#### STICHTING BAKENS VERZET

#### 1018 AM AMSTERDAM, THE NETHERLANDS

Director,

T.E.(Terry) Manning,

Schoener 50,

1771 ED Wieringerwerf,

The Netherlands.

Tel: 0031-227-604128

Homepage: http://www.flowman.nl

E-mail: (nameatendofline)@xs4all.nl : bakensverzet

## MODEL FOR SUSTAINABLE SELF-FINANCING INTEGRATED RURAL AND POOR URBAN DEVELOPMENT FOR THE WORLD'S POOR

Incorporating innovative social, financial, economic, local administrative and productive structures, numerous renewable energy applications, with an important role for women in poverty alleviation in rural and poor urban environments.

"Money is not the key that opens the gates of the market but the bolt that bars them"

Gesell, Silvio The Natural Economic Order

Revised English edition, Peter Owen, London 1958, page 228

Edition 01: 08 December, 2007.

### FRANCAIS

## 05.00 The sequence of execution of the porjct activities.

#### 05.07 Statutes of the NGO[name] for the on-going management of the project structures.

####

#### STATUTES OF THE COOPERATIVE ASSOCIATION NAMED

#### [PROJECT NAME]

#### [COUNTRY]

#### INTRODUCTION

#### To set the bases for self-financing ecological sustainable development in [DESCRIPTION]

#### (hereafter «the project area »),

Considering the supply of structures such as those foreseen in the Millennium Development Goals (MDGs) adopted in 2000 to reduce the proportion of the population without access to safe drinking water by 50% by 2015, and the decisions taken in Johannesburg in 2002 during the World Summit on Sustainable Development (WSSD) to reduce the number of people without sustainable sanitation services by 50% and to promote efficient and integrated management of water resources

Considering the improvement of the quality of life of the inhabitants in the project area is not limited to clean drinking water and sanitation facilities but also requires, by way of example, the creation of social, financial, productive and services structures including hygiene education, sustainable recycling of organic and inorganic wastes, local Money systems, interest-free micro-credit systems for productivity increase, facilities for the local production of most of the items necessary for basic project structures, lighting systems for study purposes, local production of high efficiency cookers to eliminate smoke hazards inside and around homes and of mini-briquettes for their operation, water harvesting systems, school construction, nursing centres, medicine distribution points, bicycle ambulance services, food storage facilities, grain mills (all together amongst others hereafter referred to as «the structures »)

To create the structures and support their permanent management by the local populations themselves

AAAAA(complete details)
BBBBBB (complete details)
CCCCCC (complete details)

(hereafter “the signatories”)

have drafted an integrated project for the improvement of the quality of life of all of the inhabitants in the project area [«project name »] (hereafter “the project”) which is attached to and forms an integral part of this document.

Considering that passage from the executive phase of the project during which the structures are created to the phase of their on-going management requires the formation of a permanent cooperative association to take full responsibility for the structures and their exclusive ownership

the signatories hereby create a non-profit humanitarian cooperative association called [name of the cooperative] in accordance with law number [law] and the rules applying in [country]

CHAPTER 1 : NAME – SEAT – DURATION

Article 1 : A non-profit apolitical cooperative association named [ name of the cooperative] (hereafter «the association ») is hereby created.

Article 2 : The association ha sits seat in [place]. The seat can be transferred elsewhere at the decision of the Central Commission.

Article 3 : The association is created for an unlimited period of time.

CHAPTER II : GOAL AND MEANS OF ACTION.

Article 4 : The goal of the Association is the on-going management of the structures, of which it will become sole owner, following their creation under the framework of the project.

Article 5 : The Association may use any legal means it may consider necessary to reach its goal.

Article 6 : The association is a non-profit charity.

CHAPTER III : MEMBERS

Article 7 : The association is made up of all the inhabitants, without exclusion , living in the project area who enjoy civil and moral rights, without distinction of sex, race, or political or religious convictions.

Membership of the association is automatic subject to legal residence in the project area and to payment of an individual monthly membership fee into the Local Cooperative Development Fund described in article 42. (hereafter «the contributions»)

Article 8 : Membership is terminated by :

-Departure from the project area,
-Death
-Non-authorised default in the payment of the contributions.

CHAPTER IV : ORGANISATIONS – OPERATION

Article 9 : The organs of the Association are:

-The central committee.
-The management,
-The well commissions.
-The tank commissions.
-The audit commission.

THE CENTRAL COMMITTEE

Article 10 : The Central Committee is the supreme organ (‘the Parliament’) of the Association. It is composed of one representative chosen for a period of three years by the members of each well commission in the project area. It meets at least once a year in ordinary sitting and from time to time as necessary on the request of the management or of 50%+ 1 of the members of the Central Committee itself or of 50%+1 of the well commissions or of 50%+1 of the tank commissions or of 50%+1 of the members of the Association.

