resource a developrhnert.organization is ing at various levels including the flow and institution building at the to support the. local actors to community, publicsector municipalities, grassroots level, and the promotion of bring [aboutj this change." government agencies, and microfinance economic organizations in the 'people's and technical institutions, to maximize sector', which work on the basis of sector', whic-peration the basis of systems; linkages between the financial the scope and achievement potential of mutual co-operation. world and microfinance institutions in a infrastructural projects. mutually supportive partnership; institu- W elcom e tionalization of risk insurance; and "A healthy mai&ofinance sector avoidance of institutional monopolies. leads to o 2ltliy finance sec- Ad d ress Solutions should reflect the local envi- tor in general.ZThis mutual link ronment rather than being 'global'. has to be established by the Junaid Kamal Ahmad, Policy reforms are needed in the sector microfinance-i stit.tions/NGOs Regional Manager, but formalization of the informal sector and realizedc-by the policy- WSP-SA carries its own risks and should be makers ....There is very direct treated cautiously. MrAhmad welcomed involvement of women in the - Three fundamental changes the participants and said that he looked areas of infrastructure .... In k have taken place globally which forward to the recommendations of Ahmedabad, women have bor- !-- affect how we think about invest- this workshop. rowed from SEWA Bank for ments in infrastructure. Firstly, the era better living conditions, taken of large-scale public provision of infra- loans for internal paved roads structure is on its way out: both the Keynote totheirslums,sewerageconnec- private sector and the community now A dd e stion, storm water drainage, have an increasing role to play. Sec- Address toilets, street lighting, [and] solid ondly, the institutional revolution ush- ered in bythese changes has highlighted Ela Bhatt, Founder, Self waste disposal. These women's the importance of two cruciol actors, Employed Women's. etiated with the Ahmedabad the community and women. The Association, Ahmedabad Municipal Corporation for their examples of Self Employed Women's contribution and on land tenure. Association (SEWA), Society For Promo- Elaben highlighted the need for It is the microfinance services of tion Of Area Resource Centre (SPARC) capital ownership or asset creation is creditand surance and Baroda Citizen's Council (BCC) at both the household and commu- tating in transfran show that service provision can no nity levels, which alone can facilitate the the indits tiznsfom longer be confined to the private sector development of an efficient infrastruc- bn the citv and its ctizens: from but that the communities too can be ture in a user-friendly and demand- being mutevictimstoadive and organized to deliver equally well. Gen- responsive manner. For the government, responsible citizens." der constitutes another important part infrastructure implies large projects for , - -- ~ system for microfinance institutions. and provided with basic support mecha- Section I There are four broad types of nisms in the form of subsidized loans Section I microfinance institutions operating in from financial institutions, for executing Recent/Proposed India: bankers, traditional NGOs, evolv- their task. Women groups themselves Initiatives on Financing ing community-based financial institu- select the works, prioritize their needs Community Infrostructure tions and mainstream community-based and then execute the projects. Adminis- finance institutions. Each type of trative approval for the works is granted microfinance institution responds to by Municipal Councils, with technical different conditions in the community approval from the Public Health Engi- Credit Connections: and needs to be supported in a differ- neering Department. Women groups Meeting the ent way. Credit Connections clearly are imported training in engineering Meerasting ture Needs of demonstrates the direct relationship skills and financial management, among Infrastructure Needs of between investments in housing and otherthings. Fifteen percentof the project the Informal Sector infrastructure and the incomes of the cost is given as an advance and the through Microfinance in target families and provides documen- savings generated by giving the work to Urban India tary evidence to convince policy-makers community-based organizations form the Jayashree Vyas, that the sector is viable. capital of the women groups, to be used Managing Director, for microcredit interventions. SEWA Bank Community Empower- For the projects which have so far ComentunMitycE pof cefor- been undertaken as part of this scheme, Ms Jayshree Vyas presented ment-Microfinance for the women were selected from the poor Credit Connections, a study on Infrastructure areas and slums. More often than not, i; microcredit provision in urban K. Rajeswara Rao, they were illiterate women from the India conducted by MHT, Ahmedabad Managing Director, Andhra scheduled and backward classes, living in partnership with the WSP-SA. The Pradesh Urban Finance & in distressed conditions, with an aver- objective of the study was to identify and Infrastructure Development age family size of six members. document the activities of four urban Corporation Limited, Today, there are 26 urban local microfinance institutions providing credit Hyderabad bodies in Andhra Pradesh which have for infrastructure, including water and organized 74 women groups and sanitation services, in the informal sec- ---In Andhra Pradesh, the successfully maintained public sanitation tor. The study highlighted the enormous Department of Municipal Adminis- in their allocated areas. Fifty more potential of microcredit in improving ser- - . tration has taken an initiative to women groups from different civic bod- vice delivery at the lowest income enabletheurbanlocalbodiestoentrust ies are very keen to undertake commu- levels. The microcredit institutions some of their basic functions involving nity sanitation. Work worth about Rs 84 selected for this study were: SEWA, community contracts to women groups crore has been earmarked to be under- Ahmedabad; Baroda Citizen's Council, formed under schemes such as taken aspartofthecommunitycontract Baroda; Mahila Milan, Mumbai; and Sri the Swarna Jayanti Shahari Rozgar system, out of which work worth about Padmavathy Mahila Abhyudaya Yoina (SJSRY)2. Rs 18 crore is already in progress. Sangam, Tirupati. Under this scheme, women groups There are, however, three major The methodology of the study are entrusted with the task of ensuring obstacles in implementing this scheme: included a desk-based review of second- sanitation, solid waste management, psychological, political, economic. The ary literature; field survey with a struc- and hygiene of specified areas. They are first impediment is the lack of confidence tured questionnaire given to each of the paid an honorarium for their services, among the women to undertake this four microfinance institutions, and formal discussions with government officials, bilaterals, donors, and main- stream housing finance and micro- finance institutions. An integral compo- nent of this study is the Action Research - a detailed report documenting a prototype 'housing/infrastructure loan' I Launched in 1997, this GOI employment program had two main components - self-employment and wage employment. For both the components, actual activities are identified through community groups and poor women. Besides access to credit, SJSRY also incorporates a component for training women and elected leaders. project. The second factor pertains to the therefore accrue to the target community egy therefore focuses on: threat and pressure of the local contrac- throughthewomengroups, whoare involved * Creating a policy environment con- tor, who is often hand-in-glove with the in the projects from conception to imple- ducive for providing microfinance. local politician. And, finally, it is the fear mentation. These groups