#### 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 11: 07 October 2006

### 5. Financial and economic analysis of the action.

#### Table of indicators.

Annexe E

Analysis of the financial viability and the economic justification économique of the project and of its environmental impact

I Introduction

Description Component C

Sustainability

III.1: Sustainable results with respect to the populations.

The action sets up a complete range of permanent basic services for the benefit of the entire population in the project area. The services in question include social, financial and productive structures and service , entirely managed and maintained by the populations themselves, who own them. The populations pay a monthly contribution of between Euro 0,60 and Euro 0,75 per person into a Cooperative Local Development Fund. Part of the monthly contributions covers the formal money costs of management, for example the cost of spare parts for capital goods which cannot be produced locally. The greatest part of the monthly contributions is used to finance interest-free micro-credits for productivity increase. A large capital fund build up in the Fund during the first ten year project activity period. The accumulated amount is comparable to the initial formal money investments made in Euro and amounts to about Euro 3.000.000.

At the end of the ten years' period, on repayment, where appropriate, of the ten year interest-free loan, large capital reserves will again be built up during the following ten years for use in Micro-credits and, subsequently, for the extension and renewal of the capital goods. In case of loan repayment after ten years, funds available for interest-free micro-credits will be reduced to zero. Since the families continue to make their monthly payments to the Cooperative Local Development Fund, the capital in the Fund for micro-credits will gradually build up again during the second ten-year period as it did during the first period of ten years and is then available for the replacement of capital items goods. The system continues indefinitely and sustainably in cycles of ten years to cover project extensions and the replacement of capital goods. Where the original seed funding was by way of grant, the large amount of capital in the Fund at the close of the first period of ten years will continue to circulate to finance interest-free micro-credits. It can also be used to finance extensions to project structures.

III.2: Environment.

An initial report on the environmental impact of the project has been prepared and is attached to the project documentation.

The project is 100% ecological.

It is based on the utilisation of renewable energies and in particular on photovoltaic energy application for clean drinking water supply. The sanitation structures foreseen are of the dry-composting eco-sanitation type with on-site recycling of organic wastes. Urine and faeces never have the chance of mixing with surface or underground waters.

Non-organic wastes are collected and locally recycled wherever possible in the project area in support of local productive activities carried out within the framework of local money systems set up as part of the project. The utilisation of high-efficiency cooking-stoves using locally produced mini-briquettes promotes the elimination of smoke hazards and fine particles inside and around users’ homes. The mini-briquettes replace wood, charcoal and traditional fuels, safeguarding forests, local eco-systems, and the flora and fauna in the project area. The local financial systems set up enable the people to pay for guards to defend and conserve the natural resources in the project area and for the responsible promotion of tourism there.

The production of articles from gypsum composites is also entirely ecological. The work cycle is such that very small quantities of water used during one phase of the cycle are recycled during a second phase, without the loss of any contaminated or used water into the environment. Gypsum composite products are always repairable on site. If they are no longer needed, they can be returned to the factories for 100% recycling for the manufacture of new products. Used material is never lost in the environment, where, furthermore it would never cause harm to persons or things.

Use of gypsum composite materials may bring with it some risk of fine dust in and immediately round the production units and the gypsum quarries. Appropriate means of protection for eyes and lungs should be adopted where gypsum is worked in confined areas. Gypsum mining and manufacture in the production units is manual and on a very small scale, to the order of a few hundred tons a year.

Use of gypsum could in principle require the re-location of families whose homes are literally situated on the gypsum deposits. However, the amount of material to be consumed is so small, that re-location is extremely improbable.

III.3: Integrated water resources management.

The project concerns relatively small amounts of drinking water (about 1500m3 per day) and the management of supplementary rain-water harvested at household level. Measures to improve drainage of public places are also foreseen as part of a general campaign to reduce the incidence of water-borne diseases in the project area. All possibility of contact between contaminated water and surface and underground waters is eliminated.

Activities carried out under this project are independent of other eventual plans for large-scale regional or national management of water resources. However they inherently supplement and can be integrated in any such plans.

III.4: Sanitation and hygiene education.

Sanitation and hygiene education are both basic components of project activities. Complete eco-sanitation systems will be installed in each of the 10.000 homes in the project area and in schools and public places. Production installation and maintenance of these systems and of structures to house them are carried out under the local money systems set up in an early phase of the project without the need for any formal money.

