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Annual Report 2013

Message From The Chair

Integrated Development Foundation (IDF) completed two decades of its operation of its various activities in 19 districts of Bangladesh. Its program activities cover a wide range of areas with particular focus and efforts on microfinance, micro insurance, renewable energy, agriculture; health, sanitation & water; eye care; gender promotion; medicated mosquito net, zerofly net and so on. With these programs IDF, till the end of the reporting period had been serving more than 1,08,000 members within the project areas by providing them necessary services. IDF has taken a giant step during the end of the year 2013 by introducing Mobile Banking system for the benefit of the grassroots level borrowers. There is a plan to extend the services to all borrowers on a gradual basis.

The year 2013 demonstrated a higher progress and improvements of work in all these programs undertaken by IDF. This was possible due to definitive policies adopted and practiced, arduous work done by all the staff members of the organization, supports provided by development partners, and well wishers. This year, there had been four regular meetings of the Board of Governors; and the Annual General Meeting. All these meetings reviewed the periodical progress of the organization, approved the plans & budgets and decided policy issues and provided guidance. I think all members of the Board of Governors for their attendance and participation in Board meetings; as well as the members of the General Body for their cooperation, support and active participation in the meetings in contributing to frame policy decision and guidance.
   
The reader will find the details of activities and the progress made the year 2013 along with the growth trends. I sincerely thank all those who had put their hard labour in achieving the growth targets. I congratulate the personnel who had put their labor in compiling and preparing the report. I do believe that the readers will get an insight of IDF activities through this report. However, any suggestions from the readers will enable us enrich the quality of the report in future.

A. K. Fazlul Bari
Chairperson, IDF



NOTE FROM THE EXECUTIVE DIRECTOR

IDF completed 20 years in 2013. After two decades, when I look back, it reminds me, in what difficult situations, IDF started its journey from Shoalok mouza of Bandarban Hill District with only microcredit which still is an important tool of poverty alleviation. IDF has been able to overcome difficulties it faced and developed towards improving the socio-economic conditions of the poor people. Description of these products including all related stakeholders which together known as “Financial Inclusions” are presented in this report. IDF is now a financially sustainable development institution successfully implementing “Financial Inclusions” in Bangladesh. This has been possible, non-government and international partners.

IDF recorded higher and sustainable growth in 2013. The increase in membership, loan portfolio and savings are respectively 12,202 (13% increase), Tk. 116.56m (15% increase) and Tk. 32.67m (8% increase). IDF completed automation of FIS and MIS of microfinance program both at branch and head office levels in 2013. Introduction of Mobile Banking is an important event of IDF in 2013. IDF also planned to establish a residential Agriculture Training Centre with laboratory facilities (Demonstration Farms) for the poor farmers in Chittagong Hill Tracts with the assistance of Japan Government and PKSF which is expected to be completed by 2015.

We are very grateful to Grameen Trust, PKSF and IDCOL for their continuous support in 2013. We are also grateful to HKI, BASIC Bank, One Bank, Eastern Bank, Bangladesh Krishi Bank, Bank Asia, Mercantile Bank, EXIM Bank, NGO Affairs Bureau, CHT Regional Council, CHT District Councils, Deputy Commissioners, Upazila Nirbahi Officers and Law Enforcing Bodies for their supports in 2013.

The Governing Body Members played very important role in formulation and implementation of policies relating to various programs. We are very grateful to Governing and General Body members for their active support and guidance in 2013.

We hope our friends, partners, well wishers will continue to extend their supports in 2014 and ahead.


Zahirul Alam
Executive Director, IDF



Microcredit Summit Champaign's Goal

• 175 million of the world’s poorest families, especially the women of those families, are receiving credit for    self-employment and other financial and business services by the end of 2015; and

• 100 million of the world’s poorest families move from below US$ 1.00 a day adjusted for purchasing power    parity (PPP) to above US$ 1.00 a day adjusted for PPP, by the end of 2015.

INTRODUCTION


Integrated Development Foundation (IDF) is a non-profit, non-political and a non-government organization established in December 1992 by Mr. Zahirul alam, a former ILO staff member and founder member secretary of the Rural Economics Program of Economics Department, at the University of Chittagong from where Grameen Bank Microfinance Model was developed by Nobel Laureate Prof. Muhammad Yunus in the 1970s.

IDF started its journey with the experiment of Grameen model in Shoalak Mouza of Bandarban Hill District in 1993 with a seed capital of US$7,500.00(loan) from Grameen Trust.