gain self-confi- * Developing financial infrastructure. of failure, which often deters the women dence through the process and acquire * Building viable institutions. from executing the project. The women relevantskills in construction, engineering, * Supporting pro-poor innovations groups also harbor doubts that if they material and financial management. The and social intermediation. were to fail in successfully implementing fact that about 26 urban local bodies have the project, they would be denied even already initiated the process to implement the lowwagesthattheywere getting ear- the program within the first year indicates ADB's Urban and lier. None of these obstacles is insur- thattheschemeisreplicable. Environmental mountable and the Municipal Commis- Infrastructure Facility sioners have worked hard to counter The Asian Development Project and the Technical these pressures and instil self-confidence Bank and Microcredit for Assistance Grant in the women groups. Infrastructure The benefits of the scheme are James P Lynch, Urban -This project aims at assisting the manifold. Firstly, its implementationhas hasGovernmentofIndiaindeveloping resulted in clean roads and improved e p surban and environmental infra- sanitation. The garbage is cleared Water Supply, and Housing -_ ra n nirnetlifa everyda y,si o m eT i me s m orb e th an onc e a D ivisi o n , A sia n structure, to m eet the basic hum an every day, sometimes more than once a Division, Asian needs and improve the quality of life of day, and there is a feeling of commu- Development Bank urban residents. The project is structured nity ownership. In monetary terms, the to meet this objective through: schemes foster employment and asset - The number of projects under- . Long-term funding for financing creation, besides helping to increase z-`taken and the total amount of loans commercially viable urban and environ- family savings and incomes of the _. Idisbursed for microfinance have mental infrastructure projects. Funding communities. Each memberoftheteam increasedsinceAsianDevelopmentBank's can be channelled through the three gets a minimum daily wage of Rs 50, first project was approved in 1988. In borrowing financial institutions and which isalmosttwicethewagesthatthey recent years, lending operations of the reform-oriented municipal bodies, were getting earlier. In some cases, the Bank have supported a wide array of private sector project sponsors, or members have also doubled their fam- institutions, going beyond credit services microfinance institutions. ily incomes. In one case, the municipal- to promote voluntary savings on a limited * Technical Assistance to support the ity even started a thrift society for the scale, emphasizing market-oriented inter- integration of microfinance with urban members so that they could save from est rates, and according greater impor- and environmental infrastructure their increased monthly incomes and tance to financial viability. development. take loans. Community empowerment The goal of Asian Development The Bank's loans will be utilized for thus translated into better quality of Bank's microfinance strategy is to the following types of sub-projects: assets, optimal utilization of high qual- ensure access to institutional financial water and sanitation, drainage and ity and adequate construction material, services for a majority of poor and sewerage, solid waste management, higher mutual interaction and better low-incomehouseholdsandtheirmicro- area development including slum understanding among the women enterprises.3The objective is to support upgradation, industrial waste manage- groups,asalsotheenhancementofboth the development of sustainable ment and air pollution control; their social status and monthly savings. microfinance systems that can provide construction of streets, bridges and The biggest gains of these schemes diverse services of high quality. The strat- public transport systems and terminals; market development; and enhancement of the financial and managerial capac- ity of urban local bodies. A total sum of $200 million will be allocated to the three borrowers: Hous- ing and Development Corporation Lim- ited ($90 million), ICICI Limited ($80 million) and Infrastructure Development For more information on Asian Development Bank's microfinonce development strategy, see Finance for the Poor: Microfinance Development Strategy, Asian Development Bank, May 2000. Water and Sanitation Program An interoiational par-tner-shiip to help Action Plan for Government, External the pooI- gain sustained access to iimproved Support Agencies, Financial Institutions, water- supply and. .* sanitatioti setvices Microfinance Institutions, Community- based Organizations and NGOs TI~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ South Asia Region |g~~~~~~~' I Ct -t - -i -.! ''A', - A I~~~~~~~~~~~~~~~~7Al ,, , / ,,,, t --) B - - ! -t - - - I Fb Organized by . -.____ Water and Sanitation- Program-South' Asia Gujarat Mahila Key DeveDopsments in the Secdoir of Housing SEWA Trust ' crooinance for Commnunity gn§rastructure In association with Housing Development . . There is a growing aworeness of the potential of microfinance to facilitate community Housing Development Finance C:orporation infrastructure investments. This is evident in new initiatives (by donor agencies and the Limited - private financial intermediaries) which indicate a willingness to explore new approaches to sector investments. . A small but increasingly significant number of creative community-municipal initiatives .; ---~ . highlight the added value that both can gain through working in partnership. _. ~ . Innovative project structuring and processes enable investments to respond to community demand and result in capacity building of the community and women's empowerment. * There is increasing evidence of willingness, on the part of the government, to explore a facilitator's role as opposed to that of a provider. Microfinance for Community Infrastructure Action Plan for the Government, External Support Agencies, Financial Institutions, Microfinance Institutions, Community-based Organizations and NGOs Action Making it Happen Identifying Actors4 CHANGE * Educate stakeholders to raise awareness M ATTITUDES * Create incentives to develop new financial instruments, G+E+F+M AND RAISE leading to change in attitudes AWARENESS * Create incentives for top-level attitudinal change E * Create financial incentives for local governments to E empower communities * Educate local bodies about the importance and potential M of community infrastructure * Mitigate risks to financial institutions for community G infrastructure provision BUILD * Establish copacity building investment fund for training G+E+F+M CAPACITY * Link-up MFIs with training institutes to develop M+E training modules * Evolve a commonly agreed upon methodology for training M * Build/enhance the capacity of municipalities M+E+G STRENGTHEN * Review existing policies on land tenure, collateral G+E+F+M POLICY and security ENVIRONMENTS * Address conflict in policy by creating a dialogue E+M+G+F between all actors * Change foreclosure laws to make them more favorable G to the loaners * Explore community's role in land procurement and G community contracting DIVERSIFY, * Identify the unmet needs of consumers M+G INNOVATE * Design innovative products E+M ANDTAKE . Build capacity for marketing and packaging products M RISKS * Pilot and implement new initiatives M * Develop review parameters, and participatory G+F+M evaluation methods for benchmarking community interventions and products MAINTAIN * Take concrete steps to retain perspectives and M QUALITY objectives of the users, managers, grassroot workers WHILE and professionals, etc SCALING UP * Learn lessons, strategize, evolve and project a M coherent knvision * Correlate systems, sustainability and size M+F * Continuously upgrade skills and train staff M+F+E * Evolve efficient systems, detailing the roles and M+F responsibility of different stakeholders and match appropriate actors with these * Design regulations to induce and