APRACA Newsbits, July -August 2010

Bay, Laguna and Manila- APRACA Secretary General Pays Visit to Philippine members

Mr. Won-Sik Noh, APRACA Secretary General, on his first travel outside Thailand, made a courtesy call on key officers of CARD MRI in Bay, Laguna on August 16 and 17, in tandem with his joining the Mongolian participants’ visit to the MFI. He also paid a visit on August 18 to CENTRAB President and ACPC Executive Director Jovita Corpuz, CENTRAB Managing Director Eduardo Garcia and several other APRACA members. During a luncheon meeting, Ms. Corpuz welcomed the new APRACA secretary General. She said that APRACA should establish mid long-term strategic plan for its efficient activities. Mr. Noh expressed his Appreciation for the hospitality given to him by the Philippine members. The Secretary General likewise made a courtesy call on Mr. Wilfredo Maldia during his brief visit to the Land Bank of the Philippines.

Attapeu, Lao PDR- FinPower to replicate Nepal microhydro system

The IFAD-supported APRACA FinPower Program is set to plant the seeds for replicating the microhydro system of the Alternative Energy Promotion Center (AEPC) of Nepal in the project site of the IFAD Rural Livelihood Improvement Program (RLIP) in Attapeu on September 10-16.

A microhydro system is a complete system of various components of a microhydropower project that is required for the end-user to get energy (electricity) services. The microhydro system components include a diversion structure, canals/waterway for water conveyance, a forebay, penstocks pipes, a power house, tailrace canals, overflow/spillways and transmission/distribution systems.

Simply, the water from the stream is channeled thru a simple intake (to regulate water) into the conveyance canal (normally open channel) up to the forebay basin. The forebay basin is located upstream of the power house from where the water enters into the penstocks (generally steel pipes) for pressure flow to eventually hit the turbine blades. The mechanical power thus produced is converted into electric power through the use of generators, which is connected to the turbine shaft either directly or with the use of belts. Unlike in large hydropower systems, the flow is not regulated as per consumption of power but is constant. Thus the load is regulated with the use of electronic load controllers. When there is less power utilization in the villages, in that case the unused power is dumped in the ballast tanks that houses electric heaters. The generated power is transmitted to the villages through a transmission/distribution system consisting of electric poles, wires and related accessories.

FinPower has commissioned Dr. Narayan Chaulagain, Executive Director of AEPC and Mr. T. Devkota Deputy Programme Manager and Senior Rural Energy Systems Development Advisor, Rural Energy Development Programme of Nepal to help in the preparation for a replication of the microhydro power and the corresponding method for financing the system.

The implementation of the MH system shall start with the felt need from the beneficiaries for power that leads to the pre-feasibility study of the system followed by detail feasibility study if the project is to be implemented. Desirably, the initiation of the community mobilization process would be ideal to roll on at this stage to have active participation from the beneficiary communities. The detail feasibility study report once prepared, allows the community people to jump start the field implementation of the project like canal construction, place order for various electro-hydro-mechanical equipment and their subsequent installation and the eventual commissioning of the scheme. The microhydro plant operators and managers need to undergo some kind of training, ideally beforehand but this could be also done on-the-job.

Attapeu Provincial Vice-Governor Khenethong Sisouvong and RLIP Attapeu Project Director Soulichanh Phonekeo, Head, voiced optimism that the microhydro project will help uplift the lives of the mountain people of Attapeu.

Bay, Laguna and Manila- CARD MRI and LandBank showcase innovations in financial inclusion

The IFAD-supported APRACA FinPower Program invited five Mongolian participants from the IFAD Rural Poverty Reduction Program, XacBank and the Mongolian Cooperaors’ Association to observe and conduct dialogue in Manila and outlying provinces on August 16- 20 with the CARD MRI, a dynamic Philippine microfinance institution, and LandBank, a specialized government bank for countryside development.

The CARD MRI leg began with a brief orientation by Dr. Enrique Navarro, CMDI Institute Director on CARD MRI: its mission and objectives, its accomplishments to date, plans, program management, organizational structure. Dr. Navarro provided highlights of its MFI operations, including area selection, client selection, recruitment and client training, weekly center meetings, loan products, savings products. He also briefed on the functions of the CARD Business Development Services Foundation, Inc.

The participants visited selected CARD MRI client groups, selected microbusinesses and a CARD Rural Bank Branch. The Bank branch manager provided a branch update and data on its manpower, duties and responsibilities, daily activities, plans and targets. The CARD MRI leg ended with a planning session to synthesize the lessons learned and discuss possible areas to be replicated in Mongolia in due course.

On the second half, the Mongolian participants conducted dialogue with Land Bank of the Philippines regarding the planned pilot testing of cooperative innovations in Mongolia in September. LandBank Senior Executive Vice-President Wilfredo Maldia welcomed the participants. Department Manager Ed Luzano briefed the participants on LandBank organizational structure and operations. The group then travelled to the Catmon Multi-purpose Cooperative in the province of Bulacan and to the Countryside Cooperative Bank of Batangas in the province of Batangas. The Mongolian participants conducted a planning session with LandBank to determine the scope and methodology on the pilot testing on cooperatives to be conducted by LandBank in Mongolia in September.

Bangkok, Thailand- BAAC hosts dialogue for 16 Nepalese participants

The Bank for Agriculture and Agricultural Cooperatives (BAAC) hosted in Thailand on July 4-11 a dialogue-planning for 16 participants from APRACA-member Agricultural Development Bank of Nepal, the IFAD-supported Western Upland Poverty alleviation Project (WUPAP), and leaders of selected cooperatives.

