It has been a busy morning for the Acumen Fund web site. In case you aren’t in the habit of checking it hourly (!), here’s a quick overview of what’s new.
First, we’re proud to announce that we’ve disbursed the first tranche of our $757,000 debt investment in Ecotact Limited. Led by a dynamic entrepreneur - David Kuria - Ecotact builds high-quality, public, pay-per-use toilet and shower facilities on public land in urban centers. You can read more about Ecotact and its Ikotoilet program on the investment page; even more information can be found on the Ecotact web site.
The second new item on-site is related to the Ecotact investment. Marc Manara, a Portfolio Associate based in New York, visited Kenya back in May 2007. While there, he visited some Ecotact installations, and came away with a deep, personal understanding of the delicate balance between the need to tell stories and the importance of personal dignity. His related story - When to Put Your Camera Away - is a must-read for anyone who has visited or is thinking of visiting low-income communities.
Rob,
Thanks for sharing this article and the one on when to keep your camera away…
I had a few questions about this model. It mentions that the company Builds-operates-transfers the facilities to municipalities. So what happens once the transfer happens? Typically the municipalities will not be able to maintain the facility as well as a private operators do isn’t it? So why transfer, can’t they just operate this facility and pass on some revenues to the municipalities?
I thought I’d share this info with others reading this article. In Hyderabad, India I have seen quite a few of such facilities run by the municipality with signs suggesting how far the next pay-and-use toilets are available. I am not aware of how well they maintain these…
Reply to PremalYou are right that the municipalities will ultimately own the facilities (and they already own the land) and they will therefore bear responsibility of ongoing maintenance and operation of the facilities. While there are no guarantees (and it certainly depends on the success of these pilots), we think it is likely that the municipalities will continue to allow private companies to operate the facilities even after Ecotact’s contracts expire. Our hope is that the municipalities decide not to try to run the facilities themselves, but instead agree to lease the facilities (at a cost) to private companies like Ecotact, who will operate them in exchange for the ability to charge user fees. The municipalities would likely undergo a competitive bidding process to select the private partner, but ideally this would result in the best allocation of resources and the highest quality of service. It would be a shame for the public-private partnership to end when Ecotact’s contract is up
Reply to Rob Katz