FINISH Annual Report. 1 st April st March P a g e

FINISH Annual Report 1 st April 2012 31 st March 2013 1 P a g e

CHAPTER 1 : INTRODUCTION FINISH an acronym of Financial Inclusion Improves Sanitation and Health, as conceived by its promoters TATA-AIG, SNS-REAAL, UNU-MERIT, BISWA and WASTE. FINISH seeks to increase safe sanitation density in rural India. The objective is to enable the emergence of a rural society whose health is improved not only through better sanitation facilities but also by an improved knowledge and awareness of the concept of "total sanitation". The financial crisis hit the micro finance sector in earnest in 2010. Indian Micro Finance Institutions (MFIs) faced a serious crisis in the shape of drying up of credit and this continued throughout 2011. In the second half of 2011, FINISH accordingly changed its strategy to respond to the changed circumstances. Today the partnership pattern of FINISH is much more diversified as compared to the initial years. The number of FINISH partners has grown from 16 in the year 2011-12 to 50 during the financial year 2012-13. The partnership pattern comprises of 5 MFIs, 41 NGOs and 4 cooperative societies. The project can deliver its best if manpower deputed at the implementation level has necessary skills and information. There were a number of capacity building initiatives undertaken targeting various levels. There are nearly 630 animators who have been engaged as key grass-roots level facilitator. Simultaneously, local level masons are also identified by the partners to help the households in construction of toilets. During the reporting period there were number of animator and mason training programmes organized. Also two training of trainers (TOTs) and one refresher training were organized for the PIT members and NGO Coordinators. As a part of the exit strategy for FINISH, a process has been started to create a panel of trainers. The panel will comprise of trainers (both PIT and NGO Coordinators) who attended TOTs organised by FINISH. In the coming days, FINISH Society will use their expertise to train its partner organizations. FINISH has entered into contract with District Administration of Jhalawar and Udaipur District, Rajasthan for executing a sustainable sanitation programme. FINISH also entered into joint ventures with Gujarat Livelihoods Promotion Company and UNICEF respectively. Besides, partnership has been built with L&T Micro Insurance Company and Hindustan Zinc Limited. These initiatives will strengthen the process of making FINISH Society a self sustaining entity. Overall the sanitation coverage has increased in the FINISH project areas. Cumulative achievement in terms of number of sanitation systems has increased and the total number of systems constructed has reached to 163,761. The IEC activities provided complete coverage to all families in the project area that has resulted in accelerating sanitation coverage. The awareness generation drives organized by partner organizations and access to credit resulted in creating demand for safe sanitation. 2 P a g e

Chapter 2: Result based Progress The overall result of FINISH is "improved sanitation systems for 500,000 households in different states of India." FINISH has six results. Definitions of the terminology are in Annex 1. The earlier versions of the logframe had their own milestones, which were set at the time of developing the programme document. As these milestones have been met and/or are no longer relevant it has been recommended by the programme board to set new milestones for the current year, these were in the Annual Plan 2012-2013 and are reflected below. Result 1.1 MFIs offer sanitation loans as part of their loan product portfolio Milestone 2012-2013: 66,260 sanitation systems were constructed in the Year 2012-2013. This was financed through micro finance loans totaling INR 310,857,823 ( 4,440,826) and also through a different micro finance route the SHG Bank linkage with household contribution INR 34,384,700 ( 491,210) and subsidy from the Indian Government of INR 183,532,912 ( 2,621,899)*. In 2012 for the first time Indian government subsidies were recorded in FINISH. As the cases below show a number of partners have started offering sanitation loans as part of their portfolio!! Indicator Targets 2012-2013 Results 2012-2013 Output 1) MFI pre-selection criteria developed 2) Organisational capacity assessment 3) MoU with each implementing MFI partner stipulating roles of different parties vis-à-vis implementers 4) Output based aid detailed criteria 1, 2, 3) Document process 4) Solicit additional grant funding output based aid 1,2,3) Processes (pre-selection criteria, assessment and draft contract /MoU) documented and available on www.finishsociety. 4) Discussions ongoing 3 P a g e

Outcome By the end of the programme, 100% of all necessary loans have been provided to the users. 18 million Euro in commercial funding has been organised December 2012 Number of MFI partners 70 TSC partner linkage piloted. More than 10 bank - SHG linkages During the Year 66,260 sanitation systems have been constructed using different financing sources. Total commercial funding is in line with the implementation. As on 31 st March 2013 FINISH has 5 MFIs, 41 NGOs and 4 cooperative societies partners. These contracts signed with the partners give specific details about the output based aids. Total there are 50 partners. TSC partner linkage piloted and Bank-SHG linkage matured Sustainabi lity By the end of the programme, the occurrence of water-borne diseases among the program target group has decreased with 50%. Impact surveys min. 1 area Water testing and sanitation piloted Impact survey commenced in Gwalior (urban). Water testing included in impact survey Result 1.2 MFI marketing channels for micro-insurance products developed Milestone 2012-2013: partners are marketing life and health micro insurance products from different companies, 5000 micro health insurance policies sold at end of fiscal year. The unique sanitation linked micro health insurance product was launched in February 2013 in Delhi, in the first one-and-a-half month have 158 policies been sold. Output Indicator Targets 2012-2013 Results 2012 2013 Before the end of the 1 st year the programme has developed: - Health insurance products developed - Sales channels developed - Number of policies sold Document outlining number of partners tied up with health care insurers. L&T General Insurance Company has engaged FINISH as Financial Inclusion Partner in the joint programme of micro health insurance. The period of engagement has commenced from 1 February until January 31 2016 (depending on project extension!!!). The activities undertaken and progress till date: 6 organisations have been contracted as partner organisations.* TOT was organised in February 2013 at Ahmedabad in which 7 PIT members and 6 NGO coordinators participated. In Odisha two micro insurance trainings were conducted which covered 46 Micro Insurance agents and Specified Persons (MISP). FINISH has recruited two Coordinators (one each for Odisha and Rajasthan) Total 158 policies have been submitted. Outcome MFIs are capable of providing the micro insurance products without active interference of the programme Document outlining number of partners tied up with health care insurers. The partner NGOs and MFIs are selling different Micro insurance products. Sustainabi lity UNU will be able to report on demand increase for sanitation due to health insurance premium Pilot primary health care product with sanitation discounts piloted / primary health insurance as incentive IFS/UNU has submitted a proposal 4 P a g e