III.5: Social aspects.

An important role in project education is reserved for women, both in relation to the management of the structures set up and to the benefits they bring to the population. The very first structures created are the Health Clubs which enable women to organise themselves to play an active role in the tank commissions, which are the heart of the project. The tasks of the tank commissions are set in details and graphically illustrated in the project documentation. Women no longer have to fetch firewood and water. Smoke hazards are eliminated at household level. The introduction of local money systems enables women to monetise their work. Each family will on an average receive interest-free micro-credit loans for Euro 1500 for productivity increase during the first ten years’ project cycle.

The proposed activities to not involved the treatment of HIV/AIDS directly. However, they do have a powerful indirect impact on social environments where HIV/AIDS is a problem. First, through the permanent and institutionalised activities of the Health Clubs and hygiene education courses in the schools. Secondly the a gradual reinforcement of the role of women in the community. Finally, through the possibility of improved nursing and care which can be made available to patients within the framework of the local money systems set up.

The elderly, the sick and the handicapped living in the project area all benefit fully, without exclusion, from all of the benefits created as a result of project execution. The financial structures set up offer advanced social security protection at several levels in respect of their formal money obligations to the Cooperative Local Development Fund and for their consumer debits under the local money systems. For instance the debit points accumulated by an elderly, sick or handicapped person under the local money systems can be distributed amongst the adult members (some of them, the youngest, or all of them) of his family; of the entire group referring to a given tank commission; of the entire group referring to a well commission; or where appropriate to the entire group in the project area.

The structures set up should lead over a period of a few years of operation to full employment in the project area, including employment for handicapped people such as the blind. A cooperative local radio-telephone communications structure, for instance, could alone give employment to 400-600 blind people. Such initiatives are not specifically included in this project, as they are not directly related to hygiene education or drinking water supply or sanitation. Since they would involve an initial formal money capital input for transmission equipment, a separate item for them could be included in the project budget where this is an option acceptable to financing parties.

III.6: Financial aspects.

The financial concepts introduced in this project are innovative. Formal money maintenance costs, essentially for spare parts for certain structures, are covered by the monthly formal money contributions paid by families into the Cooperative Local Development Fund. The operation of this Fund is described in section III.1 above and in the project documentation which also contains a graphic presentation. Maintenance related labour and administration costs are covered under the local money systems set up. The local money units rotate continuously in the local community. Their value is referred to the perceived value of an hour’ work. Powerful social control exists over the work and the services offered. In principle, the cost of maintenance of structures and services expressed in local money units is not important, as it is in any case recycled locally. To take an improbably example, the cost of a full-time drinking water supply system maintenance cooperative would represent an annual debit the equivalent of one hour’s work for each of the 35000 adults in the project area. Social insurance aspects protecting the weakest members of the community are described in section III.5 above.

The payments made by families into the Cooperative Local Development Fund typically amount to between Euro 3 and Euro 4 per family of fiver persons per month. The project makes a wide range of services available to the beneficiary families. Savings on their former formal money expenditure for these services should be higher than the monthly contribution to the Fund. Consider for example savings in the cost of drinking water and fire-wood for cooking. Consider the social and financial advantages created by the project and the introduction of interest-free micro-credits

The budget includes complete details on the financial management of the structures set up. For the complete package of services offered, a monthly contribution of Euro 0,60 per person per month by 50.000 people produces a total annual contribution of Euro 360.000. Only Euro 100.000 in formal money is needed for management and maintenance of the system. The remaining part of the income is continuously recycled in the form of interest-free micro-credits for productivity increase. Within ten years this fund will have accumulated at least Euro 3.000.000, taking repayment of initial loans for productive activities made during the first two years’ execution phase of the project. At the same time, each family will on an average have enjoyed interest-free micro-credit loans for at least Euro 1.500 for the increase of the own productivity.

The relationship between formal money revenues and formal money maintenance and administration costs, can, according to the concepts applied in this project, only be positive. Compare this with financial principles traditional adopted for international development projects. In this sense, the project constitutes a world-wide precedent, as it is inherently permanently sustainable.

III.7: Institutional aspects.

The social, financial and productive structures and services set up by the project operate independently of but in full harmony with the existing political and administrative structures in the project area. They operate freely and voluntarily in parallel with the existing structures. They do not substitute the existing structures. Except for works and services carried out for the execution of the project itself, users are always free to choose whether a given transaction be carried out under the local money system set up or under the traditional formal money system.

