#### 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 12: 03 November 2006

### 1.Description of the action.

#### 1.1 Title:

New Horizons for (project area) : Sustainable integrated development in the (project area) in the (region) of (host country)

Incorporating hygiene education, drinking water supply and sanitation through the formation of local self-managed social, financial and productive structures.

#### 1.2 Project area : (Name the project area)

#### (The following example is taken from a project in Africa. )

### 00.0.00.0. Water supply summary (example)

###### Villages | ##### Inhabitants | Litres/day | Boreholes/wells | Hand-pumps | Solar pumps | Watts installed
Villages du canton de Sédomé | 27071 | 0781 | 19 | 057 | 120 | 036000
Villages du canton de Gboto | 20424 | 0515 | 13 | 039 | 069 | 020700
Total | 47495 | 1296 | 32 | 96 | 189 | 56700

#### 1.3. Amount of funding applied for to (name of funding agency or donor).

Total eligible cost of the action :< EUR 5.000.000 >
Contribution requested from (name of funding agency or donor): < EUR 3.707.150 >
% of the total eligible cost of the action requested: 74,143 %

#### 1.4 Summary.

Duration of the action: 24 months.

Global objectives:

Sustainable integrated development through the formation of innovative social, financial and productive structures and services for the benefit of all of the inhabitants in the project area, including but not limited to the provision of hygiene education, drinking water and sanitation facilities.

Specific objectives:

An entire range of self-managed social, financial, and productive structures and services, including but not limited to 200 Health Clubs and on-going hygiene education courses in the schools in the project area, 200 local social structures, 35 intermediate social structures and one management unit for the supply of distributed clean drinking water; 10000 eco-sanitation systems installed in users’ homes; 200 study rooms with photovoltaic lighting for study purposes; 20000 improved cooking stoves for the elimination of smoke hazards in and around homes and structures for the production of mini-briquettes to fuel them; waste recycling structures; cooperative local money and formal money financial structures the project area, etc. etc

Partners:

(Usually partners are not required).

Target groups:

The entire population in the project area, being officially (number – usually about 50.000) , estimated for the project to be (number).

Final beneficiaries:

The entire population in the project area, being officially (number – usually about 50.000) , estimated for the project to be (number). Success of this pilot project in (host country) should lead to the adoption of national development strategy in (host county) on the basis of the principles applied for the first time there in this project.

Planned results:

200 tank commissions with solar powered distributed drinking water systems; 35 well commissions with back-up drinking water installations and washing places; 1 local money LETS structure; 1 interest-free micro-credit structure for productivity increase (on an average Euro 1500 per family over ten years); 200 Health Clubs for hygiene education and hygiene education courses in the schools in the project area; 10000 eco-sanitation systems installed in users’ homes (of which 1000 delivered by the close of the 24 months’ executive period); 200 photovoltaic lighting systems for study purposes; 1 complete system for waste recycling; 1 complete system for the manufacture and installation of 20000 improved cooking stoves in users’ homes (elimination of smoke hazards) and for the manufacture of mini-briquettes for them; elimination of the consumption of wood for cooking; 10000 systems for (non potable) rain-water harvesting for personal uses (the first systems to be delivered before the close of the 24 months’ executive period) ; creation of about 4000 jobs.

Main activities:

Formation through a series of Moraisian workshops of the necessary social, financial, and productive structures necessary for the creation of a cooperative interest-free inflation-free local economy; activities of the 200 Health Clubs set up; on-going hygiene education lessons in the schools; the production, installation and management of 200 distributed drinking water structures for the entire population in the project area; the production, installation and management of 10000 independent dry composting eco-sanitation systems in users’ homes; and all of the basic services necessary for a good quality of life in the project area, including but not limited to the elimination of smoke hazards in and around homes, waste recycling, and interest-free cooperative local money and formal money micro-credit structures for productivity increase.

#### 1.5 Goals.

Describe the general goals and the specific goals of the action.

Long term goals:

a)To sustain on-going improvement of the general quality of life well-being and health of the local people.

b)To stop financial leakage from the project area.

c)To free more human resources for local production and development.

d)To reduce water-borne diseases so that medical staff and financial resources can be re-directed to other health objectives such as vaccination programmes and preventive medicine.

e)To decrease infant mortality and promote family planning.

f)To increase literacy levels.

g)To eliminate dependency on fuels imported from outside the project area.

h)To help reduce deforestation and global warming.

i)To create value added from locally recycled non-organic solid waste.

j)To create a "maintenance culture" to conserve the investments made.

k)To increase the local pool of expertise so that local people can improve their sustainable well-being and development by identifying and solving problems, including erosion, with a minimum of outside help.

l)To create full employment in the project area.

m) To halt the migration of young people from the project area to shanty towns in the large cities.

Short term goals contributing to the attainment of the long term goals:

a) To carry out a basic hygiene education programme by establishing 200 Community Health Clubs in the project area and promoting hygiene education courses in 40 schools.

b) To install 10000 technically appropriate sanitation systems for the people in the project area.

c) To provide 200 permanent safe drinking water supply structures in the project area with back-up to cover all foreseeable circumstances.

d) To make safe drinking water available within a radius of 150-200m from users' homes.

e) To contribute to the fight against water-related diseases through hygiene education, the supply of appropriate sanitation and clean drinking water systems.

f) To reduce the work load on women including but not limited to elimination of the need to fetch water and firewood.

g) To provide for the continuity of health, sanitation and drinking water systems by establishing appropriate institutional management and maintenance structures.

h) To enable students and others especially women who wish to study in the evening to do so in 200 study rooms with photovoltaic lighting.

i) To avoid the need to import wood into the local system and reduce CO2 emissions in the project area and qualify for CER certificates under the Kyoto treaty.

j) To introduce 20000 efficient bio-mass fuelled means of cooking to eliminate smoke hazards in users’ homes and solar cookers for daytime applications.

k) To create added value through recycling of organic and non-organic waste.

l) To keep available financial resources (LETS money and formal money) revolving within the beneficiary communities.

m) To stimulate on-going local industrial and agricultural development through the use of local currency (LETS) and micro-credit systems.

n) To create large-scale, indicatively 4000, job opportunities.

o) Eliminate the importation of fertilisers into the project area through the local recycling of organic wastes.

#### 1.6 Justification of the project.

(Supply the following information: )

(a) relevance of the action in relation to the objectives of the fund or programme under which the application for finance is made.

This proposal refers to decisions taken in connection with ( example : 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.)

(Name of country hosting the proposed project) is recognised as being one of the poorest countries in the world. The number of people there with access to clean drinking water and sanitation facilities is very low, particularly in rural areas, where the proportion of people with access to clean drinking water is less than (10%), and that with access to sanitation facilities is less than (2%).

(Give a short paragraph of not more than 10 lines, describing the National Plan for Access to Clean Drinking Water and Sanitation in:

(The host country)

(The region where the project area is situated)

(The project area)

It is clear from the foregoing analysis, that so long as traditional concepts of development are followed, the task of supplying clean drinking water and sanitation facilities to the people in the project area and of promoting their general development so as to ensure them a good quality of life is a very difficult, if not impossible one. New integrated development concepts are needed to ensure that the people enjoy a complete range of services essential to a good quality of life. A powerful local general mobilisation of the people in the project area is needed. The formal money cost of the mobilisation must be very low.