discounts for sustainability piloted * Odisha: Daridra Narayan Club and Gram Utthan Rajasthan: Dharni Jan Kalyan Sansthan Maharashtra: Nageshwara Charitable Trust, IRCED and Halo Medical foundation Result 2.1 Sustainable sanitation support services set up established Milestone 2012-2013: 70 partners contracted and the sustainable sanitation support services rendered to the partners are published at www.finishsociety.com. 50 partners are contracted and active, many different support systems are operational, with 2012-2013 targets exceeded Output Indicator Targets 2012-2013 Results 2012 2013 Assessment stakeholders sanitation support services at different levels (MFI, NGO, government, institutional, primary beneficiary) Existing sanitation systemassessed. Identification of target areas Identification of issues /gaps Identification key persons (champions) Information system options evaluation Tangible win-win situation (commitment/ motivation due to genuine self-interest) identified, Stakeholder capacity assessed, gaps targeted through specific CB, Handbook developed 70 MFI partners contracted Learning guide (method & content) Sanitation training roadmap finalised and integrated into action planning for new and existing partners Film translated into 10 local languages. Sanitation film on use (by men!) developed After signing of contract with 50 partners, training programmes have been organised for the animators in all regions except Tamilnadu. 13 training programmes were conducted which covered 253 animators. Trainings were conducted by the PIT members. Three mason training were organised one each in Bihar, Rajasthan and Maharashtra which covered 70 masons. 5 days TOT was organised for the 8 PIT members and 19 NGO coordinators. Two days Refresher training was organised for the PIT members at Ooty, Tamilnadu from 29 th March to 1 st April 2013. Learning Guide Part B being revisited by the Master Trainers. In the revised version, the Role of Animators and information on NBA, MNREGA would be included. Monitoring indicators set for the animators is being reviewed by the Master Trainers. Two-days Supply Side Conference was held at Delhi in February 2013 Two PIT meetings organised. Award winning film: Let s make it right in 7 local languages and being customised to FINISH INK. Film: Backend engineering in 6 local languages. Sanitation reuse film (Hindi original) being developed. Negotiations with MC Saatchi on campaign for men ongoing. Outcome The constructed sustainable sanitation systems supported by the PIT are functioning properly and satisfactorily by the midterm of the programme. Randomised sampling of work of partners PIT member are extending handholding support to the partners, this includes random sampling of their work. Negotiations with local institutions for random sampling of entire FINISH ongoing. PIT members are able to facilitate training programme for the animators and masons. PIT members are supporting the partner organisations to establish linkages with government programmes, NABARD and Banks. 5 P a g e

Partners are able to mobilise sanitation Finance through SHG-Bank linkage, from Cooperatives and so on. Sustaina- Bility At the end of the programme 90% of all sanitation system constructed during the previous programme years still function. Sanitation well understood; New sanitation systems implemented properly Increased repair / rehabilitation old and broken systems Sanitation systems constructed are being used and maintained by the community. Usage of toilets is being monitored by partner NGOs and animators To strengthen the support system, local masons are being trained. Trained masons are being engaged for construction and maintenance. Cost effective toilets are being introduced by partner NGOs. In the operational areas of LJK, Bhagalpur, community is converting the low cost toilets into regular toilets through mobilising funds. Behaviour al change communication playing important role to bring safe sanitation to effect. There is growing trend of community organising finance for construction of toilets. Rural Sanitary Mart has been established by DHARNI, Rajasthan. Two proposals for setting up RSMs are being processed. Result 2.2: Financial closure through mixing of commercial and non-commercial funding thereby pursuing sanitation MDGs Milestone 2012-2013: the programme has established a number of ratios: Ratio project grant other funding is 1 is to 3 (the other funding includes subsidies of the Indian Government); If the funding of the Indian Government is excluded than the ratio project grant commercial funding is 1 2. One person has been recruited specifically to work on documentation of experiences. Indicator Targets 2012-2013 Results 2012 2013 Output By the end of programme year 2, the financial closure of commercial and non-commercial financing is taking shape through: - Contract with each MFI stipulating deliverables - Mobilising different financial support schemes (credit guarantee, equity participation, line of credit, programme finance) catering to higher financing demands Total 70 MFI contracts, variety of funding schemes documented MFI financing, SHG - bank linkage, guarantee financing, dedicated line of credit, priority sector financing, NREGA financing The Micro finance sanitation loan totalling (INR 310,857,823) Finance mobilised through government subsidy (INR.183,532,912) Loan mobilised through SHG-Bank Linkage and Household contribution INR 34,384,700. MOU Signed between FINISH and Hindustan Zinc Limited (HZL). CSR contribution by HZL is INR 2500/toilet. 6 P a g e

