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Annual Report 2014

Message From The Chair

Integrated Development Foundation (IDF) completed more than two decades of its operation of the various activities in 19districts of Bangladesh. Its program activities cover a wide range of areas with particular focus and efforts on microfinance, micro-insurance, renewable energy, agriculture and livestock; health, sanitation & water; gender promotion; scholarship program to students, education, rural housing, environment and so on. With these programs IDF, till the end of the reporting period, have been serving more than 110,000 members within the project areas by providing them with necessary services. A training center is under construction in the campus of the ‘integrated farm’ at Matiranga to provide training and practical demonstration to the beneficiaries. All branches of IDF have been currently enjoying the automation facilities. IDF plans to move to wave based systems by the year 2015. Mobile Banking facilities are being extended to provide more supports to the grassroots level borrowers.
 
The year 2014 demonstrated a higher progress and improvements of work in all these programs undertaken by IDF. The year has been characterized by undertaking two special events. One was the celebration of 20 years of the organization. A day-long program was held with discussion meeting, remembrance of memories, prize giving ceremony and cultural functions. A 2-day exhibition was also organized as a part of the program. These were attended by many dignitaries from various organizations, IDF Board members, all categories of IDF staff members and many invitees who expressed their happiness on the achievements of the organization in the past 20 years and expected its continuous success. A Brochure was also published on this occasion. Another event was an exposure visit by IDF General/Governing Body Members to Nepal in December 2014. The objectives of the visit were to learn and share the ideas and experiences of microcredit activities between the two countries. CSD (Centre for Self-help Development), Nepal was the focal point in Nepal to assist the team during their visit.

All these activities were 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 seven meetings of the Board of Governors held; 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 thank 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 decisions and guidance.

The reader will find the details of activities and the progress made during the year 2014 along with the growth trends. I sincerely thank all those who had put their hard labor in achieving the growth targets. I congratulate the relevant 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 to enrich the quality of the report in future.


A. K. Fazlul Bari
Chairperson, IDF



NOTE FROM THE EXECUTIVE DIRECTOR

IDF passed one more year after the completion of 20 years in 2013. 2014 is another land mark for IDF. IDF started building a residential farmers training centre with demonstration farm for each subject in Khagrachari Hill District with the assistance of Japanese Government. Another important initiative taken in 2014 is preservation, development and extension of almost extinct Red Chittagong Cattle with the assistance of PKSF. IDF extended coverage of life insurance of its members from Tk.10,000.00 to all outstanding loans without increasing premium. The Governing Body decided to increase the salary and benefits of IDF employees in 2014 with effect from January 2015. The rehabilitation of 5 beggars in Kaptai Upazila with the assistance of PKSF was praised by all concerns. The other programs of IDF also recorded good progress in 2014. This was possible because of sincere cooperation of Governing Body and all government and non-government partners and hard work of IDF employees.

IDF closed membership of more than 12,000 inactive members in 2014. As a result the net increase in membership in 2014 was only 1,906. The increase in loan portfolio in 2014 was 249.31 million which is 27.22% increase on 2013. This was 14.58% in 2013. The savings of group members increased by 21.29% in 2014 while it was 8.32% on 2013. The operational sustainability has also increased by 117.56% in 2014 compare to 108.25% in 2013. I really appreciate the hard work and dedication of all employees of IDF to their responsibilities.

We are very grateful to Grameen Trust, PKSF and IDCOL for their continuous support in 2014. 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 2014.

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 2014.

We hope our friends, partners, well wishers will continue to extend their supports in 2015 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 the 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 for the poor in Shoalok Mouza of Bandarban Hill District in 1993 with a seed capital of US$7,500.00(soft loan) from Grameen Trust.

