Asociación Nacional Ecuménica de Desarrollo Microfinance and Rural Access in Bolivia (ANED’s Experience Financing PVS) Rubén Usnayo February- 2008

Bolivia - General Information Area: 1,098,580 sq km Population: 8,724,156 (aprox.) Urban area 62% Rural area 38% (75% with out electricity service) Ethnic groups: “Quechua” 30%, “Aymara” 25%, “mestizo” 30%, white 15% GDP: USD 27,870 million (est. 2007) GDP - real growth rate: 7.94 (aprox. 2007) GDP - per capita: USD 3,100 (aprox. 2007) Population below poverty line: 59% (80% rural area) Unemployment rate: 7.8% (est. 2007)

ANED - Institutional Aspects The National Ecumenical Development Association (ANED), founded in 1978 is a financial NGO specialized in financial service for rural and periurban area. Vision To be leaders in financial services integral innovators, privileging to people and organizations of the rural area. Mission To contribute to the economic and social development, of people and organizations, preferably of the rural area, offering the access to financial services; efficient, right, adapted and opportune. 11/12/2018

43 Branches in 8 of the 9 regions of Bolivia, (35 rural and 8 periurban) Special Activities Women empowerment Productive Chain (quinua, milk) Biocomerce Program Microleasing (livestock) Photovoltaic System (PVS) Efficient stoves 11/12/2018

PVS Financing Antecedents Different Projects of rural electrification done by the government and international cooperation ANED have a wide branches net in Bolivia’s rural area, financing several necessities of the population Since 2000, ANED is financing PVS applying different technologies: Individual credit, microleasing, specific product (conditional sale agreement) ANED developed a specific technology for PVS loans (agreements, software, PVS training, partner relations terms). 11/12/2018

Models Without subsidy, very limited access to the service With subsidy to Technology (PVS) and Microfinance, increase the access to both With subsidy only Technology (PVS) increase Technology access 11/12/2018

Installation, Followup Strategyc Alliance Strategic Alliance ENERGETICA APLITEC ENERSOL ISOFOTON Technical Operator Financial Operator (ANED) Coordination with municipality, associations, local leaders Coordination between ANED and Technical Operator Marketing, communal meeting Installation, Followup 11/12/2018

The Positive Role of Subsidies Capital subsidy serves as equity and reduces the amount of debt financing as well This is a very good tool to attract poor as they can go for modern technology without much burden. The most of the projects subsidy the technology (solar panel), but few subsidy the micro credit or give funds Some times ANED negotiates a part of subsidy for reduce the operation costs, then ANED may to operate in wide rural areas and the client have a less interest rate (intelligent subsidy) 11/12/2018

The Financial Product Characteristic A loan product : Similar to leasing (sale conditional agreement) Client contribution: Aprox. the Battery cost or 25% Repayment: 1 to 3 years – every 1, 2 or 3 months Interest Rate: 18% Collateral: The PVS Equipment ownership with the partner Removal if no payment Incentives, rebates for early payment Penalties for late payments 11/12/2018

Learnt lessons Positive It’s necessary to have a subsidy intervention, directly or indirectly the microfinance institution need to have access to this (intelligent subsidy). Funding availability on favorable terms Appropriate technology for PVS (financial conditions) There were many modifications to the loan product over the time. Client contribution is key Training for credit officers (solar energy) It’s necessary to have maintenance and client training on PVS 11/12/2018

Learnt lessons Positive The Strategic Alliance with Technical operator The promoting activities always with the partner Collection dates are set on a particular day for hamlets. Group approach for collection Regular monitoring based on individual work plans Early and effective action on late payments Some Productive Activities are generated Good Follow up 11/12/2018

Over the time greater dispersion (expensive operation) Learnt lessons Negatives Few fund providers Over the time greater dispersion (expensive operation) Politician activities Initial distrust on PVS for new clients Times no adapted for work in rural area (rains) High rotation of employees 11/12/2018

PVS’s installed 11/12/2018

PVS’s installed 11/12/2018

THANK YOU VERY MUCH www.aned.org rusnayo@aned.org Tel +591 2 2418716 11/12/2018