At the success of this pilot project, Swedish International Development Co-operation Agency (Sida) came forward to support IDF for the expansion of Grameen model in the whole of Chittagong Hill Tracts in the framework of a long term (8 years) sustainable plan. The success of IDF subsequently attracted other donors and partners including Government PKSF, ILO, Helen Keller International (HKI), UNICEF, CARE Bangladesh, AusAID, IDCOL, IDCOL, Grameen Foundation USA, Deutsche Bank, Cowbank (Australia), Basic Bank Ltd., Sonali Bank Ltd., Bangladesh Krishi Bank, BRAC Bank Ltd., Bank Asia Ltd., Prime Bank Ltd., One Bank Ltd., Mercantile Bank Ltd., Eastern Bank Ltd. and others.

VISION

Create poverty free Bangladesh.

MISSION
To combat poverty in the impassable hilly regions and other un-served areas of Bangladesh through organizing the poor and providing them with capital, inputs and services for their socio-economic upliftment.

OBJECTIVE

The main objective of IDF is to assist the poor, the landless, the destitute women and children, small farmers and disabled persons in order to enable them to gain access of resources and undertake various income generating and other activities for poverty alleviation and to enhance their quality of life in terms of health, nutrition, sanitation, education, safe water, housing, power and the environment through building effective institutions of their own, which they can understand and operate and can find socio-economic strength in it through mutual support

GOVERNANCE

The supreme authority of IDF is General Body which is composed of 19 members from different professions such as university teachers, Government officials and retired UN officials etc. Apart from General Body, IDF has Governing Body consisting of 9 elected members from the General Body of the Foundation. The General Body is the highest policy and decision making body if IDF. The Governing Body is responsible for the formulation of plan and budget for the programs and projects to be implemented by the organization. The Governing Body evaluates and monitors the implementation of policies, programmes and projects through various monitoring tools and visits to the project areas. A Chairman elected by the General Body heads both General and Governing Body. The Executive Director works as Member-Secretary of both the Bodies.

The Executive Director is the Chief Executive of the Foundation and responsible for the smooth implementation of all activities of the Foundation as per guidance of the Governing Body. He implements the activities through the appointed professionals and support staff of the organization.


THE OPERATIONAL AREA

The present operational area if IDF is Chittagong Hill Tracts, Chittagong, Cox’s Bazar, Dhaka, Noakhali, Chandpur, Comilla, Feni, Rajshahi, Chapai Nawabganj, Naogaon, Natore, Bogra, Hobigonj, Brahmmanbaria, Gazipur and Norshingdi.

Chittagong Hill tracts

The Chittagong Hill Tracts (CHT) is a beautiful and strange piece of land with rocks, hills and lakes. These are very difficult and remote areas, inhabited by about thirteen very poor tribes with different languages and cultures. The area is wedged between the Bay of Bengal and the hills of Mizoram of India.

The CHT is a 13,295sq. km. region of hills consisting of Bandarban, Rangamati and Khagrachori hill districts located in the south-eastern part of Bangladesh. As per Population Census 2001, the total population of CHT is 1.325 million; of which 52 percent are tribal people. Historically Chittagong Hill tracts enjoyed the status of a self governing territory and administered by Hill King which continued until the British East India Company annexed Bengal in 1787. The Chakma Raja (King) then signed an agreement with the British after a long armed conflict, under which Chakma territory became a British tributary of the payment of 20 tons of cotton. This was later extended to other parts of CHT. In 1860 the British formally annexed CHT and upgraded its status to a full-fledged district.

The people of Chittagong Hill Tracts are very poor and they live mainly on Jhum Cultivation and bamboo and wood collection from forest, which are major causes of deforestation and soil erosion in the area. Most people of this area live in absolute poverty. Despite of all the efforts of the government, the people of the Chittagong Hill Tracts still lack access to various services such as capital, agricultural inputs and extension services, medical facilities, sanitation and safe drinking water. This is mainly because of i) scattered population, ii) poor communication system, iii) remoteness of the area and iv) political problem. The language barrier further aggravates the situation.

The sentiment of the people of CHT was hurt when the construction of 666 meters ling and 43 meters high hydroelectric dam at Kaptai started in 1957. The immediate impact of dam was the submergence of a vast area of natural forest and 54,000 acres land (40% of total cultivable land in CHT) of the area. It also made about 1,800 families homeless. The displaced families were not properly rehabilitated. As a result, their settlement and construction of new houses in the inaccessible regions led to rampant deforestation. It is also said that some families crossed the border and migrated.