The project (New Horizons for (name of project area)) will have a pilot function. Acceptance of the concepts applied in the project as basis for a strategic plan for sustainable integrated development at national level in (name of host country) would involve setting up about (number, being the population of the host country divided by 50.000) . The importance of this first project in (name of country) is then evident. If successful, poverty could be eliminated in (the host country) within a few years, in any case by 2015.

(b) relevance of the action in relation to the priorities of the Fund or programme under which the application for finance is being made.

The proposal is based on the improvement of the quality of life of all of the inhabitants in the project area, without exclusion, and in particular of that of women, children, and the poorest. The people themselves, and in particular the women, are mobilised to create thousands (about four thousand) of sustainable jobs. They set a full range of local social, financial and productive structures. The project is therefore not limited to drinking water supply and sanitation. It also covers, by way of example, structures for hygiene education for women and in schools, autonomous recycling at local level of organic and non-organic wastes, local money systems, interest-free micro-credit structures productivity development, structures for the local production of most of the items necessary for the basic services in question, communication systems, lighting for study purposes, local production of high efficiency stoves to eliminate smoke and health hazards in and around users’ homes, and the production of mini-briquettes for use with the stoves, and structures at household level for the harvesting of rainwater. The drinking water structures are the ones requiring the highest formal currency investment, as they contain elements which are not susceptible to local manufacture under the structures set up by the project.

The proposal responds to the goals of and the principles behind the tender in a particularly innovative way. It provides for the development of numerous permanent physical and sustainable social, financial, and productive structures which all become the property of the inhabitants themselves, in the management of which women play a dominating role. The inhabitants participate in the planning, execution and management of the project structures. They sustainably organise, run, and maintain all of the structures set up at their own cost. The monthly contribution (usually Euro 0,60-0,75 per person) paid by each family into the Cooperative Local Development Fund covers the entire range of services offered, and is affordable even to the poorest families, who benefit from a three tiered social. Security system itself integrated into the project structures. Sustainable hygiene education, drinking water, eco-sanitation systems at household level and structures for the recycling of organic and non-organic waste and for the elimination of smoke hazards inside users’ homes improve the conditions of health in the project area, and in particular that of women and children. Elimination of the use of wood for cooking leads to a reduction in CO2 emissions and to the protection of forests and the environment in general. The project sets up a complete, voluntary, cooperative, interest-free, inflation-free local economic environment entirely managed by the community itself.

(c)Identification of the perceived needs and limitations in the host country.

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. (Describe water –related illnesses and their incidence in the project area, quote where possible national health and/or World Health Organisation statistics).

Women and children often have to carry water over several (how many) kilometres from contaminated sources to their houses. Much time is wasted fetching dirty water which is then usually drunk with all its pathogens without treatment and without being boiled. The way water is provided has other social implications too. The time and effort spent by women on fetching water could be used to improve the living conditions of their families in other ways.

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.

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, 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.

(d) List of target groups and the estimated number of direct and indirect beneficiaries.

All of the inhabitants in the project area, estimated to be 50.000, are both direct and indirect beneficiaries of the project.

The monthly contribution made by each family into the Cooperative Local Development Fund amounts to about Euro 0,60 to Euro 0,75 per person per month. It is enough to cover the full range of services offered by the project and is within the reach of even the poorest families in the community. For them, the elderly, the sick and the handicapped, a three-tiered social security support structure integrated is provided, both in relation to payments of their local money obligations and of their formal money obligations under the project. Health conditions, in particular those of women and children, are improved through the hygiene education clubs and hygiene education courses in schools, the supply of clean drinking water and eco-sanitation facilities at household level, the local recycling of organic and non-organic waste, and the elimination of smoke hazards in users’ homes. Elimination of the need to use wood for cooking brings with it a strong reduction in CO2 emissions and to the sustainable protection of forests and nature reserves in the project area. The project sets up a complete voluntary cooperative interest-free inflation-free local economy system which is managed by the community itself. The local economy systems does not act as a substitute for the existing formal money system. It operates peacefully and in harmony with the formal money system. Users choose whether they prefer to conduct a given transaction under the framework of the local money system set up, or under the formal money system.

(e) Reasons for the choice of the target groups and proposed activities.

The concepts of integrated development adopted in this project do not provide selection of target groups. The project area for this action has been chosen because of the poverty of the inhabitants and the known presence in the project area of extensive gypsum deposits. The number of beneficiaries is sociological in nature. It is determined by the basic relationship of an individual with a group. The group must be large enough to offer a good choice of local products and services to the consumers, and a market which is large enough to allow for specialised production of goods and services. At the same time the size of the group must remain comprehensible to the individual, who must be able to associate with and feel an integrated part of the group. The individual should be able to personally know the administrative organs of the group and to participate personally in their activities. These conditions are best met in areas with populations between 50.000 and 75.000 inhabitants. (The limitation of this project to an area with 50.000 inhabitants is determined by the maximum amount allowed under the Fund or Programme under which this application for funding is made.)

(f) Relevance of the action to the target groups.

a)To sustain on-going improvement of the general quality of life well-being and health of the local people.

b) To stop financial leakage from the project area.

c)To free more human resources for local production and development.

d)To reduce water-borne diseases so that medical staff and financial resources can be re-directed to other health objectives such as vaccination programmes and preventive medicine.

e)To decrease infant mortality and promote family planning.

f)To increase literacy levels.

g)To eliminate dependency on fuels imported from outside the project area.

h)To help reduce deforestation and global warming.

i)To create value added from locally recycled non-organic solid waste.

j)To create a "maintenance culture" to conserve the investments made.

k)To increase the local pool of expertise so that local people can improve their sustainable well-being and development by identifying and solving problems, including erosion, with a minimum of outside help.

l)To create full employment in the project area.

m) Create opportunities for youth in the project area to stop migration of the population from the project area to shanty towns in the large cities.

(g)Description of the value added aspects of the proposal.

The proposed project is fully integrated in an innovative way and represents a world-wide precedent. Poverty can be eliminated in the project area over a period of 4-5 years at a cost of about Euro 100 per person through the supply of a full range of basic structures necessary to a good quality of life, with the creation of several thousand individual and cooperative jobs (in this case about 4.000) and local money systems enabling limitless exchanges of locally produced goods and services in the project area. Each family receives on an average at least Euro 1500 in interest-free micro-credits for productivity increase over each period of 10 years. The success of this first project in (name of host country) should lead to the formation of an integrated development strategy at national level, and to pilot projects in other countries.

#### 1.7 Detailed description of the activities.

General preparation.

Formalities for permits. Personnel necessary: coordinator and secretariat. The consultant provides advice. The cooperation of the national and local authorities is necessary. No specific problem is foreseen.

Purchase of land and permanent offices, in the name of the project and on behalf of the inhabitants in the project area. Actions : coordinator and secretariat; consultant. Cooperation of the local authorities is necessary. No specific problem is foreseen.

