Agriculture Waste as Innovative Collateral to Acquire Urban and Rural Housing

Agriculture Waste as Innovative Collateral to Acquire Urban and Rural Housing

Organization type: 
for profit
$10,000 - $50,000
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

Initiative provides housing made from compressed rice straw panels, which are low cost, environmental friendly, registered construction material fire resistant class A and B, high thermal and noise insulated for urban and rural Khmers, and thereby improve family health for everyone to afford decent housing. Unlike real estate developer practice, Fund exchanges house against rice straw waste.
House structure is built locally by new owner; construction panels are installed (walls, floor and roof locally supplied).
Bio-digester turns straw waste into high quality compost sold for up to $50 per ton to replace chemical fertilizer at high price for a low quality and purchased on insidious credit facilities to farmers.
Biogas collected generates electricity to community.

About Project

Problem: What problem is this project trying to address?

Rural communities and city dwellers are prime beneficiaries. Most dwellers are originating from rural provinces with relatives in paddy rice farming. Turning straw that has no commercial value into profitable fertilizer business, and exchanging an agriculture waste against housing is unique to manifest growth, reduce waste and improve lives. Micro finance is today a bank product - that's it. It lost the innovation and attractive opportunity for the low income to create new opportunities or purchase asset. Micro loan has to be asset base collateral recognized by bank as such. Innovative solution responds to a critical housing need from low income segment and define new collateral that create profusion.

Solution: What is the proposed solution? Please be specific!

Financial issues force communities to live in great danger in houses made of recycled plastic, paper and metal. Most are deep impacted in the debt cycle, struggling and living in fear of evictions. Thanks to our initiative that recognizes waste rice straw abundant in Cambodiaas a financial collateral, everyone can afford a quality house. Many will see the opportunity to contract several houses and build family collaterals while contributing to reduce CO2 emissions in halting rice straw burn. Compost replenishes agriculture soils, protect water resources and outcome a higher farmed yields – A huge step to rehabilitate lives and become coherent with Nature. Initiative delivers outstanding insulated housing perfectly fitting Khmer culture and housing traditions. Insulation greatly limits direct urban neighbour proximity and therefore reduces significantly the spread of communicative disease such as tuberculosis. Project is very flexible and easy replicable in many areas to support housing development. Ultimately we plan to invest a straw panel factory in Cambodia leaning on straw waste supply chain well organized to offer more innovative products. This will regulate the compost market price in the future when initiative grows to a critical level.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

Demand for new houses construction under initiative business model will define the number metric of our success. Our commercial and financial ability to demonstrate success is on how to validate waste rice straw to become a commercial value and therefore financial collateral. The profitability on recycling straw into fertilizer is critical to measure how straw collateral collected free of charge can substantiate housing business. The return of our investment into delivering a house against collateral supplied is critical to secure cash flow and initiative growth. Further studies can demonstrate how a well insulated housing will reduce communicable diseases infections for communities who were living in close proximity in poor housing conditions. The reduction of insidious debt cycle is hard to measure as it hit private sphere. Observation shall be the key tool to measure how house owner can relinquish the debt cycle.
About You
Creative Coherence Fund
About You
First Name


Last Name


About Your Organization
Organization Name

Creative Coherence Fund

Organization Phone

+855 16 557 588

Organization Address

c/o Pt’er AVY – Unslaved Community Based Organization, Veal Thom, Kompong Speu

Organization Country
Country where this project is creating social impact

, KU

How long has your organization been operating?

Less than a year

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What stage is your project in?

Idea phase

Share the story of the founder and what inspired the founder to start this project

John Daniels experiences in living non-conventional emerging countries for more than 13 years. Yvan Perrin spent 21 years in the Vietnam-Cambodia region.
Both had a taste of absurdity living in highly potential area that face abject poverty, poor housing conditions and witness absurd solutions provided to communities.
Our initiative stated in 2007 in a cooperation to implement first straw panel factory in South East Asia. We won the Development Marketplace prestigious prize next year in 2008 in the name of our Vietnamese partner. No commitments were made from partners to invest and project is postponed.
Yvan then focuses on renewable energies and village utilities development. He observed that delivering quality housing even at low cost will not decide low income workers, farmer to purchase a quality home. Low income communities are stacked in the insidious shark loans cycle. Financial institutions lean on very archaic system and do not offer innovative products.
Therefore, we built a plan where products, labour, future income are considered as collateral. And logically rice straw waste came to center of our attention to propose this initiative.