Adverse economic impacts aerated by Kaptai Dam on displaced people gradually resulted in armed insurgency in CHT. The counter-insurgency measures by the then Pakistan Government through military action worsened the situation. The increased military presence in CHT and search for insurgents created unsettled situation among CHT inhabitants. It was prevailing a very tense situation when IDF started its micro-finance program in CHT in 1993. The situation gets ease after the signing of Peace Agreement between the Government and Shanti Bahini in December 1997.


THE ORGANIZATIONAL STRUCTURE

The General Body and Governing body are the supreme authority of IDF. The programs and projects are implemented mainly by Branch Offices supported by Head office, Coordination office and Area offices. The Branch office works directly with the poor people in their respective areas; organize them with a view to building a receiving mechanism among the poor and implementing various socio-economic programs for them. The branches reach and serve the target populations centre and groups.The structure of IDF.
 
FROM MICROFINANCE TO FINANCIAL INCLUSIONS:

The financial inclusions of IDF has been developed based on the needs of the members during the last 20 years. It is a continuous process. It will be further developed and improved in future. The inclusions of various products developed and involvement of various stakeholders for serving the un-served population is described as financial inclusions. Financial inclusions is necessary for a poverty focused institution to bring poor people out of poverty trap.

IDF started its journey with microfinance programme in Chittagong Hill Tracts and gradually integrated other products such as health, sanitation & water, eye care, health insurance, life insurance, and risk insurance for projects, education, scholarship, agriculture, livestock, financial literacy, skill development, improve cook, solar home system, mini-grid, mobile banking and disaster management based on the needs of the clients during the last 20 years. IDF implements the above activities in partnership with various government, non- government institutions, banks and donors. The description of this activities has been provided in this report.


THE PROGRAMS


2013 is the 20th year of IDF operations in poverty alleviation and social economic development in Bangladesh. This annual report presents the overall progress of IDF activities in 2013. It also presents year-wise summary report up to December 2013. The major programs implemented in 2013 are:

Microfinance
     * Beggar Program
     * Poor and Ultra Poor
     * Micro-enterprise
     * Savings and Credit


* Renewable Energy
* Health, Sanitation and Water
* Emergency Fund (Micro Insurance)
* Eye care
* Child Labour & Non Formal Education
* Agriculture & Livestock
* Integrated Farm
* Improved Cooks Stove
* Financial Education
* Skill Development

* Housing
* Scholarship Program
* Automation
* Enrich Project
* Food Security Project
* Mobile Banking
* Online Attendance
* Disaster Management
* Environment
* Gender Promotion
* Medicated Mosquito Net
* Zerofly Livestck Net


MICRO FINANCE

IDF has successfully completed 20 years of operation of micro-finance program in 2013. In the maintime many of IDF clients who started from ultra poor gradually graduated micro-entrepreneurs and are contributing very important role in economic growth of the country. These are great achievement of the organization. IDF’s clients broadly can now be classified into four categories such as:


• Beggar
• Ultra Poor
• Poor
• Micro-enterprise

The different categories of members by number, loan outstanding and savings as of December 2013 are shown in the Table-1 below:
Table 1: Members of Microfinance Program by category, loan portfolio and savings.
Categories of Clients
Member
Loan Outstanding (m Tk.)
Savings (m. Tk.)
In 2013
Cum.
in 2013
Cum.
in 2013
Cum.
Beggars
-10
459
0.05
0.34
-0.02
0.07
Poor & Ultra Poor
5,763
95,857
77.92
777.29
15.90
376.41
Macro-enterprise
6,449
12,198
39.59
138.24
16.79
48.85
Total
12,202
108,514
116.56
915.87
32.67
425.33
BEGGAR PROGRAM

In order to support the most vulnerable people in the society, IDF launched a separate program called beggar program in May 2006 with the financial and technical assistance of Grameen Trust. The objective and status of the program are described below.

Objectives:

• Build confidence and capacity of beggars;
• Enable them to gain access to resources and provide credit to undertake various income generating    activities;
• Turn the beggar into productive manpower;
• improve their overall socio-economic status.