The local populations themselves carry out most of the work and services needed for project execution. They manage and maintain the structures. They make formal money and local money contributions necessary for the management, maintenance and long-term replacement and extension of the structures of which they are themselves the owners. Operation and maintenance are carried out by permanent locally owned project structures and by local cooperatives and operators.

Economic and financial feasibility.

V.1: Description of the resources.

The principles applied to the execution of this project follow two innovative lines.

The first is that the formal money (Euro) funds are almost exclusively destined for the purchase of goods and services which are not locally available. For example, the purchase of solar pumping systems and the solar panels for them. The local populations are responsible for most of the work and services necessary for project execution. The creation of the structures necessary for them to do this takes place through a series of Moraisian capacitation workshops, during which the people themselves set them up. The people themselves become, as it were, the structures. Their contribution in works and services is for this project estimated to amount to 3.400.000 working hours carried out within the framework of the local money systems set up. These have been converted into Euro at the rate of Euro 3 for each eight-hour working day, producing a local direct contribution by the populations of about Euro 1.250.000, or about 25% of the total project cost. The budget fully justifies the number of hours worked by the local populations for each budgeted activity. The 3.400.000 hours of work represent a true mobilisation of the local populations, 10% (about 4.000 person) of whom are permanently usefully employed as a result of the project application.

The second innovative line of approach is that, with the exception of the very first structures leading to the creation of the local financial structures, the management structures have to be set up before the formal money capital project funds can be spent. Without the presence of the local social and financial structures, no formal money investment, for example for drinking water structures, can take place. This is because the local money structures under which the project works have to be paid, have not yet been formed. For example, the installation of solar pumps for the supply of distributed drinking water cannot take place until the water tanks are ready. The water tanks cannot be built until the gypsum composite construction units are in place. The gypsum composite construction units cannot be built until the local money systems have been set up. The local money systems cannot be set up until women’s participation in the structures is assured. Women’s cannot organise themselves until they are given a platform, the formation of the Health Clubs, enabling them to do so.

The role of the applicant NGO, despite indications often given in the guidelines published by donor organisation, is the permanent on-going monitoring of project execution, which is for a large part carried out by the local populations themselves under the guidance of the project-coordinator and his team. The inhabitants work through the social, financial and productive structures they set up. They follow the indications given them by a project coordinator and by a general consultant, who for this first project is the author of the concepts, who will work for just the current pro-diem tariff foreseen by the European Union for expatriates in the host country. In some specific areas, the project coordinator will obtain the help of a single specialist, provided the specialist can be found within the time span available. In the absence of a specialist, the general consultant will take his place.

V.2 Relationship between the project activities and the expected results.

The whole package of services provided by the project costs less in formal money terms than any one of its numerous elements following traditional methods of financing and execution. In the case of this particular action, deep bore-holes have to be drilled throughout the project area. More often, hand-dug wells can be built using the local money systems set up, and the formal money content of the project could be still further reduced.

All of the social financial and productive structures and services made available through the action are permanent. They enable the inhabitants to take action to increase their productivity and improve their quality of life. Apart from an average use of interest-free micro-credits for at least Euro 1500 during the first period of ten years, the local money systems set up make it possible for them to do whatever they wish and to strongly reduce if not entirely eliminate unemployment in the project area within a few years.

The people in (the project area) do not enjoy adequate hygiene education, sanitation or clean drinking water and. In this respect the situation in the project area is critical. In rural areas in (the host country), most people (percentage) use up to 30 litres per person per day of surface waters from rivers or ponds. Some people (percentage) have open wells. A few (percentage) have access to boreholes. Water from the same source is used for all applications (as drinking water for washing clothes, cooking, animal watering etc). (Percentage) of child deaths are due to diarrhoea- related infections.

Drinking water bought from water sellers costs (price) for a bucket containing (15) litres. Poor families cannot usually pay this amount, and are forced to fetch water from contaminated sources, if they exist. Water is stored in (describe jars or jerry cans) generally without lids. These containers are often badly maintained. The water in them is replaced (times per week) using (instruments and their cleanliness).

Poor water quality throughout the project area spreads diseases such as (name the diseases). The cost of the fighting often deadly water-related diseases takes up a large slice of the family incomes. A goal of the project is to reduce water-borne disease so medical and financial resources can be re-directed to other health objectives like vaccination programmes and preventive medicines. Resulting diseases also affect the quality of life and the productivity of the people.