Social Impact
How many people have been impacted by your project?

Fewer than 100

How many people could be impacted by your project in the next three years?

More than 10,000

What barriers might hinder the success of your project and how do you plan to overcome them?

Land ownership is major issue for squatters living on semi-official locations. Project addresses entitled land owners to build new house, not relocation programs or evictions.
Most city dwellers are sharing rented houses, some in poor conditions. Dwellers welcomer the idea to rent a land and to purchase a home to install on the land for a period of time, then moving the house to their home town when job assignment ends.
Great majority of dwellers are from province with relative in paddy rice farming. They can appoint family members to deliver straw / collateral.
We consider how Fund can facilitate land access to dwellers to install their houses, combine sewage to bio-digester, install mobile safe water supply, and recycle biogas out bio-digester to produce electricity.

How will your project evolve over the next three years?

We anticipate growth to be very fast and very strong for the next five years. We plan building a straw panel factory in year two to supply more houses and address a wider range of customers on low market segment as well as construction industry.
Ultimately we look ahead to to enter relocation programs and offer a quality houses paid by waste straw on land managed by Fund and benefiting from green utilities selling service at competitive rate to develop their owned business activities.

For each selection, please explain the financial and non-financial support from each

Friends and family
We do not recognize building a business on family and friends with limited financial capabilities and investment objectives that may differ greatly according to personal goals and progress life.

Investment is strongly supported by partners investing in time and other resources to projects.

Proposals were sent and are in the consideration process.

We plan to work with NGO to promote initiative. Some have excellent network but with limited budget to support the initiative.

Typically for garment factories and other mass employment Organizations. Some are concerned with quality housing for their workers. More need to explore.

Regional government & National government
Very expensive to work with and time consuming with little or no interest in development. Mostly involved in force evictions with many related serious issues.

Our prime target and source of income to deliver housing. We focus on farmers to start and city dwellers who for most are family related in province to supply straw. Our initiative is to lean on city dwellers to introduce and grow business by opportunity introduction.

Micro Finance & Banks
More need to explore to rise finance at Fund level and obtain co-investment for medium to large projects.

How do you plan to grow and/or diversify your base of support in the next three years?

The growth will be very rapid after erecting demonstration house. We may cooperate with private investors to replicate initiative to new locations to cope with housing demands. Fund offers co-investment 70% fund and 30% private in new business structure. 5, 10, 20 tons bio-digesters can be installed anywhere in Cambodia, preferably near paddy rice for ease of transport.
Year two, bio-digesters may need an upgrade to process more material. We shall introduce erosion control product made from rice straw for river and lake benches preservation.
We forecast a compost peak demand of critical growth in year three. Compost volume offered will reach most of the demands and price will start to decrease. This is the signal for our Organization to invest into straw panel manufacturing plant and develop new and innovative products.

Please select your areas of intervention in the home improvement market

Financing, Design, Technology, Energy conservation, Renewable energy, Green housing, Environment, Income generation, Urban development, Rural development, Citizen/community participation.

Is your innovation addressing barriers in the home improvement/progressive housing market? If so, please describe in detail your mechanisms of intervention

The major barrier to purchase a home is un-availability for many Khmers to supply financial collateral and proof o income to pay monthly instalments.
We remove both barriers with easy delivery of straw waste, a material abundant in Cambodia and deliver a home.

Are you currently collaborating with private companies, or have you partnered with private companies in the past? With which companies?

The project is new in partnership with private ABT Insulpanel Ltd, Canada and Pt’er AVY “Unslaved” Cambodian Community Based Organization. It is based on private business with social entrepreneurship in the form of innovative method of purchasing house and recycling agriculture waste.

Please describe in detail the nature of the partnership(s)

ABT Insulpanel is co-designing the houses and support on straw panel supply. Supervise the construction and transfer house structure technology.
Pt’er AVY – Unslaved CBO is operating project. Organize straw delivery and processing straw into bio-fertilizer. CBO is the receptor of demo house and shall promote the initiative for individual new house owner. Training marketing staff and support house owner.
Creative Coherence Fund is coordinates all activities under a road map (implementation and finance). Fund promotes medium to large projects with green utilities infrastructure.

Select the unit(s) with which the partnership was formed

Marketing department, Sales department, Logistics department, R&D department.