-l,U -

I ~~~~~~~24867

qz v:- larestcit i Inia.ThJuly 1999

Vl L d'tdara duder a ra is 91 the thrd argest 2 . k

Guaa -ci.t uemlymn in Guaroatran the , r '-Rt. "

. g , - ....... populaion of them ity,yas ie thepulc sto w h e - s.B|rtY! over 501991rcensus wasrked mlion. the l

~~~~~It ffI 1.7- milion. Acrinlage prto athed Y, :, ; ., . <1. . ;Assessment Svioltud ofworki Vadodara (n .5 s

I~~~~~~~~, *., lea:,1!

_ro1rau Inpoymen t nn V Baodar a waX :11 - i s l yo

Southin AsT regon-

Vadodara, adodar50 praen iske the thidlrest>

Gularat c~~~~Oity in Guarg prat and the 1tlargesticityofwr in Inddia ra The

]L E Study~~'Frmrl fno rn Vadaodara:.!

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From a slumpopulation of GroWth of Vadodurna Shims49,950 in 1972,today there are Year No. of No. of Population Average Percentage of

there are ~~~~~~Slums Families Family Size City Slum

257,1 95 persons Population

residing in slumsin' various par, of 1972 192 11,130 49,950 4.49 10.4%-i,n,.va,rvious parts of , 1982 210 21,292 94,700 4.45 12.8%

Vadodaraln o'ther . 1992 336 50,338 225,200 4.50 22.0%1996 336 51,439 257,195 5.00 19.4%

words theslum-population has,increased five industrial center), the city has seen maximum number of slums - 94 out of

times. duririg the heavy migration from mostly rural, but a total of 336 in the entire city. Lack of

la'st two.decades.. also urban, areas, resulting in slums proper drainage facilities, paved roads

mushrooming throughout the city. and sanitation facilities have adversely

These slums are mostly situated on affected the quality of life of people

topographically disadvantageous sites living in slums.

or on marginal lands. From a slum The sub-human living conditions in

population of 49,950 in 1972, today the slums negatively impact women

and children the most, in terms of

negative health effects, increased

school drop-out rates and hours spent

in meeting basic survival needs such as

collection of drinking water.

With the concurrent growth of slums

and a rising population, the local

.Municipal Corporation has been

unable to meet the increased demand

resn ifor infrastructure services due to a

.B. ' ,'' r' r ' '71. city.Ivariety of factors, including limited

financial and managerial capabilities.

sclodea Citfizens (gouDn(g -

the Ojcgenizauion

DevelopmentT he tsBaroda Citizens Council was

there are over 257,195 persons established in 1 966 as a voluntary,

residing in slums in various parts of the non-profit, secular development

city. In other words, the slum organization. It was a unique

population has increased five times partnership of industry (Gujarat

during the last two decades. The Federaition of Mills and Industries), an

increase in industrial and commercial academic institution (MS University,

activities in the city has resulted in an Baroda) and the urban local body

A.. increase in migration and hence in the (Baroda Municipal Corporation)., .. ~~~growth of slums. Fifty-two percent of The Council's main objective is to

"Ward Number 9's population lives in improve the quality of life of the urban

slums. This ward also has the poor by initiating and facilitating

2

community development in the areas persons, economic programs (includingof education, health, vocational skills training and a savings and credittraining, infrastructure and shelter association) and various communityupgradation programs. initiatives such as solid waste

Baroda Citizens Council has worked management, slum upgradation,with 13,000 families involving a community leadership trainingpopulation of 50,000 people in programs and so forth.43 slums. The slums targeted by theCouncil are organized into 1 5 clusters The Evolution of thethroughout Vadodara. Savings and Credit

Program Initiated byAims and Objectives the Council

As an organization, the BarodaCitizens Council's aim has been to Very soon after Baroda Citizenspromote community development. Council was established and began itsTwo essential elements of this type of developmental work in the slums ofdevelopment are: Vadodara, it realized that inadequate* participation by the community in access to financial credit was a majorefforts to improve its standard of living constraint for the slum dwellers. Inwith as much reliance as possible on its 1971, the Council began encouraging am vebry excited