Outcome By the end of the programme, the percentage of commercial funding vis-à-vis non-commercial funding for different sanitation systems, different organisations and different regions in India is established. This will serve as much need benchmarks for interventions elsewhere. Documentation of initial benchmark Sanitation loan has still not been included under priority sector lending by the commercial banks. Although finance has been routed through SHG-Bank Linkage but availing of loan for sanitation purpose is still a challenge for the Partner NGOs. FINISH has approached NABARD and other commercial banks to facilitate easy flow of finance for sanitation purpose. Some NGOs have worked out strategies to ensure bank finance reach the beneficiaries. All PIT members are assisting partner NGOs and are holding regular meetings with the NABARD officials. Channelizing of loan from Banks may become easy in coming days In RDO and BWDC bank lending is being done through the concept of Joint Liability Group (JLG) of NABARD. Sustainability By the end of the programme participating MFIs will be able to demonstrate the real benefits of improved sanitation, compared to the real costs. This means that they can continue with little -or even without - external support. Several real case studies Data collection for case studies ongoing Result 3.1: Programme management, monitoring, evaluation, impact and dissemination structures established (relations health, sanitation, grant and non-grant financing sanitation) Milestone 2012-2013: the monitoring system is developed and in function.. Output Indicator Targets 2012-2013 Results 2012 2013 By the end of year 2 of the program the monitoring system is developed and operational: - Programme management committee - Programme coordinator with support staff - Baseline data, PRA/RRA FCRA clearance due, and all implementation partner contracting via the FINISH Society. Temporary FCRA clearance obtained. Permanent FCRA clearance in process (expected July 2013). Programme Management Board is operational. Project Implementation Team is in place which is headed by Chief Implementing Officer (CIO). Contracts are signed locally. - Key indicators health products and iterative review process Base line survey data collected. Progress report in the shape of Qualitative 7 P a g e

established - Key non health indicators established and Quantitative data collected from PIT every quarter. Outcome The results of the monitoring increase the effectiveness of the programme intervention by an annual increase in demand for sanitation and micro health insurance products. Impact evaluation report with health and sanitation baseline, control, basic loan increase, with sanitation support services and with sanitation support services and micro health insurance. Also qualitative differences in village life (post-finish), if any, will be reported. The outcomes are widely shared within India and outside. Data on systems constructed (passing 280,000 mark) Systems in place for impact analysis System in place for data verification. This has been a major achievement as one the one hand, PMB wishes to get as accurate information as possible from the field and yet at the same time we need to keep admin overheads and time and funds spent on data collection to a minimum. Sustainability 50% of the MFIs include the monitoring system in their own monitoring protocols. FINISH monitoring system visualised (modern media) Brunel Business School (UK) is collaborating with Calcutta University in setting up this system. Separately talks are with WSP (as part of the output based aid proposal) to work on the AKVO flows method. 4.1 Livelihood for 10,000 people, primarily women, established Milestone 2012-2013: Direct employment opportunities (potential and realised, male and female) to exceed 500 and 7 PMCs will be made available on the net Output Indicator Targets 2012-2013 Results 2012 2013 Number of newly established MSMEs through the program 7 Product market combinations (PMC) Documentation of various enterprises. Approximate 1000 animators have been recruited by the project. Their capacity is being built through training and refresher training. With their enhanced skills and expertise they can improve their career prospects and their organisations will also gain as they will have skilled grassroots level functionaries. The project has engaged about 640,000 mason days till date. For L&T Micro Health Insurance Programme, 50 MI-SPs have been recruited. 8 P a g e

For construction and repair work, local labourers are engaged. Outcome By mid term of the programme 3000 women have increased earnings Data will be qualified and quantified The number of women animators is steadily increasing. All partner organisations have around 30% of women workforce except Cashpor which has 100% women animators. Two sanitary napkin manufacturing units will be established by two project partners. It is estimated that around 500 women SHG members will get partial employment (manufacturing and distribution) from the units. A MOU has been signed with Gujarat Livelihoods Promotion Corporation to bring livelihoods opportunity for around 5000 women. DHARNI,, Rajasthan will engage women SHG members in its low cost toilet manufacturing unit With the support of District Administration of Dungarpur district, Rural Sanitary Mart will be established. The unit will engage SHG members. NEEDS, Jharkhand has trained 5 SHG women as masons. All of them are working as masons. Sustainability Savings of up to 20% of family freely disposable income (in terms of totally family income about 3-4%) due to lower costs for health related expenses Impact survey expected this year which may confirm the hypothesis; another survey from one of our partners to be seconded academically The impact survey at Sambhav is ongoing. Results are expected around September 2013 Description Result 1.1 MFIs offer sanitation loans as part of their loan product portfolio In 2009, when the FINISH project was conceived, MFIs were placed as a primary financial institutions and partner for extending sanitation loan to facilitate construction of toilets. Over the period of time, there had been some major changes occurred within the MFI sector and that prompted the project to undertake some strategic changes for effective implementation of the programme. The Micro Finance crisis occurred during the year 2011 was the major hindrance for the MFIs of availing funds which led to 9 P a g e

