• What is S³IDF's approach and criteria?
• How does S³IDF specifically assist small scale infrastructure service investments?
• Ways in which the poor can benefit from S³IDF-supported projects
• Why is S³IDF working on infrastructure service provision for poor communities?
• What are S³IDF’s innovative financing mechanism?
• What is S³IDF’s geographical focus in India?
• How can I help?

What is S³IDF’s Approach and criteria?

• Focus is on small-scale  projects that have big pro-poor impacts, where the poor are involved as infrastructure owner/operators in the small/micro enterprises (SMEs) and as consumers of infrastructure services; but projects that are “off the radar screens” of most big development entities
• All projects have local partners – local equipment suppliers, community groups or small entrepreneurs (who own/operate) the investment schemes, local banks and activists NGOs 
• All projects must operate in a business-like fashion achieving financial sustainability (including debt payments, etc.; however, the financial returns may be below full commercial norms)
• All projects must have potential for widespread replication (with appropriate modification)
• Financing Support Menu and Leverage:

• we provide, debt, equity and/or partial guarantees (most important)
• projects must have co-financing from the owner/operators (includes sweat equity) and local banks
• Emphasis on use of local resources (solar & wind energy, biomass, clean aquifers, small hydro sites) and environmental sustainability

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How does S³IDF specifically assist small scale infrastructure service investments?

S³IDF assists selected small-scale infrastructure service providers and their customers through the following core functions:

1.   Supplying technological and financing information, in particular, transferring experience and know-how;
2.   Supplying financial assistance from S³IDF's own resources;
3.   Assisting collaborators, providers and their customers to access information, know-how and/or financing support from local and international sources (bilateral and multilateral) that the SMEs cannot easily access.

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Ways in which the poor can benefit from S³IDF-supported projects:

• As users of the electricity, water and other infrastructure services and/or as users of the services of linked income generating (i.e. productive) investments, such as grain milling
• As employees in the new small enterprises operating the infrastructure and/or linked investments
• As owners of the infrastructure or linked investments
• As beneficiaries when other charitable organizations (e.g. orphanages, schools) are helped by new/lower cost energy or other infrastructure services

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Why is S³IDF working on infrastructure service provision for poor communities?

Studies by S³IDF's founders and others suggest that infrastructure service provision for poor communities, if appropriately implemented, can:
i.    Have significant impact on poverty alleviation and other social and economic benefits, including addressing specific needs of women who bear most of the burden of water and energy management.
ii.   Be accomplished in a manner that meets reasonable standards of environmental sustainability

• Achieve a reasonable degree of financial sustainability and, in many instances, provide local commercial returns.

What are S³IDF’s innovative financing mechanism?

S³IDF employs a number of financial mechanisms, often involving a financial institution since S³IDF hopes to change their Business-as-usual (BAU) practice and get them to see these micro-enterprises as viable projects. The financial menu involves:

• Guarantees or other credit mechanisms to overcome collateral constraints
• Margin money for owner/operator equity.
• One or more financing support types  - debt (primary and/or secondary position) and/or equity- that is “gap filling” and “deal enabling.
• Other financing mechanisms such as end consumer financing, equipment-supplier-financing, bridge financing etc.
• Budget intercept

What is S³IDF’s geographical focus in India?

S³IDF’s geographical criterion is an overnight journey from Bangalore, and thus has projects largely in Karnataka. S³IDF is presently also concentrating on projects in areas in Andhra Pradesh, Tamil Nadu and Kerala which come under its geographical criteria. S³IDF is restricting its focus due to resource constraints and might look at increasing the geographical focus at a later time.

How can I help?

You can help by supporting S³IDF’s activities monetarily, helping us with projects and by telling others about us.