about theown initiatives; and the formation of savings cooperatives incorporation and* provision of technical, managerial in slum pockets throughout Vadodara. growth ofand other services in order to The objective of these cooperatives was STHAPATI Creditencourage self-help initiatives and to inculcate a regular savings habit in Ltd. In the last twoguided change. order to reduce exploitation by years we

Baroda Citizens Council's vast moneylenders. have beenexperience has led to the belief that In 1989, the slum dwellers formally concentratingsocial improvement does not come set up the 'Community Savings and greatly on thisabout until the people involved believe Loan Association' with the technical activity, asthat improvement is possible. Thus, assistance of the Baroda Citizens economicalong with the provision of directed Council. The Association had 600 empowerment isprograms in the traditional sense, the members in 30 slums of Vadodara in the key toCouncil lays great emphasis on 1989. It began by giving small loans of development.Demand for creditleadership training for members of Rs 500 funded by rotating members' high tha we-is, so high that wepoor communities so that in time they savings for various purposes, including have begunare able to help themselves and their education, income generation and exploring outsidelocal communities. hospitalization. sources of bulk

In practice, the Council's aim, that One of the main objectives of the institutional creditof providing information and services Baroda Citizens Council is to help build to&meet this-through its community development the capacity of its members and make demand from ourr,workers, has been ongoing to them self-reliant. As such, the members. W-stimulate comprehensive development. Community Savings and LoanBaroda Citizens Council's programs Association regularly organizes Sweta Trivedi

Depu'ty Directorinclude the provision of formal and leadership and financial skills training Baroda Citizensnon-formal education, primary health programs for its members, so that they Council and STHAPATIcare, special focus on disabled are able to manage their day-to-day Credit Ltd

3

STHAPATI Credit Ltd -xts,,, j 9,, Distribution of Loans by Puapose Infrastructure

A 1i998=99) (Ramdevnagar) Education':.' .,',, wnt, ' , I ~~~~~~~~~~5%

Purpose ,Hospitalization. ' I8 5| ); i Proe| Amount Number Percentage 6 X

¼ , , ,Ps; ,> j+,- '. 5 ' Shelter improve-,i ,,z ,,'.. .7- Lment (including 15%

infrastructure) 19.8 million . 5,651 73%.. , C . . | IY J 1 Income generation 4 million 1,105 15%

Infrastructure,r . (Ramdevnagar) 1 1.7 million 542 5%

Hospitalization .1.66 million- 575 6%,X zlfei-/,.'; t 9rlShEducation 0.143 mililmprovement

* * t ( i }; < ' Total 27.3 rnillion 7,903 100% 73%

'r•Z ' .t -. <' ̂ affairs independently. STHAPATI Credit Ltd -94>-,91 ul>hxl ,. '.), '- -.+ ' A significant development took place Facts and Figures2

'' ,'''; '/ u,'' .."....'-xœt " j'." s in 1998, when the Association was

\1 .;"e'¾ii<l,' ,i }, m formally incorporated as a separate 0 STHAPATI Credit Ltd has*; :R;.';¢\>t;,., .'.k;: 2-, /. . f . +$>> v . 9:i 'legal entity and registered as STHAPATI 7,311 members, of which 60 percent

Credit Ltd, with an Authorized Share are women.

9 AThe averag>1Ioan -t ^ elCapital of Rs 1,500,000 and Issued 0 STHAPATI provides an efficient} . . riepaymentgrate fr,om . :. . . Share Capital of Rs 854,770. mechanism for rotation of the^ Jmiei$mbers" to T r - Thus the former Community Savings members' own savings in order to

I' STHAPATi, Cre;ditlLtd" ; ', and Loan Association was transformed provide credit for the following

-,-- 4s-95 percentJ - into STHAPATI Credit Ltd, a formal purposes:

I '''<>?;W 9 "< . . 2 ,', corporate entity. O house repair and infrastructure;0 income generation orr~~~~ ~ 2 ,I, >i- I< , }_, skills training;

- * 1 a!st;, ' . f 0 .................... ~>. a t - -i-: i \........................... hospitalization;0) education; and

./ ' '-i' . 7 .3 0 infrastructure!,1 I -itW ~ <; - 9 * -- 2 . ! . *~ r; 'upgradation (Ramdevnagar

*'r' v i;. -; -- slum upgradation project).0 Maximum loan amount

fT ~~~~~~~per member is currentlyfj ~~~~~~~~~~~Rs 7,500 per loan.

