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Annual Report 2015

Message From The Chair

Integrated Development Foundation (IDF) completed more than two decades of its operation of the various activities in 20 districts 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 113,000 members within the project areas by providing them with necessary services. The construction of the training center in the campus of the ‘integrated farm’ at Matiranga is nearing completion and is expected to start functioning by early next year. The Centre is to provide training and practical demonstration to the beneficiaries.
 
 
The year 2015 demonstrated a higher progress and improvements of work in all spheres of the various programs undertaken by IDF. The year has been characterized by undertaking a research project on Red Chittagong Cattle (RCC) by establishing a demonstration farm with the motive of preserving and protecting this important and once renowned indigenous variety of cattle now being at the verge of extinct. The variety is being collected and distributed to the farmers, especially poor farmers to generate sustainable income and employment opportunities among them. The regular programs and activities of IDF are being continued with increased numbers and successes. All these 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 four regular meetings of the Board of Governors and the Annual General Meeting held in due time. 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 2015 along with the growth trends. I sincerely thank all those who had put their hard labour 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 completed 22 years in 2015. IDF maintained sustainable growth in 2015. We have brought a number of changes in solar programme in 2015 in order to make it more efficient and sustainable. We have extended solar services to our members of Rajshahi Division in 2015.


2015 is one of the remarkable years of IDF. IDF won Citi Award 2015 in the category of “Best Microfinance Institution of the year”. This was the recognition of IDF’s contribution in the poverty alleviation through integrated programmes in the hilly and difficult areas of Bangladesh. This was also recognition of good governance and the hard work of IDF team. Award has boosted up the confidence of the IDF staff by several folds.

IDF cancelled the membership of about 16,000 inactive members in 2015. This has made net growth of membership low in 2015. The increase in membership was only 2,933 in 2015. The increase of loan portfolio in 2015 was the Tk.95.96 million in 2015. The net increase in group members savings was Tk.47.65 million. The operational sustainability was 119.68% in 2015 against 117.56% in 2014. This was possible because of hard work of IDF team and professional guidance of the board of governors and wonderful cooperation from the partners.

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 2015.We hope our friends, partners, well-wishers will continue to extend their supports in 2016 and ahead.

Zahirul Alam
Executive Director, IDF



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(loan) from Grameen Trust. Following 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, various safety-nets 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 to 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, engineers, medical doctors, retired UN officials etc. IDF has a Governing Body of 8 members elected from the General Body. 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.


THE OPERATIONAL AREA

IDF started from Bandarban Hill District in 1993 and gradually expanded to other districts. At present IDF has operations in 20 different districts. These are Rangamati, Khagrachari, Bandarban, Chittagong, Cox’s Bazar, Dhaka, Noakhali, Chandpur, Comilla, Feni, Laxmipur, Rajshahi, Chapai Nawabgonj, 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 different tribes with different languages and cultures. The area is wedged between the Bay of Bengal and the hills of Mizoram of India.

The CHTs 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 2011, the total population of CHT is 1.598 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 1,787. Then the Chakma Raja (King) 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 CHTs. In 1860, the British formally annexed CHTs 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 (shifting 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 improved technology and 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) security problem.

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 CHTs). 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.

Adverse economic impacts created by Kaptai Dam 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 when IDF started its micro-finance program in CHT in 1993. The situation became ease after the signing of Peace Agreement between the Government and Shanti Bahini in December 1997.


THE ORGANIZATIONAL STRUCTURE

The General body is the supreme authority of IDF. The Governing Body helps General Body in formulating plans, budgets in addition to evaluation and monitoring of programs and projects of the organization. The programs and projects are implemented mainly by Branch Offices supported by Head office, Zonal offices and Area offices. The Branch offices work directly with the people in their respective areas; organize them to build a receiving mechanism among the grass root people and implementing various socio-economic programs for them. The branches build receiving mechanism of the target population by organizing them in to centre and groups.

The institutional structure of IDF is shown in Figure-1.



FROM MICROFINANCE TO FINANCIAL INCLUSIONS:

IDF has been working towards achieving the goal of financial inclusions since its inception. The primary objective of IDF was to deliver the financial services to disadvantaged and low-income segments of the society of affordable costs.

