Due Diligence

Due Diligence

Water Well-ness Project (WWP) takes monitoring and due-diligence very seriously as part of our responsibility to both our lenders here in Canada and our borrowers in India. Here we outline the steps we have taken to protect everyone involved.

1. Choosing Microfinance Field Partners

We thoroughly research any organization we partner with and we take our due diligence very seriously. Working with field partners ensures the sustainability of the WATSAN facilities as well as increases the likelihood of repayment from borrowers in India. When choosing a Microfinance Field Partner we look for the following:
  1. Do they have experience as a Microfinance Organization giving loans for Water and Sanitation Facilities?
  2. How effective is their Management?
  3. They must provide us with a detailed plan on how they disburse funds to families in need. Are they educating borrower?
  4. What is their practice to ensure repayment from Indian Borrowers? Is it ethical? What is their rate of repayment?
  5. What other organization do they work with?
  6. Are they part or any Microfinance Regulatory Networks?
  7. We visit our Microfinance Field Partners offices and go to the field and talk to previous recipients of Microfinance loans.
Our list of Microfinance Field Partners is continually growing but please note we can not accommodate requests for your money to be transferred to a specific Microfinance Field Partner.
The Microfinance Institute GUARDIAN, is an example of one of the organizations we work with. They follow the guideline and code of conduct of the Microfinance Institution Network (MFIN). GUARDIAN’s governing body has over 25 years of experience in working with Water and Sanitation Projects. They have distributed more 84,000 loans that add up to more than 15 Million Canadian Dollars in Loans. GUARDIAN’s strategy of only lending to women, empowers women since they are the ones severely affected by lack of access to water and sanitation facilities and because they are historically the ones primarily responsible for fetching water for the entire family.  They employ several strategies to ensure loan recipient truly benefit from the facilities and that the facilities last on a long term basis:
  1.  GUARDIAN follows a common practice of grouping borrowers into Joint Liability Groups (JLG). All members of JLG are liable for each other’s loan. This provides social incentive for members to pay back loan. If one member does not pay it back the whole group will not be able to receive any loans in the future. Due to this method Guardian’s repayment rate is 98%
  2. All borrowers receive education on the impacts of drinking contaminated or unsafe water and the consequences of defecating out in the open.They learn how having safe water and sanitation facilities can really improve their lives. For example having access to water at home will allow women to have extra time and will be able to work and earn an income. Girls who had to spend their time fetching water instead of getting an education will now being able to attend school. With clean water at home families will have less health care costs will reduce for the whole family since they will not be drinking contaminated water. This education will help the borrower the importance of taking care of the facilities.
We have visited GUARDIAN’s offices and have met with past borrowers.  We are confident in GUARDIAN’s practices.

2. Ensuring Investors are Aware of the Process

H2O Investment Program Process:
  1. Sign up to become an Investor at  H2O Investments.
  2. Starting October 29th, 2016, fill out the online form provided.
  3. Once we have received this form, we will send you an email within 24 hours requesting you to:
    a) Sign the Promissory Note document, either with an e-signature or with a physical signature. This is the legal contract for your investment.
    b) Send the signed Promissory Note back to us, via email (preferred) or by mail (address can be found here).
    c) Make your payment via an email money transfer to invest@waterwellnessproject.ca. Alternatively, you can send a cheque to the address found here. Please note that your money will be held in escrow until we receive your funds. This means that your investment term begins the day your funds are successfully received into our bank account.
    d) If you paid by email money transfer, click the “Secret Answer” link from our email to tell us your email money transfer secret answer.
    e) Keep the Terms of Use document for your own records.
  4. Once we have received the above items and your payment has been cleared, we will send you the fully executed Promissory Note (which will have been signed by Water Well-ness Project) for your own records.
  5. Our first round of investments will close once $50,000 CDN has been collected. At this point, your investment will be transferred to WWP’s International Field Partner for disbursement as loans to families in need.
  6. Our Field Partner will lend your money to Borrower A.
  7. Borrower A will use the money to help build water and sanitation facilities with the help of our Field Partner.
  8. Borrower A will repay our Field Partner over 1.5 years, with interest.
  9. As the Field Partner receives money from Borrower A, they will lend it to other borrowers (e.g. Borrower B and C).
  10. Throughout this process, you will receive updates on how your investment is being used. You will be given pictures, videos and the GPS location of the families your money is being loaned to.
  11. At the end of the investment term (a maximum of 42 months), you will receive your investment back with 3% interest compounded monthly.
Regarding investment term: Investment term may range between 36 and 42 months (3 to 3.5 years), depending on the precise date that the funding goal is met for the round of projects. Investments for the first round will close once $50,000 CDN has been received by WWP. At this point, we will make the transfer to our Field Partner and the projects will begin. As soon as your money is transferred, we will notify you. 

3. Promoting Easy Communication with Us

Feel free to get in touch with us if you have questions or concerns about any aspect of our organization and programs.  You can do this easily by clicking here.