enable scaling up efforts M+E+G+F G: Government, E: External Support Agencies, F: Financial Institutions, M: Microfinance lnstitutionsICommun ity-based OrganizationsINGOs 'G: Government, E: External Support Agencies, F: Financial Institutions, M: Microfinonce Institutions/Community-based Orgonizations/NGOs Finance Company Limited ($30 million). period of five years. Period of utilization The three major components of The loan will be for a 20-year period, of the loan is till 2007. ICIP are: inclusive of a five-year grace period. . Sub-project management and A Technical Assistance (TA) grant Highlights of the World capacity building: to cover the costs equivslent toi$500,000will be provided Bank's Proposed India of services for managing sub-projects to assist in the integration of micro- Community Infrastructure through community participation in finance with mainstream urban and Community Infrastructure designing and implementing commu- environmental infrastructure develop- Project (ICIP): nity infrostructure plans (CIPs) and to ment. Housing and Development Meera Mehta, meet the costs of capacity building Corporation Limited will act as the Urban Specialist, support. A Community Support Fund executing agency. World Bank (CSF) is proposed to fund these sup- The major components ofthe TA are: port activities during project imple- * Integrating microfinance institutions mentation but it will not finance in urban and environmental infrastruc- The primory objective of the metuation,aut iilnotmfnance ture development, proposed project is to demonstrate, detailed structure, capitalization and * Capacity building for microfinance on a pilot basis, a sustainable institutional arrangements will be institutions for urban infrastructure financing mechanism and capacity for developed during project preparation. financing, community infrastructure investments • Pilot projects. for poor and low-income communities. Most of the initial ClPs are expected * Training, workshops and equipments. Community infrastructure includes toibe prepared during the proje dprepa- The implementation of the Techni- water supply, sanitation, streets, solid ratiopme of pipelie an-rjcsuo cal Assistance grant commenced in May waste, toilets, house connection, land- development of pipeline sub-projects so 2000 and is expected to be completed scapes and external connections to that they may be taken up for funding by April 2002. local authority and limited shelter by financial intermediaries (under the financing. The project would be second projectcomponent) immediately demand-driven and cover the poor and ater project effectiveness. Costs of ADB's Housing Finance low-income communities in both rural developing these will be met from Project - 11 and urban areas throughout India. It project preparation expenses. However, would address the critical issue of com- development of new CIPs, and their The project aims to improve the mercial viability and management managementcosts during project imple- efficiency of the housing finance sustainability of infrastructure financing mentation, will be supported through the sector so that it can better serve the through decentralization to empower CSF Capacity building for community- housing needs of low-income house- the concerned communities. These based financial institutions, communi- holds. The projectwill develop a system- objectives will be achieved through: ties and municipal authorities will also atic and sustainable process whereby * Strategic alliances of the main be funded through the CSF financing is made available from for- financial intermediary, HDFC, with com- * Community infrastructure invest- mal housing finance institutions through munity-based financial institutions, for ments: to partially meet the financing financial intermediaries such as commu- providing market-based financial costs of implementing community infra- nity-based finance institutions and services. structure plans at the community or city NGOs to assure effective and efficient * Community-driven, participatory level. Underthis component, finance will delivery of market-based housing approach to neighborhood infrastruc- be provided by the financial intermedi- finance to low-income households. ture upgradation and a municipal level aries to: a) communities or to commu- All of the beneficiaries will be low- integrated plan to ensure external link- nity-based finance institutions for income households. ages for community infrastructure. on-lending to communities or house- Loans of $100 million will be given + Development of a Community holds, or b) municipal or other local to Housing and Urban Development Support Fund (CSF) to channel World governments for investments in facilities Corporation Limited, $80 million to Bank funding and other donor requiredto provideexternal connections Housing Development Finance Corpo- resources, where possible, for sub- to infrastructure in poor and low-income ration Limited, $80 million to ICICI Lim- project development and capacity communities. The remaining cost of ited, $40 million to National Housing building for the target community- infrastructure investments will be met Board, totalling $300 million with a based finance institutions, municipal throughadditionalcommunitysharesor term of 25 years, including a grace authorities and communities. governmental contributions. While 7 financing these investments, adequate tions within the framework of a design of efficient loan systems for care will be taken to ensure that neces- municipal level ICIP This will enable infrastructure credit; linkages with sary legal provisions are adhered to. the municipal authorities to enhance public sector agencies; planning and Within this component, a guarantee their capacities to increase coverage project management; and sources and facility will be created which will partially of infrastructure to low-income-com- procedures of institutional funding for coverthe non-commercial risks faced by munities in a participatory and cost- infrastructure loans. the commercial financial intermediaries, effective manner. The key feature of this course is including HDFC, in lending for this sec- that it has been developed and will be tor. Other donor funding is being Microfinance taught by grassroots practitioners. explored for the guarantee facility. Training Module Training will initially take place in * Market development: to cover Ahmedabad. Spread over 36 sessions costs of expanding the lending activities Smita Ghatate, Gujarat in seven days, the training is based on to one or more commercial financial Mahila Housing SEWA Trust the experiential learning model and intermediaries during implementation. will be conducted in a participatory These will be in addition to HDFC, the Ms Ghatate presented the Micro- manner with games, case studies, role- main financial intermediary, whose costs finance Training Module prepared plays, and group discussions. Field are covered under the earlier compo- by MHT and WSP-SA, for micro- visits to Parivartan and structured semi- nents. It will involve identification of finance institutions interested in expand- nars with the municipal staff will also potential institutions and developing a ing their activities to infrastructure be organized during the training. proposal for their inclusion at least by isir acTis o infrastructure mid-term review. Institutional arrange- provision. MHT is organizing a training program later this year, in collaboration ments for this component will be with Friends of Women's World Bank- reviewed and firmed up during project ing and with the support of the WSP-SA Section 11 preparation. and the Housing Development Finance Exploring Innovations The total project size is expected to Corporation Limited. The main objec- and Opportunities in be about US$60 million with an IDA tive of this training program is to build Microfinance and credit of US$42 million. The project the capacity of microfinance institutions Infrastructure implementation period is 2001-2005. and NGOs, to successfully undertake The main institutional actors will be infrastructure