0 Since the Association's

_ ~~~~~~~~~~inception in 1989,

Rs 27.5 million have

! <1 been disbursed in

the form of loans to

ILP r IV:"d 7,903 members.0 The average loan

repayment rate from

st 1 = - ¢ 1 j_& 3t ; 2As on March 31, 1999.

7, ' S, AQ _ vIN. 14,,- _-4 Z 'p4' , ',,s7v K

million. This isSTHAPATI Credit Ltd rellved.andion-

(As on Mfarch 31, 1999b) revolved and on-lent in the form of

30 - 27.5 million loans.

25 - 0 No collateral is

o 20 19.9 million required for aCoi 0Xloan, but two

z 15 - guarantors fromthe community or

10 - 8.604 million .. 7.6 million from any. 1.3 million STHAPATI

; . . i / ~~~(Loan default; -.".-. write-off) shareholders are

0- 1. La ealTotal Total Loans Loans Outstanding required for a

Savings Distributed Recovered Loans loan to be

sanctioned.members to STHAPATI Credit Ltd is * The loan repayment terms and95 percent. However, there are often instalment amounts are fixed bydelays (35 percent) in loan repayments STHAPATI. The maximum loanbeyond the repayment due date. This repayment period is 24 months.late repayment aspect is currently 0 Area leaders and communitybeing closely

monitored by STHAPATI STHAPATI Credit Ltd Loan Process Map: fromin order to reduce it. Loan Application to Release* The interest rate on

savings is 6 percent, n rm oca communtyBecome a member of SCL by Elgibet apply fr loan ater oganizer/area leader/communitywhile the interest rate buying share capital of Rs 20 saving regularly for at least volunteer about need for loan

adsaving regularly six months /and completecharged on loans is 12 loanapplicationform

percent. The 6 percent

interest spread is usedby STHAPATI to pay for en mont pro

staff and administrative of J

expenses.

* The only source offunds currently commiteefsloannee

available to STHAPATI thenloanisgranted,sanction

for on-lending in the

form of loans are the

members' own savings.Ninety percent of the b 'sa

total savings collected

in each area are on-

lent in the form ofloans to members. urse ecks an

directly tTom STHAPATI s ares owned by l ae.Sanclions* Total savings Head Office to loanee, the loan appliration

\ every t 5 days /and Galculates total interest and

deposited by members \=

since 1989 is Rs 8.604

5

Organizational Structure of Baroda Citizens CouncilChairman

A ,IBoard of Directors (6) 1Chartered Committee Leader - Executive Director Deputy Director Committee Leader - TreasurerAccountant Community Community

IArea-level

Committees Paid Staff of Supervisors ofSTHAPATI Credit Ltd Baroda Citizens Council (6)

Senior Officer/Accountant Community Organizersl (20)

Accountants Data Entry 4Assistant Operator

Paid Volunteers/ Community CommitteesMultipurpose Workers (20) and Leaders (100)

members meet on a monthly basis to workers of Baroda Citizens Council

discuss loan sanctions. The community perform a range of tasks including

has full autonomy over all loan health- and education-related service

decisions. provisions as well as savings and

credit-related functions. Loan

STHAPATI: Loan repayment and savings collection is

Eligibility Criteria only one of their many responsibilities.The rationale behind developing an

* Need to save regularly for a.' -

period of six months to one year

before becoming eligible to apply

for a loan. (Average savings amount

is Rs 100 to 200 per month,

depending upon the members'

capacity to save).

* Ten percent of loan amount has

to be invested in the form of shares

in STHAPATI Credit Ltd. / V

*Can apply for a loan totaling five

times a member's savings account

balance, subject to a maximum of

Rs 7,500 per loan.

STHAPATI Credit Ltd is in the

process of recruiting additional

specialized staff in order to expand

its savings and credit activities and w ,, - , -... _'

meet formal reporting requirements. . * .

