Project Proposal

Project Description

WASTE, together with the Indian micro-credit organisation BISWA, the Indian insurance company TATA-AIG and the Dutch financial group SNS-REAAL, will introduce loans for sanitation for villagers in Orrisa, and monitor effects of sanitation improvements through information obtain through health insurance. TATA -AIG and BISWA have committed themselves to the project.

The initiators expect that between now and 2012 about 500,000 Indian households will have improved sanitation, thus a better health and increase of disposable income.

Most of the villagers are often not conscious of the direct link between improved sanitation and their health situation. Awareness raising is a necessary, but not sufficient strategy. To motivate people to take up sanitation loans, the applicable interest rates need to be lower than those of normal micro-credits.

For those villagers that take up this health insurance, it will be possible to get a better indication of their health conditions, because information about the health of these people will be monitored. The consortium of initiators expect that the simultaneous introduction of health insurance and sanitation improvement become a cheap and effective indicator for monitoring real effects of sanitation on health. After all, where adequate sanitation is in place, less illness are expected and thus less claims need to be settled.

Status

Commercial loans up to a maximum of euro 28 million are in principle agreed upon. The consortium still hopes to blend this with € 2 million in development assistance (grants) for the large scale introduction of sanitation loans at a lower interest rate. Simultaneously TATA-AIG using its own funds will expand its insurance portfolio.

Budget

The total budget is estimated at Euro 30 million. This is required for the large scale introduction of sanitation loans at a lower interest rate. Simultaneously TATA-AIG using its own funds will expand its insurance portfolio.

For more information contact:

WASTE
Valentin Post
vpost(at)waste.nl