upgradation programs commercial finance institutions, commu- and disburse infrastructure loans to nity-based finance institutions, commu- clients. Specifically, the training aims'o Group Work nity-based management organizations * Help the microfinance insfitutions! and..municipal/localrauthorities. The Th and municipal/local authorities. The NGO staff to understand the dynam- The participants were divided project will be implemented through ics of providing infrastructure-related into groups in this session and flexible sub-projects at the local levels, financial services. each group was asked to brain- through community-based financial * Provide information about techni- storm a list of interesting develop- institutions and municipal authorities. cal, financial and managerial aspects ments/new opportunities in the field of A broad benefit of the pilot project of infrastructure projects. effective community infrastructure will be to demonstrate the viability of * Provide an in-depth insight into investment. A facilitator was assigned sustainable market-based planning Parivartan, the Ahmedabad slum to each table to assist and guide the and financing of community infrastruc- upgradation program and share ex- group work. ture. Specifically, low-income commu- periences of other infrastructure nities will benefit from the provision of upgradation programs in India and infrastructure; community-based abroad. financial institutions/development * Disseminate information aboutthe agencies will strengthen their capac- sources of institutional funding available ity for financing community infrastruc- for infrastructure credit. ture and formal finance institutions will The training will address key increase their client base in this sec- areas such as the multiple role of tor. It is envisaged that about three microfinance in facilitating access to cities will be included in the ICIP for community infrastructure; community ensuring provision of external connec- mobilization for infrastructure; the .o Key DeveIo~mes in the Sector Bridging the Gap and Action Plan Key Developments in the Sector Moving Foward of Microfinance for Community 1 Educate stakeholders to raise Infrastructure- awareness .. ,Nt The participants of the workshop * There is a growing awareness identified seven major sector * Develop advocacy and information of the potential of microfinance i fe ve o r dissemination through media cam- to facilitote commlunity infra- gaps In effective community infra- paigns including TV, website, video structure investments. This is evi- structure investment during group documentation, school syllabus, expo- dent in new initiatives (by donor in this session. An action plan to bridge sure visits, training programs, etcx agencies and the private financial these gaps was also proposed. s Provide grants for community intermediaries) which indicate a education to microfinance institutions. willingness to explore new Changing Attitudes And * Prepare standard advocacy approaches to sector investments. Raisin Awareness material. * A small but increasingly sig- g nificant number of creative 2 Create incentives to develop new community-municipal initiatives With the recent emphasis ontmente to ne highlight the added value that - decentralization and local financial Instruments leading tochange both can gain through working in governance, there is a clear shift in attitudes partnership. from the government financing infra- * Facilitte activepartnershipsacross * Innovative project structuring structure towards the poor beginning to agencies where each level provides and processes enable investments pay for services. Similarly, there is a shift capacity building and resources, start- to respond to community fromthegovernmentbeingthesolepro- ing from External Support Agencies demand and result in capacity vider of infrastructure to the private (ESAs) down to the microfinance institu- building of the community and sector, including organizations of the tions. (For example, ESAs could provide women's empowerment. poor, beginning to explore community international experience, while financial * There is increosing evidence contracting options and assuming the institutions could provide expertise to gofverllignmes, ton thexpartlofte a responsibility for infrastructure mainte- microfinance institutions and they, in government, to explore a tyr,cudpoiemoeifraint facilitator's role as opposed to nance. There is enough evidence to sug- turn, could provide more information to that of a provider. . gest that the poor do pay for the financial institutions on customer base.) services rendered to them and that they 3 Create incentives for top level atti- Participation in this session was thus ought to be viewed as consumers tudinal change enthusiastic.Theparticipantsfeltthatthe rather than passive beneficiaries. And * Link ESA funding to create incen- recent Thelpacnts felt thatrthe yet, the perception that infrastructure tives for institutional change and incor- ture sector were encouraging and that provision or ow-income communities porate this feature in the project design. there was an increasing potential for persists Politicians are seen s benefac- (The World Bank and ADB are already innovative potential. The participants tors and the services are expected to be doing this.) unanimously agreed on the following tr n h evcsaeepce ob uxcitinanimouslyoagre on the fetolli funded by state resources. 4 Create financial incentives for local Microcredit has emerged as an governments to empower communities enabling tool to facilitate financial con- * Restructure the central and state Key Challenges in the Sector tribution of poor communities. However, governments funds to create incentives. 1. Changing -Allifudes and widespread funding for infrastructure * Motivate ESAs to support this activ- Raising Awareness; through microfinance is still an under- ity and bear some of the risk. 11. Capacily Building: developed sector. The lack of clear 111. Policy Environment; understanding of 'community infrastruc- 5 Educate local bodies about the IV. D;iers;i;cilion, Wni6vations and ture' and the facilitating role of importance and potential of community Risks; microcredit and microfinance institutions infrastructure V Technology; has not helped. * Encourage community-based orga- VI. Maintaining Quality While Scal- The problem is exacerbated by lack nizations and microfinance institutions to ing Up; and of information on options, partly due to take the lead; local/state institutions can VI. Consolidation and Regulariza- the absence of documentation of the provide a forum for educational activities. tion of the Existing Structures.thabecofdcmntinoth prvdafoufreuainlatvtes best models, which con be replicated * Organize exposure visits for corpo- and/or adapted further. ration officers to cities such as 9., Ahmedabad, Hyderabad, Baroda, etc. upgradation projects. Association for Community Develop- 6 Municipal officials also require train- ment Finance Institutions), and Xaviers 6 Mitigate risks to financial institutions ing and exposure which would sensitize Institute of Management can conduct the for community infrastructure provision them to the potential of the poor commu- training. WSP-SA, in partnership with MHT, * Create credit rating instruments nities to finance and manage infrastruc- has already developed a training and credit bureaux. This can be ture projects and to facilitate their work- module for microfinance institutions inter- achieved by a few national level ing in partnership with communities. ested in expanding their activities to infra- financial institutions working to * Finally, building capacity of structure provision.; achieve guarantee funds. mainstream financial institutions to * Further enhance the capacity of * Reform the law to use subsidies for identify and assess the creditworthiness microfinance institutions who are given risk coverage. This will include devel- of microfinance institutions is also training through networking and oping a new approach to subsidies so essential in order to facilitate the avail- consultancy