Maintaining Quality at Scale for Sanitation Leveraging existing reporting mechanisms with MFIs in Bihar, India Arunesh singh, satya prakash choubey,genevieve kelly, aprajita SINGH

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CONTEXT India: Bihar (The Intervention State): Of 1 Billion open defecator across the globe; 600 million live in India Fragmented supply chain for toilets Product gap Toilet lie low in the hierarchy of need Finance Liquidity and Affordability Bihar (The Intervention State): Population: 104 million 88.7% Rural 73 % of rural Bihar (67.4 Million) defecates in open

PROJECT OVERVIEW 3SI: Supporting Sustainable Sanitation Improvements through Supply Side Strengthening $8.5m Bill and Melinda Gates Foundation Additional funding Unilever Foundation / Domex Toilet Academy PATH, Water For People and Monitor/Deloitte August 2012 – 5 Years 3SI, Gates, 5 years The sanitation crisis is due to several challenges—(1) Broken supply chain for toilets which are often expensive and difficult to acquire; (2) Low consumer demand due to the inability of government-subsidized, low quality toilet campaigns to convert need into action; and (3) Limited financing options for sanitation-related enterprises to expand their business, as well as limited financial liquidity among consumers in the market to convert household needs to purchase.

PROBLEM CONTEXT SOLUTION HYPOTHESIS How does 3Si maintain quality at scale without increasing existing M & E costs substantially? SOLUTION HYPOTHESIS Leverage existing reporting mechanisms of its partner MFIs

Definition of Quality (what are we measuring) Time to delivery Not at risk of contaminating nearby water sources (not greater than 10 feet) Depth of the pit (not greater than 5 feet)

M & E Challenges in Scaling up Ensuring Quality Integrated MIS Operational and Financial Sustainability

Intervention – Catalysing private sector credit supply PSI Wholesale Lending Institution MFI Consumer Consumers

LEVELS OF MONITORING Direct Sales - Enterprise Sales through Loan - FWWB FWWB - Validate Loan Utilization and share with PSI “Sample” Validation for Toilet Construction by Helpline Toilet Completed data sharing to TA for Toilet Quality Check “Sample” Confirmed Loan Utilization data will share to TA for Toilet Quality Check TA : Technical Associate

EVOLVING MONITORING CHALLENGES Model B (linking with sanitation finance) 3Si Fund Manager MFIs Consumer Loans Non 3Si Business Enterprises 3Si Business Enterprises Construct Toilets A. Through MFIs ( consumer + sanitation Finance - Phase I ( Pilot) ex: CDOT B. Scaling up through the Fund Manager  MFI model Bandhan, SDS and Aarohan

Enterprise Financing Consumer Financing : 49 : 39 SDS : Applications : 19 Disbursed : 16 Kinara : Applications : 05 Disbursed : 01 CDOT : Applications : 25 Disbursed : 22 : 39 Consumer Financing SDS : Applications : 1219 Disbursed : 770 CDOT : Applications : 40 Disbursed : 37 : 1259 : 807

PRELIMINARY FINDINGS Time to Delivery : Significantly decreased from previous quarters. On an Average; in Q1 (2014) : 70 days took for completing toilets & in Q3 (2015) : 14 days. Distance of Pit from Water Source : Not in control, due to space constraints. Depth of Pit : Toilets meeting the quality criteria of up to 5 feet has significantly increased from previous quarters from currently up to 97%.

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