Currently, multipurpose field

6

them in improved access to (Baroda Citizenswater and sanitation services. Cuclde o

The stimulus for provision of Council does notwater supply and sanitationcomny olscame about when the Council are a sustainablebegan its health program in the answer toslums of Vadodara and realized sanitationthat improved health could only improvement. Ourbe achieved with improved experience showssanitation and clean drinking that maintenancewater. The slums were of community

i*i -__ i completely lacking in terms of toilets is very poorphysical infrastructure. People due to lack of

independent team for STHAPATI Credit were squatting on any available open ownership. Thus,Ltd is two-fold: space in place of toilets and access the Council only1. Since STHAPATI Credit Ltd was to clean drinking water was virtually provision ofincorporated, better management non-existent. indvidual oisinformation systems are being put in The Council's water supply andplace with online computerization of sanitation program began in Ranjit Jaiswal,data. This requires increased collaboration with UNICEF through the Low-cost Sanitationmanpower at the Head Office. provision of individual toilets and In-charge2. Following a thorough review of the handpumps for community use. Councilloan repayment monitoring system, Although UNICEF provided part of theSTHAPATI Credit Ltd is concentrating cost of toilets and handpumps, aon improved loan repayments by significant proportion of the cost ofreducing delayed payments (from their obtaining and installing them wascurrent high level of 35 percent) as borne by the slum dwellers themselves.well as minimizing loan defaults. This Initially, they did not have access to anyincreased monitoring requires both source of credit to help pay these costsadditional field workers and and had to meet the costs from theircommunity leaders. own resources. After the Community

Savings and Loan Association began itsFacilitating Provision operations in 1989, loans to facilitateof Improved Water the provision of infrastructureand Sanitation - the increasingly became available to theseCouncil's Experience poor communities.

Funding toilets: Baroda CitizensThe Baroda Citizens Council's Council began providing 20 to 25

involvement in the water and percent subsidy since 1 985 forsanitation sector dates back to 1985, individual toilets by linking up withfour years prior to the establishment of donor or state government-aidedits savings and credit activity through programs. Individuals contributed thethe Community Savings and Loan balance 75 to 80 percent of the cost ofAssociation in 1 989. Thus, even before the toilet, initially from their ownloans for infrastructure were available resources and subsequently throughto slum dwellers, the Council aided loans (of approximately Rs 2,500)

7

Drinking water:

- . . .; The main sources of

drinking water= ~~~~~~~~avai'lable in the slums

of Vadodara are:* handpumps (mostly

in Interior slumpockets);

0 water standposts

X ; ." t a 9 (provided by theCorporation) available

e | -. 1 lLi { i, tfor two to three hoursE - Xi =, ' %, per day for 15 to 25

-' households to share);~~ ~and

-7 *piped water fromCorporation mains for

individual houses. This

from the Association if needed. may only be applied for if the residentProcess: Due to the lack of main has legal title to her house. Ninety

sewerage networks within the slums of percent of the slums in Vadodara are

Vadodara, the Council mostly helped illegal, so this source is out of reach

build individual low-cost water seal for most.

pour-flush single-pit latrines in the The Council implemented a UNICEF

slums. Baroda Citizens Council program in the early 1 990s for the

sanitation engineers trained a guild of provision and maintenance of

masons who built the necessary handpumps.

latrines. They worked with community Funding: The cost of the hardware,

groups who contributed their unskilled which included the handpump

labor in the construction process, while (Rs 3,000) was donated by UNICEF

the Council provided technical through the Council. However, the cost

supervision. of installation, including boring and

All the toilets built were for labor charges (Rs 8,000) was fully met

individual use. Thus maintenance is not by the community. One handpump

a problem as they are owner- serviced 30 families. Thus, the cost was

maintained. The Council's field divided amongst them and each family

workers provide individual training to contributed Rs 250 to 300 each. This

owners in both the use of and was usually paid out of their own

maintenance of toilets. savings, although they had access to

Achievements (between 1985-98): loans from the Association, if required.

* 2,685 toilets built in 14 slum areas Process: The Council did not just

(90 percent single-pit; 10 percent aid in the installation of the

twin-pit). handpumps but, more importantly,

* 1 92 soak pits built in slums provided a complete tool kit with each

(90 percent traditional style; 10 percent pump for its maintenance. Community

scientific filtration method). members were trained in day-to-day .