The Central Committee is charged with:

-Definition of the policies of the Association.
-Ownership on behalf of the inhabitants in the project area of all real and personal property connected with the structures and their management

-Regulate the methods of management of the structures and supervise their management.
-Elect for a period of one year the members of the project Management and of the Audit Commission and supervise the activities of the project management. The Central Committee can release the project management from its duties at any time. In the absence of serious professional misconduct, the Central Committee may replace the Audit Commission only on the occasion of its annual renewal.

-Wind the Association or any of its other organs up.
-Decide on any problems which is not expressly the responsibility of the management or any other organ of the association.

-Resolve all litigation relating to the project.
-Nominate as it may consider necessary permanent or ad hoc commissions or representatives including those with investigative tasks.

-Deliberate individually on every decision connected with real property owned by the Association.
-Deliberate individually on every purchase and/or investment and/or sale of personal property of the association for a value equal to or greater than [ (example) Euro 15.000].

Article 11: The Central Committee elects one of its members Chairman for a period of three years, and a secretary who may be nominated for a full period of three years or on the occasion of each meeting.

Article 12: The Central Committee represents the Association. It may delegate some of its tasks to a general management which it elects and the activities of which it controls.

Property of the Association is held in the name of [name of the cooperative] "the Central Committee"
Property of the well commissions is held in the name of [name of the cooperative] "the Central Committee for the account of the [well commission in question]"
Property of the tank commissions is held in the name of [name of the cooperative] " the Central Committee for the account of the [tank commission in question]"
Ownership of the local money structures is held in the name of [name of the cooperative] " the Central Committee for the account of [the local money structures]"
Ownership of the micro-credit structures is held in the name of [name of the cooperative] “the Central Committee for the account of the [the micro-credit structure]"

Article 12 : Members of the Central Committee are paid under the local Money systems set up by the project by the well commissions who elect them. Their retribution may vary from one member to another according to the decision of the well commission that elects them.

The Chairman and the other officers such as the Secretary, the Treasurer etc nominated by the Central Committee receive supplementary payments under the local money system at the decision of the Central Committee itself. These payments are equally distributed amongst the well commissions.

The administrative costs of the general management are expressed in local money and equally distributed amongst the well commissions.

Eventual formal Money costs of the Central Committee are covered by part of the monthly payments made by the members of the Association into the Cooperative Local Development Fund.

Article 13 : Decisions of the Central Committee are taken in the presence of at least 2/3 of its members. They are valid with a majority vote of at least 50% + 1 of 100% of the members of the Central Committee.

A second meeting of the Central Committee will be convened within 2 weeks where 2/3 of the members are not present at the first meeting.. During this second meeting members may decide in the presence of 50% + 1 of 100% of the members of the Central Committee. The decisions are taken with a majority of at least 50% + 1 of 100% of the members of the Central Committee..

Should 50%+1 of the members not be present at the second meeting or should a majority vote of 50%+1 of 100% of the members not be reached, the Central Committee is automatically and immediately dissolved and the well commissions each elect, on immediate invitation of the ex-Chairman of the Central Committee or his replacement or replacements, a new representative (different from the preceding one) to the Central Committee.

Article 14 : Decisions of the Central Committee are noted in minutes and read to the meeting before the close of the meeting. After approval by the meeting they are signed by the Chairman and the person chosen as secretary for the meeting and by any three other members present at the meeting.

Article 15 : The Central Committee may request all assistance, in principle but not necessarily free of charge, in the form of technical and other consultancy by the Project Coordinator and his team during the first two years of management of the structures. During the third and up to and including the tenth year of management of the structures, the Central Committee may request all assistance, in principle but not necessarily free of charge, in the form of technical and other consultancy from the Project Coordinator.

THE GENERAL MANAGEMENT

Article 16 : The General Management of the Association is responsible for the supervision of the day to day running of the project structures. It is the organ responsible for the execution of the decisions of the Central Committee. It drafts the rules and the budget of the Association and submits them to the Central Committee for approval.

It submits proposals for new policy and proposals for reaching the goals of the Association and proposals for the exclusion of members to the Central Committee.

It submits the annual programme of activities of the Association to the Central Committee for approval.

It records the status of inventories, accounts, and budget documents submitted to the Central Committee.

It opens and operates all bank accounts including current accounts in the name of the Association on behalf of the Central Committee.

It answers to the Central Committee and informs the Audit Commission of its activities, payments and receipts.

