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COAST Inviting Financial Institutions and Private Sector Firms

1. Emerging Development Scenario and Urge for New Partnership: The 7th five year plan (2016 to 2020) of government of Bangladesh has embodied SDG (Sustainable Development Goals), SDGs are the globally agreed goal to be implemented during 2016 to 2030 as agreed in UN. In the five year plan, government estimated around 30 % from public investment and rest 70 % from private sectors, within the 30 % of public investment government is striving hard to enhance own local resource mobilization which is hovering around 10 to 12 % and must reach 18 % as expert estimated, the rate is still much lower than our neighbor even Nepal. After 2008, the developed world especially Europe and America have been facing economic crisis, which are the classical source of aid flow. Slump in fuel price is creating crisis in Middle East, which is the biggest remittance source of countries like Bangladesh. So aid flow is shrinking and there are looming crises around the immigration and remittance too. These are giving a strong signal to the government and nonprofit development sector that traditional dependency on aid flow might not work in the future. Government has to depend on local resource mobilization; nonprofit sector has to do social business and to do so, partnering with private sector and financial institutions is essential. COAST has realized the trend and already started its endeavor in this regard; it’s looking for partnership with financial institutions and private sectors. (symbol of SDGs, Munir)

2. COAST Origin and Governance : COAST originated from the island of Bhola during 1998 from a project of an international NGO which started on the island during 1982 through painstaking but learningful process of nationalization. It is registered as trust, and it has registered in NGO Affairs Bureau of Prime Minister Office (the no 1242), Government of Bangladesh and also it has micro finance operation license (the no 00956-04041-00068) from Microcredit Regularity Authority of Bangladesh Bank. Board of Trustee is the highest policy making body of the trust, where Mrs. Begum Shamsun Nahar is the Chairperson, M Zahirul Alam FCA is the Treasurer, Mr. Minar Monsur is the Vice Chair, Dr Tofail Ahemd and Dr Abbas Bhyian and two People’s Organization representatives are also members of the board (People’s Organization is the federated structure of groups who are the direct beneficiaries of COAST, they have elected these two representative for 3 years). The Board of Trustee holds two separate meeting in each quarter of the year, one for Finance and Audit Review and another for regular statutory issues, policy and planning approval. Mr. Rezaul Karim Chowdhury is the ex officio secretary / Executive Director of the Trust. COAST maintains international

16 March 2017

Partnering for Development / SDGs in Coastal Areas of Bangladesh

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standard of management and finance operation, it has got certification (2010 and 2013, and now it is valid up to 2018) on quality management and accountability twice from the then HAP (Humanitarian Accountability Partnership) an apex organization of NGOs in global level situated in Geneva, at present which is merged with CHS Alliance (www.chsallience.org). It has got silver certificate for it s integrated social performance in micro finance operation from Mix Market (www.mixmarket.org) during 2011. COAST has also got special consultative status with UN ECOSOC (United Nation Economic and Social Council) for its advocacy engagement with UN and UN ESCAP (United Nation Economic and Social Council for Asia and Pacific). COAST is value based organization. It has values related to, human dignity, accountability, participation, transparency, gender relation and positive engagement with government. COAST always maintains quality external audit by reputed national audit firms, like Huda Vasi & Co., ACNABIN & Co, Howlader Yunus & Co, A Quasem & Co., Mosih Muhith & Co., and SF Ahmed & Co. COAST has credit rating of “A-“ done by Credit Rating Information and Service Limited (www.crislbd.com). COAST believes that its websiteis reflections of its governance too, please visit www.coastbd.net. Equity and Justice Working Group (EquityBD) is a program component of COAST for networking and advocacy, you will find related information in www. equitybd.net.