IDF started its operation through providing financial services to the poor people of Bandarban Hill District and gradually integrated other services such as heath, sanitation & water, eye care, health insurance, life insurance and project insurance education, scholarships, agriculture, livestock, financial literacy, skill development, improve cook, solar home system, mini-grid, mobile banking and disaster management supports based on the needs of the people during the last 23 years. At present IDF implements the above activities in partnership with various government, non-government institutions, banks and donors in 137 upazila of 23 districts in the country. The description of these activities has been provided in this report.


MEJOR PROGRAMS/PROJECTS


2015 is the 23rd year of IDF operations in poverty alleviation and socio economic upliftment of the disadvantage people of remote and difficult areas of Bangladesh. Based on the needs of the people, IDF innovated and integrated a number of programs and products with financial services in order to achieve its goals and objectives. This annual report presents the overall progress of IDF activities in 2015. It also presents year-wise summary report up to December 2015. The major programs implemented in 2015 are:


* Microfinance   * Improved Cook Stove
* Beggar Program   * Financial Education
* Poor and Ultra Poor   * Skill Development
* Micro-enterprise   * Housing
* Savings and Credit   * Scholarship Program
* Growth of Members and Savings   * Automation
* Branch Expansion   * Enrich Program
* Loan by purpose   * Mobile Banking
* Renewable Energy (Solar Home System)   * Disaster Management
* Health, Water and Sanitation   * Environment
* Emergency Fund (Micro Insurance)   * Gender promotion
* Eye Care   * Zerofly Net for livestock
* Child Labour & Non Formal Education   * Food Security Project (M2W2) 
* Agriculture, Livestock & Fisheries    


MICRO FINANCE

The 1st activity of IDF was the replication of Grameen Microfinance Model in Chittagong Hill Tracts, a remote difficult and hilly area of Bangladesh. 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. IDF’s clients can broadly be classified into 4 categories as indicated below:

• Beggar
• Ultra Poor
• Poor
• Micro-entrepreneur

The different categories of members by number, loan outstanding and savings as of December 2015 are shown in Table-1 below:

Table1: Members by category, loan portfolio and savings

Categories of Clients
Member
Loan Outstanding (m Tk.)
Savings (m. Tk.)
In 2015
Cumulative at Dec.2015
In 2015
Cum.
In 2015
Cum. 2015
Beggars
-74
266
-.01
.31
-.01
.05
Poor & Ultra Poor
549
1,05,005
9.83
941.33
36.75
490.88
Macro-enterpreneur
2,458
8,082
86.14
319.5
10.91
72.64
Total
2,933
1,13,353
95.96
1261.14
47.65
563.57

Note: Membership of 48,077 inactive members were cancelled in 2015 which had negative impact on membership growth.

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 name of the project was “project dignity”. The objectives and status of the program are presented 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 2015

Particulars
Up to 2014
In 2015
Up to 2015
No. of Branch
20
-1
19
No. of Member
340
-74
266
Disbursed (m)
2.12
-
2.12
Outstanding (m)
0.32
0.01
0.31
Repayment Rate
99.31
99.32
99.32
Savings (m)
0.06
-0.01
0.05

Poor and Ultra Poor Program

IDF started this program in Shoalok Mouja of Bandarban Hill District in 1993 and expanded gradually to different parts of the country during the past 23 years.

The details of the program are as follows:

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.
• Alleviate poverty from the very grass-root level of the country.

Table 3: Status of Poor and Ultra Poor as on 31 December 2015

Particulars
Up to 2014
In 2015
Up to 2015
No. of Branch
75
05
80
No. of Member
1,04,456
549
1,05,005
Loan Disbursed (m)
10,935.36
1,841.61
12,776.97
Loan Outstanding (m)
931.50
9.83
941.33
Repayment Rate (%)
99.70
100
100
Savings (m)
454.13
36.75
490.88

Loan ceiling for

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


Micro-Enterprise


IDF introduced this product in 2002 for the graduate members who attained capacity to utilize and manage bigger income-generating activities. The loan size depends on the projects and capacity of the members. The objectives of the program are:


• Create new employment opportunities   • Increase income of the family
• Increase living standard   • Increase production of local products
• Enhance efficiency of entrepreneurs    

The criteria of selection of a member for micro enterprise are as follows:

Criteria of Graduate Member

• 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 running business profitably;
• At least 10% of the proposed loan are accumulated in her savings account;
• Willing and able to participate at least 10% of the investment;
• Cooperation and involvement of family members in the Enterprise;
• Regular deposit in savings account;
• Willingness to attend monthly cluster meeting.

