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

2. 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)

3. 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.
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4. 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
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5. 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).
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6. 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
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7. 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
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8. 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)
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9. 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
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10. 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
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11. 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
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12. 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
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13. PVS’s installed
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14. PVS’s installed
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15. THANK YOU VERY MUCH www.aned.org rusnayo@aned.org Tel +591 2 2418716
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