Supply of readily accessible clean drinking water for personal and household use should improve the health of the whole population and ease the pressure of work on women and eliminate all risks currently involved in fetching water over long distances.

The project includes gypsum composite production units whose first job will be to make water storage tanks and well linings for the project. The project will provide at least 25 litres of distributed clean drinking water per person per day at a distance of not more than 150-200 metres from their homes, plus a back-up supply of another 25 litres of clean drinking water at the (40) well sites, plus up to 25 litres per person per day of non-potable water for personal uses from rain-water harvesting systems placed in users’ houses. Washing places will be supplied at each of the 40 well/borehole sites.

Health Club activities will increase awareness for the risks of poor hygiene at household level, and ensure that the clean drinking water delivered to them at tank commission level remains clean when transferred to household water containers and that proper attention is paid to the cleanliness of household utensils cutlery kitchen and tableware.

V.3 Financial viability.

Refer to comments under points III.1, III.5, III.6, V.1, and V.2 above. The project documents contain detailed information of the social and financial structures et up, their tasks, and the benefits they offer to all, including the poorest and the currently unserved. The position of women is strongly reinforced.

V.4 Specific financial aspects.

They way the inhabitants participate in the project and contribute to its cost has been described several times above. All of the social, financial, and productive structures and services created are independent and managed by the people themselves. The formal money Cooperative Local Development Fund builds up over each ten year project operation cycle to cover future replacement of capital goods and new investments for the extension of services, together with all formal money funds necessary for maintenance purposes. The principles applied in this project for the first time create a precedent for integrated development in poor countries. They do not follow any existing political and economic principle except that of honest and responsible management of public goods and interests.

All of the inhabitants in the project area have permanent access to all of the structures and services created. There are no special categories of beneficiaries or levels of service.

Each inhabitants will receive at least 25 litres of clean drinking water per day at tank commission level. A hand-pump back-up service covering an extra 25 litres of drinking water per person per day at well-commission level is also provided. The installation of rain-water harvesting structures in each of the 10.000 homes in the project area to supply another 25 litres of non-potable water per person per day for personal uses is also planned. Users’ personal daily water requirements are also reduced through the use of dry composting toilet systems and useful recycling of household grey waters.

All of the formal money costs relating to drinking water supply are covered by the monthly contributions made by users into their Cooperative Local Development Fund. All of the costs of systems management and maintenance are covered under the local money systems set up. Everyone in the project area pays the same contribution. Several levels of cooperative social support structures are set up to help families and individuals who may have temporary or permanent problems in meeting their formal money or local money obligations.

The system has no qualification requirements or connection costs, except bona-fide residence in the project area.

Management and maintenance of services at tank commission level is the responsibility of the tank commissions, who own the structures in question. Management and maintenance of services at well commission level is the responsibility of the well commissions, who own the structures in question. The role of each commission is carefully defined in the project documentation where it is also graphically illustration.

Maintenance of all structures installed in the course of the project will usually be in the hands of local cooperatives and local operators trained and organised during the Moraisian water supply structures workshop. The formal money costs are paid out of the Cooperative Local Development Fund. Maintenance services are covered under the local money systems set up. Decisions concerning extensions to services and to long-terms replacement of capital investments are taken by the central management unit the members of which are elected by the well-commissions, after discussion at tank commission level with the populations involved. However, each tank commission and each well commission is autonomous. The commissions are free to take any initiatives in their own area they may consider to be in the interests of their members.

All of the structures created are tax-free and free from any other charge other than the monthly contribution of between Euro 0,60 and Euro 0,75 per person paid by the families into the Cooperative Local Development Fund. The formal money costs for spare parts imported into the project are subject to inflation. The central management unit of the project, duly elected by the inhabitants themselves through the tank commissions and the well commissions may propose changes to the monthly contribution of the inhabitants into the Cooperative Local Development Fund. Taking a presumed substantial increase in local productivity and consequently of the general quality of life of the people in the project area over a period of several years, increases to the monthly contribution over the years may reasonably be foreseen. They are also in the interests of the inhabitants themselves, as the amount of money available to them for interest-free micro-credits for productivity development increases proportionally. On the other hand, the cost of management and maintenance services should remain stable over the years, as the local money systems under which payments for them are covered are both interest- and inflation-free.