Elected in principle each year by the Central Committee, the General Management comprises

-A general manager who is responsible for the good day to day running of the Association. He is responsible for taking all measures necessary for the life and operation of the Association according to the statutes of the Association and to the instructions received from the Central Committee. He is chosen once a year and his nomination is renewable indefinitely.

-A general secretary who is responsible for the archives of the Association. He is responsible for correspondence and administrative affairs.

-A treasurer is responsible for the material and financial patrimony of the Association. He collects the funds of the Association and is responsible for their management.. He co-signs payments authorisations together with the General Manager. He submits a financial reports each year and a financial budget at the close of his period of office to the Audit Commission, to the central Committee, and to other members of the personnel indicated by the General Manager, by the Audit Commission, or by the Central Committee .

Article 17 : The members of the General Management are paid under the local money system set up by the project. They are paid in the name of the Central Committee, which is in turn reimbursed by way of equal distribution of the costs amongst the Well Commissions.

Formal Money costs of the General Management are at the charge of the Central Committee. They are covered by a part of the monthly contributions paid by the members into the Cooperative Local Development Fund.

Article 18 : The General Management receives at its own request, in principle but not necessarily without charge assistance in the form of technical advice from the Project Coordinator and his team during the first two executive years of project execution. From the third year of project management up to and including the tenth year, in principle but not necessarily free of charge, assistance and technical advice from the Project Coordinator.

THE WELL COMMISSIONS

Article 19: Every well/bore hole area comprises:
- The well or bore hole itself
- The backup hand pump installation
- The washing area
- The enclosure for PV systems and supports (the pumps themselves, their PV panels supports and accessories belong to the tank commissions)
- A guard system for the PV installations

- A building for the registration of local money LETS transactions.

And, with the passage of time, various public health and education structures.

The well commission, elected by the tank commissions, supervises the use of the structures common to the water supply system, and carries out minor maintenance operations such as cleaning washing areas, well areas, and backup hand pump systems. The well commission also regulates use of the well area in case of crisis or calamity. It collectively receives a small monthly payment in the local LETS currency (e.g. the equivalent of EURO 5 per month) which it is free to spend as it wishes. Since women enjoy the greatest benefits from the execution and on-going management of the project, they should provide most of the well commission members.

The well commission will nominate one of its members to liaise with the system maintenance structures set up and with those responsible at tank commission level for maintenance.

The well commissions will nominate a female candidate from their own area to monitor the cooperative inspection of the sanitation, rainwater harvesting, and cooking facilities carried out at tank commission level, and arrange for her training.

Article 20 : Each well commission nominates a representative to the Central Committee and pays the representative for his/her work at its own discretion under the local Money system set up by the project. It distributes the local Money costs on an equal basis amongst the tank commissions it serves. The representative may be chosen by the well commission amongst its own members or amongst the inhabitants in the well commission area. The representative is chosen for one year, renewable from year to year.

Article 21 : Well commission members are elected one bye ach tank commission served by the well commission. The well commission members are chosen for one year, renewable from year to year.

Article 22 : Each well commission nominates one of its members as Chairperson, and another as secretary. It can also nominate persons with other specific tasks at its own discretion.

Article 23 : The well commissions meet at least once a month or more often as required. Each well commission meets also at the request of 50%+1 of its members or 50%+1 of the tanks commission it serves or 50%+1 of the members of the Association it serves.

Article 24 : All of the members of the well commission must be present at a first call of a meeting. In the absence of one or more members, a second call is made within 7 days. At the second call 50%+1 of the well commission members must be present.

Article 25 : : Decisions taken by well commissions are valid at the majority decision of at least 50% + 1 of 100% of their members.

In the absence on second call of 50%+1 of the well commission members or in the absence of a majority vote of at least 50%+1 of the members, the well commission in question is automatically dissolved and the tank commissions it serves each elect, at the invitation of the ex-Chairperson of the Well Commission or of the person or persons who replace the Chairperson, a new representative different from the preceding one to the well commission.

Article 26 : The services of the well commission members are paid under the local money system set up by the project. Since women benefit most from the project services, it is expected that most of the well commission members be women. Each tank commission decides the salary its representative on the well commission receives.

THE TANK COMMISSIONS.

Article 27 : La tank commissions are the heart of the project management..

All activities will be carried out by the users themselves. The structures are worked out during the organisational workshops foreseen. The following is what might expect to result from the workshops.

