s5b revolving fund for sanitation in sri lanka by piyasena wellakkage

8/6/2019 S5B Revolving Fund for Sanitation in Sri Lanka by Piyasena Wellakkage

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Rural Water Supply and Sanitation Division (RWSSD)Community Water Supply & Sanitation Project (CWSSP)

Ministry of Water Supply & Drainage,Sri Lanka

W. PiyasenaDirector General – RWSS DivisionNational Project Director - CWSSP

Policy and Financial

Innovations



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SANITATION REVOLVING

LOAN FUND

(SRLF)

MECHANISM

A Novel Financial Innovation



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• Return not proportionate toinvestment, mainly due to lack of

community mobilization

Why SRLF ? …

This situation forced us to look for

New innovations.

Adversely impacted onthe poor



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SRLF

SRLF - a known mechanism in the region Implementation became a challenge due to:

An environment of subsidies and grants for toilet

construction Beneficiaries required to contribute the major

share of cost

Sri Lanka succeeded in implementing SRLFnotwithstanding above constraints

Sri Lankan experience stands out in the process

and the strategy adopted



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SRLF – Process

IntensiveSocial Mobilizationprocess to

motivate communities

Preparation of Sanitation Proposal byCommunity Based Organization (CBO)

Establishment of SRLF by CBOs, collectingnominal fee (Rs. 50/=) as an expression of

interest from target HHs



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Project Provides Rs. 5,000 per HH covering50% of the total requirement as seed capitalto CBOs to commence SRLF

CBOs in turn provide loans to HHs. The loanamount, interest and repayment period

(generally 10 –12 instalments) decided by

CBO

CBO revolves the fund until 100 % toilet

requirement is achieved

Process …



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First round of implementation targets families

with capacity to repay

Subsequently, loans are provided to the next

layer of families.

In the last round, CBO providesGRANTSto

the poorest of the poor

Once the latrine construction is completed,

CBO transforms the savings to a credit fund for

productive activities

SRLF – Strategies



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• Innovativecommunication

techniques for Hygiene

promotion

Strategies …



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• Delegation of responsibilities to usercommunities to construct, own and

manage the facilities

Strategies …



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•Making women, the focal

point

Strategies …



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SRLF – Achievements

(2003 – 2010)• Total No .of Toilets Constructed - 164,200

• Toilets Constructed thru SRLF - 68,984

• Toilets Constructed thru

Demonstration effect - 9,884

• Recovery Rate of SRLF - 88%• Project Contribution (Rs. Mn.) - 380.53

(32%)

• -



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Based on SRLF experience, a draft

National Policy on Rural Sanitation has

Achievements …• Clean Environment

• Reduction of: deceases

medical costs poverty

• Social recognition

• Self dignity



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Lessons Learned

SRLF Mechanism can reduce the cost, relieve theburden on the poor and the Government and other

stakeholders

SRLF can be implemented even without externalfinancial assistance provided social mobilization is

carried out effectively and field staff is trained well

Given the opportunity backed with knowledge &basic resources, Community capable of undertaking

responsibilities of rural / community development



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Remarks

Attitudes, knowledge gaps,cultural and behavioural patterns

etc., closely linked with theproblems of sanitationWater Supply and Hygiene

Education – prerequisites ofSanitation



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THANK YOU

s5b revolving fund for sanitation in sri lanka by piyasena wellakkage

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