Preparation and editing of detailed project specifications. Personnel : coordinator; consultant, secretariat. Activities include the general definitions of the future tank commission areas, most probable sites for wells and boreholes, as well as important administrative aspects such as the rules for the correct notation of names of persons and places.

Construction of the workshop hall and associated drinking water, kitchen and sanitation and nursery services. The contributions of the local populations is expected to be 38400 work hours. Drilling of a borehole. Equipping the borehole with pumps and solar panels. Construction of temporary dry composting dry toilets. Garden for the recycling (by way of example) of waste materials. Organisation of the workplaces for the Project Coordinator and the general consultant. Execution of activities by the coordinator and his secretariat.

Once the Moraisian workshops have been completed, the workshop hall will be used as the permanent central project depot.

Health Clubs.

Activities for the formation of 200 Health Clubs. Purchase and preparation of material for the Clubs. Training of the 200 Health Club leaders.

This is the most critical phase of the entire project. Should these activities not succeed the first time, they will have to be repeated until the Health Clubs are fully operational. Success of the workshop is not so much a question of hygiene education but of the practical organisation in groups of the women in the project area, to enable them to play the important role assigned to them in the formation and management of the social, financial and productive structures to be set up.

Execution by way of a Moraisian workshop. About 220 participants for about 3 months. Nomination of participants at village level. Social organisation enabling the nominee women to participate in the workshops.

Execution of activities : coordinator + secretariat + consultant + specialist workshops + specialist hygiene education.

The contributions of the local populations for the formation of the Health Clubs is 120.000 working hours. The cooperation of about 15 Ministry of Health public health officials is preferred. These officials are then expected to offer technical support the Health Clubs are required.

The workshops should produce the following structures:

-A system coordination structure: with the project coordinator, at a level of the local authorities involved; with the Ministry of Health; between the Health Club leaders and Ministry of Health officials; for the statutes and the rules of the Health Clubs.

-A materials structure; discussion with potential members of the Health Club groups; definition of the content of the hygiene education course in accordance with local requirements; adaptation of the material according to local cultures (illustrations, languages etc.) using artistic styles accepted in the project area; actual preparation of the course materials; distribution of the materials.

-A methodology structure; how to use the materials; the role of the Health Ministry officials; the role of the Health Club leaders; practical exercises; how to call and run the individual lessons; monitoring the work of the groups after the conclusion of the courses.

-A communications structure;

-A tank commission level structure; payment of locally responsible persons; relationships between those responsible locally and the future Tank Commission; relationships between those responsible locally and the Ministry of health official for her area; discussions with persons interested in participating in the (future) tank Commissions ;registration of the course participants ; practical organisation of the lessons and the meetings.

Transport participants. This is the most important logistical problem. For this purpose, two buses will be purchased. At the close of the series of workshops, the buses will be passed on the a public transport cooperative under the framework of the interest-free micro-credit system set up.

Material editing of the course material by the women participating; preparation of course material by the participating women. Nomination of participants at village level. Social organisation to ensure participation by the women in the workshops. Where necessary, a nursery to be run by women themselves is foreseen.

Hygiene education courses in the schools.

Organisation of the workshop : duration about three months. Contribution by the population : 34.000 working hours.

Editing, production, and distribution of course material in the schools.

The cooperation of about 15 Ministry of Health public health officials is preferred. These officials are then expected to offer technical support the teachers in the schools.

The cooperation of the Ministry of Education authorities is required. The participation of a large delegation of teachers (200-250) is hoped for. The participants must decide on the content of the courses for each different teaching level and according to the age of the students. Efforts will be made to cover issues related to the HIV/AIDS epidemic and to measure of voluntary birth control. Local social structures.

The tank commissions.

The tank commission are the heart of the planned project structures.

A Moraisian workshop will be held. Workshop activities:

Local social structures (formation three levels of management, being 200 tank commissions, 35 well commissions; one central management unit.). Participation : 200 persons (mostly women) who will have indicated their interest in taking general responsibility for participation in the tank commissions for the local administration of the project structures. The candidates will be indicated by the Health Clubs, who will already be in operation, eventually in cooperation with existing village development committees where there are any.

Definition of the social form of the tank commissions, the well commissions; organisation , coordination, communication.

Once the workshop has been completed, the women participating in it organise, in cooperation with the members of the Health Clubs, the election of the tank commissions, who then together choose the members of the well commission to which they refer. These then choose the central management unit. commissions.

Personnel : coordinator, secretariat, general consultant, workshops specialist. The local populations contribute 724.000 hours of work during the first two executive project years. Once the workshops and the elections have been held these important activities are organised and run by the populations themselves.

The transport of participants is an important logistical problem. For this purpose, two buses will be purchased. At the close of the series of workshops, the buses will be passed on the a public transport cooperative under the framework of the interest-free micro-credit system set up.

Once the local structures are in place, the financial structures foreseen can be se up. Most of the project activities are covered within the framework of these new financial structures.

Local money systems

(One, two or three) Moraisian workshops will be held, (one for each planned local money LETS system. )

Indicative participation (all workshops together)

The Moraisian trainers.
The project coordinator.
General Consultant.
2 representatives of the NGO.
Representative of the Finance Ministry.
Representative of the Rural Development ministry.
At least 5 observers (possible coordinators for future projects).
200 persons, indicated by the well commissions, who will have indicated their interest in registering transactions.
200 persons (men and women) indicated by the Tank Commissions interested in taking responsibility for the management of the LETS systems at tank commission level.

140 persons who have indicated willingness to register local money transactions at well commission level.

Duration of each workshop: about six weeks.

The Workshops will be expected to produce the following structures:

a) Definition of the social form of the LETS structures
- statutes
- rules
- professional and administrative structures
- financial aspects
- relationships with other non-formal local money systems

b) Structure for the registration of transactions
- physical working space (offices)
- adaptation of environments against weather and dust
- safety and back-up procedures to protect information
- purchase of computers, printers, equipment for registration of members et electrical connections eventually using PV
- distribution of physical structures: LETS boxes, notice boards
- preparation of cheques or other instruments of exchange to be used
- publication of the services available within the system

c) Coordination with users
- preparatory meetings with users at tank commission level
- presentation of the local coordinator
- registration of members
- distribution of cheques or other instruments of exchange
- starting transactions

d) A communications structure
- vertical, at project level (project coordinator, transaction registrars, those responsible at tank commission level, users)
- horizontal, with the various persons responsible at the same level (amongst transaction registrars, amongst tank commission level operators)
- horizontal, amongst local money systems
- commercial, radio, website

Personnel : coordinator, secretariat, general consultant and workshops specialist. The local populations will contribute 576.000 hours of work during the first two executive years of the project.

The organisation and the construction of accommodation for the registration of local money transactions is the responsibility of the well commissions, who own them.. The cost of computers and equipment is charged to the project’s formal money fund and is itemised in the budget.

The transportation of workshop participants represent an important logistical problem. For this purpose, two buses will be purchased. At the close of the series of workshops, the buses will be passed on the a public transport cooperative under the framework of the interest-free micro-credit system set up.

When the workshops have finished, all local system finance activities are organised and managed by the populations themselves.