At the success of the above 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, 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., EXIM 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 then services (such as health, education, insurance etc.) 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, doctors, engineers, social workers, economists, educationalist, Government officials, retired UN officials etc.IDF has Governing Body consisting of 9 members elected from the General Body of the Foundation. The General Body is the highest policy and decision making body of 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

IDF started its operation from Chittagong Hill Tracts and gradually expanded to other districts with the help of development partners and various government departments. The districts covered as of December 2014 are Chittagong Hill Tracts, Chittagong, Cox’s Bazar, Dhaka, Noakhali, Chandpur, Comilla, Feni, Laxmipur, Rajshahi, Chapai Nawabganj, Naoga, Natore, Bogra, Hobigonj, Brahmanbaria, Gazipur and Norshingdi.

A brief description of Chittagong Hill Tracts from where IDF started its operation is presented below.

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 13,295 sq. km. region of hills consisting of Bandarban, Rangamati and Khagrachari 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 on 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 forests, 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 long 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 forests and 54,000 acres of arable land (40% of total cultivable lands in CHT) of the area. It also made about 1,800 families homeless. The displaced families were given financial compensation but 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 created 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 ease after the signing of Peace Agreement between the Government and Shanti Bahini in December 1997.

THE ORGANIZATIONAL STRUCTURE

The programs and projects are implemented mainly by Branch Offices supported by Head office, Coordination office and Area offices. The Branch offices work 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 through centre and groups. The institutional structure of the organization is shown in Diagram 1.

Diagram 1: The institutional structure of IDF
 
FROM MICROFINANCE TO FINANCIAL INCLUSIONS:

IDF started its operations with microcredit and gradually included all possible financial services and stakeholders. The financial services have been developed based on the needs of the members during the last 21 years. It is a continuous process. Research and development unit of IDF is continuously on the innovations products for the poor people as per their needs. Financial inclusions play very important role in bringing the poor people out of poverty trap.

IDF gradually integrated the products such as heath, sanitation & water, eye care, health insurance, life insurance, and risk insurance for projects, education, scholarships, 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 21 years. IDF implements these activities in partnership with various government, non-government institutions, banks and donors. The descriptions of these activities are presented in this report.


THE PROGRAMS


2014 is the 21st year of IDF efforts in poverty alleviation and social economic development in Bangladesh. This annual report presents the overall contributions of IDF in 2014. It also presents year-wise summary report up to December 2014. The major programs implemented in 2014 are:

Microfinance

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

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

* Housing
* Scholarship Program
* Automation
* Mobile Banking
* Online attendance
* Disaster Management
* Environment
* Gender Promotion
* Zerofly Livestck Net
* Enrich Program
* Food Security Program (M2W2)

MICRO FINANCE

Microfinance is a major activity of DIF. Many of IDF clients who started from beggar and ultra poor gradually graduated to 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-entrepreneur

The different categories of members by number, loan outstanding and savings as of December 2014 are shown in the Table below:

Table1: Members of Microfinance Program by category, loan portfolio and savings
Categories of Clients
Member
Loan Outstanding (m Tk.)
Savings (m. Tk.)
In 2014
Cum.
In 2014
Cum.
In 2014
Cum. 2014
Beggars
-119
340
-0.02
0.32
-0.01
0.06
Poor & Ultra Poor
8,599
104,456
154.21
931.50
77.72
454.13
Macro-enterprise
-6,574
5,624
95.12
233.36
12.88
61.73
Total
1,906
110,420
249.31
1165.18
90.59
515.92
Beggar Program

In order to support the most vulnerable people especially the beggars in the society, IDF launched a separate program called beggar program in May 2006 with the financial and technical assistance of Grameen Trust. The objectives 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.

Basic features:

• All loans are interest free.
• Beggar members are protected by IDF insurance program with free premium.
• Each member receives an identity badge with his/her photograph and logo of IDF.
• Beggars can give up begging gradually when they achieve self-sufficiency.