for others. that they can be made available to ability of increased re-finance to the financial institutions to cover the risks microfinance sector. In particular, the 3 Evolve a commonly agreed upon of lending to low-income groups. conventional requirements of collateral methodology for training * Motivate microfinance institutions, and detailed documentation need to * Buildcertifiedcadresoftrainerswho the private sector and financial institu- be reviewed. can conduct these training and large- tions to create pressure points for chang- In spite of the need and the huge scale exchanges/exposures between ing the political will to bring about the demand for them, the sector lacks community organizations. above mentioned legislation. resources - financial, human and train- * Encourage lateral training amongst * Develop savings products at ing material - for capacity building in community groups, facilitated by NGOs microfinance institutions level to promote the sector. There are no institutions, no such as Society For Promotion Of Area contributions via doorstep collection. content and no universal methodology Resource Centre (SPARC), MHT, etc. for training. Low absorptive capacity * Increase the pool of case studies by Capacity Building and lack of uptake of the available documenting initiatives, including those resources further plague the sector. of smaller microfinance institutions, to Inadequate capacity of various understand bottlenecks faced by them actors - community, municipality, Action Plan in scaling up. International experience community-based organizations, 1 Establish a capacity building invest outside India could also be explored. microfinance~~~~ ~ institution an capacity buldn inet microfinance institutions, and financial ment fund for training 4 Build/enhance the capacity of institutions - has been identified as a * Establish a fund to take care of the municipalities major gap in the area of community resource crunch for training and capac- * Build perception through training infrastructure. The following steps ity building. National level financial programs and exposures to successful have to be tmken to resolve institutions, government, foreign fund- private-public-people partnerships. this problem: ing agencies, could do this. * Encourage inter-municipality expe- * The community and its leaders need rec xhne to be educated in order to raise aware- 2 Link up microfinance institutions with rence exchange. * Pilot and document action research ness and maximize participation of the training institutes to develop training projects. community. Ensuring exposure and modules * Linkfinancialincentiveswithcapac- imparting training in negotiation skills * Prepare training modules and con- i Linfina incentivesawithcapac to the community are crucial, particu- duct training. Organizations such as ity building efforts, for example, the larly because interaction with munici- MHT, Friends Of Women's World Bank- ment (DFID)-supported APUSP project. palities and other government officials ing, WSP, Housing and Urban Develop- is often required. ment Corporation Limited, Housing * Community-based organizations Settlement Management Institute and Policy Environment and microfinance institutions need to Habitat Polytechnic can prepare the specially focus on urban community modules individually or jointly and r. A key factor determining the infrastructure provision so that they may institutes such as BIRD (Bharati Inte- ¾ formation of municipal-community train community members in technical grated Rural Development Society), partnerships is the political back- and maintenance functions and MHT, SPARC (Society For Promotion Of ground and framework. An enabling facilitate collective infrastructure Area Resource Centre), Sa-Dhan (The environment which allows user partici- '1'0 potion to flourish through a supportive ing a dialogue between all actors conspicuous by their absence. context for development would consti- * Create a policy forum of govern- tute the ideal policy and political con- ment officials, and financial institutions, Action Plan text. People-centered decentralized NGOs, and microfinance institutions. development policies and laws which * Reflect consistency in policy but 1 Identify the unmet needs of enable and facilitate community partici- encourage a wide variety of approaches. the consumers potion provide a useful platform for The World Bank, the Asian Development * Ongoing initiatives by SEWA, and municipal action. And yet, despite the Bank and other ESAs should hove a clear other NGOs and community-based formal enactment of decentralization, and common message. organizations are already in place. there is a powerful, informal dimension * Examine creative modifications and Market research institutes, NGOs and constantly influencing processes. Devolv- variations on existing government pro- community-based organizations can ing power atthe local levels has no mean- grams promoting MFI-public-private- take these initiatives further. ing if attitudes are unchanged, skills are people partnerships in infrastructure undeveloped, organization structures are provision scheme design. (For example, 2 Design innovative products unreformed and people's organizations Andhra Pradesh Development of * Asian Development Bankr World are not promoted. Women and Children in Rural Areas Bank and domestic microfinance insti- The major issue which emerged in (DWCRA) Program, mutually aided tutions are alresdy doing this, albeit in the discussions is the presence of cooperative societies, CDS in Kerala.) anwad hoc fashion. Specialized institutes contradictory policies in the sector, * Hold state-based policy fora with withtherequisiteexpertisecanthustake particularly with reference to subsidy the government, NGOs and micro- over this role. and credit. Subsidized interest rates finance institutions to discuss local poli- 3 Build capacity for marketing and and foreclosure laws are issues on cies/conditions. packaging the product which there are no clear-cut policies. Broaden th e anduct Microfinance institutions feel that there 3 Change foreclosure laws to make . Broaden coverage and reach ofthese is lack of a clear and sustained com- them favorable to the loaners new products. Microfinance institutions, mitment to finance community infra- * Reform the legal, regulatory and schools/training institutes should begin structure. Ironically, the government's contracting structures of the financial experimenting with these products. National Slum Policy (draft, 1999) sector. Such reforms should be designed 4 Pilot and implement new initiatives does not even mention community tofairly distribute risks between the loan- * Design systems for upscaling loans infrastructure. The issues of collateral, ers and the loanees. (Housing Develop- and savings products offered by security, land pattas and community ment Finance Corporation, etc, are microfinance institutions, especially for contracting continue to hinder the already pursuing such reforms.) infrastructure purposes. Microfinance growth of the sector. Efforts to make institutions and systems user-friendly 4 Explore community's role in land institutions, community-based organiza- for the poor have yielded no results. procurement and community contracting tions, NGOs, the private sector, and the This is an emerging sector and lack of * It is essential to explore the many government can identify, disseminate experience often troanslates into roles that community members can play. and upscale these initiatives. ambiguous policies. 