Sanitation structures, including most of those necessary for waste recycling are supplied, installed, managed and maintained entirely under the local money systems set up. They are therefore interest- and inflation-free. Formal money costs for vehicles and transport for the collection and recycling of non-organic wastes can be incurred by the network of cooperatives and operators set up under the project for this purpose. They are generally expected to cover these costs out of formal income for waste products which cannot be recycled locally and which are “exported” for formal money outside the project area. As stated in the project documents, their ability to repay their formal money investments is expected to be lower than that of other productive activities set up, and will take place over a relatively long term.

## V Control list (components B et C)

5.1 Beneficiaries

The project area is rural, and includes (number) villages each with a population lower than (number) inhabitants; (number) larger centres with a population between 5.000 and 10.000 and (describe larger towns)

A full list of the communities involved can be found under section 02.03 of the project documentation together with details of drinking water supply installations planned for each village.

The average income of the people in the project area is less than (Euro 2) per day. (The national GDP in (host country) in the UNDP’s report on human development for 2005 (based on figures for 2003) was ($ amount) per person per year; with a poverty index of (00,0 ).

The total (target) population in the project area is officially (number); the actual population there is estimated to be about (number).

All structures and services set up serve all of the inhabitants in all of the villages in the project area, without exception.

The gender issue and the question of sex equality has been addressed by the adoption of a specific order of priorities for the formation of the various structures involved. An active, usually dominating role, of women in project execution and management is thereby ensured. One of the purposes of the first structure to be put in place, the Health Clubs, is to enable women to organise themselves in groups so they can play an active role at meetings and in the management of the structures. Women are expected to play a dominant role in the tank commissions (the heart of the project) and in all of the other structures set up. However, men also have full right to participate in project management; they can also take part in the Health Clubs, although a large participation is not expected in the early project execution years.

The specific needs of children are taken into account in the project basic concepts. In particular through the supply of clean drinking water, safe sanitation, hygiene education courses and water and sanitation facilities in schools, the elimination of smoke hazards in and around homes, accommodation and lighting for study purposes and the reduction of the work load on women.

5.2 Current level of services.

Sanitation in the project area.

The level of access of the population in (host country) to clean drinking water and adequate and safe sanitation services is (percent- quote source of information). The situation in the project area is much worse still. In practice, there are no sanitation structures there at all. People urinate and defecate in the open.

Disposal of domestic grey water constitutes a major problem. Only (percent) of the population in (the host country) is served. This is practically zero in the project area. Water from showers, grey water mixed with urine are discharged into nature. Larger villages have poorly built sumps which attract mosquitoes and other disease carrying animals and insects. A chain of transmission of diseases passes via faeces to diarrhoea-based illnesses including cholera and intestinal parasites which are very common in the project area.

However, structures such as « VIP » toilets have already been culturally accepted in rural area, The project provides for the local construction, installation and maintenance of dry composting eco-sanitation systems in every home in the project area under the local money systems set up. Similar, collective, structures will also be installed in schools, clinics, and markets and other public places.

Drinking water supply in the project area.

There is an acute and urgent drinking water problem throughout the project area, both in the larger villages and in the more isolated rural areas, where there are in practice no clean drinking water structures at all.

Urban water supply in (host country) is the responsibility of (official responsible). Its network covers just (names cities etc and a few large villages). In the project area there are just (describe the drinking water facilities there). This is obviously inadequate and socially unacceptable. Without improvement in the water supply, good hygiene practices cannot be followed either at public level in the schools or at home.

Women have to cover large distances (how many kilometres?) to fetch contaminated water cause of water-borne diseases. The consequences of these illnesses for the local populations are disastrous. Contaminated surface waters such as rivers and small dams are currently the most common water source. Total water consumption is about ( amount) litres per person per day.

All of the problems traditionally linked to poor water quality in developing countries are present in the project area, including numerous deaths due to water-borne diseases, the limits of seasonal supply, the distance between the water source and users’ homes and the time lost in fetching water.

Water bought off water-sellers costs on an average (amount and currency)(Euro equivalent) for a 15 litres bucket. This cost is not payable by poor families who are forced to go to contaminated water sources, if they exist.

No-one in the project area has access to basic drinking water and sanitation services as described in international health publications. (Quote information and statistics from the World Health organisation for the host country). The situation in the project area has been described on the basis of visible conditions noted during visits to the project area.

