Module-c community Based Financial Management

Step-3 Bank 
Account 
Opening 
For proper and safe keeping financial resources, collected cash is deposited in an 
account of financial institution of either the nearest bank or micro-finance institute 
(MFI). 
Woreda Water Office shall follow ordinary procedures in reference with their own 
experiences, so that each WASHCO can have its own the bank account or the 
Micro-Finance Institute account soon as possible. 
Procedure 
 WASHCO submits a letter of application to WWO 
 Upon an official acknowledgement of the letter of application by WASHCO, the 
WWO issues a supporting letter to a financial institute. 

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Ministry of Water, Irrigation and Electricity 
 Operation and Maintenance Management Manual 
Training Module - D 
Community Based Financial 
Management 
 
DEMEWOZ CONSULTANCY 
42
 WASHCO goes with cash to the designated financial institute with the official 
supporting letter for opening an account. 
 WASHCO is given a bank account book or statement by the financial institute. 
 
Tips! 

Minimum requirement of cash to open a bank account. It is said that Birr 500 is 
required to open an account in a certain bank. Some cases can be shared 
herewith to respond to such conditions. 

Formulation and collection of seed money. Some of WASHCO succeeded in 
meeting this minimum requirement of Birr 500 through collection of seed 
money. In this case, each registered household shall contribute equal amount 
of money to form group fund. 
For instance, there is a case that more than 50 registered households
accumulated Birr 500 through even contribution of Birr 10 per each household. 
Step-4: