1.2 Contact details of resource persons and institutions involved in the assessment and documentation of the Approach

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1.3 Conditions regarding the use of data documented through WOCAT

When were the data compiled (in the field)?

2010

The compiler and key resource person(s) accept the conditions regarding the use of data documented through WOCAT:

Yes

1.4 Reference(s) to Questionnaire(s) on SLM Technologies

2.1 Short description of the Approach

Provision of small scale loans for private households to ensure access to thermal insulation (in the frame of CACILM).

2.2 Detailed description of the Approach

Detailed description of the Approach:

Aims / objectives: In GBAO as in most parts of Tajikistan, natural resources such as firewood from riparian forests and teresken shrubs, remain the main source of fuel for heating and cooking. Due to poor insulation of local houses, and inefficient cooking stoves, much fuel is burned. The aim is to ensure access to energy efficient technologies through the provision of a micro loan 'Warm comfort' is one of the ways to improve house thermal insulation, reduce fire wood consumption, improve the living standards of residents and reduce pressure on the environment.

Methods: On the basis of financial and technical documentation prepared by field officers and clients MLO Madina made the decision to allocate up to US$500, (2.5% interest rate to be reimbursed within 12 months) to the project. The thermal insulation loan is given in kind and not in cash. The client receives all necessary materials and services for the value it has to reimburse in accordance with the micro loan contract and individual repayment schedule.

Stages of implementation: The process of a micro loan for thermal insulation consists of the following steps: 1) Meeting with the rural population and interviews; 2) information event on energy efficient products and micro loan; 3) Financial analysis to explain micro loans, procedures, household income and expenses analysis; 4) Technical analysis of potential houses to specify types of material needed, type of work, prepare outline of the house; 5) Decision by the MLO Committee to allocate loan; 6) Micro loan contract and work plan; 7) Preparation of thermal insulation works; 8) Implementation of thermal insulation works; 9) Reimbursement of micro loan

Role of stakeholders: The role of each participating stakeholder is indispensable to ensure a smooth flow for the whole process. The funding organisation assists the micro loan organisation with increasing its portfolio and provide loans for thermal insulation. The micro loan organisation develops the micro loan product for thermal insulation, it is responsible for monitoring and it is also part of the committee, which decides to allocate loans. Micro loan field officers in the villages provide financial information on households, which serves as basis for the committee to make the decision. They also regularly monitor the loan reimbursement. Agreement is established with suppliers of quality doors and windows, as well as suppliers of insulation materials such as cement, reflective foil, etc. to have a stable supply of required products. Qualified construction workers trained on thermal insulation install quality doors and windows, improve insulation of existing doors, windows, floors and ceilings. Recipients of the micro loan must show a willingness and an ability to repay the loan.

Other important information: Apart from thermal insulation measures, the micro loan is also available for other energy efficiency products such as: ram pumps, swimming pumps, rain water catchment systems, drip irrigation systems, winter heating and cooking stoves, summer cooking stoves.

2.3 Photos of the Approach

2.5 Country/ region/ locations where the Approach has been applied

2.6 Dates of initiation and termination of the Approach

2.7 Type of Approach

• project/ programme based

2.8 Main aims/ objectives of the Approach

The Approach focused mainly on other activities than SLM (Micro loan, thermal insulation)

The aim is to ensure easier access to micro loans in order to make it more affordable for the local households to improve their house thermal insulation, and thus reduce fire wood consumption, mitigate health risks, improve general well being and in the longer term, reduce pressure on the environment.

The SLM Approach addressed the following problems: Use of large amounts of firewood/teresken, thus depleting natural resources, to provide heat due to poor house insulation. Lack of sufficient finances to improve house insulation.

2.9 Conditions enabling or hindering implementation of the Technology/ Technologies applied under the Approach

3.1 Stakeholders involved in the Approach and their roles

3.2 Involvement of local land users/ local communities in the different phases of the Approach

	Involvement of local land users/ local communities	Specify who was involved and describe activities
initiation/ motivation	interactive	Household members take part in public meetings and awareness raising workshops
planning	interactive	Household members jointly with technical and financial specialists prepare a work plan for implementing the insulation works
implementation	passive
monitoring/ evaluation	interactive	The users and specialists assess the efficiency of the micro loan and its procedures
Research	none

3.4 Decision-making on the selection of SLM Technology/ Technologies

Specify who decided on the selection of the Technology/ Technologies to be implemented:

• SLM specialists alone

Explain:

Decisions on the method of implementing the SLM Technology were made by by SLM specialists alone (top-down)

4.1 Capacity building/ training

Was training provided to land users/ other stakeholders?

