Solving the 'problem' of clean water for rural people in Nghe An

"Cooling down" the need for clean water

Pollution caused by waste, unsafe water sources, inadequate toilets... are realities occurring in coastal areas, affecting the lives and health of the community. Recently, with increasing awareness of environmental issues, the involvement of local authorities, and especially preferential capital from clean water and environmental sanitation loan programs, people's lives have changed a lot.

Dien Ngoc (Dien Chau district) is a coastal commune with a small land area and a large population, where clean water is difficult to find and the construction of hygienic latrines is also very difficult. Many families really want to build environmentally hygienic works, both to ensure health and to contribute to building a clean and beautiful rural landscape, but due to lack of funds, they have to put it aside. However, from the loan capital of the Social Policy Bank, many households are eligible to borrow capital to invest in water works, build toilets... Up to this point, the outstanding debt of the clean water and environmental sanitation program is more than 264 billion VND with 2,464 borrowers.

Sharing with us, Ms. Nguyen Thi Truc in Dong Loc hamlet, Dien Ngoc commune said that before building a clean water tank, her family had to use unsanitary water. 3 years ago, from a loan from the district Social Policy Bank, her family borrowed 20 million VND to invest in pipes, build a tank, install a filter, and build a toilet. Thanks to the clean water source, her health is better, her house is cleaner... Ms. Truc also added that currently in Dong Loc hamlet, about 40% of households have borrowed policy capital to invest in clean water projects and build sanitation projects.

In Quy Hop district, clean water is also a concern for many people, an issue that needs attention from authorities at all levels because it is partly related to mineral exploitation and processing activities in the area. Therefore, in addition to lending for investment in production and business, policy credit also aims to invest in clean water and environmental sanitation projects, ensuring people's lives. In Chau Hong commune, Mr. Hoang Van Thanh - Head of the Hy village Savings and Loan Group said that our group, managed by the Farmers' Association, currently has outstanding debt of over 2.1 billion VND with 39 customers still in debt. Of which, the outstanding loan for the Rural Clean Water and Environmental Sanitation Program is 146 million VND, lending to 10 customers.

Ms. Luong Thi Loan's family in Hy village, Chau Hong commune has had difficulty with domestic water for many years. Through the Savings and Loan Group managed by the Farmers' Association, Ms. Loan was able to borrow 20 million VND to drill a well, build a water filtration system, store water, and renovate sanitation facilities. Ms. Loan happily said that being considered for a loan from the Rural Clean Water and Environmental Sanitation Program has helped her family improve and enhance the quality of life, contributing to keeping the environment in the village clean and beautiful.

Sharing about the loan situation in the area, Mr. Nguyen Thanh Hai - Director of the District Social Policy Bank said: The total outstanding loan balance as of October 31, 2024 reached 780 billion VND, an increase of more than 52 billion VND compared to the beginning of the year, a growth rate of 7.1%. In particular, the outstanding loan balance for the Clean Water Supply and Environmental Sanitation Program reached nearly 85 billion VND, an increase of 3 billion VND compared to the beginning of the year. In 2024, loans were provided to 973 customers, building 1,946 clean water works and environmental sanitation works. As of October 31, 2024, the whole district had 4,530 customers borrowing capital from this program.

Improving the effectiveness of clean water loan programs

Implementing the Government's National Strategy on clean water supply and rural environmental sanitation, the Nghe An Provincial Branch of the Bank for Social Policies has actively invested credit capital for clean water and rural environmental sanitation in 411 communes across the province, contributing to improving living conditions and the environment in rural communes.

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The implementation of the rural clean water and environmental sanitation loan program in the province has achieved certain results. The capital for the program has increased annually, basically meeting the loan needs of eligible customers; customers have access to preferential capital more and more quickly and cost-effectively while still ensuring capital safety.

Mr. Hoang Son Lam - Deputy Director of the Provincial Social Policy Bank said

To further facilitate people to benefit from this policy credit program, the Prime Minister recently issued Decision 10/2024/QD-TTg dated July 15, 2024 regulating credit policies for clean water supply and rural environmental sanitation, including regulations on subjects, loan levels, and loan methods. This Decision takes effect from September 2, 2024.

Accordingly, this Decision stipulates the credit policy for clean water supply and rural environmental sanitation to implement the National Strategy on clean water supply and rural sanitation to 2030, with a vision to 2045 according to Decision No. 1978/QD-TTg dated November 24, 2021 of the Prime Minister to provide loans for investment in new construction, upgrading, renovation and repair of 2 types of works, including: Household-scale water supply works; Household environmental sanitation works.

The loan subject is a household residing in a rural area where they have registered permanent or temporary residence (customer). The loan condition is that the customer resides in a rural area that does not have a water supply system or a household sanitation system, or has one but it is damaged and needs to be newly built, upgraded, renovated, or repaired.

Regarding the lending method, the Social Policy Bank where the loan is made implements the lending method by entrusting to socio-political organizations. The maximum loan amount is 25 million VND/1 type of construction/customer. The lending interest rate is 9.0%/year. The overdue interest rate is 130% of the lending interest rate. Customers are allowed to borrow capital to invest in new, upgrade, renovate, and repair 2 types of household water and environmental sanitation works, but the total outstanding debt for each type of construction does not exceed the maximum loan amount for each type of construction.

The loan term agreed upon by the Social Policy Bank with the customer is a maximum of 5 years (60 months). The Social Policy Bank provides guidance on loan documents, loan procedures and processes, repayment terms, and guaranteed repayment levels to ensure simplicity, clarity, and ease of implementation. Debt extension and transfer of overdue debt are implemented in accordance with the regulations of the Social Policy Bank.

“Previously, the average loan per household was 19.9 million VND/household, basically households were almost able to borrow at the maximum level prescribed by the Government. From September 2, 2024, the new loan level is 25 million VND/1 project, each household can borrow 50 million VND/2 projects. And with the recent decision of the Prime Minister regulating the subjects, loan levels, and loan methods for the program, it has created great attraction for people, strongly affecting the material and spiritual life of borrowers, contributing significantly to the national goal of building new rural areas”, Mr. Hoang Son Lam shared.

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Up to now, the Nghe An Provincial Bank for Social Policies Branch has 97,411 customers with outstanding loans under the rural clean water and environmental sanitation loan program, with a total outstanding loan balance of VND 1,902 billion. Of which, in 2024, VND 549 billion was lent to 19,408 borrowers, building 19,408 clean water works and 19,383 sanitation works. The loan turnover under Decision 10/QD-TTg alone is VND 275 billion, with 5,676 borrowers.