Loan terms

• Working Capital : 1 year
• Fixed Capital : 2 years

Loan repayment conditions

• Weekly installment
• Fortnightly installment
• Monthly installment

Table 4: Status of Micro-enterprise as on 31 December 2015

Particulars
Up to 2015
In 2015
Up to 2015
No. of Branch
71
4
75
No. of Member
5,624
2,458
8,082
Loan Disbursed (m)
1,192
475.61
1,667.79
Loan Outstanding (m)
233.36
86.14
319.5
Rate of Payment (%)
99.65
99.66
99.66
Amount of Savings (m)
61.73
10.91
72.64

Savings and credit by size, number and amount

i) Savings

IDF offers four kinds of savings to its members. During any crisis, the members can use their saving without any restriction. Many borrowers do not withdraw their savings to use it as capital in future. The savings products are:

i. Savings Fund ii. Special Savings iii. Savings Account iv. Family Savings

On 31st December, 2015, the total no. of retained savers and amount of savings are respectively 1,09,353 and Tk.563.57(m). The No. of savers and their savings are shown by savings size in the table 5 below:

Table 5: Distribution of Savers as of 31 December 2015 by size and amount

Savings size
Number
Amount (m. Tk.)
Upto 2,000
51,935
82.45
2001 - 5,000
34,320
90.12
5001 - 10,000
11,252
100.26
10001 - 20,000
9,366
134.41
Above 20,000
6,480
156.33
TOTAL
1,13,353
563.57

Credit:

The total No. of retained borrowers and amount of loan disbursed on 31 December, 2015 are respectively 101,464 and Tk.2,317.23 (m). The no. of loans and size are shown in Table-6.

Table 6: Distribution of loan disbursed in 2015 by size, number and amount 

Loan size
Number
Amount (m.Tk.)
4,001-10,000
18,500
171.13
10,001-30,000
71,650
1,422.25
30,001-50,000
6,842
220.16
50,001-1,00,000
2,240
157.02
1,00,000-3,00,000
2,150
321.21
Above 3,00,000
82
25.46
TOTAL
101,464
2,317.23

Growth of Members and Savings

Table 7 below shows the growth trend of members and savings during 2011-15. It also shows trend of geographical expansion of the organization. 51,010 new members joined the group in 2015. On the other hand, IDF cancelled membership of 48,077 inactive members during the year. As a result the net increase in the membership in 2015 is 2,933.

Table. 7: Growth of members and savings during 2011-15  

Sl. No.
Component
2011
2012
2013
2014
2015
01.
Member (by year)
4,820
9,360
12,202
1,906
2,933
02.
Member (cum.)
86,952
96,312
1,08,514
1,10,420
1,13,353
03.
Group (cum.)
20,799
22,072
24,808
26,902
27,747
04.
Centre (cum.)
3,993
4,284
5,140
5,243
5,586
05.
Branch (cum.)
62
75
75
75
80
06.
Union (cum.)
317
325
408
411
413
07.
Upazila (cum.)
82
85
89
97
98
08.
District (cum.)
7
10
13
13
14
09.
Savings (by year)*
42.5
37.35
32.67
90.59
47.65
10.
Savings (cum)*
305.32
392.66
425.33
515.92
563.57
11.
Average Savings (cum.)
3.511
4076
3920
4672
5154
Note: 1. cum. = Cumulative, * = Figure in million Taka.

                               Growth of members and borrowers by year                                  Growth of savings by year

Table 8 below shows the growth trend and status of loan operations during 2011-15.