3.Coverage, Partnership, Core Program and Future Credit Fund Requirement: COAST now covers 100 thousand direct beneficiaries in 7 coastal districts with 72 branch offices; it has now revolving credit fund of BDT 153 crore where 34% from PKSF, 6% from Stromme Foundation, Norway, 15% from Banks, 11% from own funds and 34% from group members savings. Annual growth rate in respect of micro finance is 24%, on time realization rate 99%. In view of the latest external audit report, value of COAST asset is US$ 0.81 million including donor grant projects total operation cost for this year is US$ 4.91 million. It has total staff no 1349 where male is 67% and female is 37%. Apart from its core program (which is based on micro finance and micro finance surplus) the organization has grant based projects in partnership with MJF /UKAID, British Council, SF Norway, UNICEF, GoB/WFP, USAID/World Fish, IFAD, Maxwell PLC, TJN / NORAD, IUCN etc. COAST has partnership for taking loan in respect of revolving credit fund from One Bank Ltd., Mutual Trust Bank Ltd., Meghna Bank Ltd., BRAC Bank Ltd., Midland Bank Ltd., and IDLC. COAST has the plan to extend the program by 2020 up to 100 branches, and also covering coastal districts of Patuakhali, Baraguna and Jhalakhati of Barisal division. Small islands and sandbar char areas of Bhola, Cox’s Bazar, greater Chittagong (except Swandwip), and greater Noakhali (except Hatiya) have already been covered. COAST would like to limit its operation in coastal area and like to stand by to the coastal poor. In view

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of our estimate we have the minimum credit fund requirement especially from Banks by the year 2020 as follows. (taka in crore, beneficiaries in lac).

Issues / year 2017 2018 2019 2020Branches 72 80 90 100Beneficiaries 1.14 1.27 1.43 1.60Fund Req. from Bank 39 47 55 57

Please note that our micro finance operation is now fully based on computerized software, everything is decentralized so that Branch staff can provide one step service while mid and central level are responsible for quality control, support supervision, monitoring, audit and ICT section are being directly supervised by the Executive Director, while whole operation is under a Director. We are committed towards ICT development in the financial sector, so we are partnering with mobile banking “Sure Cash”; we are negotiating with others in this regard. A process has been started to initiate agent banking with Midland Bank Ltd. 4. Core and Non-Core Programs, where we solicit Partnership: COAST believes in integration of Right Based Approach with micro finance program (please see the paper in http://coastbd.net/wp-content/uploads/2015/12/Integration_-RBA.pdf) so it gives emphasis on asset building of beneficiaries, human right approach in all level of the organization. So it has the following core programs run with micro finance surplus.

People’s Organiza-tion

Institution building of the poor families to develop leadership for participation in organizational management as well to legitimate demand mediation in local level for greater accountability.

Disaster Manage-ment Fund

This is done with 0.05 % income to respond to disasters in the area for relief and rehabilitation.

Networking and Advocacy

Doing advocacy in local, national and international level on coastal issues, like, rights for the fisherman, embankment and dike construction to protect from river erosion and tidal surge, climate change negotiation and climate migrants rights.

Primary Health Care We provide this service only in Sand bar char areas of Bhola district. But in next five years we would like to cover all of our area.

Legal Endowment Fund

The fund is to assist poor families (i) to stop child marriage, (ii) to take legal ac-tion and assistance against rape case and acid throwing, and (iii) to stop minority eviction in the locality.

Community Radio (www.radiomeghna.net)

This is fully run by adolescent girls of Charfassion, and it is not only for info entertainment and democracy building but also for adolescent empowerment. Now we have another community radio license for Cox’s Bazar.

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Social Business / Social Enterprise/Organic Agriculture / Technology Inte-gration

We do this in limited scale in Charfassion and Cox’s Bazar sadar, with pesticide free dry fish production, organic vegetable, vermi compost and organic pesticide production. We have 14 technologies in this regard related to climate adaptation, ecological production and income enhancement; we would like to integrate these in all of our areas in future, so that credit will go with appropriate technology. We have the plan to have at least 20 % income by next five years from these activities and also along with promoting eco-tourism in making our training centers and of-fices as guest house in islands.

Apart from above, we have already experimentations and we have wishful planning to have following programs if we are able to manage enough surpluses and funding from other sources.

Moktab Main-streaming

At present it is being run with the support of SF Norway. It is to turn the children toward government primary school with the orientation of mathematics, science and English along with religious education.

Adolescent Empowerment

It is for the school dropout adolescent girls of poor families. It’s a nine month functional education to promote either back to school or to involve them in income generating activi-ties especially to reduce early child marriage. At present it is being run with the support of SF Norway and COAST own money.

Please feel free to contact : Rezaul Karim Chowdhury, reza.coast@gmail.com, +8801711529792

Principal Office:COAST Trust Metro Melody (1st floor), House 13, Road 2, Shamoly, Dhaka 1207

Tel : +88-02-58150082e-mail : info@coastbd.net web : www.coastbd.net