5 Develop review parameters and Diversification, participatory evaluation methods for Action Plan Innovations and Risks benchmarking community infrastructure interventions and products 1 Review existing policies on land tenure, collateral and security , India has a number of credible * Convenean inter-agency task force -microfinance institutions that are to document 'good practice' and review K:;z> actively disbursing substantial loan existing policies in the country, besides funds, including those meant for on-plot carrying out a comparative study of infrastructure loans and community legal practice in different states. infrastructure loans. However, there is * Explore community tenure options little variety in the loan products offered at the internationol level. by microfinance institutions. In particu- lar, there are no disaster management 2 Address conflicts in policy by creat- programs and insurance products are ~3 I * Stipulate parameters and bench- are needed to maintain quality, no 3 Continue the ongoing skill marks for review and undertake partici- consensus could be reached on whether upgradation and training patory evaluation regularly. 'over-engineered' standards hamper * Community-based financial institu- community participation or not. tions, microfinance institutions, and Technology This issue was flagged for informed 'Barefoot Management Schools' can debate at a later date. take up this task with funding from national and international agencies Conventionally, engineers domi- once the needs are identified. note the decision-making regarding Maintaining Quality . Involvemainstreami theseefforts. infrastructure provision and the real While Scaling Up needs of the users are usually ignored. 4 Evolve efficient systems, detailing The blanket application of national stan- : In response to the huge demand the roles and responsibility of different dards hinders technical innovation, at the grossroots level, the stakeholders and match appropriate despite international experience, which - sector has been marked by recent actors with these shows the potential of appropriate efforts towards scaling up both infra- * Make this a process of learning from lower-cost solutions to provide services structure provision and infrastructure good practice, initiated by community- people want and are willing to pay for. finance to poor communities. However, bosed finoncial institutions. Funding can Community members can and do play maintaining or achieving well-defined also be provided for this activity. many different roles in infrastructure standards of quality while scaling up is * Conditionality and agreement to upgradation projects. They can be the a common concern to the sector. learn and improve are also essential for physical providers/contractors, provided Reduced quality of group formation and achieving this. they have adequate technical capacity lack of ability to assess the creditworthi- and are trained in construction tech- ness of infrastructure projects and com- 5 Correlate systems, sustainability niques. They can be the regulators of munities are the moior risks. Commu- and size cost and quality control as they live at nity-based organizations also often find * Encourage growth by supportive the site of construction/infrastructure it difficult to identify and properly target external policy environment. installation. They can also play the role the beneficiaries when the scale of * Design regulations to induce and of supervisors of the physical work or operation increases. enable scaling up efforts. simply of consumers/beneficiaries of services/facilities that they have paid for. A P C To take on these activities, the poor com- -Regulization oth munities need technical training, access 1 Take concrete steps to retain per- Regularization of the to information regarding low cost spectives and objectives of the users, Existing Structures options, assistance in cost estimation managers, grossroot workers and pro- and supervision for quality control, fessionals, etc K; Microfinance institutions face a among other things. Engineers also * NGOs, microfinance institutions and variety of problems, at the need to be encouraged to accept inno- community members can make this effort. institutional level, for onward lend- vative new solutions which respond to ing to poor communities. The main- these community roles. 2 Learn lessons, strategize, evolve and stream finance sector is still neither Rapporteur's Note: This was a project a coherent vision adequately sensitized nor equipped for contentious issue and the participants * Microfinanceinstitutionscanorganize on-lending to a poor clientele and its could not agree on an action plan. While themselves, network, lobby with advocacy particular needs. Microfinance institu- the group agreed that some standards and support from outside professionals. tions continue to face procedural prob- lems in accessing timely and adequate bulk-credit from mainstream re-finance institutions. These include problems relating to the furnishing of adequate security collateral, loan procedure lead- ing to indiscriminate delays, lack of flex- ibility of the loan system in spite of the nature of the clientele, and interest rates being spread too low to meet the 2 .12 expenses of the microfinance institutions. The lock of 'start-up' funds and bulk Microfinance for Community financing makes it difficult for commu- nity-based organizations to extend their Infrastructure activities to infrastructure provision. Action Plan for the Government, External Support Agencies, Financial Institutions, Action Plan Microfinance Institutions, Community-based Rapporteur's Note: This was identi- Organizations and NGOs fied as an age-old problem of the MFI sector in India but not directly relevant Action MakinigIt Happen Identifying to the specialist sector of microfinance Actors4 for infrastructure. CHANGE * Educate stakeholders to raiise awareness M The National Task Force on ArrITUDES * Create incentives to develop new financial instruments, G+E+F+M microfinance has recently submitted its AND RAISE leading to change in attitudes report to the RBI and the Ministry of AWARENESS * Create incentives for top-level oatitudinal change E Finance to tackle many of the problems * Create financial incentives for local governments to E empower communities cited above. The action plan for this was * Educate local bodies about the importance and potential M not discussed at the workshop. of community infrastructure * Mitigate risks to finoncial institutions for community G infrastructure provision BUILD * Establish capacity building investment fund for training G+E+F+M CAPACITY * Link-up MFIs with training institutes to develop M+E training modules * Evolve a commonly ogreed upon methodology for training M * Build/enhance the capacity of municipalities M+E+G STRENGTHEN * Review existing policies on land tenure, collateral G+E+F+M POLIcY and security ENVIRONMENTS * Address conflict in policy by creating a dialogue E+M+G+F between all actors * Change foreclosure laws to make them more favorable G to the loaners * Explore community's role in land procurement and G community contracting DIVERSIFY, * Identify the unmet needs of consumers M+G INNOVATE * Design innovative products E+M ANDTAKE * Build capacity for marketing and packaging products M RISKS * Pilot and implement new initiatives M * Develop review parameters, and participatory G+F+M evaluation methods for benchmarking community interventions and products MAINTAIN * Take concrete steps to retain perspectives and M QUALITY objectives of the users, managers, grassroot workers WHILE and professionals, etc SCALING UP * Learn lessons, strategize, evolve and project a M coherent knvision * Correlate systems, sustainability and size M+F * Continuously upgrade skills and train staff M+F+E * Evolve efficient systems, detailing the roles and M+F responsibility of different stakeholders and match appropriate actors with these * Design regulations to induce and enable scaling up efforts M+E+G+F G: Government, E: External Support Agencies, F: Financial Institutions, M: Microfinance Institutionsl Community-bosed Organizations/NGOs - 13 Annexure I National Workshop on 'Microfinance for Infrastructure: Recent. Experiences' August 31, 2000 Agenda 8.30 - 9.00 a.m. Registration 9.00 - 9.30 a.m. Welcome Renana Jhobvala, MHT Junoid Kamal Ahmad, WSP-SA 9.30 - 9.50 a.m. Keynote Address Ela Bhott, Founder, Self Employed Women's Association, Ahmedabad 9.50 - 10.30 a.m. Session One Chairperson: J. P Murthy 9.50 - 10.10 a.m. Presentation Presentation of 'Credit Connections' by MHT Speaker: Jayashree