Table 8: Growth and status of loan operations during 2011-15 

Sl. No.
Component
2011
2012
2013
2014
2015
01.
No. of Loans (by year)
73,786
77,560
83,826
91,910
1,01,464
02.
No. of Loans (cum.)
715,740
793,300
877,126
9,69,036
10,70,500
03.
Borrower (cum.)
72,170
72,806
82,515
88,100
86,813
04.
Loan disbursed (by year)*
1,279.45
1,479.9
1,674.17
2173.54
2317.22
05.
Loan disbursed (cum.)*
6,805.05
8,281.95
9,956.12
12,129.66
14,446.88
06.
Loan due (by year)*
1,172.08
1,350.5
1,536.74
1,622.53
1,696.33
07.
Loan due (cum.)*
6,189.51
7,540.11
9,076.85
10,699.38
12,395.71
08.
Loan realized (by year)*
1,163.76
1,334.13
1,556.21
1,925.36
2,221.26
09.
Loan realized (cum)*
6,148.78
7,482.91
9,039.12
10964.48
13185.74
10.
Outstanding increase (by year)*
101.78
139.86
116.56
249.31
95.96
11.
Loan outstanding (cum.)*
659.45
799.31
915.87
1,165.18
1,261.14
12.
Loan overdue*
40.73
50.7
45.86
58.00
64.52
13.
Portfolio at risk > 30 days*
3.97
3.02
4.72
4.58
4.98
14.
Average Loan size (4/3)
17,728
20,285
20,289
25,144
26,212
15.
Average outstanding (cum.) (11/3)
9,137
10,978
11,099
13,226
14,527
16.
Rate of repayment (by year)
99.29%
99.54%
99.58%
99.70%
99.65%
17.
Rate of repayment (cum.)
99.34%
99.39%
99.58%
99.70%
99.65%

Note: cum. = Cumulative, * = Figure in million Taka.

                                 Growth of loan disbursement by year                            Growth of loan outstanding by year


Table 9: Financial Growth for 2011-15

Sl. No.
Particulars
2011
2012
2013
2014
2015
A.
CAPITAL FUND
01.
Capital Fund / Equity
171.8
206.55
225.24
267.33
331.36
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 (Beggar)
0%
0%
0%
0%
0%
C.
INFLATION RATE
6%
7.50%
7%
7%
7%
D.
INCOME
04.
Service charge
145.71
193.28
210.37
251.33
322.37
05.
Other income
54.61
14.23
14.33
22.87
12.89
06.
Total income
200.33
207.51
224.70
274.2
335.26
E.
NON-FINANCIAL EXPENSES
07.
General Operating Expenses (Salaries, rents, utilities, cost of fund etc.
171.63
158.79
191.85
221.38
259.30
08.
Depreciation on fixed assets
1.86
2.11
2.41
2.65
3.10
09.
Loan loss provision expenses
6.08
11.85
13.31
9.22
17.75
10.
Total Non-Financial Expenses
179.57
172.75
207.58
233.25
280.14
F.
ADJUSTED FINANCIAL EXPENSES
11.
Adjusted Financial Expenses (Line-1 multiplied by line-3)
10.31
15.49
15.77
18.72
23.20
12.
Total Expenses (Line-10 plus line-11)
189.87
188.25
223.35
251.97
303.4
13.
Operational Self Sufficiency (OSS) (Line-6 divided by line-10)
111.56%
120.12%
108.25%
117.56%
119.68%
14.
Financial Self Sufficiency (FSS)
(Line-6 divided by line-12)
105.51%
110.23%
100.61%
108.83%
110.58%

                            Growth of Capital Fund by Year (m.Tk.)                      Growth of Income & Non



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. Growth of loan amount by purpose during 2011-2015 is shown in Table 10.

Table 10: Growth of loan amount during 2011-2015 by purposes
                                                                                                                                                      (Figures in percent)