The management of the local financial structures is subject to the cooperation of the fiscal authorities. An agreement on the taxation of activities conducted under the local financial structures set up has to be reached before the project formally starts. A general moratorium on taxation of these activities for a number of years (at leas 10 years) followed by the application a few simple rules is preferred. These rules are set out in detail in the project documentation. The transaction can take place anywhere in the project area. At least one transactions assistant is formed during the workshops to help people in each tank commission area who are unable to read and write. Similar facilities are provided for market places and places where commercial transactions are done. A collateral voucher system will be introduced to cover frequent, repetitive small-scale transactions.

The micro-credit system structures workshop.

The Cooperative Local Development Fund set up by the project will manage formal currency funds necessary for running the project, acting on instructions of the project coordinator given on receipt of the indications received from those responsible at tank commission level. The funds do not belong to the Fund, which will intervene only in the practical management and transfer of the funds. The decisions are taken by the users' structures set up under the project. Where seed money for the project is supplied by way of interest-free ten year loan, the funds formally belong to the users until the expiry of the 10 years' interest-free credit term. The interests of the financing parties are protected by their representatives nominated to the board of the NGO and/or to the auditing commission, who will be invited to participate in the workshop.

The Cooperative Local Development Fund will be constituted during the workshop.

The services of the Fund will be paid in local LETS monies at a fixed rate per transaction to be set during the workshop. If it wishes, the Fund can then use its LETS credits to purchase goods and services inside the project area and sell them for formal money outside the project area.

One Moraisian workshop will be held to prepare the Bank structures.

Indicative participation:

The Moraisian trainers
The project coordinator
General Consultant
2 Representatives of the NGO acting on behalf of the financing parties.
Representative of the Finance Ministry.
Representative of the Rural Development ministry.
At least 5 observers (possible coordinators for future projects).
At least 6 qualified persons, 3 indicated by the NGO and 3 by the project coordinator.
200 persons, indicated by the tank commissions, interested in participating with responsibility for credit arrangements at tank commission level.

Duration of the workshop: about four weeks.

The Workshop will be expected to produce the following structures:

#### The Cooperative Local Development Fund itself

a) Definition of the social form
- statutes
- rules
- professional and administrative structures
- financial aspects
- relations with the LETS local money systems

b) Physical aspects
- land
- office
- safety
- communications

c) Financial aspects (Definition of initiatives at each structural level. How much money is to be distributed at each level?)

- funding of initiatives at general project level (recycling structures, important productivity initiatives, public works)
- funding of initiatives at intermediate, well commission, level
- funding of initiatives at local tank commission level
- funding of socially based initiatives (clubs, interest groups etc)
- traditional banking activities

#### Organisation of operations

a) Central structure

b) De-centralised structure
- Preparation operators
- Meetings at tank commission level

c) Coordination
- With LETS structures
- With tank commissions
- With project coordinator

d) Financing of specific projects
- Relations with financiers

e) Communications structure
-Vertical, at project level (project coordinator, transactions operators, tank commission level operators, end users)
Commercial, radio, website

Personnel : coordinator, secretariat, general consultant, workshops specialist. The populations contribute 236.000 hours of work. Computers and equipment are charged to the formal money project funds as a separate item in the budget.

The transportation of workshop participants represent an important logistical problem. For this purpose, two buses will be purchased. At the close of the series of workshops, the buses will be passed on the a public transport cooperative under the framework of the interest-free micro-credit system set up.

No specific administrative problem is expected with the micro-credits system, which is independently entirely managed through the internal project structures set up for the purpose. On-going operational costs are covered under the local money LETS systems.

Productive structures.

1) Gypsum composite production units.

Usually two or three Moraisian organisational workshops will be held, one for each production unit planned. These production units are in principle 100% ecological with high manual labour content, zero energy input, and up to 100% of local value added.

Indicative participation (all workshops together)

The Moraisian trainers
The project coordinator
The general consultant

Gypsum composites consultant.
At least one representative of the applicant NGO.
Representative of the Ministry of Health.
Representative of the Rural Development ministry.
At least 5 observers (possible coordinators for future projects).
200 persons (men and women), indicated during meetings held at Tank Commission level, interested in participating in the activities of the factories. Where opportune, according to local political structures and traditions, up to 25% of the people could be indicated by the local chiefs.

Duration of each workshop: about four weeks.

The Workshops will be expected to produce the following structures:

a) Definition of the social form of the production units.
- statutes.
- rules.
- professional and administrative structures and formation.
- financial aspects.
- relationship with the local LETS systems.

b) A structure for the supply of materials.
- geological research for gypsum and/or anhydrite deposits.
- quality control of the gypsum deposits.

- formation of cooperative for exploitation of the quarries.

- locations of gypsum/anhydrite quarries, permits.
- activities preparatory to exploitation.
- logistics.
- coordination of materials depots with the factories.

c) Definition of the items to be made (tanks, toilets, stoves, solar cookers etc).
- coordination with the other production units (specialisation).
- contacts with families.
- definition of requirements : articles and specifications.
- definition of requirements : design, productive capacity.
- definition of the necessary procedures.
- preparation of forms and moulds, training of participants.
- tests.
- decision on priorities to be given to the various items.

d) A structure for the factories.
- land and necessary structures.
- design of factories.
- construction of factories.
- purchase of necessary equipment.

e) A production structure.
- organisation of the production.
- commercial organisation.

f) A structure for the installation of the items produced.
- Relationship factory-installers.
- Preparation of the installers.
- Installation.
- Siting of boreholes/wells.
- After sales backup and service.

g) A structure for communications.
- Vertical, at project level (project coordinator, factory manager, factory commissions, installers, end users).
- Horizontal, between production units.
- With the local money LETS systems.
- Commercial, radio, website.

h) Environmental evaluation reports.

The amounts of gypsum required for project execution are very small, to the order of a few hundred tons per year. No specific problems are expected in relation to the quarries and their exploitation. Quarry exploitation rights will be held on behalf of the inhabitants of the villages or of the tank commissions where the deposits are situated. The people will decide what they want to do with the used quarry premises. In particular, it is not expected that inhabitants will need to abandon their homes as a result of the quarrying activities.

Some fine gypsum powder can be dispersed into the environment in and around the quarries and the gypsum composite production units. The use of protective masks and glasses in the quarries and the production units should be enforced.

The exploitation of the quarries and the production of articles made from gypsum composites are both cooperative in nature, and run by the local people themselves. Their first priority is the protection of the local people and of the environment they live in. All necessary steps will be taken for their protection.

2. Drinking water structures.

Usually one Moraisian workshop will be held in a given project area.

Indicative participation:

The Moraisian workshop specialist.
The project coordinator.
The general consultant.
The gypsum composites consultant.
At least one representative of the applicant NGO.

Representative of the Health Ministry
Representative of the Rural Development ministry
At least 5 observers (possible coordinators for future projects)
30 persons indicated by the tank commissions interested in the systematic maintenance of the structures
100 persons indicated by the tank commissions, interested in drilling boreholes, drilling wells and building the associated civil and associated works

Duration of the workshop: about four weeks.