Vyas, SEWA Bank 10.10 - 10.30 a.m. Plenary Discussion on the presentation 10.30 - 11.00 a.m. Coffee Break 11.00 - 12.30 p.m. Session Two Group Work 1 Exploration of innovations and sector gaps in microfinance 12.30 - 1.30 p.m. Lunch 1.30 - 3.00 p.m. Session Three Chairperson: V Suresh Presentations Presentations on microfinance investment and support programs for infrastructure 1. Government of Andhra Pradesh Speaker: Rajeshwara Rao 2. World Bank Speaker: Meera Mehta 3. Asian Development Bank Speaker: James Lynch 3.00- 3.30 p.m. Tea Break 3.30 - 4.00 p.m. Session Four Chairperson: Vijayalakshmi Das Presentation Microfinance Training Module Speaker: Smita Ghatate, MHT 4.00 - 5.00 p.m. Session Five Group Work 2 Preparation of Action Plan 5.00 - 5.30 p.m. Reporting back from Group work and final comments: Barbara Evans, WSP-SA 14 Annexure 11 National Workshop on 'Microfinance for Infrastructure: Recent Experiences' August 31, 2000 SILVER OAKS, India Habitat Centre, Lodi Road, New Delhi List of Participants CENTRAL GOVT./ Ms. Aruna Anand MUNICIPAL MANAGERS Assistant Manager, Consulting Unit YUVA Mr. Abhas Kumar Jha 52/53 Narepark Municipal School, 2nd Floor, Deputy Secretary FB/A Opp. Narepark Ground, Parel, Mumbai Ministry of Finance, Dept. of Economic Affairs, Tel: 022-4155250 Fax: 022-4135314 Lok Nayak Bhovan, Room 143 A, Parliament Street, New Delhi 110 001 Mr. Babu Thomas Tel: 01 1-3013355 Fax: 0 1 1-301 751 1 Director (Housing & Infrastructure) Society for Integral Development Action (SIDA) Ms. Bharti Sihag Koovapally 686518, Kottayam (Dt.) DihrectoiS;hag Tel: 0482-851115 Fax: 0482-851447 Director - Rural Housing Ministry of Rural Areas & Employment Mr. BS. Balachandran Room #379, Krishi Bhawan, New Delhi 110 001 Bharat Sewak Samaj Tel/Fax: 011-3381967 Sadbhvana Bhovan, Brahmin's Colony, Kawadiar PO. Thiruvanthapurom 695 003 Ms. Babri Lal Tel: 0471-433845 Fax: 0471-431664 Joint Director Ministry of Rural Development Mr. Ernest Paul Krishi Bhawan, New Delhi 110 001 Credit Manager Tel/Fax: 011-3381967 Bharati Integrated Rural Development Society (BIRDS) No.26/130 B-2 Eva Nest Ganapuram, Nandyal, Dt. Kurnool Mr. J. P Murty Tel: 08514-43444/46112 Fax: 08514-48444 Joint Secretary (HEPA) Ministry of Urban Development & Poverty Alleviation Ms. G. Padmaja Room No. 114, 'C' Wing, Nirman Bhavan, New Delhi 110 011 Director Tel: 011-3017665 Fax: 011-3017497 SPANDANA 5-54-19, 6/18 Brodipet, Guntur-2, A.P Mr. K. Rajeswara Rao Tel: 0863-350733 Fax: 0863-354289 Managing Director Andhra Pradesh Urban Finance & Infrastructure Mr. J. Ranga Rao Development Corporation Ltd., Hyderabad 500 063 Director Tel: 040-32241 71/3220876 ASSIST Fax: 040-3220876/3227254 G.T. Road, Chilkaluripel 522616, Guntur, A.P Tel: 08647-53971 Fax: 08647-54815 Mr. S. Reghunathan Principal Secretary to Chief Minister (IT) Mr. K. Narender CMO, Government of NCT Delhi Programme Leader Room No. 84, Delhi Vidhan Sabha, Delhi 110 054 DHAN Foundation Tel: 011-3924217 Fax: 011-3933230 18, Piuayarkovil Street, S.S. Colony, Madurai 625 010, Tamil Nadu Tel: 0452-610794/610805 Fax: 0452-602247 MICROFINANCE INSTITUTIONS/NGOs Mr. V.V. Suryanarayana Mr. Abhijit Das Chief Executive Project Director Mahila Vikasa Mutually Aided Co-operative Thrift Society Ltd. Tarun Sangha 7/87 Ravindra Nagar, Cuddapah 516 003 Vill Phakirchak, PO. Barabari, (South), Dist. Midnapore 721430 Tel: 08562-49287 Fax: 08562-46351 Tel: 03220-70321 Mr. Mathew Titus Ms. Ami Ravat Coordinator Manager (Infrastructure) Sa-dhan Barodo Citizens Council, Baroda 2163, DII Vasant Kunj, New Delhi 110 070 Tel: 0265-793415/358091 Fax: 0265-794596/339298 Tel/Fax: 011 -6132629 .15 Mr. Minar Pimple Mr. S. Vijaya Bhoskar Executive Director Manager-Field Operations YUVA SHARE 52/53 Narepark Municipal School, Opp. Narepark Ground, 'SHEKINAH' 12-13-680, Nagariuna Nagar, Tarnaka, Parel, Mumbai 400 012 Hyderabad 500 017 Tel: 022-4155250 Fax: 022-4135314 Tel: 040-7174925/7153080 Fax: 040-7173558 Mr. Mohammed N. Amin Mr. V. Paul Raja Rao ADHIKAR Executive Director 192 Dharma Vihar, Khandageri, Bhubaneshwor 751 030 BIRDS-Bharati Integrated Rural Development Society Tel: 0674-471051 Fax: 0674-470907 #26/130B1 Gnanpurum, Nandyal (RS) 518 502 A.P Tel: 08514-43444 Fax: 08514-48444 Mr. P Uday Shankor CEO Indian Association for Savings & Credit INTERNATIONAL AGENCIES/ 3-100 G, 'REHOBOTH' 2nd Floor, Crystal Street, OTHER AGENCIES/BILATERALS/MULTILATERALS Martandam 629 165, Kanyokumari Tel: 04651-72745 Fax: 04651-72738 Ms. Alison Barreft Regional Coordinator - Cities Alliance Mr. P Vedachalam The World Bank, 70 Lodi Estate, New Delhi 110 003 Programme Director Tel: 011-4617241 Fax: 011-4619393 Community Action for Rural Development Card (CARD) Mr. Faisal Beg Samathuvapuram, Pulivalam 622 507, Developmen Of Pudukkottai, Dist. Tamil Nadu Development Officer Tel: 04333-74233 Fax: 04322-66971 CIDA, Canadian High Commission 7/8 Shantipath, Chanakyapuri, New Delhi 110 021 Mr. Prafulla Kumar Sahoo Tel: 011-6876500 Fax: 011-6886478 Centre for Youth & Social Development E-1, Institutional Area, PO. RRL, Bhubaneshwar 751 013 Ms. Rita Bhottacharjee Tel: 0674-300983/301725 Fax: 0674-301226 Deputy General Manager National Housing Bank Mr. Rajendra Joshi Core 5-A, 4th Floor, India Habitat Centre, Managing Trustee Lodi Road, New Delhi 110 003 SAATH Tel: 011-4641173 Fax: 011-4646988 18 Amber Society, 2nd Floor, Opp. Kameshwar School, Satellite Road, Ahmedabad 380 015 Mr. Graham Jackson Tel: 079-6740832 Fax: 079-6730277 AUSAID AusAid House, 62 Northbourne Avenue, Ms. Reeva Sood Canberra ACT 2601, Australia Indcare Trust Tel: 612-6206-4000 Fax: 61 2-6206-4880 1030 Vikas Kuni, Vikaspuri, New Delhi 110 018 Tel/Fax: 011-5531031 Mr. Harish Khare Senior Officer, Technical Services Mr. S. Damodaran HDFC Ltd. Executive Director 4th Floor, Ramon House, 169, Backbay Reclamation GRAMALAY Churchgate, Mumbai 400 020 31, A/29 Neravalar Colony, Salai Road, Woriur, Tel: 022-2831920 Fax: 022-2046834 Tiruchirapalli 620 003 Tel/Fax: 0431-761263 Mr. James P Lynch Urban Dev. Specialist Mr. S. Viswanatha Prasad Asian Development Bank Vice President Water Supply, Urban Dev. & Housing Div. BASIX 6 ADB Avenue, Mandaluyong City, 0401, Metro Manila, Phillipines 403, Nirmal Tower, Dwarkapuri Colony, Punjagutta, Tel: 0632-632-5942/6712 Fax: 0632-636-2305 Hyderabad 500 082 Tel: 040-3350171 Fax: 040-3358846 Mr. James Stein Director Mr. Sukumar Singh Regional Urban Development Office, USAID Secretary, Mass Education American Embassy, Shantipath, Chanakyapuri, Mahamayatala, Garia, Calcutta 700 084 New Delhi 110 021 Tel: 033-4772010 Fax: 033-4359755 Tel: 011-4198000 Fax: 011-4198612 Ms. Sunita Raj Dr. Jyotsna Bapat The Activities for Social Alternatives (ASA) Consultant 'Sathia Illam', 2-A, 10th Cross, Alli Street, Annamali Nagar, National Council of Applied Economic Research (NCAER) Thiruhirapalli 620 018 Parsila Bhovan, 11 IP Estate, New Delhi 110 002 Tel: 0431-763980 Fax: 0431-763356 Tel: 011-3317860/68 Fax: 011-3327164 Ms. K. C. Ranjani Mr. Rauno Zander Deputy General Manager Consultant Small Industrial Development Bank of India (SIDBI) KfW, C/o HDFC Ltd. 10/10 Madan Moham Malviya Marg, Lucknow 226 01 4th Floor, Ramon House, 169, Backboy Reclamation, Tel: 0522-209517-20 Fax: 0522-209513 Churchgate, Mumbai 400 020 Tel: 022-2831920 Fax: 022-2046834 Mr. K. Mukundan Urban Specialist Mr. S. Ramanathan The World Bank, 70 Lodi Estate, New Delhi 110 003 Programme Officer Tel: 011-4617241 Fax: 011-4619393 Swiss Agency for Development & Cooperation (SDC) Chandragupta Marg, Chanakyapuri, New Delhi 110 021 Ms. Kanika Basu Tel: 011-6877819/20 Fax: 011-6873631 HUDCO HUDCO Bhawan, India Habitat Centre, Dr. Sampath Srinivas Lodi Road, New Delhi 110 003 Manager Tel: 011-4367653 Fax: 011-4628894 PDCOR Limited # 315, Laxmi Complex, M.l. Road, Jaipur 302 001 Ms. Kiran Wadhwa Tel: 0141-373457/373464 Fax: 0141-373614 Chief Economist HUDCO Mr. Sally Rynveld HUDCO Bhawan, India Habitat Centre, Senior Consultant Lodi Road, New Delhi 110 003 Coffey MPW Pty Ltd. Tel: 011-4648023 Fax: 011-4627093 Suite 22 Northbourne Chambers, 54 Northbourne Avenue Canberra, ACT 2601, Australia