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,