8

maintenance and repairs from 10 slumareas; they became the official 1989-1999: Quantum ofmaintenance persons of all Loan Disbursed forhandpumps In those slums (including Improved Water Supplythose provided by the Vadodara and Santatiton byMunicipal Council) and subsequently

. . ~~~~~~House repair loans: Rs 19.8conducted training programs onhandpump maintenance to other million (70 percent of total loansmembers of Baroda Citizens Council. disbursed), of which loans for

Achievements: water supply and sanitation are

* 76 handpumps installed in 10 slums. estimated to be Rs 6 million@ 76 toolkits disbursed for operations (approximately 30 percent of totaland maintenance. house repair loans disbursed).* 15 women and 60 men trained inhandpump maintenance, covering 10 of total loans given in the 'Shelterslums. Upgradation' category are used for* Ongoing training on handpump and installation of toilets, handpumps,jetpump installation and maintenance. soak-pits and community drainage

The role of credit linkages through facilities. This translates into a cashSTHAPATI Credit Ltd in the provision of disbursal value of approximatelytoilets and handpumps has been fairly Rs 6 million3.limited so far. The demand for creditfor communal water supply has been Individual Initiativeslimited even when it is available. This isbecause the individual cash STHAPATI Credit Ltd has recentlycontributions to be paid by the begun giving loans for the installationcommunity are relatively small and of 'jetpumps' which can provideoften required in a non-cash form, that drinking water to 40-60 families. Their The staff ofis, in terms of unskilled labor. biggest advantage is that they operate STHAPATI Credit

The staff of STHAPATI Credit Ltd on electricity as opposed to manual Ltd estimate thatestimate that approximately 30 percent labor. approximately

Members treat the 30 percent of totalinstallation of loans given in the

ii -- /< * jetpumps as both a 'Shelter. .~~~~~ ~source of income Up gradation'

I' .- .~~~~~~~~ jr" ~~~generation as well ascagoyre sd0 .4 a means to meet for installation of

- ... ', -. ~~~~~~~~their own drinking ties.~~ water requirements. hnpms okpits and

Approximately 60comntindividual loans (of drainage fcilities.

-=______________, . , This translates into

m Z I . 3Since the Commu- a cash disbursalLoan and ~value of- _ v .~~~~~~- : w ~~~~ nity Savings and vleo

Loan Association was approximatelyThe toolkit used for the operation and maintenance of handpumps set up in 1 989. Rs 6 million.

9

IL

Rs 7,500 each) have been taken from In the future, Baroda Citizens

STHAPATI to partially meet the Council plans to design a collective

installation cost (Rs 12,000-15,000) of loan product for the procurement and

a jetpump. The 'owners' then charge installation of jetpumps, so that

Rs 50 per month for water charges and community groups may jointlyprovide 40-60 families with individual own them.

access to half-an-hour of water per

day. The charges paid are used to Individual Initiativesrepay the initial capital cost of the Jai Bhavani Nagar, Vadodara:

jetpump (including repayment of the Individual toilets, collective

loan from STHAPATI Credit Ltd) and handpumps and underground

cover maintenance costs. The excess is gutter lines - facilitated through

deemed profit for the 'owner'. access to credit from STHAPATI= -U< -g ~, .~..,Credit Ltd: Jai Bhovani Nagar is a

sprawling slum housing 1,700

- c ; families on the 'wrong' side of the

railway tracks of Vadodara city.24 S.. c '4t4 Six hundred residents of Jai

Bhavani Nagar are members of

STHAPATI Credit Ltd.

Most (80 percent) of the women

living here work as part-time

domestic servants. They are also

4 a the main bread-winners, as themenfolk are largely unemployed.

Average monthly incomes

range from Rs 2,000 to 2,500 per

month for a family of four to six.

Most houses here are semi-pucca

l (mud and brick walls with

.. i asbestos roofl and contain

two rooms.

10

Current water supply and along with training and facilitation of asanitation status: 'Maintenance Committee' for ongoing

* 50 percent of families have operation and maintenance of theindividual toilets. handpumps.