Table 2: Status of Beggar Program as on 31 December 2013
Particulars
Up to 2012
In 2013
Up to 2013
No. of Branch
35
-7
28
No. of Member
469
-10
459
Disbursed (m)
2.05
0.07
2.12
Outstanding (m)
0.29
0.05
0.34
Repayment Rate
99.17%
99.15%
99.16%
Savings (m)
0.09
-0.02
0.07

POOR AND ULTRA POOR PROGRAM

Poor and Ultra Poor Programs is also one of the important program of IDF. IDF started this program in Bandarban Hill District with the assistance of Grameen Trust in 1993 which has now expanded to different part of the country. The objectives and present status of the program are presented below.

Objectives:

• Build confidence and capacity of the port and ultra poor;
• Organize and build a receiving mechanism of the poor and ultra poor through which they can receive their    necessary services, inputs and financial assistance for the improvement of their socio-economic status.
• To alleviate poverty.

Table 3: Status of poor and ultra poor as on 31 December 2013
Particulars
Up to 2012
In 2013
Up to 2013
No. of Branch
75
-
75
No. of Member
90,094
5,763
95,857
Loan Disbursed (m)
8,281.95
,1700.46
9,982.41
Loan Outstanding (m)
699.37
77.92
777.29
Repayment Rate (%)
99.69
99.70
99.72
Savings (m)
360.51
15.90
376.41
Loan ceiling for

Ultra poor : up to Tk. 8000
Poor : Tk 8,001-30,000

Ultra Poor with PKSF Assistance

The Program covered 4,240 ultra poor families of 21 branches with seed capital from PKSF since November 2005. The particulars of the operation of PKSF funded ultra poor as of 31 December 2013 are presented in the Table below:

Table 4: Status of Ultra Poor with PKSF Assistance

Particulars
In 2013
Up to 2013
No. of Branch
13
4,253
Loan disbursed (m)
0.01
24.08
Outstanding (m)
0.266
-
Rate of repayment
1007
100%
Amount of savings (m)
3
3.75


MICRO-ENTERPRISE


IDF introduced this product for the graduate members who attained their capacity to utilize and manage bigger income-generating activity (micro-enterprise) in 2002-03. The graduate members can received upto depending on the projects and capacity. As at December 2013, 6449 members received 775.5 million under this program. The criteria of selection of a member for this product are as follows:

Criteria of micro-entrepreneur

• Graduate members who developed capacity to manage bigger loans.
• Received Enterprise Development and Business Management (EDBM) Training;
• 90% attendance in the weekly/fortnightly meetings;
• 100% proper utilization of previous loans;
• Good track record of business;
• At least 10% of the proposed loan are accumulated in her Savings account;
• Willing and able to participate at least 10% of the investment in the Enterprise;
• Cooperation and involvement of family members in the Enterprise;
• Regular deposit in savings account;
• Willingness to attend monthly cluster (20 members) meeting.

Loan terms

• Working Capital : 01 year
• Fixed Capital : 02 years

Loan repayment conditions

• 1 month grace period
• Weekly installment
• Fortnightly installment or
• Monthly installment

Risk Insurance

• Premium: 0.95% of the disbursed amount
• Risk coverage: 50% of the disbursed loan in case of the damage of activity due to accidents or any    natural disaster.

Table 5: Status of Micro-enterprise as on 31 December 2013

Particulars
Up to 2011
In 2012
Up to 2012
No. of Branch
57
2
59
No. of Member
5,749
6,449
12,198
Loan Disbursed (m)
674.96
100.54
775.5
Loan Outstanding (m)
99.65
38.59
138.24
Rate of Payment
99.37
99.41
99.39
Amount of Savings (m)
32.06
16.79
48.85


Savings and Credit by size, number and amount


i) Savings

Savings is one of the important products of IDF. IDF offers four kinds of savings to its members. During any crisis, the members can use their savings without any restriction. Many borrowers do not withdraw their savings to use it as capital in future.

At the end December, 2013 total no. of retained savers and amount of savings are respectively Tk. 1,08,514 and Tk. 425.33. The No. of savers and their savings are shown by savings size in the table below:

Table 6: Distribution of Savers by size and amount as on 31 December 2013

Savings size
Number
Amount (m)
Upto 2,000
43,177
28.19
2001 - 5,000
33,554
70.46
5001 - 10,000
16,733
92.03
1001 - 20,000
8,470
93.17
Above 20,000
6,580
141.48
TOTAL
108,514 425.33
In million Taka

Credit:

The total No. retained borrowers and amount of loan disbursed on 31 December, 2013 are respectively 83,826 and Tk. 1,674.17 (m). The no. of loans and size are shown below.