The program was opened by Mr. Won-Sik Noh, APRACA Secretary General, and Mr. Sahaschai Yaowapankul, Director of the BAAC International Cooperation Office. The visitors, led by Mr. Krishna Prasad Lamichhane of ADBL, travelled to the provinces of Nakhon Ratchasima and Chonburi to broaden their knowledge on agricultural marketing cooperatives, Thai Agribusiness Company (TABCO), value addition, funeral association and savings mobilization scheme.

Mr. Jamnong Siriwongyotha, Team Leader, presented an introduction of BAAC’s organization and operation, details as in Annex 4. Likewise, Mr. Athasit Surakul, Director of Customer Products Marketing Development discussed the establishment and operations of agricultural marketing cooperatives, marketing linkages and agricultural product promotion. In addition, Mr. Surasak Sompadung, Assistant Director of the International Cooperation Office, also presented the concept of One Tambon (District) One Product in line with marketing linkage concepts.

Dr. Wolfgang Frank, Senior Adviser of the Population and Community Development Association (PDA) presented PDA’s microfinance and community development strategies. The group also went to Nakhonratchasima Province to visit the Nakhon Ratchasima Agricultural Marketing Cooperative (AMC). Miss Saisamorn Kukoontod, the AMC’s manager, presented the AMC’s organization, history and its operations.

The group visited Chonburi Agricultural Marketing Cooperative in Ban-Beoung District. Mr. Sompon Eaimjoie, Ban-Bueng BAAC Branch Manager and Miss Orrawan Ruenromwaree, AMC Manager, had co-presented the AMC’s organization, history and operations.

Mr. Thiraphong Sriproma, a distinguished farmer who operated an organic farm and won many awards from the Chonburi provincial government, showcased his experiences, concepts, mind-sets in agricultural good practices and on farmer-to-farmer training schemes. It is widely recognized in Chonburi Province that his farm is also run as learning centre on organic farming for other interested farmers who live either in Chonburi or other provinces.

The group also visited the Bantong-Prong-Mab-Aeoung Housewife Group located at 9/1 Moo 6, Hnong-Boon-Daeng Sub-Dist., Bang-Beoung Dist. Chonburi Province. The housewife group, led by Mrs. Praweena Witheethamma, initiated a food-snack enterprise focusing on roll-dried banana. The product has won many awards from the Chonburi provincial government.

During the integration session with the BAAC experts (assigned to conduct pilot testing in Nepal, BAAC and the three Nepalese stakeholders- ADBL, WUPAP and cooperatives) discussed the parameters for the pilot testing in Nepal in October. BAAC is expected to provide two experts to pilot test and replicate rural financial innovations of BAAC, linkage with cooperatives and strengthening the marketing linkage of cooperatives with the domestic and international market.

Forthcoming FinPower activities

National Microfinance Development Forum: Revising and Deepeing the Role oof NGO-MFIs in Poverty Alleviation,

Host: National Bank of Cambodia

Phnom Penh, Cambodia

September 6-8

Pilot Testing: Microhydro Project

Pilot Testing Site Host: RLIP Attapeu Attapeu, Lao PDR

Sept 9- 17

Experts from AEPC Nepal

Pilot testing: Cooperatives: Institutional, Financial and Marketing Linkages

Hosted by IFAD Rural Poverty Reduction Project, Ulaan Baatar, Mongolia

Expert from Land Bank of the Philippines

Sept 13- 17

Technical Support to a National Regulatory Authority

Receiving Institution: Bank Indonesia (twinning arrangements with SBP)

Expert from State Bank of Pakistan Jakarta, Indonesia

September 28- 30

Course on Islamic Banking

Host: Bank Indonesia Jakarta, Indonesia

September 28- Oct 3

Technical Support to a National Regulatory Authority

Host: Agricultural Dev Bank Nepal, Kathmandu, Nepal

Expert from Cooperative League of Thailand

October 4-8

Pilot Testing: Capacity Building for Cooperatives

Pilot Testing Site Host: Agricultural Development Bank, Limited, Kathmandu, Nepal

October 4-8

Experts from BAAC Thailand

Technical Support to a National Regulatory Authority

Receiving institution: State Bank of Pakistan (twin with BI)

Expert from Bank Indonesia Karachi, Pakistan

Oct 18- 21

Course on Credit-Production-Marketing Linkage

Host: ACE-BAAC, Bangkok, Thailand

Dates still to be determined

National Rural Finance Policy Forum

Host: Bangladesh Bank, Dhaka, Bangladesh

Nov 8

Technical Support to a National Regulatory Authority

Host: Bangladesh Bank Dhaka

Nov 9-11

Pilot Testing: Transformation of Project to MF Provider

Pilot Testing Site Host: RULIP Cambodia, Rattanakiri, Cambodia

Expert from NABARD BIRD

Nov 22- 26

Pilot Testing of Innovative Institutional Linkages

Pilot Testing Site Host: IFAD IMPP Project, Ha Tinh, Vietnam

Nov 22- 26

Pilot testing: Savings and Capital Formation, Financial infrastructure

Pilot Testing Site Host: Agricultural Promotion Bank of Lao PDR, Vientiane, Lao PDR

Expert from CARD/MFC Lao

Dates to be determined

Pilot Testing: Savings and Capital Formation, Financial Infrastructure

Pilot Testing Site Host: RLIP Sayabouri, Sayabouri, Lao PDR

Expert from CARD/MFC Lao

Dates to be determined