The tasks of the Tank Commission are numerous and include, by way of example,:
- Analysis of the local situation (200 people - 40 families)
- Definition of the local issues and problems
- Liaison with the Health Clubs already established
- Liaison with the local currency LETS systems about to be formed
- Organisation of monthly users' meetings
- Identification of the best projects for Micro-credit development loans
- Setting priorities for Micro-credit loans
- Deciding the priorities for positioning the wells and washing places, with special input from women's groups
- Deciding the positioning of tanks and water pipeline routes
- Deciding priorities for the positioning and installation of sanitation units
- Deciding the pot sizes for stoves and solar cookers
- Liaison with the compost collection and recycling network
- Liaison with the grey water/urine collection and recycling network
- Planning what can be done by the local people themselves at the normal ruling daily rate of pay (which is usually about Euro 3 per person per day) and what can be done in the local LETS currency
- Systematically monitoring project progress and on-going administration with the users' commissions (comprising mostly women)
- Organising daily maintenance of the tank areas, rules of use
- Managing any local disputes relating to the project
- Collection of the monthly contributions to the Cooperative Development Fund
- Nomination of participants to various organisational workshops
- Proposals for the support of families with difficulty in making their contributions

Article 28 : Each tank commission nominates a representative to the well commission to which it refers and pays its representative under the local Money system set up by the project. The amount paid to the representative is decided by the tank commission and is equally distributed amongst all of the members of the Association served by the tank commission. The representative to the well commission may be freely chosen amongst the members of the tank commission itself or amongst the members of the Association served by the tank commission. The representative is chosen for a period of one year, annually renewable.

Article 29 : The tank commission member (at least 3) are chosen directly by the members of the Association served by the tank commission for a period of one year, annually renewable. The members of the Association served by each tank commission decide in meeting with a vote of at least 50%+1 of the Members how many members their tank commission will have.

Article 30 : Each tank commission nominates amongst its members a Chairperson and a secretary. It may nominate other members to carry out specific tasks as it thinks fit.

Article 31 : The tank commissions meet at least once a month. Or more frequently as required. They also meet at the request of 50%+1 of their members or at the request of 50%+1 of the members of the association served by the tank commission.

Article 32 : All of the tank commission members must be present at a meeting on first call. In the absence of one or more members, a second call for the meeting is made within 7 days. At least 50%+1 of the members of the commission must be present on second call.

Article 33 : Decisions taken by the tank commissions take effect with a majority vote of at least 50%+1 of 100% of the tank commission members.

Article 34 : In the absence of 50%+1 tank commission members on second call or in the absence of a majority vote of at least 50%+1 of the tank commission members, the tank commission is automatically and immediately dissolved and the members of the Association served by it elect, at the immediate invitation of the ex-Chairperson of the tank commission or the person or persons who replace the chairperson, a new tank commission.

Article 35 : The services of the tank commission members are paid under the local Money system set up by the project. Since women benefit most from the project structures, it is expected that a majority of the tank commission members be women. All of the tank commission members receive the same basic payment, decided by the tank commission itself on the basis of the indications given by the elected members the tank commission members to the members of the Association during their election campaigns. The local Money costs of the commission members are divided equally amongst all of the members of the Association served by the tank commission in question.

Article 36 : The Chairperson, the Secretary, the Treasurer and other officers of the tank commission receive an extra local money retribution for their specific tasks at the decision of the tank commission itself, taking into account any indications given by elected members during the election campaigns. The supplementary payments are divided equally amongst all of the members of the Association served by the tank commission in question.

THE AUDITING COMMISSION

Article 37 : The activities of the Association are placed under the control of an independent auditing commission. The auditing commission may include, by way of example, a former national auditor general (chairperson) ; accountants of the founding parties, a representative of the regional association of NGOs , a representative of the National Federation of NGOs of the host country; a representative of the [Rural Development Ministry], a representative of the [Ministry of Finance].

The members of the auditing commission are elected by the Central Committee for a period of 12 months, renewable for a maximum of two periods for a maximum consecutive period of three years’ continuous tenure. For each year of tenure, the members must wait one year before seeking re-election to the auditing commission.

Article 38 : The Central Committee may only discharge the Auditing Commission on presentation and acceptation of the annual report and balance sheet of the Association for the year in question.

Article 39 : Payment where necessary of the auditing commission is made where possible under the local Money system set up by the project. The costs are equally distributed amongst the well commissions who distribute their costs equally amongst the tank commissions they serve who distribute their costs equally amongst the members of the Association they serve.

Formal money payments, where necessary, for members of the auditing commission are paid out of administration account reserves which are part of the Cooperative Local Development Fund formed by the monthly contributions made by the members of the Association.

Article 40 : The auditing commission answers exclusively to the Central Committee. It has full rights on inspection without notice of all the activities of the management of the Association and of all accounts and documents of the Association.