Sl. No.
Purposes
2011
2012
2013
2014
2015
01.
Farming
22.13
23.4
24.72
25.72
24.50
02.
Cow rearing
10.20
12.2
11.6
12.01
11.95
03.
Goat rearing
5.8
7.75
6.72
4.00
4.02
04.
Fruit Gardening
16.10
8.6
7.47
6.74
6.95
05.
Pig rearing
2.30
4.4
1.22
1.00
.99
06.
Poultry
12.60
11.7
11.88
9.89
10.01
07.
Home Gardening
4.30
4.4
1.31
5.59
5.65
08.
Local Transport
2.10
2.5
2.66
2.42
3.02
09.
Nursery
1.11
1.1
1.51
2.92
2.91
10.
Handicrafts
3.10
3.2
2.74
1.64
1.36
11.
Garments/Tailoring
0.75
0.75
2.98
1.86
2.02
12.
Fisheries
1.20
1.2
1.42
3.59
3.61
13.
Housing
3.50
3.2
3.82
5.52
5.41
14.
Water Sanitation
2.40
2.5
0.98
1.15
1.20
15.
Beef Fattening
5.10
4.5
6.7
1.15
1.20
16.
Small Business
1.51
3.4
6.09
5.70
5.85
17.
Micro Enterprise
5.80
5.2
6.18
6.20
6.54
 
Total
100.00
100.00
100.00
100.00
100.00


Branch Expansion

With a view to expand operation of the organization and extend integrated services to the poor families in more areas, IDF gradually opens new branches in the remote and comparatively un-served areas. In 2015, IDF opened 5 new branches under micro finance program and 5 solar branches under solar program:

Table 11: Branch Expansion in 2015

Number of branch under Micro finance Program
Number of branch under Solar Program
Upto 2014
In 2015
Total
Upto 2014
In 2015
Total
75
05
80
102
05
107

Table below shows the trend of financial growth of the organization for 2011-15.


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 grid power. IDF provides medium and long-term credit facility to procure these systems. IDF with three other partners established a 100kw mini solar plant in Shandwip, an isolated island of Chittagong district with the assistance of IDCOL.

IDF has established a separate management team for maintaining quality of service as well as its operations. It has also a separate coordination office from where the whole operation is managed. It has also separate area office, branch office and employees for this program. There is a strong monitoring and evaluation mechanism in IDF’s 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 through following mechanisms:

• Through technicians at the field level.
• Customers training on the use of SHS.
• Local Service Unit.
• Customer Care Service Centre (call center)

Structure of Renewable Energy Program



Solar Mini grid:
As at December, 2015, IDF established 11 mini grids at different places in the country. The biggest mini grid IDF established is in Shandwip an island in Chittagong district. This was the biggest in the country at that time. The capacity of Shandwip mini grid is 100 KW.

Solar Manufacturing and Services Unit: Charge controller and mobile charger are the important tools of solar home system. IDF established own manufacturing unit to produce mobile charger and charge controller to ensure quality services to the customers.

Local Servicing Centre: IDF has 8 local servicing centres in 8 different locations with expert technicians to provide prompt services to the customers. The technicians must provide service as soon as they receive complains directly or through “call centre”. All kinds of accessories are available at the branch level.

Customer Care Service: In order to provide efficient service and develop a close relationship with customers, IDF has established “Customer Care Centre” in the Coordination Office. The main objectives of the centre are to contact with the customers over phone on a regular basis in order to ensure quality service to the customers. The results of this centre are very encouraging.

Improved Transport System: In 2015, IDF started to provide e-bike to its staff members in order to improve the productivity. All staff members will gradually receive E-bikes for their field work at the affordable costs.

Area Coverage: IDF solar program is providing service in 22 districts. These are in Chittagong, Sylhet, Dhaka and Rajshahi divisions.

Source of Fund: IDCOL is the main source of fund of IDF SHS Program.

The details of loans and grants received from IDCOL are shown in Table 12.

Table 12: Source of fund in 2015

Description
In 2015
Cumulative
Grants Received (Tk.)
1,50,91,637
7,80,56,988
Loan Received (Tk.)
15,30,90,748
69,71,61,675
Loan Repaid (Tk.)
8,85,74,723
20,44,55,849

Progress:
As of December 2015, IDF solar program installed a total of 70,167 solar home systems. The total loans disbursed for these systems is Tk. 1,266.9 m. The details are shown in Table 13.

Table 13: Progress of Solar Home System Program in 2015

Particulars
Upto 2014
In 2015
Cumulative
System Installed (No.)
55870
14297
70167
Loan disbursed (m)
997.80
269.1
1266.9
Loan repaid (m)
649.20
315.1
964.3
Loan outstanding (m)
348.60
-46.00
302.6
Repayment Rate
99.23
99.16
99.16
 

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