Table 7: Distribution of Loan disbursed in 2013 by size, number and amount.

Loan size
Number
Amount
4,001-10,000
31,075
267.31
10,001-30,000
48,367
928.28
30,001-50,000
2,347
81.12
50,001-1,00,000
1,090
102.09
1,00,000-3,00,000
863
261.16
Above 3,00,000
84 32.21
TOTAL
83,826 1,674.17
Note: cum.=Cumulative, * Figure in million Taka.

Growth of Members and Savings

Table below shows the growth trend of members and savings during 2009-13.
It also shows trend of geographical expansion of the organization.

Table 8: Growth of members and savings during 2009-13

Sl. No.
Component
Up to 2009
2010
2011
2012
2013
01.
Member (by year)
5,789
3,412 4,820 9,360 12,202
02.
Member (cum.)
78,690
82,132 86,952 96,312 108,514
03.
Group (cum.)
18,921
19,894 20,799 22,072 24,808
04.
Centre (cum.)
3,572
3,716 3,993 4,284 5,140
05.
Branch (cum.)
56
58 62 75 75
06.
Union (cum.)
307
307 317 325 408
07.
Upazila (cum.)
80
82 82 85 89
08.
District (cum.)
7
7 7 10 13
09.
Savings (by year)*
17.06
33.25 42.5 37.35 32.67
10.
Savings (cum)*
229.56
262.81 305.32 392.66 425.33
11.
Average Savings (cum.)
2917
3199 3511 4076 3920

                      Growth of members and borrowers by year                  Growth of savings by year
Table 9: Growth and status of loan operations during 2009-13.
Sl. No.
Component
2009
2010
2011
2012
2013
01.
No. of Loans (by year)
78,690 70,038 73,786 77,560 83,826
02.
No. of Loans (cum.)
571,916 641,954 715,740 793,300 877,126
03.
Borrower (cum.)
69,130 68,297 72,170 72,806 82,515
04.
Loan disbursed (by year)*
853.13 950.8 1,279.45 1,476.9 16,714.17
05.
Loan disbursed (cum.)*
4,574.8 5,525.6 6,805.05 8,281.95 9,956.12
06.
Loan due (by year)*
747.47 931.07 1,172.08 1,350.6 1,636.74
07.
Loan due (cum.)*
4,086.36 5,017.43 6,189.51 7,540.11 9,076.85
08.
Loan realized (by year)*
745.01 915.88 1,163.76 1,334.13 1,556.21
09.
Loan realized (cum)*
4,052.04 4,967.92 6,148.78 7,482.91 9,039.12
10.
Outstanding increase (by year)*
38.06 104.94 101.78 139.86 116.56
11.
Loan outstanding (cum.)*
452.73 557.68 659.45 799.31 915.87
12.
Loan overdue*
34.53 43.84 40.73 50.7 45.86
13.
Portfolio at risk > 30 days*
3.36 3.06 3.97 3.02 4.72
14.
Average Loan size (4/3)
12,341 13,921 17,728 20,285 20,289
15.
Average outstanding (cum.)
6,549 8,165 9,137 10,978 11,099
16.
Rate of repayment (by year)
99.67% 98.36% 99.29% 99.54% 99.58%
17.
Rate of repayment (cum.)
99.16%
99.01%
99.34%
99.39%
99.58%

Note: cum. = Cumulative, * = Figure in million Taka.
                          Growth of loan disbursement by year                Growth of loan outstanding by year
Table below shows the trend of financial growth of the organization for 2009-13.
Table 10: Financial Growth for 2009-13.

