Berendina, Watawala Plantations provides shelter for 61 families

Berendina Development Services (Gte) Ltd (BDS) has signed a Memorandum of Understanding with Watawala Plantations PLC recently to provide a loan of Rs. 3.68 million for re-roofing of workers houses in Henfold Estate, Lindula.

Dulan De Silva, Chairman, Berendina Development Services Ltd exchanges the MoU with Dan Seevaratnam, Chief Executive Officer, Watawala Plantations

The signing of this MoU took place at the Head Office of Watawala Plantations PLC at Dharmapala Mawatha, Colombo 07. The MOU was signed by Mr. Dulan De Silva, Chairman of Berendina Development Services (Gte) Ltd and Dan Seevaratnam, Chief Executive Officer of Watawala Plantations PLC.

This is the first time that Berendina Development Services (BDS) has issued a loan directly to a plantation company; since 2007 loans have been provided to co-operatives administered by Plantation Management. This loan will be used to replace the old damaged roofs in line homes on the Henfold Estate, Lindula.

Currently, the state of disrepair of the roofs results in water seeping in during rainy periods and roofing sheets being blown about by winds. Over 60 very low income families will benefit through implementation of this project.

The loan will be repaid in monthly installments over a four year period by Watawala Plantations PLC using the maintenance budget allocated by the company to estates under their purview. This is a good example of a private sector-NGO partnership where the limited funds of both organizations are utilized to optimum benefit.

BDS is a local NGO with a strong, successful presence in the plantation community. Berendina was the first microfinance agency to provide credit to high credit risk plantation workers for activities such as additional income generation work, line repairs, electrification and latrines. This type of innovation is continued through a pilot project providing non subsidized housing loans to workers on the Vellai Oya Estate, providing evidence that this low income group can be successfully integrated into the formal financial system.

Previous development projects have provided basic necessities such as safe drinking water to workers, medical facilities to old and bedridden patients, monthly allowances, housing and sanitation to retired workers; support for educational activities such as crèches and student scholarships. Berendina Microfinance Institute (BMI), sister company to BDS has provided loans to build latrines.