Circulating investment fund for water supply projects

(Baonghean) - The revolving fund for investment in water supply and environmental sanitation in Nghe An implemented by the Provincial Women's Union is one of the effective credit activities and brings practical meaning to poor female members in rural areas.

Mr. Nguyen Ich Xuan - Communications Officer of the Central Rural Water Supply and Environmental Sanitation Project (Nghe An Rural Water and Environmental Sanitation Center) said: “Our province is currently implementing a Revolving Fund for Water Supply and Environmental Sanitation with support from the Asian Development Bank (ADB) and DANIDA (Danish International Development Agency). From this source of capital, many poor households who are members of the Women's Union have received loans to invest in renovating and building water supply works and toilets that meet standards, making an important contribution to improving living conditions in rural areas.”

Construction of Cau Giat Water Plant (Quynh Luu). Photo: Van Truong

The starting point for the operation of the Women's Union's Revolving Credit Fund was the water supply and environmental sanitation investment project supported by DANIDA since 2003 and the communes of Tao Son, Lang Son (Anh Son), Dien Van, Dien Thai (Dien Chau), Kim Thanh, My Thanh (Yen Thanh) were selected as implementation sites. Through discussions with Ms. Tran Thi Au - Chairwoman of the Women's Union of Anh Son district, it was known that the district was one of the localities that early implemented the Water Supply and Environmental Sanitation Investment Revolving Fund, so during the implementation process, it encountered many difficulties.

The reason is that the women members who benefit are poor households, and the members are not interested in borrowing capital to invest in the field of renovation and construction of water supply and toilet facilities. Therefore, the district has established a Communications Committee consisting of relevant sectors, including officials from the Women's Union, Youth Union, Health, Culture, Television Station, etc., along with the Fund Management Board to focus on communications work, raising people's awareness and thereby changing behavior in implementation. In parallel with creating favorable conditions for members to access capital and disburse quickly, the Women's Union also guides members in choosing models and techniques to choose investments suitable to actual conditions.

From those practical activities, the Revolving Fund has had 211 members borrow capital (at the end of 2003) with the amount of 300 million VND, investing in the construction of 151 water supply works and 91 toilet works. Thanks to the good use of the Revolving Fund's capital. Up to now, after more than 11 years, it has expanded to 15 communes, attracting 2,443 members to participate in the fund with a revolving amount of more than 8.1 billion VND. Through that capital, members have invested in the construction of 1,943 water supply works, 1,862 toilet works and thanks to the focus on inspection and supervision, the capital has been invested by members for the right purpose, and debts have been paid on time. Currently, Anh Son is considered one of the districts that has implemented the project well.

In pilot districts such as Yen Thanh, 4,026 households borrowed more than VND 8.9 billion to invest in building and upgrading 4,401 works; Dien Chau had 3,291 households borrow nearly VND 8,414 million to build 3,224 works. With the success of pilot models, DANIDA continues to support capital to replicate the Revolving Fund for Water Supply and Sanitation Investment in districts and towns in the province.

Ms. Pham Thi Hai Yen - President of the Women's Union of Quynh Luu said: "Since the end of 2004, women members in the district have borrowed capital from the DANIDA Organization (Denmark) to invest in building water supply and sanitation works. Previously, the district had a large area, women had a large demand for capital, so the Provincial Women's Union created conditions to expand the scope of activities of the Water Supply and Environmental Sanitation Revolving Fund in 25 communes, but after the district was split, Quynh Luu had 7 communes remaining to implement the Revolving Fund and to continue developing this fund, the District Women's Union directed investment capital to disadvantaged communes, communes in the religious areas to expand access to capital for more members. During the implementation process, the District Women's Union always reviewed capital sources for management and had timely solutions to handle problems at the grassroots level. Through that, it helped the union develop more suitable action plans, propose more timely capital support... Through the work Propaganda, mobilization, inspection and control ensure that most of the fund's capital is invested by members for the right purposes, used effectively, and debts are paid on time.

From 6 communes in 3 districts piloting the Water Supply and Environmental Sanitation Investment Revolving Fund, the fund has now expanded to 142 communes in 14 districts and towns. From an initial capital of more than 12.2 billion VND, after more than 11 years of operation, the revolving fund has increased to more than 54.4 billion VND and has supported capital for 18,725 members to invest in the construction of 15,635 water supply works (including drilled wells, dug wells, water tanks), and the construction of 8,793 sanitation works.

In particular, through the Women's Union's Revolving Fund for Investment in Water Supply and Toilets, in 133 communes (of 14 districts and towns), women members have been mobilized to participate in Savings Groups to mobilize local capital, contributing to supporting capital for members to develop their family economy, contributing to improving living conditions with a cumulative amount of more than 3.5 billion VND. This is a truly meaningful source of capital because it has supported many members to invest in livestock development, creating additional sources of income...

Along with the support capital from DANIDA, Nghe An also implemented the Project "Clean water supply and environmental sanitation in rural areas in the Central region" with loans from the Asian Development Bank (ADB) (implemented in 6 provinces: Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Ngai, Binh Dinh) investing in Dien Chau, Yen Thanh to build clean water supply factories and supporting capital of more than 5.5 billion VND for the Women's Union to implement the Revolving Fund for investment in water supply and environmental sanitation works.

The water supply and environmental sanitation revolving fund is managed very effectively by the Women's Union, becoming one of the credit "channels" that attracts the attention and active participation of many women's union members. Ms. Hoang Thi Thanh Minh - Provincial Women's Union said: "Most of the facilities implementing the water supply and environmental sanitation revolving fund are far from the district center. Some places are implemented in remote areas, where people's income is still low, affecting the work of mobilizing people to borrow capital, or allocate a part of their income to invest in this field...

However, the Revolving Fund of the Women's Union at all levels has always received timely attention and support from local authorities and especially the Center for Water and Environmental Sanitation, so the Revolving Fund's borrowing activities have gradually changed the awareness and behavior of women's union members as well as the community, improving the health of family members, especially women and children, contributing to improving the lives of people in rural areas. Also in the implementation process, the Women's Union has integrated programs and projects to diversify support capital sources to expand more members to borrow capital to invest in construction works...".

Hoang Vinh