2CODI in brief Founded in 2000 A public organization: having a government institution status with flexibility in organization managementMain objective: strengthening poor community organizations
3Current Activities Citywide slum upgrading ( “Baan Mankong”) Poverty Alleviation (Supporting communities in savings, credits and loans and community development plan, etc.)Community WelfareAssisting in setting up of Community Organization Councils throughout the countryPromoting natural resource management and sustainable agricultureSolving land and housing disputes in rural areas
4CODI strategiesTo play supporting role in community development processPeople, not CODI, are the owners and key actors of the processTo coordinate with govt. agencies, NGOs, other civic groupsTo promote community-based savingsTo use finance as a tool for development
5CODI Network Community Development Committee Academics Supported AgenciesNGOsLocalAuthoritiesOthersWELFARELAND - HOUSINGSAVINGS - CREDITCOMMUNITYENTERPRISEENVIRONMENTOTHERS
6CODI provides financial support by lending its capital funds to community organizations. At present, CODI credit facilities comprise four types of loans as follows;- Loans for housing and development- Loans for community enterprises/income generation- Loans for holistic development- Short-term revolving funds
8Baan Mankong Housing Program Citywide slum upgrading a breakthrough in solving slums on a citywide scaleComprehensive approach in dealing with problems of land tenure, infrastructure, environment, construction and financingCombination of self support, government subsidy and private cooperationLead to amendments in rules and laws which are obstacles to housing solutions for the poor
9BMK demonstrates strong PPP partnership P- Poor people/communities as key actors in identifying problems, developing plans to resolve problems and implementing those plans themselvesP- Public; government, CODI, local authorities, etc. Government as subsidy provider: CODI as facilitator, provider of long-term housing loanP- Private sector; NGOs, professionals, educational organizations etc. provide technical support
10solutions suitable for all communities City-wide upgrading involving many possible city development actors and find various secured housing solutions for all communities in the cityCity-widesurvey /joint planning,search forsolutionstogetherFind varioussolutions suitable for all communitiesin cityCommunityMunicipalityOtherdev.agenciesOn-siteUpgradingLand-sharing&reconstructionReblocking &readjustmentResettlements่Row-houseFlatDetach houseRow-housingMixed approach
11Baan Mankong Procrss City-Wide Planning Organize meetings of stakeholdersEstablish joint committee to oversee implementationSurvey all communities to identify problems and create holistic planDevelop housing, land tenure and policy plan for whole city
12Set up community working team Form savings groupsMobilize local resources, strengthen local groups, and build collective management skillsSet up community working teamCollect information about land, housing, physical infrastructure, income, employment, problems, and existing development initiatives
13Conceptualize housing and development goals regarding land tenure, upgrading scheme, involvement of local authorities, NGOs, etc.Formulate financing planWork with architecture and engineer on developing housing designs and infrastructureSubmit detailed plan to BMK committee
14all communities in districts and city Community Surveyall communities in districts and cityCommunity survey of all householdsIn the community and all communities in the city carried out by community peopleการ
16Loan process Loan approval Loan disbursement Screened by local and regional committees before being sent to CODIApproved by BMK sub-committee comprising reps from communities, CODI, NHA,GSB, GHBIf loan amount exceeds THB50 mln.(~USD1.7), approved by CODI board of directorsLoan disbursementLoans are disbursed in tranches based on progress of project
17Progress of Baan Mankong (up to March 2011) Number of project approval 882Number of citiesNumber of communities 1,552Number of families 91,822Govt. subsidy (THB mln. ) 4,706
20Providing Flexible Financial Support for City-wide Upgrading by CommunitiesUpgrading of infrastructure and socialfacilitiesGrant2) Local management cost3) Support for exchange visits, capacitybuilding, seminars, coordinatorMembersLoansFrom CODIRevolving FundInterest 4 %CommunitiesMembersMembersGovernmentSubsidyBanks
21Source of Financing Three components of BMK financing: Local communities’ own savings (10% of project cost)Government subsidy-THB80,000(~USD2,667) per familyHousing loan from CODI
22Government subsidySubsidy is given to community not to individual familyAllocation of THB80,000 (~USD2,667)Infrastructure development 55%Financial support 30%Project management (incl. 15%meetings, training, exchange visits, etc.)
23CODI loanA collective loan to community organization, not to individual householdCollective land tenureLoan maturity is 15 years and is payable in 180 equal monthly installmentsInterest rate is fixed at 4% p.a.Maximum loan amount per household is THB 300,000 (~USD10,000)CODI finances up to 90% of the project cost.
24Loan Security: 1) Land and buildings are mortgaged with CODI 2) Guarantee agreement signed by chairman, committee and all members of the community organization.
25Re-lending to membersA loan from CODI is on-lent to individual household with a margin of 2-3% added to e interest cost.The margin is set aside for the purpose of loan administration, community welfare and serves as a cushion for loan repayment in case any member fails to meet his or her obligation in any particular month.
26Community organization Loan management by community subgroupCommunity organizationSubgroup managementSubgroup daily savingsLoan collectionGroup guaranteeHelp members who cannot payInterest 4%CODICommunity Cooperativeson lends to membersat 6-7 %. Margin for communitydevelopment,management and welfareLoan management by community
28Funding sources Current funding sources for long-term housing finance CODI initial capital fund approx. THB 2,800 mln.Government budget (2009) THB 3,000 mln.CODI-GHB Refinancing scheme THB mln.
29CODI-GHB Refinancing scheme Total amount: THB 500 mln.GHB agrees to refinance BMK loans from CODI at the same interest rate and same terms and conditionsCODI and GHB agrees on mechanism to compensate GHB for interest rate differentials
30Project assessment Key success factors Barriers Strong community leadershipFlexible, affordable financing for the poorPeople process which suits poor community livelihoodBarriersPublic land-use policiesCertain rules and regulationsCoordination among relevant agencies
31Challenges Future funding for the program Scarcity of affordable land Linkage between formal and informal financial markets