* 50 percent of families use

neighboring pond and outlying areas. Collective Initiative* One pocket of 50 houses has an

underground gutter line. The The Story of Ramdevnagar:remaining slum dwellers have Community, Donor, NGO,constructed single flush-pit latrines. Savings and Credit Association* 80 handpumps and 25 water and Munikipality Workstandposts (water available five hours in Partnership for Slumper day) to provide all the water Upgradationrequirements for 1,700 families.

Ramdevnagar - BeforeRole of Credit through * Six to eight hours spent by womenSTHAPATI Credit Ltd for per day in water collection.

Water Supply and Sanitation * Regular fights within the communityProvision in Jai Bhavani Nagar over water collection.

STHAPATI Credit Ltd has provided * Four standposts and twoindividual loans for the following in Jai handpumps to service the waterBhavani Nagar: needs of 829 families.

* Loans of Rs 2,000 to Rs 5,000 each 0 Although most residents managedto build 200 single-pit latrines, built by to have a bath once a day, there wasthe community following training and not enough water to adequately washsupervision by the Council. clothes or surroundings.

* Loans of Rs 2,000 each to * Frequent outbursts of cholera,

50 families to build an underground malaria, diarrhoea and various skingutter line; technical supervision diseases.

provided by the Council; labor 0 No outlet for dirty water due to lackcontributed by the community. of drains; disposed outside each* Loans for five handpumps to house, allowing mosquitoes to breed

community groups; the Council has and spread disease.also provided a maintenance toolkit 0 No latrines. Entire community used

common open area

sw s ,-El adjoining a pondbehind the slum.0 No centralized

collection of garbage -05 7 ~~~~~~~~~emptied into the

pond behind4 S4iE. - - . ..-...-^ Ramdevnagar.

. 100 percent't S ' =individual electricity

-- :;=:F;. _ t9 i - , . connection albeit'illegal'.

(water available for two hours

every day); most households have

also built individual storage water

* individual toilets attached to

main, underground sewer line;

* underground drainage;

I S~~~~ average body weight of womenresidents has increased;

* better health for all; dramatic

90 percent reduction in serious

disease (figure provided by the

Council's Primary Health Center

based in Ramdevnagar);

* no cases of malaria registered

in 1998; and

. .N .. -0 an increase in income due to

,..t longer hours available for income

~'generation activities. Sixty percentof women are now working

(otly domestic servants).

Project Aim

Baroda Citizens Council

initiated the Ramdevnagar project

0 Interconnecting roads were kuchcha, in order to prove its belief that slum

made of mud. No drainage or dwellers are willing to contribute both

* Average body sanitation facilities. physically and financially towards their

weight of women * Annual flooding of pond during own development, provided

residents has monsoons made Ramdevnagar virtually appropriate financial and institutional

increased; inaccessible for two to three months mechanisms are set up to stimulate

* Better health for every year. self-help.

all; dramatic 90 The transformation of Ramdevnagar

percent reduction Ramdevnagar - After slum and success of the project clearly

in serious disease; Each participant household in the dispels the myth that poor communities

* No cases of slum upgradation project now has: are not willing to contribute towards

malaria registered * individual piped water connection their own development.in 1998;* Increase inincome due to Ramdevnagar: Socio-economic Profilelonger hoursaaloger hours Total number of households: 829 Main occupation: Domestic helpers,available for Location: Behind Gatri lake in western small business or service provisionincome generation Vadodara Average family size: Five members

activities; sixty Monthly average family income: Literacy rate: 70 percent male

percent of women Rs 2,000 to Rs 2,500 50 percent female

are now working.12

Process: The Ramdevnagar Project program. Even throughout projectwas initiated by the Council in implementation, there was regularresponse to a presentation by architect sharing of progress reports along withHimanshu Parikh, showcasing the slum monitoring the inputs provided by theupgradation project undertaken in community. Another policy-levelIndore. The concept involved working decision taken by the Council inin partnership with different institutions conjunction with community leaders- both financial and technical in order was that the physical implementationto achieve on-site infrastructure work would be contracted out viadevelopment in a slum. However, the tender to the lowest bidder. It wasCouncil made the decision to include a agreed at the outset that instead ofhigh degree of community involvement municipal engineers, local contractorsfrom the outset. To this end, right from in partnership with communitythe inception of the project the Council members would undertake the physicalstaff at both the head office and field upgradation of the slum. It was felt thatlevel, held numerous regular meetings this system would allow for greaterwith community leaders and groups of community participation, accountability Slum dwellers areresidents regarding the proposed to residents and increased efficiency. willing to

