1. Sanitation Financing Case Study Cambodia
Sanitation Partners Workshop for the Bill & Melinda Gates Foundation
January 22, 2014
Photo IDE

2. Partner Organizations
iDE
Sanitation Marketing Scale-up and Sanitation Financing Integration
PATH
Sanitation Financing Model Creation and Pilot Testing
MFIs
VisionFund in Kandal
Kredit in Prey Veng
IDinsight
Researched Sanitation Finance
Donors
WSP, The Bill & Melinda Gates Foundation, The Stone Family Foundation

3. ($40 excluding installation and superstructure)
Overview
Increase uptake of latrines by developing a loan product that addresses household cash constraints
Optimize the operational model with MFI partners to offer latrine loans to rural households
Track and analyze commercial and economic consequences of MFI partners offering latrine loans
Product
Manufacturers
Location
MFIs
Duration
“The Easy Latrine” – Pour Flush, Offset Pit
Independent Latrine Businesses
(4-8 per province)
Kandal Province
Prey Veng Province
VisionFund in Kandal
Kredit in Prey Veng
Kandal: July ’12 - Mar ’13
Prey Veng: Nov ‘12 – July ‘13
Easy Latrine
($40 excluding installation and superstructure)
11/7/2018

4. Loan Details Kandal Prey Veng Basic Structure
Group Loans (2-10 households)
Group Loans (3-6 households), Individual Loans (1 district)
Repayment Location
Village
Group Loans: Village
Individual Loans: Branch (initially but later changed to village)
Size
$20-$350
$40-$250
Duration
6-12 months
Repayment Method
Declining or Balloon
Group Loans: Balloon
Individual Loans: Declining
Interest Rate (per month)
2.6%-2.8%
Group Loans: 2.85%
Individual Loans: 1.65%-2.85%
Disbursement
Small Loans: To Supplier
Large Loans: To Household
11/7/2018

5. Field Personnel (per province)
MFI Partner
IDE, PATH & Latrine Businesses
Provincial Manager
Responsible for all operations in province
(Part-time with pilot)
Financial Advisor (IDE Staff)
Responsible for training latrine businesses, sales agents, and coordination with MFI
(1 full-time with pilot)
District Managers
Responsible for all operations within their districts
(Part-time with pilot)
Latrine Businesses (Independent)
Responsible for managing their business including constructing and delivering latrines
(4-8 part-time with pilot)
“Dedicated” Loan Officers
Responsible for assessing and approving all customer loans
(Part-time with pilot)
Sales Agents (Independent)
Responsible for selling latrines to customers
(2-3 per latrine business, 8-20 total, part-time with pilot)
“Normal” Loan Officers
Responsible for servicing all customer loans
(Role rotates between many, part-time with pilot)
Construction Engineer (IDE Staff)
Responsible for regional technical construction issues
(1 part-time with pilot)
Village Organizers
Responsible for organizing village meetings and serve as a local representative
(Part-time with pilot if available)
Commercial Advisor (PATH Staff)
Responsible for field oversight and technical advisory
(1 part-time with pilot)
1/22/2014

6. Operational Model 1. Latrine business manufacture latrines 2.
Sales agents perform group meetings for direct sales to villages 3.
MFIs fill-out loan applications immediately after meeting 4.
Latrine business delivers latrines 1-3 days after loans approved 5.
MFI pays latrine business directly for latrines 6.
MFI services loans each month 7.
Latrine business services latrines as needed
Photos PATH
1/22/2014

7. From PwC Financial Review
Key Results
From PwC Financial Review
Kandal: 941 loans
Prey Veng: 1,062 loans
Kandal: 65% avg. closing rate
Prey Veng: 45% avg. closing rate
The loan product offered an attractive customer acquisition strategy for each MFI:
72% of VisionFund loans were to new customers
64% of Kredit loans were to new customers
100% repayment rate of all sanitation loans at endline
Loan product was profitable for both MFI partners:
VisionFund cost recovery = 113%
Kredit cost recovery = 116%
Offering latrine loans qualifies MFI partners for below market rate loans from Kiva
Kiva loans MFI funds at 0% vs. average borrowing cost of approximately 9%
11/7/2018

8. From PwC Financial Review
Key Results - Equity
From PwC Financial Review
Kandal:
53% of households below Cambodian National Poverty Line
21% below USAID Extreme Poverty Line
This is three times the representation in comparison to VisionFund’s full portfolio
Prey Veng:
11% of households ID Poor
21% were ID Poor 2
Prey Veng as a province has 12% ID Poor 1 and 15% ID Poor 2 according to MoP
1/22/2014

9. Financing Causes a FOUR FOLD Increase in Sales at Market Price
1/22/2014

10. Financing Dramatically Increases Sales at Most Prices
1/22/2014

11. Financing decreases sales and marketing cost-per-latrine sold by as much as 70%.
1/22/2014 11

12. Q & A
11/7/2018

13. SanFin: Key Pilot Results
11/7/2018