Sl. No.
Particulars
2009
2010
2011
2012
2013
A.
CAPITAL FUND
01.
Capital Fund / Equity
132.52
151.03
171.8
206.55
225.24
B.
SERVICE CHARGE
02.
Rate of Service Charge
(Declining Method)
General Loan
25%
25%
25%
25%
25%
Ultra Poor
20%
20%
20%
20%
20%
Housing Loan
8%
8%
8%
8%
8%
Project Dignity
0%
0%
0%
0%
0%
03.
Inflation Rate
6%
6%
6%
7.50%
7%
C.
INCOME
04.
Service charge income from clients
93.33
112.96
145.71
193.28
210.37
05.
Other income
6.35
42.27
54.61
14.23
14.33
06.
Total Income
99.68
15.52
200.33
207.51
224.70
D.
NON-FINANCIAL EXPENSES
07.
General Operating Expenses (Salaries, rents, utilities, cost of fund etc.
74.91
130.54
171.63
158.79
191.85
08.
Depreciation on fixed assets
1.82
1.59
1.86
2.11
2.42
09.
Loan loss provision expenses
3.56
7.38
6.08
11.85
13.31
10.
Total Non-Financial Expenses
84.297
139.52
179.75
172.75
207.58
E.
ADJUSTED FINANCIAL EXPENSES
11.
Adjusted Financial Expenses (Line-1 multiplied by line-3)
7.95
9.06
10.31
15.49
15.77
12.
Total Expenses (Line-10 plus line-11)
92.24
148.58
189.87
188.25
223.35
13.
Operational Self Sufficiency (OSS) (Line-6 divided by line-10)
118.25%
111.26%
111.56%
120.12%
108.25%
14.
Financial Self Sufficiency (FSS)
(Line-6 divided by line-12)
108.00%
104.48%
105.51%
110.23%
100.61%
                        Growth of Capital Fund by Year (m.Tk.)      Growth of Income & Non financial Expenses (m.Tk.)   
Loan by Purpose

IDF clients receives loan for various purposes. Most of them are related to agricultural activities, animal husbandry, poultry, gardening and micro-enterprise businesses.


Table 11: Percentage of Loan by purposes
                                                                                              (Figures in percent)
Sl. No.
Purposes
2009
2010
2011
2012
2013
01.
Farming
25.66
21.12 22.13 23.40 24.12
02.
Cow rearing
5.42
8.50 10.2 12.2 11.60
03.
Goat rearing
3.32
5.71 5.81 7.75 6.72
04.
Fruit Gardening
1.60
16.40 16.1 8.6 7.47
05.
Pig rearing
2.92
2.36 2.3 4.4 1.22
06.
Poultry
4.36
20.02 12.60 11.7 11.88
07.
Home Gardening
0.39
3.10 4.3 4.40 1.31
08.
Local Transport
7.36
2.44 2.1 2.5 2.66
09.
Nursery
0.64
0.97 1.11 1.1 1.51
10.
Handicrafts
.80
3.45 3.1 3.2 2.74
11.
Garments/Tailoring
2.57
0.75 0.75 0.75 2.98
12.
Fisheries
5.71
0.92 1.2 1.2 1.42
13.
Housing
2.1
6.42 3.5 3.2 3.82
14.
Water Sanitation
0.13
2.94 2.4 2.5 0.98
15.
Beef Fattening
5.79
1.51 5.1 4.5 6.70
16.
Small Business
16.12
1.53 1.51 3.4 6.09
17.
Micro Enterprise
15.11
1.87
5.8
5.2 6.18
  Total (%)
100.00
100.00
100.00
100.00
100.00
Renewable Energy (Solar Home System)

Renewable Energy Program is a growing program of IDF. IDF started Solar Home System Program with the assistance of Infrastructure Development Company Limited (IDCOL), a government owned company in 2003. The main purpose of this program was to provide electricity to the rural and remote areas where people do not have access to power grid. IDF provides medium and lone-term credit facility to procure these system. IDF with three other partners established at 100kw mini solar plant in Shandwip, an isolated of Chittagong district with the assistance of IDCOL.

IDF has established a separate management team who are responsible to maintain the quality of the service as well as its operation. It has a separate coordination office from where the coordinator man-ages the whole operation. It has also separate area office, branch office and employees completely for this program. There is a strong monitoring and evaluation mechanism in IDFs solar program. The recovery rate of loan in the solar program is 99.23%.




An efficient servicing facilities system is developed to support the clients. Efficient services to clients are ensured in two ways such as:

Through technicians at the field level.
Customers training on the use of SHS.

The districts covered by solar program are 3 districts of Chittagong Hill Tracts, Chittagong, Cox’s Bazar, Noakhali, Chandpur, Comilla, Feni, Hobigonj and Brahamanbaria.

Source of found:

IDCOL is the main source of found of IDF SHS program. Up to December 2013, IDF received the total amount of grant from IDCOL is Tk. 4,17,12,224 and the cumulative amount of loan is Tk. 43,51,39,977. As of 31st December, 2013 IDF repaid Tk. 5,64,11,596 as principal amount.