CHAPTER V : FINANCIAL PROVISIONS.

Article 41 : The resources of the Association come from:

a) Within the framework of the local Money LETS systems set up during execution of the project, for the amounts for salaries and management costs decided by the various above-described organs of the association:

- for costs at Central Committee, auditing commission and project management levels, equally amongst all of the members of the Association
- for costs at well commission level, equally amongst all of the members of the Association served by the well commission in question

- for costs at tank commission level, equally amongst all of the members of the Association served by the tank commission in question

- for costs of other organs set up during the course of the management of the project, equally amongst all of the member of the Association served by the organ in question.

b) Within the formal money system, by the compulsory monthly contributions made by the members of the Association into the Cooperative Local Development, in accordance with the indications given by the organs of the Association in the course of the execution of their duties. The Cooperative Local Development Fund also includes reserves specifically destined to cover administration and maintenance costs, spare parts, social support and micro-credit structures and unforeseen costs.

c) Within the formal Money system, voluntary monthly contributions made by groups of members of the Association in specific use funds such as cooperative purchasing groups; health funds, education funds, cooperative insurance funds etc.

d) Contributions from national or international organisations

e) Revenues from eventual commercial or promotional activities.

f) Testamentary donations and provisions.

g) Any other legal contribution of right the Association may have.

Article 42 : The Cooperative Local Development Fund.

Each family of five in the project area makes an average monthly payment of [Euro 3] (or [Euro 0,60 per person subject to increase to [Euro 0,75] per person after the first [five] years of operation into the association’s Cooperative Local Development Fund. Family savings from the use of the various services made available by the project are expected to exceed the monthly contribution. The payments, with [50.000] members of the Association provide an average annual total of Euro [360.000] of which about Euro [100.000] is reserved for the management of the project structures. The remaining part (Euro [260.000]) per year is continuously recycled for interest-free micro-credits. After ten years, taking into account an increase to [Euro 0,75] per person per month after 4-5 years’ operation and the reimbursement of the repayment of initial credits made for productive facilities the fund will reach at least [Euro 3.750.000]. During that period each family will have received on an average at least Euro [2.600] in micro-credits in support of productivity increase.

Article 43 :One or more bank accounts will be opened in the name of the Association with a bank institution in [place]. Separate accounts may be opened at the decision of the General Manager or at the decision of the Central Committee for the operation of specific funds and activities.

Article 44 : All withdrawals of funds from bank accounts requires the signatures of the treasurer and the General Manager. Withdrawals equal to or higher than [Euro 5.000] require to extra signature of the Chairperson of the Central Committee. Withdrawals equal to or higher than [Euro 15.000] are subject to a specific authorisation by the Central Committee.

Article 45 : The annual balance sheet at 31st December each year is submitted within 120 days for the approval of the Central Committee.

Article 46 : The budget for the next following period of 12 months is submitted for the approval of the Central Committee on or before the 30th October each year.

CHAPTER VI : ALIENATION OF PROPERTY

Article 47 : Real and personal property of the Association is the collective property of the Members of the Association. It is in principle inalienable. They are transferable only under circumstances expressly foreseen under these statutes in the interests of good management without risk to the cultural, social and economic integrity of the project area.

Transfer of property of the Association to foreign or foreign owned persons, companies or organisations is prohibited.

CHAPTER VII : FINAL PROVISIONS.

Article 48 : The first book year of the Association terminates on [date].

Article 49 : The provisions of these statutes may be modified only by vote after discussion by the Central Committee with a majority of at least 65% of 100% of the members of the Central Committee.

Article 50 : In the event of winding up of the Association, the distribution of its possession will be decided by the Central Committee.

Article 51 : Provisions not foreseen in these statutes will be included in the internal regulations of the Association to be submitted by the General Management, once it is chosen by the Central Committee, will prepare and submit to the Central Committee for approval.

Article 52 : These statutes take effect on the date they are signed by the founding parties.

Article 53 : The law of [host country where the project area is situated] apply to the Association where not otherwise expressly foreseen in these Statutes.

Article 54 : Any litigation involving the Association or arising from these Statutes will be referred to the court in [place].

CHAPTER VIII: FINAL PROVISIONS.

Article 55 : Until to commencement of execution of the project all of the costs of the Association and the costs of all legal formalities involving the Association are to the charge of the founding parties.

Article 56 : After the commencement of execution of the project and prior to the formation of the first Central Committee of the Association all of the costs of the Association and the costs of all legal formalities involving the Association are to the charge of the project.

Signed in [place] [date]

Assembly of the founding parties

Attachment : Full documentation for the project [project name]

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05.06 A summary of the structures to be created..

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