Table 2: Status of Beggar Program as on 31 December 2014
Particulars
Up to 2013
In 2014
Up to 2015
No. of Branch
28
-8
20
No. of Member
459
-119
340
Disbursed (m)
2.12
-
2.12
Outstanding (m)
0.34
0.02
0.32
Repayment Rate
99.16
99.46
99.31
Savings (m)
0.07
-0.01
0.06
Poor and Ultra Poor Program

IDF started this program in Shoalok mouja of Bandarban Hill District and expanded to different parts of the country during the past 21 years.

The details of the program are described 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 from the very grass-root level of the country.

Table 3: Status of Poor and Ultra Poor as on 31 December 2014
Particulars
Up to 2013
In 2014
Up to 2014
No. of Branch
75
-
75
No. of Member
95,857
8,599
104,456
Loan Disbursed (m)
9,982.95
1,798.52
11,780.93
Loan Outstanding (m)
777.29
154.21
931.50
Repayment Rate (%)
99.72
99.67
99.70
Savings (m)
376.41
77.72
454.13
Loan ceiling for

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


Micro-Enterprise


IDF introduced this product in 2002.As of December 2014, a total of 5,624 members received 1,192 million taka under this program. The criteria of selection of a member for this product are as follows;

Criteria of Graduate Member

• 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: 0.70% 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 4: Status of Micro-enterprise as on 31 December 2014
Particulars
Up to 2013
In 2014
Up to 2014
No. of Branch
59
12
71
No. of Member
12,198
-6,574
5,624
Loan Disbursed (m)
775.5
416.68
1,192.18
Loan Outstanding (m)
138.24
95.12
233.36
Rate of Payment (%)
99.39
99.44
99.42
Amount of Savings (m)
48.85
12.88
61.73

Savings and credit by size, number and amount

i) Savings

Savings is one of the important components of IDF. IDF offers four kinds of savings to its members. During any crisis, the members can with draw and use their savings without any restriction.

As of December, 2014 total no. of retained savers and amount of savings are respectively 1,10,420 and Tk. 515.92(m). The No. of savers and their savings are shown by savings size in the table below:

Table 5: Distribution of Savers as of 31 December 2014 by size and amount

Savings size
Number
Amount (m)
Upto 2,000
48,605
61.25
2001 - 5,000
34,425
79.89
5001 - 10,000
11,632
98.35
10001 - 20,000
9,162
121.18
Above 20,000
6,596
155.25
TOTAL
110,420 515.92

Credit:

The total No. of retained borrowers and amount of loan disbursed on 31 December, 2014 are respectively 83,826 and Tk.1,674.17 (m). The No. of loans and size are shown below.

Table 6: Distribution of loan disbursed in 2014 by size, number and amount

Loan size
Number
Amount
4,001-10,000
31,534
297.63
10,001-30,000
54,447
1,361.17.28
30,001-50,000
2,801
117.64
50,001-1,00,000
1,282
108.97
1,00,000-3,00,000
1,753
293.56
Above 3,00,000
93 36.23
TOTAL
91,910
2,215.20

Growth of Members and Savings

Table below shows the growth trend of members and savings during 2010-14. It also shows trend of geographical expansion of the organization. IDF closed the membership of more than 12,000 inactive members in 2014. As a result, the net increase in membership in 2014 was only 1,906.

Table. 7: Growth of members and savings during 2010-14
Sl. No.
Component
2010
2011
2012
2013
2014
01.
Member (by year)
3,442
4,820 9,360 12,202 1,906
02.
Member (cum.)
82,132
86,952 96,312 108,514 110,420
03.
Group (cum.)
19,894
20,799 22,072 24,808 26,902
04.
Centre (cum.)
3,716
3,993 4,284 5,140 5,243
05.
Branch (cum.)
58
58 75 75 75
06.
Union (cum.)
307
317 325 408 411
07.
Upazila (cum.)
82
82 85 89 57
08.
District (cum.)
7
7 10 13 13
09.
Savings (by year)*
33.25
42.5 37.35 32.67 90.59
10.
Savings (cum)*
262.81
305.32 392.66 425.33 515.92
11.
Average Savings (cum.)
3.199
3,511 4,076 3,920 4,672
Note: 1. cum. = Cumulative, * = Figure in million Taka.
                      Growth of members and borrowers by year                  Growth of savings by year
Table below shows the growth trend and status of loan operations during 2010-14.

