Project summary
– Since WASH SME loans are new for Chamroeun, a TA grant was provided in Q4 2021 to explore the market, confirm assumptions, and prepare to start on-lending.
– The TA study helped develop a [**WASH SME loan product**](https://aquaforall.sharepoint.com/sites/Projects/Shared%20Documents/PPP%20Making%20Water%20Count/Scale/210120SC%20Chamroeun/TA%20work%20recieved/202208(29%29-WASH-SME%20Loan_ENG.docx) dedicated towards the needs of **private water operators (PWOs)**. There are currently 400 PWOs in Cambodia that cover an estimated 40% of the population with piped water.
– The new WASH SME portfolio has a target of **20 Private Water Operators (PWO) within 2 years.** The intention is to lend around **$100K per PWO starting Q1 2023**, with loan tenors of up to 7 years.
– Oikocredit has provided Chamroeun a new loan facility of $3.5MN of which **$1MN (0.95MN EUR) will be earmarked for WASH** as a part of the partnership agreement with A4A. An **additional $1MN** **(0.95MN EUR) **of Chamroeun’s internal capital will also be leveraged to build this PWO portfolio.
– To complement the liquidity offering from Oikocredit, A4A is requested to provide **de-risking amount of USD 200K (190,000 EUR) in the form of an FLC** for the WASH SME portfolio of Chamroeun. The FLC provides an individual loan **coverage of 75%** (the balance 25% of losses are to be assumed by Chamroeun) accumulating individual coverages up to a limit of USD 200K.
– The social impact can be linked to the geographical presence PWOs who are mostly rural based. Further the transaction is additional as the PWOs are unable to access finance to scale their operations due to a lack of collateral.
- Countries:
- Cambodia
- Partners:
- Start date:
- 01-Feb-2023
- End date:
- 31-Dec-2024