Population growth in the project area is thought to be about (percent) (UNDP– Human Development Report 2005).

Without this project, it is unlikely that the situation concerning the provision of clean drinking water and safe eco-sanitation facilities improve over the coming years. The authors of this project document are no aware of any other alternative development initiatives currently planned in the project area.

5.3 Situation « with the project »

The present situation with regard to drinking water supply and safe sanitation will be improved throughout the project area through the formation of 200 health Clubs, on-going hygiene education courses in the 40 schools in the project area, the harvesting or rainwater at household level, the supply of eco-sanitation systems in all households, so that the families have a sufficient supply of good quality water for their personal use, and sufficient water for general domestic use. The services are at the disposal of everyone without exception in the project area. Women and girls will no longer have to fetch water. Management and maintenance of the structures is done by the people themselves. The structures are set up within the framework of a stable, cooperative, interest-free and inflation-free economic environment created in an early phase of project execution.

The planned level of consumption of clean drinking water is 25 litres per person per day. A reserve or back-up clean drinking water supply provides for another 25 litres per person per day, at well-commission level, through the use of multiple hand-pump groups. Rain-water harvesting provides another (25 litres per person per day) in each of the 10.000 homes, to cover extra water requirements for personal use. The need for water supply is at the same time reduced through the adoption of dry composting eco-sanitation toilet systems requiring small amounts of water for washing purposes only.

Thanks to the project, all of the (50.000) inhabitants in the project area will have access to basic clean drinking water and safe sanitation services as defined in the Millennium Development Goals (MDGs) adopted in 2000 with a purpose of reducing the part of the world population without sustainable access to clean drinking water by 50% by 2015) and the decisions taken during (example: the World Summit on Sustainable Development (WSSD) held in Johannesburg in 2002 with a purpose of reducing the part of the world population without sustainable access to sustainable sanitation by 50% and promoting efficient integrated structures for the management of water resources.)

During the first twelve months of project execution, the local social and financial structures necessary for the formation of the planned productive structures and services are set up. The first water supply structures at well level should be ready after about 15 months. The physical water supply structures at tank commission level will be ready after abut 18 months. Installation of household rain-water harvesting systems should start after about 21 months. The installation of eco-sanitation systems in private houses should start after about 8 months.

The success of this pilot project should lead to the adoption of the concepts at national level. In this case (the host country) will need to set up about (number, being population divided by 50.000) of these projects with a total formal money cost of (project number times Euro 5.000.000). All of these projects could be completed on or before 2015.

The decision to make extensions to the services set up under this project lies with the populations themselves, who are responsible for the management of them. In principle, water supply at existing water tanks can be increased by 30% at a very low extra cost, by adding 100Wp to the existing installed power of the solar arrays. In most cases, it should be possible to install an extra water tank system (solar pump, photovoltaic panels, feed-pipe, tank structure) in an existing well or borehole. The construction of new houses will be automatically covered by the installation of eco-sanitation and rain-water harvesting structures. The concepts adopted therefore offer a flexibility of adaptation unknown until now. Existing structures can be adapted at a very low cost to any new situation which might arise.

Efficiency and effectiveness

5.5.1 Efficiency

Cost per beneficiary (in Euros per person):

What is the average cost under the project for each person gaining access to basic clean drinking water facilities?

The average investment cost in formal money = Euro 75 per person in coverage of the entire package of services offered. It is extremely difficult to separate the net costs of the various structures made available. The structures are completely integrated with each other. An indicative separation for the initial formal money investment for drinking water services = 50% of the total, or about Euro 37,50 per person.

What is the average cost under the project for each person gaining sustainable access to basic hygienic sanitation facilities?

See comment above. An indicative separation for the initial formal money investment for hygienic sanitation facilities = 15% of the total, or about Euro 11,25 per person.

What is the average cost for each person gaining access to hygiene education promotion structures?

See comment above. An indicative separation for the initial formal money investment for hygiene education promotion structures = 15% of the total, or about Euro 11,25 per person

2) Costs per installed unit (in Euro per m3):

What is the unitary cost per m3 of water distributed through the project’s systems?

Taking the amount of distributed drinking water at tank commission level (1300m3/jour) the unitary cost is Euro 1447. Excluding the hand-pump back-up facilities at well commission level; excluding the rain-water harvesting structures. Over 20 years, including formal money costs of maintenance, the cost would be about Euro 0,21 par m3, excluding the back-up hand-pump structures; excluding the rain-water harvesting structures.