Table 8: Growth and status of loan operations during 2010-14
Sl. No.
Component
2010
2011
2012
2013
2014
01.
No. of Loans (by year)
70,038 73,786 77,560 83,826 91,910
02.
No. of Loans (cum.)
641,954 715,740 793,300 877,126 969,036
03.
Borrower (cum.)
68,297 72,170 72,806 82,515 88,100
04.
Loan disbursed (by year)*
950.8 1,279.45 1,476.9 16,714.17 2,215.20
05.
Loan disbursed (cum.)*
5,525.6 6,805.05 8,281.95 9,956.12 12,171.32
06.
Loan due (by year)*
931.07 1,172.08 1,350.6 1,636.74 1,622.53
07.
Loan due (cum.)*
5,017.43 6,189.51 7,540.11 9,076.85 10,699.38
08.
Loan realized (by year)*
915.88 1,163.76 1,334.13 1,556.21 1,967.02
09.
Loan realized (cum)*
4,967.92 6,148.78 7,482.91 9,039.12 11,006.14
10.
Outstanding increase (by year)*
104.94 101.78 139.86 116.56 249.31
11.
Loan outstanding (cum.)*
557.68 659.45 799.31 915.87 1.165.18
12.
Loan overdue*
43.84 40.73 50.7 45.86 58.00
13.
Portfolio at risk > 30 days*
3.06 3.97 3.02 4.72 4.58
14.
Average Loan size (4/3)
13,921 17,728 20,285 20,289 25,144
15.
Average outstanding (cum.)
8,165 9,137 10,978 11,099 13,226
16.
Rate of repayment (by year)
98.36% 99.29% 99.54% 99.58% 99.95%
17.
Rate of repayment (cum.)
99.01%
99.34%
99.39%
99.58%
99.95%

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 2010-14.

Table 9: Financial Growth for 2010-14
Sl. No.
Particulars
2010
2011
2012
2013
2014
A.
CAPITAL FUND
01.
Capital Fund / Equity
151.03
171.8
206.55
225.24
267.33
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%
7.50%
7%
7%
C.
INCOME
04.
Service charge income from clients
112.96
145.71
193.28
210.37
251.33
05.
Other income
42.27
54.61
14.23
14.33
22.87
06.
Total Income
15.52
200.33
207.51
224.70
274.2
D.
NON-FINANCIAL EXPENSES
07.
General Operating Expenses (Salaries, rents, utilities, cost of fund etc.
130.54
171.63
158.79
191.85
221.38
08.
Depreciation on fixed assets
1.59
1.86
2.11
2.42
2.65
09.
Loan loss provision expenses
7.38
6.08
11.85
13.31
9.22
10.
Total Non-Financial Expenses
139.52
179.57
172.75
207.58
233.25
E.
ADJUSTED FINANCIAL EXPENSES
11.
Adjusted Financial Expenses (Line-1 multiplied by line-3)
9.06
10.31
15.49
15.77
18.72
12.
Total Expenses (Line-10 plus line-11)
148.58
189.87
188.25
223.35
251.97
13.
Operational Self Sufficiency (OSS) (Line-6 divided by line-10)
111.26%
111.56%
120.12%
108.25%
117.56%
14.
Financial Self Sufficiency (FSS)
(Line-6 divided by line-12)
104.48%
105.51%
110.23%
100.61%
108.83%
                        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 10: Percentage of Loan by Purposes
                                                                                                         