contribute bothphysically and

e hantaben, a resident of Ramdevnagar, has a home tailoring business. She hadSpreviously taken a loan from STHAPATI Credit Ltd to purchase a sewing machine, hironbut was finding it difficult to meet her repayments despite a high demand forstitched garments. development,

The reason was her own tiredness and lack of time. All her time was spent in providedwater collection and completion of household chores. In addition, she was often sick, appropriateresulting in lost workdays. financial and

Shantaben was earning about Rs 500 per month. Following the slum upgradation istt-nprogram in Ramdevnagar, Shantaben now finds that she has much more time for her mehaismsbusiness. She even has the luxury of getting up at 7 am, instead of the usual 4.30 mechanismsam, and has not suffered from any serious illnesses recently. Currently, Shantaben's are set up toearnings from her tailoring business have doubled to Rs 1,000 per month. stimulate

self-help.13

-l Baroda Citizes *The Corporation's role would be to project was initiated in May 1 994;

Council is our provide connections with the city physical work was expected to start bymother and father. mains, provide its share of cash January 1 996 and be completedWe would never contribution to the project and give during that year. The current status ishave agreed to technical advice when requested. that while most of the work wasthis slum It is interesting to note that from the completed in early 1 999, the cementedupgradation beginning the slum dwellers were approach road is yet to be completed.project without the happy to contribute a significant Completion date is set for August 31,Council. We don't amount of the capital cost of 1 999. There are four main reasons forhave that much infrastructure, as long as they were the substantial delay:trust in the assured of a high level of service 0 Heavy annual monsoons lasting upVadodara provision with tangible benefits. Initial to five months caused delays andMunicipal skepticism from the community stoppage in physical work.

Corporation as we revolved around whether 0 Lack of adequate cash contributiondon't know them - implementation would really take place from all community residents within

disappeared with as promised, but the presence of the initial timeframe.Our hard-earned Council as coordinator helped dispel * Delay due to learning curve - themoney? that fear. upgradation was a new experience for

all the partners involved.Chandrikaben Why Ramdevnagar? * State government delayed grant of aInfrastructure 'no objection certificate' to the

Resident of * A technical survey was undertaken residents of Ramdevnogar, which inRamdevnagar by Baroda Citizens Council engineers turn delayed the commencement of the

of proposed slums and Ramdevnagar project significantly. This permissionwas perceived to be technically best was crucial as the slum is situated onsuited to the laying down of piped government land and the residentswater, drainage and sewage lines. were anxious to obtain permanent land* Ramdevnagar was in particularly tenure status, prior to contributingdire need of infrastructure towards capital costs of infrastructure.improvement as it was very badly The Corporation has recently givenaffected during the monsoon season; written assurance of a minimum tenureone-third of the slum would get period of 10 years for all residents ofsubmerged every year. Ramdevnagar.* Both the Council and STHAPATI Initially, when the CouncilCredit Ltd were operating very communicated the proposed slumsuccessfully in the area through various upgradation program to residents ofdevelopment programs since 1989. Ramdevnagar, there was a highThe local community had a high degree of skepticism. However,degree of faith in the Council, which following a series of motivationalhad been involved in Ramdevnagar in area meetings followed up bythe areas of health education, skills individual home-to-home visits bytraining, development of local Council field workers and localleadership and community community leaders, pockets ofassociations, prior to the slum residents were convinced of theupgradation program. feasibility of the program. This

The Ramdevnagar upgradation encouraged others to join.