Mr. M. Alam Tel: 0612-6248-7366 Fox: 0612-6248-7157 Project Implementation Officer Asian Development Bank, 37 Golf Links, Mr. V. Suresh New Delhi 110 003 CMD Tel: 011-4692578 Fax: 011-4636175 HUDCO HUDCO Bhavan, India Habitat Centre, Dr. Meera Mehta Lodi Road, New Delhi 110 003 World Bank Tel: 011-4693022 Fax: 011-4628894 House No. 12, Kenlndia Gardens, Raphta Road, Nairobi, Kenya Tel: 0254-2-441991 Fax: 0251-2-623536 Mr V. Swarup Chief (CD) Mr. Nabaroon Bhattacharjee HUDCO, Program Officer & Regional Training Advisor HUDCO Bhawan, India Habitat Centre, Regional Urban Development Office, USAID Lodi Road, New Delhi 110 003 American Embassy, Shantipath, Chanakyapuri, Tel: 011-4367653 Fax: 011-4628894 New Delhi 110 021 Tel: 011-4198000 Fax: 011-4198612 Ms. VeenatPadia Small Enterprises Advisor Mr. PP. Vora Department for International Development (DFID) CMD B-2, Anand Niketan, New Delhi 110 021 CationD l Housing Bank Tel: 011-6114225 Fax: 011-6871655 National Housing Bank Core 5-A, 3rd Floor, India Habitat Centre, MAHILA HOUSING SEWA TRUST & FWWB Lodi Road, New Delhi 110 003 Tel: 011-4642722 Fax: 011-4649030-35 Ms. Bijal Bhatt Co-ordinator Dr. Piali Chakrabarty Mahila Housing SEWA Trust Project Appraisal Officer (I) Room #404, 4th Floor, Sakhar IV Building, HUDCO Ashram Road, Ahmedabad 380 003 HUDCO Bhowan, India Habitat Centre, Tel: 079-6581659 Fax: 079-5506446 Lodi Road, New Delhi 110 003 Tel: 011-4648023 Fax: 011-4627093 Ms. Ela Bhott Chairperson Mr. Rahul Mane Mahila Housing SEWA Trust HUDCO, Room #404, 4th Floor, Sakhar IV Building, HUDCO Bhawan, India Habitat Centre, Ashram Road, Ahmedabad 380 003 Lodi Road, New Delhi 110 003 Tel: 079-6581659 Fax: 079-5506446 Tel: 011-4367653 Fax: 011-4628894 Ms. Jayshree Vyas Dr. Rakesh Kaushik Managing Director Director - Development Support Mahila Sewa Sahakari Bank Nodal Organisation for Development Enterprise & Services ( NODES) 109, Sakar II, 1st Floor, Opp.Town Hall, MBCC, SCO 333-34, Sector 35 B, Chandigarh 160 022 Ellisbridge, Ahmedabad 380 006 Tel: 0172-600532/533 Fax: 0172-600531 Tel: 079-6581652 Fax: 079-6576074 17 Ms. Nayana Vejani Mr. Zahur Hussain Mahila Housing SEWA Trust Regional Programme Manager Room #404, 4th Floor, Sakhar IV Building, Dera Ghazi Khan, National Rural Support Programme Ashrom Road, Ahmedabod 380 003 Al Rehman Manzil, Shah Sikander Road, DG Khan, Tel: 079-6581659 Fax: 079-5506446 Punjab, Pakistan Tel: 92-641-61227/60441 Fax: 92-641-470647 Ms. Parul Raval Mahila Housing SEWA Trust INTERNATIONAL (BANGLADESH) Room #404, 4th Floor, Sakhar IV Building, Ashram Road, Ahmedabad 380 003 Dr. Dibalok Singha Tel: 079-6581659 Fax: 079-5506446 Executive Director Dushtha Shasthya Kendra (DKS) Ms. Pratul Ahuia 5/8-Sir Sayed Road (Ground Floor), Block 1, Friends of Women's World Banking Mohammadpur, Dhaka 1207 G-7, Sakar I Building, Opp. Gondhigram Station, Tel: 0880-2-9128520 Fax: 0880-2-8115764 Ashram Road, Ahmedabad 380 009 Tel: 079-6584199/6580119 Fax: 079-6580119 Mr. G.K. Roy Programme Coordinator, Microfinance Ms. Raja Rajeshwari BRAC Program Officer BRAC Centre, 75-Mohakhali C/A, Dhaka Friends of Women's World Banking Tel: 0880-2-4180-7 Fax: 0880-2-6448 G-7, Sakar I Building, Opp. Gandhigrom Station, Ashram Road, Ahmedabad 380 009 Mr. Quazi Shairul Hassan Tel: 079-6584199/6580119 Fax: 079-6580119 General Manager Grameen Bank Ms. Renana Jhabvala Grameen Bank Bhabon, Mirpur 2, Dhaka, Bangladesh Executive Trustee Tel: 0880-2-8011138 Fax: 0880-2-8013559 Mahila Housing SEWA Trust Room #404, 4th Floor, Sakhar IV Building, WATER AND SANITATION PROGRAM-SOUTH ASIA Ashram Road, Ahmedabad 380 003 Tel: 079-6581659 Fax: 079-5506446 55 Lodi Estate, New Delhi 110 003 Tel: 011-4690488/89 Fax: 011-4628250 Ms. Sheela Menon Mahila Housing SEWA Trust Ms. Barbara Evans Room #404, 4th Floor, Sakhar IV Building, Regional Urban Specialist Ashram Road, Ahmedabad 380 003 Tel: 079-6581659 Fax: 079-5506446 Ms. Clarissa Brocklehurst Regional Urban Specialist Ms. Smita Ghatate Dr. Junaid Kamal Ahmad Housing Finance Co-ordinator Regional Team Leader Mahila Housing SEWA Trust Room #404, 4th Floor, Sakhor IV Building, Ms. Marie Helene-Zerah Ashram Road, Ahmedabad 380 003 Consultant Tel: 079-6581659 Fax: 079-5506446 Ms. Poonam Chitkara Program Assistant Dr. Vjayalakshmi Das Chief Executive Dr. Pushpa Pathak Friends of Women's World Banking Urban Specialist India, G-7, Sakar I Building, Opp. Gandhigram Station, Mr. Raja Rehan Arshad Ashram Road, Ahmedabad 380 009 Team Leader, Pakistan Tel: 079-6584199/6580119 Fax: 079-6580119 Ms. Sara Fatima Azfar INTERNATIONAL ( PAKISTAN) Urban Specialist Ms. Shalini Sinha Ms. Tahira Raza Editorial Consultant Executive Vice President Ms. Shantana Banneri First Women's Bank, Head Office Assiant 7th Floor, Mehdi Tower, S.M.C.H. Society, Shahar-e-Faisal, Karachi eam Assistant Tel: 9221-4540603 Fax: 9221-4556983 Ms. Soma Ghosh Moulik Urban Institutional Specialist Dr. Tashfeen Kahan Mr. Tanveer Ahson Director General , ..i., Community Infrastructure Project (CIP) urban Speclist Govt. of NWFPF Phase V, Hayatabad, Peshawar Ms. Vandana Mehra Tel: 92-91-9217349 Fax: 92-91-9217350 Regional Communications Coordinator Acknowledgements This report contains a summary of the proceed- ings of the workshop held in New Delhi in August 2000. The workshop was jointly organized by the Water and Sanitation Program-South Asia (WSP-SA) and Gujarat Mahila Housing SEWA Trust (MHT). WSP-SA would like to extend sincere thanks to Mahila Housing SEWA Trust, in particular to Renana Jhabvala and Smita Ghatate, for providing substantive inputs in the preparation and design of the workshop. The organizers would also like to extend special thanks to Department for International Development (DFID) and Housing Development Finance Corporation (HDFC) for co-hosting the event. Harish Khare, HDFC, needs a special mention for providing inspiration and support. AcknQwledgements are due to all the speakers for their valuable contributions; and finally to all the participants for their interest and interaction in making this event a success. Our sincere gratitude goes to everyone associated with the workshop. MICROFINANCE FOR INFRASTRU(TURE: RECENT EXPERIENES Auqu l 31. 1fi(i1 Indid liabildl (Enker. Ni* ridhi In aSss-.lallf'r 'hlh Saniatio lnf,,ie l,rpordior. lMle _ Water and Sanitation Hou-~~Inq DevelupmEn Program-South Asia *, - ; _. -. / § ~~~~~~~~~~~~~~~ 55 Lodi Estate 1New Delhi 110 003 j \ ! j ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~India -Phone: (9 1 -11) 4690488, 4690489 to .lF l4 Fax: (91-1 1) 4628250 E-mail: wspsa@worldbank.org Web site: http://www.wsp.org t ,.~~~~~~~~~~~~~~~~~~~~~~~~~, '_For more information, co,nta'ct ,-' f Water and Sanitation Progra- - ,Su.lh A.6a ! - _ _ : _ V - j w- . 4 New Delhi 110 003 Tel: 91-11-4690488, 4690489, ...\) Fax: 91-11-4628250 * - - -'> {^ gis t i ~ Email: wspsa@worldba'nk.org-, 'Gujarat MahilaHousing SEWA Trust' _tRoom No. 404, 4th Floor Sakhar IV Building *-_vt _* -~~~~~~~i "~~~ 1t >-£ ~~~Ahmedabad 380 009, 'G. aat, . ft I Telefax: 91-79-6581659 - Email: mahilahsg@icenet.net<,- IV' .|| :ffi:Prepqred by Sholini Sinha Phot,oraphs by Ashwani Chopra 't his reSi'is produced by the Water and .Sanitotiah.Prcgram-South Asia under the '-. *. *; s & - . ; . ZJ a-' Briitish. Government, Department for Jt 14 _ _b . - -. _ , ~ - ............................... w. Internricondl Development (DFID)-funded j,__ ^ =:r --'~-~ A B5-'_> progr'on'Cpacim_Building for National and Municipal Decision-Makers'. i -_ November 2000 J/ _hi5> the Wt&ter* and Sanitation Program is an international partnership to help the poor gain w1 _ ' z DS < -\ vsustained access to improved water supply and sanitation services. The Program 's main funding partners are th'e Go.ern,r,nr: cF - / Australia, Belgium, Canada; Dennmrk, Germany, Italy, Japan L6u'rnbou'rg lhe _I.i . ^ ^ w X * ^ Netherlands, Norway, Swedr-r, S. s,t7erland. - _ K _ and the United Kingdom, ihe -Unned Nations Development Programme, and The World Bank. . 7 t / . 5 t ' f Created by Write Media * r Ar ..... - M SrE-mail: writemedia@vsnl.com N- E J ,,9 t' n Printed at PS Press Services Pyt Ltd -.