Yes

Specify who was trained:

• land users
• field staff/ advisers

• Craftsmen

Form of training:

• demonstration areas
• public meetings
• courses

Subjects covered:

Awareness raising among the local population on the reasons for, and the effects of bad insulation of houses. The advantages and disadvantages of thermal insulation. Information on existing funding opportunities for thermal insulation. Training of local craftsmen on thermal insulation technologies, and the production of quality and well-insulated doors and windows.

4.2 Advisory service

Do land users have access to an advisory service?

No

4.3 Institution strengthening (organizational development)

Have institutions been established or strengthened through the Approach?

• no

4.4 Monitoring and evaluation

Is monitoring and evaluation part of the Approach?

Yes

Comments:

no. of land users involved aspects were regular monitored by project staff through measurements; indicators: None

economic / production aspects were ad hoc monitored by project staff through measurements; indicators: None

economic / production aspects were regular monitored by land users through observations; indicators: None

technical aspects were regular monitored by project staff through measurements; indicators: None

technical aspects were regular monitored by land users through observations; indicators: None

management of Approach aspects were None monitored by project staff through measurements; indicators: None

There were few changes in the Approach as a result of monitoring and evaluation: Initially the micro loan was provided in cash directly to the households, but the results of monitoring showed that not the full amount of the loan was used for thermal insulation purposes. Therefore the MLO decided to allocate the loan for thermal insulation in kind; in the form of products and services, which proved to be more efficient.

There were few changes in the Technology as a result of monitoring and evaluation: Following ongoing discussions with craftsman and construction workers a follow-up seminar was conducted, where problems and possible changes were discussed in order to improve the quality of thermal insulation products. E.g. the roof hatch window had an opening, but it was not possible to open it from inside the room. As consequence every subsequent roof hatch window will have a lever connected to a string in order to open the window more easily.

4.5 Research

Was research part of the Approach?

No

5.1 Annual budget for the SLM component of the Approach

If precise annual budget is not known, indicate range:

• 2,000-10,000

Comments (e.g. main sources of funding/ major donors):

Approach costs were met by the following donors: local community / land user(s) (Micro loan borrower pays for insulation materials, construction, installation): 90.0%; private sector (MLO Madina offers technical and financial consultancy free of charge): 1.5%; international (GIZ grant for allocating micro loans ): 3.5%; other (Transportation ): 5.0%

5.2 Financial/ material support provided to land users

Did land users receive financial/ material support for implementing the Technology/ Technologies?

No

5.3 Subsidies for specific inputs (including labour)

• construction

Comments:

The micro loan fully covers the costs for purchasing doors, windows and insulation material as well as the installation. The transportation costs for delivering the products is paid separately in cash by the client.

5.4 Credit

Was credit provided under the Approach for SLM activities?

Yes

Specify conditions (interest rate, payback, etc.):

Interest rate charged: 30.0%; repayment conditions: Repayment should be completed within 12 months, with 1 month grace period allowed. This equates to a 2.5% interest rate per month..

Interest was lower than market rate.

Specify credit receivers:

Individual households receive credit to implement house thermal insulation

5.5 Other incentives or instruments

Were other incentives or instruments used to promote implementation of SLM Technologies?

No

6.1 Impacts of the Approach

6.2 Main motivation of land users to implement SLM

6.3 Sustainability of Approach activities

Can the land users sustain what has been implemented through the Approach (without external support)?

• yes

If yes, describe how:

Sustainability is guaranteed by incentives along the value chain and introduced market mechanisms

6.4 Strengths/ advantages of the Approach

Strengths/ advantages/ opportunities in the land user’s view
Improved knowledge on thermal insulation and micro loans
Access to thermal insulation
Reduced costs for fuel consumption

Strengths/ advantages/ opportunities in the compiler’s or other key resource person’s view
Less harm to the environment
There was control of the whole process to ensure efficiency
Improved living conditions
Financial source with low interest rate

6.5 Weaknesses/ disadvantages of the Approach and ways of overcoming them

Weaknesses/ disadvantages/ risks in the compiler’s or other key resource person’s view	How can they be overcome?
Some households still cannot afford the loan	Search for donor funding to establish a separate loan for the most poor
Whether MLO can sustain the interest rates without support coming from grants	The interests rates are still high, there could be a reduction in interest rate or the further payment holidays.
Costs for training and awareness raising	Initial investments as MLO cannot finance these activities

7.1 Methods/ sources of information

7.3 Links to relevant information which is available online

Title/ description:

Micro loans for thermal insulation: A product documentation based on the experience of Tajik Gorno Badakhshan, Andre Fabian, Heike Volkmer, Christoph Wiedemann, 2010

URL:

http://www.naturalresources-centralasia.org/assets/files/2010-09-15_product_documentation_thermal_insulation_FINAL_rus.pdf