What is the unitary cost of the eco-sanitation structures installed under the project?

The unitary formal money investment cost of complete eco-sanitation structures, including recycling structures les structures assuming the installation of 10.000 systems is Euro 56.

General administration costs of the project. These are the general and agency costs directly connected with the project execution, expressed as a percentage of the total project costs.

About 2%.

5.5.2 Effectiveness

The project offers a complete package of social, financial, and productive structures and services for all or the inhabitants in the project area, without exclusion.

The project activities are executed by the inhabitants themselves. The inhabitants own the structures themselves through their elected organs. Their monthly contributions into their own Cooperative Local Development Fund cover all of the formal money management, maintenance, service extension, and long-term capital replacement costs.

The social and financial structures set up give full multi-tiered social security guarantee with regard to coverage of formal money and local money obligation of the elderly, the sick, the poor and the handicapped members of the community.

The structures created offer full employment possibilities in the project area, including activities suitable for the elderly and the handicapped. These aspects are not specifically mentioned in the project documentation, as they do not directly fall under the stated goals of the ( fund or programme under which the application for financing is being made.)

Progress made towards the Millennium Development Goals

How many people will have obtained access to clean drinking water and safe sanitation facilities as a result of the execution of this project?

Clean drinking water services:

At year one after delivery of service structures : 50.000 (being all of the inhabitants in the project area)

In 2015 : 50.000 + demographic growth.

Safe sanitation :

At one year after delivery of service structures: 50.000 (being all of the inhabitants in the project area). Delivery of the system will have commenced towards the end of the 24 months’ project period, when about 1500 systems will have been installed. The other systems will be installed during the following three years..

In 2015 : 50.000 + demographic growth.

Which proportion of the total number of people needing access to basic services will have received them by 2015 as result of the execution of this project?

100%.

Number of people with access to basic services under the project expressed as a percentage of the planned goals under the Millennium Development Goals?

100% of the inhabitants and families in the project area.

Orientation note: types of water supply and sanitation structures

Types of water supply and sanitation systems. | Water points with manual installations. | Small autonomous system based on local communities. | Urban distribution organisations
Technology and service level | Triple hand-pump groups next to 35 bore-holes. The pumps serve as back-up and support for the distributed drinking water systems. | 200 Local tanks each serving 40-50 families supplied by high-pressure solar submersible pumps installed in 35 (wells/ boreholes) with an internal diameter of at least 8 inches; each with photovoltaic panels with an installed power of the least 300Wp per pump. 40 local tanks serving the schools and the clinics in the project area each with systems as above described. | Not applicable.
Services | According to the preferences of the institutions in question. Service in any case include washing points | Independent rain-water harvesting systems at individual household level for non-potable household and personal use. | Not applicable.
User types | 10.000 households in rural areas and small villages. | 10.000 households in rural areas and small villages. | Not applicable.
Management | 35 Well-level commissions whose members are elected by the tank commissions. | 200 Tank commissions chosen by the households served. | Not applicable.
Use and maintenance requirements. | Ownership and management of the structures at well-commission level. Wells (boreholes),manual pumps, platforms, washing places, guards, (also for solar pumps and PV generators), supervision of access to the well area. Maintenance by the cooperatives set up for the purpose. Formal money maintenance and long-term system replacement costs paid out of Cooperative Local Development Fund. | Ownership and management at tank commission level. Feed-pipe installations, tanks, platforms, supervision, access to tanks. Maintenance by the cooperatives set up for the purpose. Formal money maintenance and long-term system replacement costs paid out of Cooperative Local Development Fund. | Not applicable.
Typical way of cost recovery. Periodic forfeit fees and contributions to cover repairs and replacements. | The families pay a monthly contribution of (Euro 0,60 –0,75) per person into the Cooperative Local Development Fund. About one quarter of this contribution (Euro 69.500 per year) is reserved for the coverage of formal money costs especially for spare parts. Most management costs are covered under the local money systems set up as part of project execution. | Management of the monthly contributions is in the hands of the 200 tank commissions. The structures set up offer several layers of social security support to the elderly, the sick, the poor, and the handicapped who either temporarily or permanently have problems meeting their formal money or local money contributions. | Not applicable.

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