unavailability of adequate resources/funds for extending sanitation loans to the beneficiaries. FINISH accordingly adopted strategies to respond to the circumstantial changes. While extending its partnership, FINISH apart from regular MFIs, also partnered with NGO-MFIs and NGOs who had adopted the SHG- Bank linkage model successfully and who had worked with the government to establish linkage between government programmes and rural communities. At present there are 5 MFI partners. Today there has been paradigm shift within the Micro finance institutions. MFI loan portfolios are much more diversified as compared to the past trends and one example is sanitation loan product (this is one of foreseen results of FINISH!), which has been included by some of them. They have not just restricted themselves to evolving business models but also working towards bringing positive social impact and behavioural change. Some examples are mentioned below: Example of Cashpor (U.P. & Bihar) Cashpor is a well established MFI (winner of the MFI of the Year Award 2012). It provides micro credit to Below Poverty Line households residing in Eastern U.P. and Bihar. CASHPOR believes that financial services are not all that can bring poor community out of the cycle of poverty. CASHPOR has piloted strategic cost effective intervention in education and health and in the year 2012, CASHPOR has introduced sanitation loan with nomenclature WATSAN Loan in its portfolio. The loan amount can vary from INR 1,000 to INR 5000. Sanitation loan is available only to those clients who after taking income generation loans from Cashpor have timely repaid due instalments. Cashpor has also made it mandatory for the animators to have toilet at their own residence. The status of animators household toilets is being assessed through a survey. During the financial year 2012-13, total amount of WATSON loan was INR 53,550,000 which constituted 0.68% of total loan portfolio. Example of Amul (Gujarat) The Apex organisation of the Dairy Cooperatives of Gujarat, popularly known as 'AMUL', aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. It is India's largest food product marketing organisation with annual turnover (2011-12) US$ 2.5 billion. It has 3.18 million milk producer members. AMUL has a dairy development farm cell which also looks after the safe sanitation programme. To promote safe sanitation AMUL has secured development loan from National Housing Board. It extends zero interest loan to the members. The members pay Rs. 100 per month irrespective to the loan amount. Interestingly the Equated Monthly Instalment (EMI) is adjusted against the milk producer s payout for milk supplied. AMUL s financial model to facilitate construction of safe sanitation system is as under: BPL APL (Marginal farmers) Others Beneficiary Contribution 700 700 700 Government Subsidy 4600 2000 2000 10 P a g e

MNREGA 4500 4500 4500 Interest free loan from AMUL 1700 4300 4300 Gram Utthan( Odhisha) GRAM-UTTHAN s vision is the Creation of an equitable society in which poor and disadvantaged would be able to lead a better life with dignity and securities. It is leading towards NGO-MFI to Non Banking Finance Company (NBFC). For Gram Utthan, micro finance has been a tool to raise the socioeconomic condition of the people it is working for. The operational area is flood and cyclone prone and because of limited livelihoods options, migration is rampant. Though, the micro finance programme of GU focuses livelihoods promotion but it has brought in the issue of sanitation in its purview. Gram- Utthan has facilitated credit support to 337 SHG beneficiaries for construction of house hold toilets. Bharathi Women Development Centre (BWDC, Tamilnadu): BWDC s vision is: To develop an empowered and vibrant community with women as the major focus. It started it micro finance programme in 1997. It has expanded its loan portfolio to meet the growing demand to address environmental sanitation. The sanitation loan is routed through its self help groups and in 2012-13 it covered around 407 groups. Out of its total loan portfolio, the share of sanitation loan is gradually increasing. The comparative data is as follows: 2011-12 2012-13 Total Loan Portfolio INR 68,435,858 INR 47,157,822 Sanitation Portfolio INR 10,574,050 INR 10,134,782 Percentage 15.45% 21.49% 11 P a g e

Result 1.2 MFI marketing channels for micro-insurance products developed Financial inclusion encompasses offering wide range of financial services to the hitherto financially excluded. These financial services range from financial literacy, micro credit, micro leasing, micro savings, micro insurance, money transfer and micro pensions. Micro insurance has a special place in financial inclusion as it protects low income people against specific perils in exchange for regular payments (Premium) proportionate to the likelihood and cost of risk involved. 12 P a g e

Micro insurance for health is a very complex insurance product 1 and according to many specialists very difficult to administer and certainly to start it as a regular business. We are therefore very happy that on 12 February 2013, the private micro health insurance products from L & T were officially launched in Delhi. The first two policies were officially handed over by the Senior Economic Policy Advisor of the Royal Netherlands Embassy, Ms. Rima Yadav and the General Manager of SNS-REAAL, Mr. Theo Brouwers. This is the first time such a commercial product is launched (as far as we know anywhere in the world!) in the highly regulated insurance industry. This is detailed below. The health insurance bundling in the FINISH sanitation program serves as an endorsement by a third party of the potential health effects of sanitation. It is expected to work in much the same way as tobacco consumption would on a life insurance premiums or how safe drivers with accident free records could impact car insurance premiums. The question therefore being addressed through the health insurance pilot is whether sanitation behaviour change can be influenced through health insurance incentives. India is a country, largely rural in character, with 15 % penetration of health insurance, 47 % in financial inclusion, and about 30 % penetration of household sanitation. Two of the 14 press clippings of the February launch are below. 1 Materials need to be developed in various local languages, policies in local languages need to be established, trainers need to be trained and finally partners and their staff at different levels need to be trained on aggregating insurance, facilitating information flow for claim settling etc. Initial focus is on setting this product in the market. From the insurance company s perspective, hospitals need to be identified. Information and funding flows need to be tied up etc. 13 P a g e

