Palli Karma Sahayak Foundation (PKSF), a government funding agency for Bangladeshan NGOs, has directed 32 of its partners to undertake special actions for microcredit borrowers affected by the cyclone Sidr that hit southwestern Bangladesh. The cyclone survivors are maintaining contact with the rest of the country via mobile phones powered by solar panels, which have been provided by Bangladeshan non-governmental organizations (NGOs) and microfinance institutions (MFIs).
PKSF was established in 1990 and is currently led by managing director Dr. Fakhruddin Ahmed. According to its 2006 annual report, it has total assets of Taka 24.4 billion (USD 355.7 million) and a debt to equity ratio of 256 percent.
PKSF’s partner organizations have suspended regular loan recovery, allowed their clients to freely withdraw their savings, and are using earnings from microcredit operations to provide relief supplies. PKSF has also created a special fund of Taka 500 million (USD 729,000) to provide long-term interest free loans for affected microcredit borrowers to reconstruct their homes.
Bangladeshan non-governmental organizations (NGOs) and microfinance institutions (MFIs) are also providing solar panels against a credit range of Taka 18,000 (USD 264) to Taka 64,000 (USD 881), whereas most solar panels cost between Taka 24,000 (USD 352) and Taka 30,000 (USD 440), according to an IDCOL official. Some of these organizations include: Grameen Shakti, a Grameen Bank company focused on rural renewable energy in Bangladesh; Bangladesh Rural Advancement Committee (BRAC) Foundation, the largest Bangladeshan development organization; and Coast Trust, a development NGO focused on the southern coastal areas of Bangladesh.
Since January 2003, fifteen non-governmental organizations (NGOs) and microfinance institutions (MFIs) have been helping to install more than 50,000 solar panels in the southwestern region of Bangladesh, all of which were financed by the Infrastructure Development Company Ltd (IDCOL). According to the Daily Star, even though many of the solar panels were destroyed in the cyclone, a good number of them are still operating to power the phone network that was resumed on Friday morning.
The IDCOL is a private sector company created by the Bangladeshan government with the help of the World Bank, an international development institutions, to finance infrastructure and renewable energy projects. It is led by CEO Mr. M Ehsanul Haque. Thus far, it has contributed Taka 200 crore (USD 30 million) in loans and Taka 60 crore (USD 8 million) in grant for the installation of the 160,000 solar panels throughout Bangladesh.
By Mary Fu
Additional Resources
Microfinance Gateway: “MFIs Provide Cell Phones & Solar Panels, Aid Restoration Efforts in Cyclone-hit Bangladesh”
Palli Karma-Sahayak Foundation (PKSF): “Instant actions by PKSF to help cyclone affected microcredit borrowers”
PKSF: 2006 Annual Report – Financial Highlights
Bloomberg: Currency Converter
Daily Star: “Cellphone, solar panel saved many lives”
Grameen Shakti: About
Grameen Bank: Home
BRAC Foundation: History
Coast Trust: About
IDCOL: About
World Bank: About
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