3. Sample WaterCredit MFI Model Diagram
Water.org
“smart subsidy” grant for technical assistance
& capacity development costs
“smart subsidy” grant for start-up, product & capacity development costs
credit enhancements (guarantees)
Banks &
WSH NGOs MFIs portfolio growth capital
Capital
technical assistance
Markets
loan
loans
repayments
technical assistance
JLGs
connection fees
Utilities
Households
other WSH improvements
toilets water &/or sewerage services
RWH tanks
drip irrigation
4. WaterCredit’s Strategic Subsidies
Software costs of programs
Community mobilization, education, training
Hygiene education & sanitation demand generation
Watsan loan portfolio
Market research
Loan product development
Pilot testing
Investment capital
Seed capital for revolving loan funds
Credit guarantee for commercial and external financing
Capacity development
Watsan training
Financial management training
GUARDIAN - start-up costs, M-Cril rating
Areas NOT subsidized
Cost of improvements
Wholesale & retail loan conditions
Tariffs and O&M expenses
5. Water.org’s Roles
Program Design
Philanthropic Investment
Financial and Program Monitoring
Partner Capacity Building
WSH Facilities and Water Quality Verification
Evaluation
Broader Sector Engagement
6.
7. WaterCredit Loan & Borrowers’
Characteristics
CHARACTERISTC VALUE
Average Loan Size $150
Average Effective Interest Rate 16.7%
Average Loan Term 15 months
Cumulative Repayment Rate 99%
Water Loans as % of Portfolio to Date 38%
Sanitation Loans as % of Portfolio to Date 54%
Borrowers’ Average Monthly Household Income (INR) 3,415
Percent of Borrowers Below Poverty Line 52%
Percent of Loans Given to Female Borrowers 89%
Percent of Loans Given to Those in Rural Areas 80%
8. Making Progress in India
INDICATOR Progress to Expected by April
Date 2016
WaterCredit Partners 18 23
Water.org Partner Investment $4.9 million $9.65 million
Expected Financial Capital Leveraged $20.7 million $48.2 million
Indian States Impacted 13 15
WaterCredit Loans Disbursed 98,600 325,000
Water and/or Sanitation Beneficiaries 490,000 1,500,000
9. Overview of Challenges
Water-Related Issues
Water Resource Management
Water Quality
Water Infrastructure
Other Challenges
Microfinance Environment
Awareness of Sanitation Options
Scaling WaterCredit in New Markets
10. Evaluating Impact
100%
90%
80%
70%
60%
50%
40%
Baseline
30%
Post-line
20%
10%
0%
% Population % Population % Obtaining % Population % Population
Using Using Enough Considering Washing
Improved HH Improved Water to Water as Hands at
Water Source Sanitation Meet Needs Potable Crucial Times
11. Future Evaluation Efforts
Planning more systematic evaluation of WaterCredit
work occurring between 2008-11.
Common evaluation survey and protocol administered
by current WaterCredit partners in 2011-12
Includes treatment and control groups
Over 11,000 baseline and 8,000 postline surveys
Includes demographic, socio-economic, water &
sanitation, hygiene, WaterCredit, health, and other data
Contract with 3rd party researcher to evaluate 2011-16
initiative.
2004: First WaterCredit program launchedRLF scheme with Gramalaya, a WSH NGOGramalaya obtains microfinance training and develops successful water and sanitation loan products.Demonstrates that WaterCredit concept is viable in India.2007Support from Michael & Susan Dell FoundationPartnership with first MFI formedLoan made to BASIX for WaterCredit expansion in four geographiesDemonstrated that WaterCredit could be a successful model for MFIs in India. Loan repaid in full, WSH access expanded, BASIX decides to integrate WC within its standard product offerings across all branches.GUARDIAN formed – world’s first MFI dedicated to expanding water and sanitation acccess2008Water.org forms first partnership with PepsiCo FoundationExpands WaterCredit with additional microfinance institutions in IndiaCommercial capital leveraged by MFIs for the first time2011Water.org and PepsiCo expand partnership with exclusive focus on WaterCredit. Other partners (e.g. Caterpillar Foundation, Bank of America, Swiss Re) join Water.orgResults in WaterCredit expansion across many regions of India with MFIs2013 Milestones Achieved this Quarter$5 million invested by Water.org in partner organizations100,000 loan mark500,000 unique individuals served with water and/or sanitation
Map from October 2012 of Pepsi-funded MFI partners & locationsDoes NOT include other partnersTamil Nadu: Gramalaya, SCOPE, ODPKarnataka: MythriOdisha: AdhikarHyderabad: SIDURBihar: MHTWest Bengal: BandhanRajasthan: MHT
Results from postline evaluation of Pepsi I MFI WaterCredit programsFocus on water-related impacts. Others include disease incidence, economic gains, and satisfaction with WC activitiesMethodology – administered by partners and 3rd parties, random and intentional sampling, not consistent across partnersNumbers – 384 sites covered, 7,380 baseline and 7,266 postline surveys across MFI partners