It is anticipated that in about 3 years a correlation between the launched health insurance and proper sanitation will be established. This financial innovation should give us the insight if, and how, insurance can measure impact of development schemes in this case, can we use health insurance to measure the impact of sanitation (use) and also before the insurance company can factor sanitation use in its health insurance product scheme design. This is widely seen as a major innovation. Result 2.1 Sustainable sanitation support services set up established In general the demand for toilets is increasing in all regions. Several partners quantified the efforts they undertake to increase demand. Partner organisations are using variety of awareness generation tools to create demand for toilet. Not all partners rigorously collect and quantify qualitative data, but a start has been made, thus 20,278 People watched the film Let s Make it Right ; 9,479 people attended the SHG meetings, 23,795 Leaflets were distributed, wall paintings of NBA and DWSM were used. 52,849 people attended the PRI meetings, 11,966.school children are educated. A number of initiatives towards establishing sustainable sanitation service systems have been taken by partners as well as by FINISH. Following are some initiatives undertaken by the partner organisations: 14 P a g e

Range of Cost Effective Toilets Introduced ANCHALIK based at Udaipur District of Rajasthan prepares Pre-Cast structures which is cost effective and is in sync with rural environment and local culture. It has a well established manufacturing unit with all necessary infrastructures. Anchalik had submitted proposal to seek innovation funds from Millennium Award Funding Programme (supported by FICCI and other organisations). Although, it did not receive funding support but after submitting concept note it was shortlisted and was asked to submit a detailed proposal to promote cost effective technology. Setu Seva Trust of Anand district, Gujarat has also introduced cost effective toilets. GSBS, Darbhanga District, Bihar has introduced low cost toilets in which the leach pits are constructed with the help of bamboo sticks. Bamboo scaffolds are made to cover the pits. A concrete meso structure is built to ensure safe disposal of excreta. A total amount of INR 2035 including labour costs needs to be invested to construct this low cost toilet. Lok Jagriti Kendra, Deoghar District of Jharkhand through its community driven approach has brought massive behavioral change in the area. Community after realising the need have started constructing temporary based low cost toilets. After arranging finance the temporary structures are replaced by permanent structure. Because of this collective action, 3-4 villages have been transformed into complete open defecation free villages. Low Cost Toilet-Lok Jagriti Kendra Establishment of Rural Sanitary Mart: 15 P a g e

To address supply chain issues in Sanitation, DHARNI has established a Sanitary Mart in Jhalawar district. The District Administration has given land and FINISH has provided loan of INR 3.5 lacs to establish the mart. The locally available materials make construction of sanitation system more cost effective for people and at the same time they can also avoid the transportation related problems. Because of the mart the inaccessible areas can also be reached out. The mart has different model toilets within its campus with options both in terms of finance and materials to facilitate selection as per the affordability of the target group. It also offers personal hygiene products such tooth brush & paste and toiletries. Till date the RSM has provided different services and sold materials to around 1200 rural households. The mart has been developed as a centre to impart training to the masons and to generate awareness on Environmental Sanitation. BWDC, Tamilnadu has also submitted a proposal to establish Rural Sanitatry Mart. The District Administration of Dungarpur District, Rajasthan has identified FINISH as a supply chain management organization. Under this local Public Private Partnership (PPP) arrangement FINISH will assist the district in setting up RSM for individual toilet construction activities apart from other supports in the area of training and output based aids to the implementing partner. Repair of Existing toilets: Setu Seva Trust (SST) based at Anand District,Gujarat works on the issue of livelihoods promotion, sanitation and Health. In its operation areas,through the TSC programme toilets were made available but it could not bring about the envisaged change due to fault in construction and design. FINISH has provided one-time assistance in the form of revolving funds to SST. The funds are used for the purpose of refurbishment of individual household toilets through sanction of sanitation loan to the beneficiaries with an affordable rate of interest. SST has refurbished around 292 toilets. Proper usage of the toilet is ensured after the completion of renovation work. FINISH has supported BWDC, Tamilnadu with an interest free loan which is utilised to restore the existing damaged household toilets in a sustainable manner. The Poor families having annual income of not more than INR 50,000 are supported through micro finance.a technical supervisor is appointed for assessing the repair of toilets and suggests approximate estimate. Till now, 47 toilets have been refurbished. Local PPPs: Collaboration with Local Self Government and District Administration: 16 P a g e

1) FINISH has strategically focused on building collaboration with the District Administration to facilitate the implementation of NBA and leverage funds for construction of toilets. FINISH has signed a tripartite MOU with District Administration, Bhilwara District, Rajasthan and Hindustan Zinc Limited to facilitate construction of 10,000 household level toilets. MOU has been signed with District Administration, Jhalawar district to set up Rural Sanitary Mart. 2) Many of the partner organisations have been successful in advocating the issue of health and sanitation with the government. In Deoghar district of Jharkhand, all three implementing agencies have been engaged as Nodal Agencies for implementation of NBA. Likewise, Setu Seva Trust, Anand has a very good synergy with the DRDA and panchayat level representatives. 3) In the project areas of RDO Trust, the Ward Members and Panchayat presidents play very important role. Their participation is sought at every stage-right from collecting baseline information to awareness generation followed by construction of toilets. An additional support from WASTE has been granted to the organisation to work distinctively with the ward members, Presidents of Village Panchayats and Town Panchayats in the Nilgiris. Ward Members Panchayat President at a village meeting Rise in beneficiary contribution in construction of toilets: Sanitation programmes can become sustainable if the issue of sanitation emerges as felt need and community constructs toilet in their households without depending on subsidy or government grants. In FINISH project areas, though community has chosen to avail government subsidy but it had not been the sole financial route for construction of toilets. Once people got convinced about the need of sanitation, they have arranged finance from different sources. The share of different financial routes as presented in the chart shows that in FY 2012-13 the total share of Micro finance, Bank linkage and beneficiary contribution is higher than the share of subsidy. 17 P a g e