The Workshop will be expected to produce the following structures:

a) A coordination structure
- definition of the social form
- statutes
- rules
- professional and administrative structures
- financial aspects including payments
- relations with the local money LETS systems

b) Analysis of requirements
c) Hydro-geological research

d) Preparation of maps showing:
- sites of boreholes and wells
- tank sites
- feed-pipe installation lines

e) Specifications
- Work bases/depots
- Boreholes/wells
- Solar pumps
- Hand pumps
- Washing areas
- Solar panels
- Panel supports
- Borehole/well surroundings
- Laying of pipelines
- Installation tanks
- Eventual installation of UV purification units
- Training of well commissions
- Training of tank commission

f) Permits

g) The civil works
- Base for storage of equipment and materials
- Formation of teams
- Planning of works
- Logistics
- Equipment and materials

35 wells/boreholes diameter. 8" (wells dug using the local money system).
35 Washing points(local money system).
35 Hand-pump platforms (local money systems).
Installation of 200 solar pumps.
Construction of 200 panel supports (local money systems).
Installation of solar panels (200*300 W = 60 kW).
Installation de 100 back-up hand-pumps being 30 triple groups and 10 single units.
Purchase accessories being cables, pipes for the well/borehole installations.
Feed-pipes from well sites to tank installations (200km).
Laying of 200000 metres feed-pipe (local money system).
Construction of 200 water tanks (local money system).
Construction of 200 water tank bases (local money systems).
Supervision of installation and training of maintenance.
Setting up spare parts stocks/store.
Equipment for the water quality control.

h) Formation of a cooperative for installation and maintenance.

i) Structure for the management and monitoring of statistics and on-going daily operations at tank commission and well commission levels..

Participants : coordinator, secretariat, general consultant, workshops specialist, (where applicable) drilling company. The local population participates with 392.400 hours of work.

The gypsum composite production units produce tanks, plat-forms, washing places, panel supports etc.

Formal money capital investments for the drinking water structures form a large part of the formal money seed funds as many of the materials and some of the services are not available locally.

3. Recycling structures for organic and non-organic materials.

A special fund is included in the budget to cover the costs of setting up the recycling structures, which have priority. The funds will be repaid by the beneficiaries in the same way as those made available to the gypsum composite factories. They will take the form of interest-free credits repayable according to the real possibilities of those involved as decided during the organisational workshops during which the structures are set up. The repayments will be financed by sale of materials such as fertilisers and compost outside the project area and by the "exportation" of solid non-organic waste which are not recyclable within the project area itself. For an illustration of a possible general structure for the integrated recycling of waste in project areas refer to:

The work of the recycling structures will be carried out within the local money LETS systems already set up. One of the more interesting features of LETS systems is that, in contrast with what happens in the western monetised economies, work considered as "dirty" and/or "heavy" is usually better paid than "clean" and/or "light" work as the rates charged will normally be related to the perceived value of an hour's work in the foreseeable normal working situation.

Usually at least two Moraisian workshops will be held. Often, one workshop for each LETS local money system.

Indicative participation (all workshops together).

The Moraisian trainers.
The project coordinator.
General consultant.
At least one representative of the applicant NGO.
Representative of the Finance Ministry.
Representative of the Health Ministry.
Representative of the Rural Development ministry.
At least 5 observers (possible coordinators for future projects).
200 persons (male and female)indicated by the tank commissions, interested in participating in the recycling of organic waste.

100 persons indicated by the well commissions interested in the recycling of inorganic waste.

Duration of each workshop: about four weeks.

The Workshops will be expected to produce the following structures:

a) Definition of the social form of the structures
- statutes
- rules
- professional and administrative structures
- financial aspects including relations with the Micro-credit institution
- relations with the local money LETS systems

b) Analysis of requirements

c) A structure for the recycling centres
- Definition of the land requirements and the physical structures necessary
- formalities and permits
- design of the centres
- construction of the centres
- purchase of the necessary equipment

d) A structure for the collection/deposition of waste
- urine
- composted excreta
- waste water
- other organic waste
- non organic solids
- special industrial wastes
- medical wastes
- who will do what
- definition of individual zones
- definition of specialisations

e) A commercial structures
- definition of the tariffs applicable to the various types of material
- distribution of urine and composted excreta
- direct recycling of certain materials
- contacts for the exportation of materials not recyclable locally

f) A monitoring structure
- sanitary conditions
- ecological conditions
- safety conditions

g) A communications structure
- vertical, at project level (coordinator, centre managers, collection structures, end users)
- horizontal, between centres
- relations with local money LETS systems
- commercial, radio, website

Contribution of the local populations 576.000 working hours.

The local gypsum composite production units produce tanks, toilets , san-plats and building support structures within the framework of the local money systems.

Cooperation of local authorities and of the Ministry of Public Health is needed for permits and concessions for depots and environmental clearance certificates.

4. Structures for energy autonomy.

20000 high efficiency stoves are to be built in the gypsum composite production units.

The structures foreseen are for the production of mini-briquettes for the stoves to be made by the gypsum composite production units and for the production of bio-masse to make the mini-briquettes.

Usually just one Moraisian workshop will be held in a given project area.

Indicative participation.

The Moraisian trainers.
The project coordinator.
General consultant Terry Manning.
Gypsum composites consultant.
At least one representative of the applicant NGO.
Representative of the Health Ministry.
Representative of the Rural Development ministry.
At least 5 observers (possible coordinators for future projects).
100 persons indicated by the well commissions interested in the production of mini-briquettes.
400 persons indicated by the tank commissions, interested in producing bio-masse for the mini-briquettes.

Duration of the workshop: about four weeks.

The Workshop will be expected to produce the following structures:

a) A coordination structure.
- definition of the social form.
- statutes.
- rules.
- professional and administrative structures.
- financial aspects including payments.
- relations with the local money LETS systems.

b) Analysis of requirements.
- detailed analysis of the present systems.
- demand in the project area.
- demand outside the project area.

c) Analysis of the bio-masse resources available.

d) Definition of the recipes (mixtures) socially acceptable.

e) Creation of the physical structures for briquette production.

f) Logistics.
- Assembly and stocking of materials.
- distribution of mini-briquettes.

g) Organisation of the cultivation of bio-mass.

h) Commercial.
- Availability of micro-credits for growers.
- Availability of micro-credits for briquette makers.
- Prices for briquette distribution according to the various mixtures.

The contribution of the local populations is 228.800 working hours.

5. Structures for water purification.

40 Installations for the purification of water in clinics and schools.

Goal : to redouble the safety of clean drinking water for children and the ill.

Personnel : coordinator, secretariat, general consultant ;

Contribution of populations 2.800 working hours.

No workshop is required for this.

Formation of structures for the collection and the analysis of water quality.

Purchase of equipment.

Installation by the installation and maintenance cooperative already in place.

On-going monitoring of activities and statistics.

6. Structures for lighting for study purposes at tank commission level and in schools and clinics.

200 photovoltaic lighting systems for study purposes.

No workshop is required for this.

Purchase of the systems specially covered under separate budget items

Purchase PV television for study purposes depends on local circumstances and the decisions of the local tank commissions.
PV lighting for 40 schools.
PV lighting for the (number) of clinics in the project area.
PV refrigeration for the (number) of clinics in the project area.
Construction of 200 study rooms at tank commission level.

Installation and maintenance by the installation and maintenance cooperatives for water services already set up.

