Economic Growth Bolivia Project #7252

Micro-credit for families in Cochabamba

by SODIS Foundation

Project Report | May 12, 2011
May update

By Matthias Saladin | Project coordinator

Dear Supporters,

This is a short update on our project to provide micro-credit for 100 suburban families in Cochabamba-Bolivia. As we have reported previously, the learning phase of this project provided us with a solid model for providing micro-credits to families in sub-urban neighbourhoods. The special aspect of this model is that three different organizations cooperate in order to provide an optimal service to these families:

A micro-finance institution is taking care of the financial aspects
A construction company carries out the hardware improvements
The SODIS Foundation provides technical advices and post-construction training

The credits all are destined for improving water and sanitation services: families can install a rainwater collection tank, connect to the water distribution network (where there is one), purchase water saving devices or construct a toilet, among other options. Thanks to the three institutions working together, families are sure the funds are used effectively and according to their specific needs.

Moreover, thanks to your donation, we can offer a lower-than market interest rate to these families. An annual interest rate of 9.75 is very attractive for Bolivia, where especially low-income families often only have access to profiteers charging as much as 30-40% annual interest rates.

As you may expect, which such an attractive model, the project is generating a lot of interest. In fact, this month we received a visit from KIVA, a world leading organization in the area of micro-credits. They found the model highly interesting and we are currently discussing options with them on how to scale it up. We will keep you informed on these exciting developments.

We also would like to point out to the “recurring donation campaign” on the Global Giving website. With this new feature, you can now donate over a certain period of time (e.g., $10 per month). Such donations help us to improve project planning and we would like to encourage you to make use of this function.

Thank you again for your support.

For the project team,

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Mar 8, 2011
March Update Micro-Credit Project

By Matthias Saladin | Project coordinator

Rain water is stored in open barrels for washing

Dear supporters,

We are happy to send you a short up-date on our micro-credit project in Bolivia. In 2010, the project was in its pilot phase and we tested different strategies and partner organisations. This process was slow but well worth the effort: After one year of trying and learning, we now have a model which is working well and partners we can fully trust in – thus, we are ready to scale up our work.

Jointly with a local micro-finance institution and a construction micro-enterprise, the SODIS Foundation is now offering an attractive package to its clients in the peri-urban area of Cochabamba:

Small credits to improve water and sanitary conditions at household level (water tanks, ecological toilets, water-saving devices, etc.)
Attractive interest rates
Services of a certified and experienced local construction company
Independent advisory and supervision service
Training and know-how on water treatment, water saving, hygiene, etc.

The combination of these products and services receives a lot of interest on behalf of the families living in poor neighbourhood of Cochabamba. After some information events in several community centers, dozens of families wanted to receive more information on how to access this credit and the benefits that come with it. Thus, our partners from the micro-finance institution are busy screening potential clients and processing their credit information, while construction is already on-going with several families. The process of credit approval is shown in the flow chart (see below).

You may have noticed that that quality of our pictures improved recently. This has to do with the fact that we had visitors to our project: the photographer Matteo Bertolino (www.matteobertolino.com) spent several days with a team of the SODIS Foundation in the project area, and a group of young local professionals produced a short video on the project (http://www.youtube.com/watch?v=8rqXuLw1UWA, in Spanish). Thanks to Matteo, Gaby and Fernando for this support!

In the next phase of the project, we will streamline the process of presenting technology options to the clients and improve the information on these systems so that families can easily compare them and chose the one which best fits their needs. We will keep you updated about progress on our side – please do not hesitate to write comments or send us your questions.

By the way: On March 16, all donations you make will be complemented by another 30% by matching funds from the Global Giving Foundation. Take advantage of this special offer and support our project with a donation early on that day (matching funds are limited and will be allocated to the first $75,000 received that day on www.globalgiving.org).

Thanks again for your support,

For the project team,

People want to obtain credit to improve housing

Explaining different options to improve housing

Housing conditions are precarious

Project staff providing technical support

Flow chart of credit approval process

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