Activities of FINISH Society: Finish Society has been registered under Societies Registration Act, 1860. Efforts are being made to make it a self-sustaining entity. With the assistance of Brunel Business School and the Saxion Business School Enschede, it is expected that this sustainability will materialize end 2015 / early 2016. Some current supporting activities are: Training and capacity Building: 5- days TOT was organised at Ahmedabad which covered PIT members and NGO coordinators. Since FINISH operational areas are spread across different States, it might not be possible for the finish-master Trainers to train all animators and NGO coordinators. FINISH is focusing on building capacity of PIT members to enhance their training imparting skills. The trainings organised for the animators and masons are now being facilitated by the PIT members. FINISH is in the process of creating a panel of trainers which would help in placing the trainers in programmes held in their own or nearest geographical locations. The panel will comprise of trainers (both PIT and NGO Coordinators) who had attended TOTs organised by FINISH. 18 P a g e

Mason Training Programme at Nagpur, Maharashtra Setting up of Key Resource Centre: In India all government aided Key Resource Centers (KRC) for water and sanitation have been set up in southern States. There is no KRC in Northern region States. To fill in this gap, FINISH in coordination with SCOPE is planning to set up a KRC which would provide technical training and other consultancy services to NGOs, government department and to all agencies which are working on the issue of water and sanitation. MOU has been signed between Gujarat Livelihoods Promotion Company and FINISH to provide sustainable livelihoods for poor in the state of Gujarat. Precisely, the programme will bring social entrepreneurial opportunities for SHG women through building their capacity in the areas of micro insurance and promotion of household sanitation & hygiene. Rural Distribution and Marketing Company With an aim to create a corpus which can sustain all the current and future activities, FINISH Society has planned to render services in the area of safe sanitation. it has started with corporate houses like, Hindustan Zinc Limited and L& T Micro Insurance Company. The services are rendered to the agencies against which it receives certain amount of services charges. Building association with diverse agencies: Similar arrangements are being planned with UNICEF and others for promoting community level safe sanitation programme. This is greatly facilitated by the numerical achievements of FINISH (Graphs below). Number of Sanitation Systems and Partners 19 P a g e

Result 2.2: Financial closure through mixing of commercial and non-commercial funding thereby pursuing sanitation MDGs The partner organisations of FINISH have leveraged finance mainly through micro finance programmes and SHG Bank linkages. FINISH on its part has generated/contributed funds through signing contracts with corporate houses and District Administration. Some Strategic Interventions made by the Partner Organisations and FINISH are as follows: Bank lending following Joint Liability Group (JLG) Model of NABARD: Joint Liability Groups (JLG) are informal groups of 4-10 members who are engaged in similar or independent economic activities and who are willing to jointly undertake (mutual guarantee) to repay the loan. In case of default or death of a member, all other members jointly take the responsibility to re-pay the loan. RDO Trust has successfully channelized sanitation loan from Bank of India and CANARA Bank following JLG model and also through SHG bank Linkage. Following table projects the sanitation loan secured by RDO trust: RDO Trust: Construction of Toilets and amount of loan through SHG Bank linkage Year No. of. Beneficiary HHs Loan Amount (INR) April 2010 - March 2011 969 19,380,000 April 2011 - March 2012 506 10,120,000 April 2012- March 2013 3125 30,100,000 Setu Seva Trust has been nominated as Banking Correspondent by the Central Bank of India. Because of this working relationship,the organisation has managed to secure sanitation loan for the target group. 20 P a g e

NABARD has sanctioned INR 5,000,000 as revolving fund support to Nageshwar Charitable Trust, Maharashtra. The revolving funds are being used for construction of toilets. MOU signed between Hindustan Zink Limited and FINISH. HZL provides INR2,500/toilet for construction. MOU signed between Gujarat Livelihoods Promotion Company (GLPC) and FINISH Society. Project Implementation Team Chapter 3: Cases Presented by Partner Organisations 1. Incentive for Innovative Action 21 P a g e