Personnel : coordinator, secretariat, and general consultant.

Contribution des populations for the construction of the study rooms : 99.200 working hours.

The agreement of the ministries of Public Health and Education is necessary for the installation of systems in schools and clinics.

7. Structures for rain-water harvesting at household level.

No workshop is required for this.

Construction of the first 200 of 10000 rain-water harvesting systems by the gypsum composite production units.

Installation and maintenance by the installation and maintenance cooperatives for water services already set up.

Personnel : coordinator, secretariat, and general consultant.

Contribution des populations for the construction of the first two hundred pilot systems and monitoring them : 36.400 working hours.

#### 8. Structure for the radio station.

(This item is included in the productive structures, and space is allowed for it in the balance sheet. However cost coverage for it has not been included in the balance sheet. This is because it may not always qualify for inclusion in integrated drinking water, sanitation and hygiene education structures under tenders issued by donor organisations. )

The establishment of a local radio station is an integral part of the project. The station is a part of the management of communications concerning the project.

Since most people in the project areas possess a radio, radio is an excellent way to spread information on the project developments and the management of the structures set up. It also enables users to discuss initiatives taken and to be taken, and to express their criticisms. It can also become a vehicle for local commerce.

The station will usually be placed in a location in the centre of the project area so as to limit the transmission radius. A PV operated station may be preferred to one running on "imported" electricity, as this increases the autonomy of the station and reduces long term financial leakage from the project area.

The management of the station will be completely autonomous.

(a) Transmission of information on project activities (news bulletins).
- Convocation of meetings for structures (tanks commissions, LETS systems etc) .
- Information on decisions taken during meetings.
- Information on progress made with the installation/setting up of the various structures.
- Information of interest-free micro-credits conceded.

(b) Transmissions by interest groups.
- Initiatives the groups wish to take.
- Information on initiatives under way.

(c) Information on cultural and sporting activities in the project area.

(d) Emergency services.

(e) Promotion of the project towards the outside.

Financing.

The setting up of the station is covered by a separate item in the indicative balance sheet. How can the station reimburse this interest-free credit?

- Work is carried out under the local LETS money systems - Expenses in formal currency (electricity?, equipment and the costs of running it) would need to be paid back over 3 or 4 years. How:
-a) Collection of a small (formal currency) contribution at household level?
-b) Payments for services rendered to people living in the areas surrounding the project area.
-c) Advertising by producers in the project area towards people living in the surrounding areas Usually just one Moraisian workshop will be held in a given project area.

Indicative participation.

The Moraisian trainers.
The project coordinator.
General consultant.
At least one representative of the applicant NGO.
Representative of the Ministry of Communications.
At least 5 observers (possible coordinators for future projects).
20 persons indicated by the tank commissions interested in participating in the management of the station.
50 persons indicated by the tank commissions, interested in producing programmes for the station.

Duration of the workshop: about three weeks.

The Workshop will be expected to produce the following structures:

a) A coordination structure.
- definition of the social form.
- statutes.
- rules.
- professional and administrative structures.
- financial aspects including payments.
- relations with the local money LETS systems.

b) Analysis of requirements.
- detailed analysis of the communications needs of the individual structures created under the project.
- demand in the project area.
- demand outside the project area.

c) Material structure.
- Land.
- Permits.
- Office/studio.
- Transmission equipment.
- Equipment for production and storing of programmes.

d) Logistics.
- Transport.
- Storage of materials.
- Organisation of network.

#### 1.8 Duration and action plan.

The action will last 24 months.

N.B.: Note: The indicative action plan should not mention actual dates but simply indicate, month 1 ; month 2 ; etc. Applicants should allow a margin of security in their plan. The plan should not include detailed descriptions of the activities, but just their headings. Months without activities should be included in the action plan and in the total duration of the action.

Activity plan, month by month and year by year.

### 2. Expected results of the action.

N.B: for each expected result provide verifiable indicators (refer also to the logical framesheet ) which enable the progress made to be identified, described and measured.

#### 2.1 Impact on final beneficiaries and target groups in the project area.

Maximum 2 pages. Indicate how the action will improve:

(a) the situation of the target groups and final beneficiaries.

All 50.000 inhabitants, without exclusion, benefit from all of the social, financial and productive structures and services set up during the project.

Inhabitants will have 25 litres of clean drinking water per person per day at a distance which should not exceed 200 metres from their homes, a reserve supply of 25 litres of clean drinking water per person per day next to 35 well sites, and a supply of a similar amount of non potable water for personal purposes from rain-water harvesting at household level. During all seasons, and in particular during the dry season.

A complete appropriate dry composting eco-sanitation system will be installed in each of the 10.000 homes in the project area.

A contribution to the fight against water-borne diseases will also be made through hygiene education through the formation of 200 Health Clubs for women (however the Clubs will also be open to the participation of men), and the introduction of institutionalised hygiene education courses in the 40 schools in the project area together eco-sanitation and drinking water supplies there.

Students and other persons, especially women, who wish to study in the evening will be able to do so under acceptable lighting conditions in 200 study rooms built under the project and fitted with photovoltaic lighting equipment.

The introduction of high efficiency bio-mass stoves made in the project area will lead to a reduction (and later, to the elimination) of the importation of fuels for cooking into the project area.

The work load on women will be reduced through the elimination of the need for them to fetch water and wood for cooking purposes.

Local value added will be increase by the local recycling of non-organic waste in the project area.

Available financial resources (both local money under the LETS structures set up and formal money) will be constantly recycling interest-free within the community in the project area.

Local industrial and agricultural production will be increased through the use local money LETS systems and interest-free revolving micro-credit systems.

Ecological and sustainable exploitation of (name the areas concerned) natural and tourist resources in the project area will be promoted in cooperation with the (name the Ministries involved) and local flora and fauna protected.

About 4000 jobs will be created.

Young people will be trained to repeat and multiply this innovative pilot initiative in other parts of (host country) and in other countries.

(b)Describe where applicable the responsibilities and technical and management capacities of the various partners involved in project execution.

(This is not usually applicable to projects under the Model. )

(c)Describe the situation with the ACTION in relation to the situation WITHOUT THE ACTION.

The project supplies basic structures necessary to an acceptable quality of life, including but not limited to hygiene education, supply a clean drinking water, and sanitation facilities to all of the 50.000 people, without exclusion, in the project area. At the same time the project makes a complete range of self-managed social, financial and productive structures available to the inhabitants. All these structures should be put in place during the first 15 months of project execution. However, some specific initiatives will only begin towards the end of the 24 months’ executive period of the project. The production of items necessary for eco-sanitation and for rainwater harvesting, and of improved cooking stoves and mini-briquettes for them will continue beyond the 24 months’ executive period.

Improvement in the quality of life of all the inhabitants in the project area and in particular that of the women and children there should have become a reality by the close of the first period of 24 months. However, several more years will be needed to totally eliminate poverty fro the project area. During the first 24months about 4000 jobs will have been created, contributing to the reduction of unemployment in the project area. Women will no longer be fetching water over long distances and will be participating actively in the operation of the social, financial and productive organs set up. Each family will on an average have been able to benefit from an interest-free micro-credit for about Euro 100-250. Over the first ten year project cycle, each family will receive interest-free micro-credits for productivity increase for on an average about Euro 1500. The entire population should be actively participating in the local money systems set up. A beginning will have been made to the reduction of financial leakage from the project area and the liberation of more human resources for local production and development.