The progress of Solar Home System Program is shown in table below.

Table 12: Progress of Solar Home System Program.

Particulars
Up to 2012
In 2013
Up to 2013
System Installed (No.)
21,308
16841
38149
Loan disbursed (m)
440.53
260.53
701.06
Loan repaid (m)
226.91
151.31
378.22
Loan outstanding (m)
213.62
109.22
322.84
Repayment Rate
99.56
99.23
99.23

Health, Sanitation and water

Most Hill tracts people particularly in remote hills are not aware of their health problems or the cause of various diseases. They generally go to local baidda (quacks) for treatment. This is due to lack of access of hilly people to health service and safe water. In order to address this program with the assistance of Sida in Chittagong Hill Tracts in 1995.

IDF launched a survey on the sanitation and water in selected villages of Bandarban Sadar in 1996 with the assistance of UNICEF which shows that about 95% households had no sanitary latrine and almost all rural households did not have access to safe water at that time. The situation has much improved now due serious intervention of IDF and various Government department.

IDF developed this program during the past years. IDF implements this program through medical officers (MBBS), health workers and health agents at centre level. The members in the “Centre” selects health agent/secretary from amongst the members in each centre. One health agent/secretary can look after more than one para (sub village). Health agents are the motivators and contact persons at para levels. Health agents are provided training on causes of common diseases, primary health care, reproductive and child health, safe water and sanitation, HIV/AIDS and eye care. Health agents provide health related counseling to the members and report any illness or sickness of members or their family members to the branch managers who immediately take necessary action for treatment. The health workers work under the supervision of Area Manager or Branch Manager depending on the place of posting.

Recently A pilot scheme is launched to see whether full health support including doctors check up, medicines and transport allowance could be provided to the members and their family members with the premium collected. The members get doctor’s advice, free medicines, and tests for diabetics and pregnancy and transport cost.

Diagram-2 : Structure of Health Program


Objectives

• To make the poor people aware of health problems and the causes of common diseases.
• To ensure access of the poor people to health services, safe water and sanitation.
• To make the people conscious about the safe motherhood and child health.


Present Status

No. of health centre: 1
Health Spot : 4

Clinical Services in 2013:

• General Patient : 5,880
• STD Patient : 30
• Eye Patient : 20



Emergency Fund (Micro Insurance)


Introduction

IDF started this program in 1997. IDF observed that most of the members and their family members suffer from various common diseases and spend lot of money for medical treatment. Most cases they use money from their business or borrow from money lenders which make their economic situation worse. Group members asked to find some solutions/safety nets to address this common problem. We had serious discussions with group members and field staff for about a year.

We therefore came up with the idea of forming an “Emergency Fund” with joint contribution of IDF and group members. The main purpose of the creation of this fund was to support group members and their family members in case of sickness or death. This program was finally launched in October 1997. IDF later also introduced “Risk Insurance” for damages or losses of projects undertaken by the group members with loans. IDF also explored the possibility of getting micro-insurance services to cover these risk from the insurance companies and revealed the insurance companies were very expensive and not affordable by the poor.

Objectives

The main objective of the program is to provide insurance services for the poor members if IDF and develop an appropriate micro-insurance model in order to protect them against risks due to sickness, death and damages or losses in income-generating activities.


The activities of the program are:

(1) Provide education on micro-insurance to all IDF members;
(2) Collect premium and payment of claims;
(3) Monitor progress on monthly basis through monthly reports;
(3) Preparation of reports;
(4) Maintaining a data base.



Methodology

IDF uses its branch network of microfinance to implement its micro-insurance program.IDF reaches its clients through centers, branches. One paramedic/health worker is assigned in one Area to provide health services to members and their spouses and children.

The members can pay the premium in installments. The premium is collected by the loan officers along with loan installments during the center meeting.

Diagram-3 : Institutional Structure


In case of any claim for sickness, death or disaster or activity damage; the client informs respective loan officer who along with branch manager investigate the case. The branch manager is authorized to pay a certain portion of the claim for immediate use in case of sickness and death. The remaining claims for medical treatment or death are settled after the approval of the case by the approving authority. In case of activity damage, the total claims are paid in one installment after the approval of the approving authority.

Components

IDF micro insurance scheme has 4 components.

These are:

i) Health;
ii) Death (Life);
iii) Risk Insurance (Damage/loss of activities) and
iv) Cattle.