Cashpor Micro Credit is a poverty focused, not for profit company that provides microfinance exclusively to Below Poverty Line women in eastern UP and Bihar. Cashpor provides cost effective loan to its clients and the loan portfolio includes Safety loan, Energy loan, Women Empowerment loan and so on. In 2012, Cashpor has included sanitation loan in its portfolio which is known as WATSAN Loan. To look after the sanitation programme, Cashpor has engaged around 40 women animators in different parts of Buxar District, Bihar. During the initial stage, the animators found it difficult to achieve the desired result as it was not easy to convince the community to construct toilets. Aware about this complexity, Cashpor at one end emphasized on improving knowledge and capabilities of animators and at the same time, it adopted a result based payout approach. Under this arrangement, Cashpor fixed an annual and monthly physical targets for the animators and also fixed per toilet incentive which was Rs.25 per toilet. The response was encouraging. The animators tried different triggering approach to motivate behaviour change in community. Ms. Gangotri Devi of Simri Village, conducted a survey and met the head of the families. Poor financial condition came as the major reason behind not constructing toilet while there were some households who did not have required space for construction. Ms. Gangotri Devi explored technical options by visiting the household who had built toilets in small spaces. Once again, she rigorously started putting efforts to motivate community. She took help of those people who had built toilets in small space. Her firm efforts bore result. 400 households constructed toilets. Some of them had built toilets even on the first floor. She earned Rs.10,000 as incentive! 2. Collective Action for Maintaining Community Hygiene Naya Patna is a small village situated in Bhadrak District of Odisha. Most of the families are marginal farmers. There are two women self help groups which have been organised by Gram Utthan. Both groups are functioning since more than six years. Many group members have taken micro finance support from GU for starting small businesses. Through micro finance, the group members not only have improved their financial state but also have invested large amount of income on their children s education. They too have started learning reading & writing. In 2012, GU introduced sanitation loan. Many members of this village availed loan for construction of toilets. But the most remarkable drive the groups have taken is that they collectively tried to convince all other families to build toilets. Today except 3-4 members, rest have toilet. One member has built her own toilet around 30 meters away from her own house by sharing small size of land of her relative. Furthermore, every month on a fixed date, the members collectively clean up the drains and village roads. 22 P a g e

Group members of Naya Patna 3. A local PPP - tripartite partnership involving Government, Corporate and NGO Nirmal Bharat Abhiyan, formerly known as Total Sanitation Campaign is a flagship programme of government which aims to bring 100% access to sanitation for all rural households in the Country by 2022. The programme has Central, State and District level structures for its implementation and monitoring. At the district level the programme is implemented and monitored by District Sanitation Committee. FINISH has entered into a MOU with District Sanitation Committee, Bhilwara District, Rajasthan and Hindustan Zinc Limited, a corporate house for establishing sustainable sanitation systems in 35 Gram Panchayats of Rajasthan. The programme targets to construct 10,000 household level sanitation systems. The objective of the programme is to bring about behavioural change amongst community and increase the density of sanitation coverage by facilitating funds for construction of toilets. All three parties have distinct roles. Under this arrangement, Hindustan Zinc Limited through its Corporate Social Responsibility (CSR) programme is participating by sharing grant contribution of INR 2,500 per household toilet. The District Sanitation Committee provides back ended subsidy to the households who constructs toilets. FINISH is implementing this programme through its partner organisation, Dharni Jan Kalyan Sansthan. FINISH s involvement is mainly around training and capacity building, liaise with financial intermediaries, providing IEC materials and assisting Dharni to establish Rural Sanitary Mart. Till date, around 250 household toilets have been constructed. 23 P a g e

This is a unique arrangement where government, corporate house and NGOs have come together The programme would contribute in achieving the targets and objectives set by Nirmal Bharat Abhiyan. This tripartite partnership will emerge as a model which can be replicated in other areas by sharing the processes and outcome with other State Governments and local NGOs. 4. Another local PPP: Sustainable Sanitation At the Door Step Dharni Jan kalian Sansthan is a grass-roots level organization based at Jhalawar district of Rajasthan. The organization has set up a Rural Sanitary Mart with the support of District Administration and FINISH. In rural areas, sanitation cannot become sustainable without addressing the issue of supply chain. Availability of toilet construction materials is important but at the same time materials at a cost effective price are equally essential. In the absence of local market, community purchase materials from urban locations. Eventually, the cost of construction increases. Sometimes materials get damaged during transportation. Setting up of RSM has made possible for the community to derive cost advantage. They can also avoid transport related problems. Dharni for its RSM makes bulk purchase of materials such as rural pans, pipes, foot rests, traps, cement, stone and other sanitation related materials. It offers all items at a price that is lesser than the market price. A cost comparison has been done in the following table: Items Market Rate (In Rs) RSM Rate (In Rs) Difference Cement per bag 280-300 230-250 50-70 Iron Door( 12 Kg) 980-1000 820-840 160-180 Fiber Door 1080-1140 840-900 240 Rural Pan 210-240 185-190 25-50 Tiles (box of 10 pieces) 180-210 110-130 80-90 The District Administration has provided a small building for setting up the RSM. Every day RSM receives 30-35 visitors who come to know about the rates of materials and toilet options. The District Administration also supports honorarium of six motivators. The motivators visit the villages, conduct survey and inform community about RSM. The RSM also support the community by providing technically trained masons. 24 P a g e

The RSM has facilitated large number of families to construct toilets. Till date, around 1200 households have received different types of services. RSM is able to generate sustained employment opportunity for the local masons and laborers. It has been developed as a centre to generate awareness on environment sanitation. The organization has made some necessary arrangements to make the RSM self sustaining. The product planning and pricing has been done in a realistic manner. The unit shares a profit of 10% for the items sold. Arrangements have been made for transportation of materials to RSM as well as to reach the purchased materials to beneficiaries at reasonable costs. A Brief Overview on the New Guidelines Set for Nirmal Bharat Abhiyan Total Sanitation Campaign (TSC) or Nirmal Bharat Abhiyan (NBA) is a Community-led total sanitation program initiated by Government of India in 1999. It evolved from the limited achievements of the first structured programme for rural sanitation in India, the Central Rural Sanitation Programme, which was simply a supply driven, highly subsidy and infrastructure oriented programme and which had minimum Community Participation. As a result of deficiencies and low financial allocations, the CRSP had very little impact on the gargantuan problem. 25 P a g e