A contribution will already have been made to a reduction in the incidence of water-borne diseases through the formation of 200 Health Clubs and hygiene education courses in the schools, the supply of clean drinking water, clean conditions around boreholes wells and water tanks, the improvement of drainage in public places, the operation of waste recycling structures, and a start to the installation of 10.000 structures sanitary structures in each home in the project area, to be completed over a period of about 4-5 years.

Fight against smoke hazards to health, especially of that of women and children, will have begun with the introduction of improved cooking stoves and mini-briquettes for them. Reduction on the dependence of the population in the project area on imported fuels for cooking and lighting will have commenced. Some of the families will no longer have to fetch wood for cooking. Over a period of 4-5 years, distribution of the 20.000 stoves necessary will have been completed, and production of the mini-briquettes necessary for their operation under way.

The following social structures will be in place :

200 structures for basic hygiene education for women, and on-going systematic hygiene education courses in the schools.

200 tank commissions.
35 well commissions.
1 project level management unit.
A three-tiered social security system for the elderly, the sick and the handicapped.

The following financial structures will be in place:

A self-run cooperative interest-free, inflation-free local money system enabling limitless transfer of locally produced and consumed goods and services to take place.

A self-run cooperative, interest-free micro-credit system for local productivity increase.

The following productive structures will be in place :

Two structures for the production of articles made from gypsum composites, such as those for sanitation purposes, the high-efficiency stoves, rain-water harvesting.
200 structures for recycling of organic waste, and 35 structures for the recycling of n on-organic waste.
35 structures for the manufacture of mini-briquettes for the improved stoves ;400 sources for the growing of bio-mass for the mini-briquettes.
200 structures enabling students (including women) to study in the evening.

(d) Describe in detail steps to be taken to monitor the given indicators.

Most of the social, financial, and productive structures set are by the project are physically quantifiable. Since the services are placed at the disposition of all of the inhabitants without exclusion, control and systematic monitoring are simple to organise. The structures are concentrated in a clearly drawn territory. In particular, clean drinking water and sanitation structures are physically present following a systematic and known pattern..

According to the new development principles applied in this project, the basic task of the applicant is on-gong control over project execution. This control is continuous, with the participation of a team including (an executive director, an economist, a civil engineer, a sociologist, a secretariat all or any of whom may physically attend meetings project execution.

In more detail :

For the 200 Health Clubs, the following information is available. Workshop reports; presence at the workshop; reports on the activities of the clubs; presence at the meetings held by Health Clubs chosen at random. Copies of printed material for the courses. Research enquiry amongst women. The same applied for the Hygiene education courses in the schools.

For the 200 Tank Commissions, heart of the project, the following information is available: Workshop reports; presence at the workshop; reports on the activities of the commission; presence at the meetings held by Commissions hosen at random. Statistics on the activities of the Commissions. Inspection of the physical structures run by the commissions and checking their operation. Enquiries amongst the populations served by specified tank commissions. The same is applicable to the work of the well commissions.

In particular, with regard to clean drinking water services, physical execution of the works according to the project plan, starting with the well digging or drilling and their equipment, the photovoltaic installations, the presence of guards; works for the installation of feed pipes. Information on progress made with the construction of tank production units, tank supports, panel supports and designs for the preparation of moulds for their manufacture. Subsequently, monitoring their production and installation. Monitor the distance between the tank sites and the homes served. Then actively actual supply of drinking water to the families and the action taken to control water quality.

With regard the sanitation structures, monitor the physical execution of works for the construction of the production units foreseen, and for the exploitation of the gypsum quarries. la suite, Monitor progress made on the design and preparation of forms and moulds for the manufacture of the sanitation systems and their installation. Check installation statistics and statistics on system operation.. Monitor operation amongst random-chosen households. Organise surveys amongst the population.

With regard to the operation of the local financial structures set up : the applicant can carry out a comparison between financial activities at the time of the survey and those applying at the start of the project. Surveys amongst users can be held. A list of activities started after project start-up can be held. Study information and statistics on the operation of the micro-credit systems. Participate in meetings of the management organs of the funds. Physically check the work and operation of the local money transaction registration centres.

The 35 recycling centres can be checked by physical observation of the cleanliness of the environment in the project area. Surveys amongst users can be held. The recycling centres can be visited. Liaison can be set up with the Ministry of Public Health and with Public Health inspectors charged with supervision over the recycling centres.

With regard to the introduction of 20.000 high efficiency stoves, the production of mini-briquettes for them, and the elimination of smokes hazards in and around the homes, the physical presence of the stoves in the homes can be checked, surveys held amongst users; visits made to the mini-briquette production units; the books and accounts of the production units checked ; the physical presence of bio-mass in the fields checked..

(e) Level of implication of other participating organisations.

Execution : local populations with the support of the project coordinator and a small team of specialists “the project government”.
Permanent structural monitoring of project execution : the task of the applicant, as “project parliament” .
Auditing commission checking applicant’s books.

Independent audit.

(Associate : NGO Bakens Verzet, Netherlands, will make the author of the Model for Sustainable Integrated Development on which this project is based available as General Consultant.. Bakens Verzet will also be responsible for the participation of Mr. Eric Frans Meuleman, Haarlem, Netherlands, expert in technologies for the working of gypsum composites.)

(Associate : NGO Africa AHEAD, author of the favoured hygiene education course.)

(Associated : (Local NGO’s with an indication of how they might be able to contribute where necessary. One or two might supply members for the auditing commission).

(f)Justification of partners’ roles.

Not usually applicable to projects under the Model.

(g) Team proposed for the execution of the action (describe for each function: do not include the names of individual persons involved).

The project mobilises and/or employs about 4000 permanently, being about 10% of the target adult population. Here are some examples of permanent jobs. Figures vary from one project to another and are indicative.

200 Health Club leaders;
1000 tank commission members;

200 well commission members;
10 members of the central management unit;
100 person for the registration of local money transactions;
200 local money transaction assistants;
200 local recycling system members;
100 well-level recycling members;
200 guards for structures;
400 farmers for bio-mass for mini-briquettes;
100 mini-briquette manufacturers;
100 manufacturers of gypsum composite products such as tanks, stoves, sanitation systems;
50 installers;
20 maintenance staff;
10 people for water quality control.

Les following professional services are foreseen :

Project coordinator and a team comprising:

1. 1. 1 general consultant for the application of the principles on which the project is based. (24 months)

2. 2. 1 expert in Moraisian workshops. (12 months)

3. 3. 1 hygiene education course expert. (6 months)

4. 4. 1 gypsum composites expert. (24 months)

Auditing commission : seven members. The commission has investigative powers and can view all project documents and actions at any moment.

Independent audit.