(Figures in percent)
Sl. No.
Purposes
2010
2011
2012
2013
2014
01.
Farming
21.12 22.13 23.4 24.12 25.72
02.
Cow rearing
8.50 10.20 12.2 11.6 12.01
03.
Goat rearing
5.71 5.8 7.75 6.72 4.00
04.
Fruit Gardening
16.40 16.10 8.6 7.47 6.74
05.
Pig rearing
2.36 2.30 4.4 1.22 1.00
06.
Poultry
20.01 12.60 11.7 11.88 9.89
07.
Home Gardening
3.10 4.30 4.4 1.31 5.59
08.
Local Transport
2.44 2.10 2.5 2.66 2.42
09.
Nursery
0.97 1.11 1.1 1.51 2.92
10.
Handicrafts
3.45 3.10 3.2 2.74 1.64
11.
Garments/Tailoring
0.75 0.75 0.75 2.98 1.86
12.
Fisheries
0.92 1.20 1.2 1.42 3.59
13.
Housing
6.42 3.50 3.2 3.82 5.52
14.
Water Sanitation
2.94 2.40 2.5 0.98 1.15
15.
Beef Fattening
1.51 5.10 4.5 6.7 4.05
16.
Small Business
1.53 1.51 3.4 6.09 5.70
17.
Micro Enterprise
1.87
5.80
5.2 6.18 6.20
  Total (%)
100.00
100.00
100.00
100.00
100.00

Renewable Energy (Solar Home System)

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 long-term credit facilities to procure these systems. IDF with three other partners established a100kw mini solar plant in Shandwip, an isolated island 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 manages 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.

Diagram 2: Structure of Renewable Energy Program
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 11: Progress of Solar Home System Program
Particulars
Up to 2013
In 2014
Up to 2014
System Installed (No.)
38,149
17,721
55,870
Loan disbursed (m)
701.06
296.74
997.80
Loan repaid (m)
378.22
270.98
649.20
Loan outstanding (m)
322.84
25.76
348.60
Repayment Rate
99.23
99.23
99.23
 
Health, Sanitation and water

In order to provide health service and safe water to Hill Tracts people particularly in remote hill areas, IDF started this program in 1995 with the assistance of Sida. In 1996, IDF launched a survey on the sanitation and water in selected villages of Bandarban Sadar and revealed that about 95% households had no sanitary latrine and almost all rural households did not have access to safe water. The situation has much improved now due serious intervention of IDF and various Government departments.

IDF developed this program during the past years. IDF implements this program through graduate 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.

At the end of the year, IDF recruited paramedics at the branch levels to ensure that all the members and their family people receive regular health services.

The organization is also piloting a scheme is to see whether full health support including doctors check up, medicines and transport allowance could be provided to the members and their family members. The costs would be covered from premium collection.

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: 4
Health Spot : 12


Clinical Services in 2014:

• General Patient : 6,820
• STD Patient : 35
• Eye Patient : 52
• Eye camps: 4
• Health camp: 4

The organizational structure of IDF health program is shown below.

Emergency Fund (Micro Insurance)
Introduction

From the very beginning, IDF observed that the majority people in CHTs suffer from various common diseases and spend lot of money for medical treatment. Most cases they use money from their businesses or borrow from money lenders which make their economic condition worse. Group members requested us to find outsolutions to address this common problem. We organized a serious of meetings with group members, field staff and other stakeholders for about a year in order to find out root causes & solutions of the problems.

Finally, we came up with the idea of forming an “EMBERGENCY FUND” with joint contribution of IDF and group members. The main purpose of creation of this fund was to support poor 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-insurances services from the insurance companiesto cover these risks and revealed that the insurance companies were very expensive and not affordable by the poor.

Methodology

IDF uses its branch network of microfinance to implement its micro-insurance program. IDF reaches its clients through its branches. One paramedic/ health worker is assigned in one/two branch 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 centre meeting.

Diagram-4: 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 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& Paramedics services; ;
ii) Death (Life)/microcredit;
iii) Risk Insurance (Damage/loss of activities) and
iv) Cattle.