14

Services Provided byWih tthe Slum The Financial Contribution of Withoua,access" U,p radtHiSonPrefect Each of the Partners in to a,reIiabile,_ o -

* Cement approach road the Program chedi,frsource ofto slum. TarodaCitizensCouncil , riHAAT1 f -o ur* Concrete (pucca) inter- Other Donors , 3 HAPATI,weconnecting roads within 8%SBar)'VI pi ur, indvuathe slum. ~'cash. contributionsVadodara Municipal , Residents of I ,, ( c, I 1* Underground drainage Corporation Ramdevnagar , S fast 'Afe>,0 ny,

11 8Ikh) 45% (33 lakh) . I _and sewerage pipes. onliy save 'Rs 50-' -* Individual piped water :100perbmonth'- dsupply for every i

household. taken us three* Individual connection to i yearstosaveup ,. Jgutter line, for each toilet. LIMJiCU~~Lr~n .~

32% (24 lakh) ~ , contribution of -|

Financing Rs .,

in motivating 87 percent of the ' andatenUnique to this project is the residents to participate, with , ' Resident of

partnership between various 70 percent of the community's Ramdevnagarinstitutions, with overall project contribution fully paid up and !' 4 getable vendor)coordination provided by the Council. 1 7 percent about to completeEqually significant is the substantial payment. The Council, along with S. ,proportion of the community's own community leaders, are engaged in ,

contribution (45 percent) towards the ongoing dialogue with those that areupgradation of the physical yet to pay their cash contribution andinfrastructure. Coupled with this is-the are hopeful of eventually collecting ' '.high degree of self-motivation and 100 percent of the community's share.leadership input put in by a significantnumber of community leaders, Specific Role ofensuring the eventual success of the Microfinance throughproject. In short, there was wide STHAPATI Credit Ltd in the i ,jcommunity 'buy-in'. In any collective Ramdevnagar Upgradation | -l ,upgradation process, a high degree of Pilot Projectbuy-in, translated into payment by -

each family of their cash contribution The role of STHAPATI Credit Ltd wasamount is crucial for success, as crucial to the success of the . ;

,The,infrastructure upgradation is a Ramdevnagar project. [ transformation ofcollective good benefiting all residents. 664 loans were given to R ImThe program has so far been successful residents by STHAPATI Credit Ltd in ;3 J'ciarly,disj6ek ts -

order to meet their v inytfrthat;poor4. i,<* Original total cost projection: Rs 5 million individual cash ` comnfunities iare,* Revised total cost projection: Rs 7.7 million contributions. not,wilirigto* Contribution per household: Rs 3,500 Of the 829 residents of 'contribute towards

(originally projected to be Rs 2,500) Ramdevnagar, 664 families '' their ow,'are members of STHAPATI "X dev,elopme'nt`

1 5 K~ ,, } .. <w >\kXS.-s'}

4 , 4~~ I ,q,rke>Si-,

()We are currentlyaccessing loansfrom STHAPATI 7Credit Ltd for Ahousing purposes,although we wish that the maximumloan amount could op _.

be increased to _ ,Rs 15,000 and therepayment term textended to fiveyears. 22

Hansaben Credit Ltd and all of them have Ongoing MaintenanceResident of accessed loans of Rs 3,500 each in of Infrastructure

Ramdevnagar and order to meet their cash contribution. in Ramdevnagaraccount holder with Although 40 percent of these membersSTHAPATI Credit Ltd also have regular bank accounts in The community has collectively

nationalized banks throughout taken complete responsibility for

Vadodara, they have found it ongoing, on-site maintenance of

impossible to access loans from these services in Ramdevnagar. With the help

banks, despite several loan of Baroda Citizens Council, they have

applications. formed a formal 'maintenance'

A recent phenomenon has been a committee made up of local residents.

sharp upsurge in the demand for This committee will initiate and

housing upgradation loans from supervise future maintenance work.

residents of Ramdevnagar. With the Finances to meet maintenance costs

physical infrastructure work completed, will be collected through cash

residents now wish to construct their contributions from residents, whenever

own toilets, upgrade their walls from repairs are required.

kuchcha to pucca and put in

permanent roofs.

For more nbformation, please contact:

UNDP-World Bank Water and SanitationProgram - South Asia

55 Lodi Estate, New Delhi 110 003, IndiaTel: (91)-(0)11-4690488/9 Fax: (91)-(0)11-4628250

E-mail: wspsa@worldbank.org

Gujarat Mahila Housing SEWA Trust404, 4th Floor, Sakhar-IV, Opposite Town Hall, Ashram Road,

Ahmedabad 380 009, IndiaTel: (91)-(0)79-6581659 Fax: (91)-(0)79-5506446

E-mail: mahilahsg@?icenet.net

Degigned by Media Workshop and printed al PS Press Services Pst. Ltd. Erirail gdapress@bo net in