The experience of community -driven, awareness-generating campaign based program in some states and the results of the evaluation of CRSP, led to the formulation of Total Sanitation Campaign ( TSC) approach in 1999. Nirmal Bharat Abhiyan is a demand-driven and people-centered sanitation program. Community-led total sanitation is not focused on building infrastructure, but on preventing open defecation through peer pressure and shame. Villages that achieve ODF status receive monetary rewards and high publicity under a program called Nirmal Gram Puraskar. In the 12 th Plan an outlay of Rs. 34,377 crores ( 4,911 million) has been provided for rural sanitation as compared to Rs. 6,540 crores ( 934 million) in the 11 th Plan, which is a significantly higher allocation (425% higher than the 11 th Plan). The goal is to achieve 100% access to sanitation for all rural households in the Country by 2022 under the NBA. Also as per 12 th Plan objectives of NBA, 50% of all the Gram Panchayats are to become Nirmal Grams by 2017. The NBA is currently being implemented in 607 rural districts across the country. NBA envisages covering the entire community for saturated outcomes with a view to create Nirmal Gram Panchayats. Under NBA, following steps have been taken: 1. A shift from motivating individual household toilet construction to covering whole communities in a Gram Panchayat saturation mode for holistic sanitation outcomes. 2. The scope of providing incentives for individual household latrine units has been widened to cover all APL (Above Povery Line) households who belong to SCs, STs, small and marginal farmers, landless labourers with homesteads, physically challenged and women headed households along-with all BPL households. 3. Financial incentive for construction of toilets has been raised for all eligible beneficiaries to Rs. 4600/- from the earlier amount of Rs 3200/-.under NBA. 4. In addition upto Rs. 4500/- can be spent under Mahatma Gandhi National Rural Employment Guarantee Scheme for construction of the toilet. 5. Along-with beneficiary contribution of Rs. 900/-, the total amount of Rs. 10000/- is now available for construction of toilets, which in the case of hilly and difficult areas is Rs. 10500/-. 6. More emphasis on Information Education Communication (IEC) by earmarking 15% of the total outlay of district projects for IEC activities. 7. With a view to give thrust to a new approach towards IEC, the Ministry has launched a Communication and Advocacy Strategy (2012-2017). 8. Conjoint approach with National Rural Drinking Water Programme(NRDWP) to ensure water availability for sanitation in Gram Panchayats. 9. Focused convergence of rural sanitation with associated Ministries including Health, School Education, Women and Child Development with NBA. 26 P a g e

4. Programme implementation adjustment- a valuable lesson learned In the month of July 2011, PIT members alerted the FINISH project office in Delhi and WASTE about implementation issues with two of the then 7 partners. Cross checking by the Institute of Social Sciences, Delhi revealed that in one case, there was a big discrepancy between the data reported by the partner and their samples. In case of the other partner, through a field visit of one of our academic partners, the same issue was reported too. Thus this warranted a large scale survey to verify and cross check the reported numbers of our partners. In both cases this difference was confirmed. It turned out to be a significant difference in their reported figures and in the monitored figures. In both cases internal monitoring and control systems were less stringent then they should be. Post reconciliation, after adjusting BISWA and BWDC figures for 2011-2012 are 25,237 safe sanitation systems instead of the reported 99,248. The actual loan amount was downscaled from INR 68,267,687 instead of the earlier reported INR 425,993,342. The process We opted for a system of partner reporting and data verification by an independent third party surveyor, the Institute for Social Sciences, Delhi. In theory this looked fool-proof. Partners needed to pass a thorough due diligence process (a modified version of DGIS Coca list was included) before joining FINISH as implementing partner. The entire process was available on line and contains a number of checks and balances (including submission of the audited annual reports of the last 3 years). We thus assumed that partners would report truthfully and this would be verified independently by a third party. This low cost verification system worked well for the first two years as only minor discrepancies were reported and these were mainly due to unclear village and GP boundaries that sometimes shifted too. In 2011 it still worked well for 5 of our 7 partners, alas also in 2011 in case of 2 main implementation partners incorrect data were fed to the PMB and this was not discovered in a timely manner by the independent agency. This also meant that the incorrect data found its way to the 2011 Annual Report. Response In the case of BISWA because of its size a large scale survey was conducted to verify its reported data against the data reported by ISS. The survey conducted under auspices of a professor of UNU showed that the data reported by ISS was indeed quite different form BISWA s data, but also different form its own survey. BISWA then responded with sending an auditor who came up with yet another number. Two senior PMB members visited BISWA and its area of operation and di a completely random sampling. Their report was initially disputed by BISWA, but in early 2012 in the PMB meeting in Nagpur, it was found to be an acceptable basis for coming to a satisfactory conclusion. In 2012 after presenting the Annual Report 2011 - the entire episode concluded with BISWA resigning as PMB member, as FINISH partner 2 and agreeing to the lower figure as reported above. 2 All the more remarkable as BISWA was one of the founding partners of FINISH and had committed itself to 500,000 sanitation systems supported through micro finance. 27 P a g e