#### 3. Methodology and sustainability.

3.1 Appropriateness, practicability, and coherence of the proposed activities.

The project sets a cooperative, non-profit, interest-free, inflation-free economic environment up in the project area for the benefit of all of the inhabitants there, where individual initiative and true competition can flourish. It produces direct employment for about 10% of the adult population and powerfully influences the economic development of the remaining 90%. All of the social and economic structures and services set up are sustainably created, run owned by and paid for by the people themselves without the need for any financial assistance after their formation. These local economic and management structures are set up during capacitation or organisation workshops run following the concepts presented by the Brazilian sociologist Clodomir Santos de Morais. The order in which these workshops are held is critical.

The new integrated sustainable development principles applied for the first time in this project call for a pre-determined sequence of activities offering an optimum guarantee to donors and funding organisations as to how their funds are used. First, the social structures, being the health clubs or the hygiene education structures (they constitute a platform for women’s participation, the tank or local development commissions, the well or intermediate level development commissions, and a central management structure are set up. Secondly, the financial structures, being the local money systems and the self-financing interest-free micro-credit systems are set up. Finally, productive structures are set up for the local production, using the financial systems created, of most of the articles necessary for the range of basic services foreseen, such as the distributed drinking water and eco-sanitation structures.

3.2 Participation of partners and of the beneficiary population.

First, about 200 Health Clubs, each based on 40 families (200-300 people) are set up. They form a platform for women, to make sure they can organise themselves in groups and participate en bloc at local development meetings and to play a dominant role in the various social, economic, service and productive structures set up.

Once the Health Clubs are in operation, about 200 tank or local development commissions are set up. They are based on the same groups of 40 families (200-300 people). The commissions each have 3 - 5 members, all or at least most of whom are women. These commissions are the heart of the project. They in turn elect about 35 intermediate of well commissions, which in turn choose a central management unit.

Once the tank and well commissions and the central management unit are in place, it is possible to set up the local money systems which offer the inhabitants in the project area means for the transfer of all locally produced and consumed goods and services. The art is at this point to identify and use technologies enabling most of the goods and services necessary to local development and a good quality of life in the project area to be produced with 100% local value added. Such goods and services can then be produced, installed, maintained and paid under the framework of the local money systems set up, without the need for any formal money at all. An example applied in this project is the possibility to produce, install, manage, and maintain a complete dry composting eco-sanitation structure through out the project area without the need for a cent of formal money. The costs of running the local money systems are covered under the local money systems themselves.

Once the LETS local money systems are in place, a distinction can be made between what can be done under the local money systems and what must be “imported” into the project area. Goods and services needed for basic urgently needed services such as clean drinking water supply, use is made of the project’s seed funds to cover the formal money (Euros) cost of imported goods and services. For other initiatives cooperative interest-free micro-credit structures are put in place. These recycle the users' monthly contributions (usually between Euro 0,60 and Euro 0,75 per person) to the Cooperative Local Development Fund interest-free for credits for sustainable productivity purposes, for the purpose of purchasing goods for productivity increase not locally produced. The micro-credit systems will allow at least Euro 1500 of interest-free micro-credit per family during the first ten years of the project. Probably more, as the Euro 1500 is conservatively based on an average two-year pay back time. The Cooperative Local Development Fund is set up as a project structure. It belongs to, and is run by the people themselves, at the beginning with professional support through the project Coordinator.. The costs of running the micro-credit structures are covered under the local money systems.

Once the cooperative micro-credit structures and the LETS local money systems are in place, the production structures can be set up, and in particular units for the production of articles from gypsum composites. Amongst the priority items for manufacture in these factories are products necessary for the water supply project such as water tanks, well linings, water containers, etc. When capacity is available they can start making the planned ecological sanitation systems, and other necessary items such as high efficiency stoves, rainwater harvesting systems, construction components. Since cheap gypsum or anhydrite deposits are (usually) present or near the project area, no formal money is needed either for the raw materials or for production. Installation and maintenance.

3.3 Sustainable impact.

Apart from structures basic to poverty alleviation and an improved quality of life, such as hygiene education at home and in the schools, water supply, sanitation in the homes at schools and in clinics, solar lighting for study purposes, solar refrigeration for medicines in clinics, improved cooking stoves etc, no attempt is made in this project to list all of the initiatives which could take place, as these are as varied as the minds and wishes of the people.

However, any services the local people may consider of special importance can always be included in the project and itemised in the budget. Some examples are the setting up of a local radio station, setting up local milk shops for the pasteurisation and distribution of milk, the creation of cooperative storage facilities for food, especially for food for local consumption, the creation of a seed bank and the draining and re-structuring of market squares and public places. Many such poverty alleviation initiatives may require some project-level formal money funds. Other initiatives, for instance, creating sports clubs, theatre groups, local consultants’ offices, or communications centres, plant nurseries, reforestation etc would typically be done under a combination of the LETS local money systems and the interest-free micro-credit systems.

The contributions made by users into their Cooperative Local Development is sufficient to finance and repay an interest free formal currency loan for up to Euro 3.750.000 over a period of 10 years, taking the various reserves and loan repayments into account. Should payments out of reserves be higher than expected, the project administration may choose to increase the monthly contribution of the families after four or five years, as their standard of living improves. Interest-free loans for various project structures transferred to private persons or cooperatives are paid back into the Cooperative Local Development Fund over a period of 3-5 years. These loans include those for the gypsum composites manufacturing units, the briquette manufacturing units, public transport cooperatives (buses), and the maintenance and installation cooperatives (vehicles). 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 as it did during the first period of ten years. 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 and accumulate.

The principles of sustainable integrated development on which this project is based are such that all, or at least a part of users’ monthly contributions to the Cooperative Local Development Fund can be covered by savings in their current expenditure which are a direct consequence of the use of the project structures set up. For instance, users no longer need to make formal money payments for drinking water, for wood for cooking, or for rubbish collection. Some sustainable applications under the project reduce CO2 emissions. The main one is through the use of locally-produced high efficiency cooking stoves, others are the substitution of the use of kerosene lamps by solar home systems, and of some pumping systems by solar or advanced hand-pump technologies, and the reduction of the use of non-rechargeable batteries. They therefore qualify under the Kyoto treaty for the issue of CER certificates, which can be traded to industrialised countries. The value of these certificates will contribute to covering the cost of the projects and may, over time, cover all their costs, enabling the seed capital to be recycled for other poverty alleviation initiatives.

3.4 How is the action linked to earlier projects which have already taken place? (As applicable).

Not applicable to this project.

3.5 Internal control and evaluation procedures.

The integrated development concepts applied in this project are different from those traditionally adopted. The local populations are themselves responsible for the execution of most of the project works. They are prepared for their tasks during Moraisian workshops. Their work is carried out under the social and financial structures set up by the project. The project coordinator, sole responsible for the execution of project activities and his consultants give support and advice to the populations. The work and services carried out by local inhabitants are effectively paid for by the local population under the local money systems set up. Every transaction is duly registered. A conversion rate of 3 Euro per eight-hour working day has been applied to determine the formal money co-financing by the populations of the project.

One aspect of the tasks of the three levels ( tank commission, well commission and central management) of operational structures put in place is to report on their meetings and activities. These reports are put at the disposal of the coordinator, the applicant as monitoring body, the on-going auditing commission, and the independent auditor.

The role of the applicant NGO and the project coordinator are very specific. The applicant NGO is responsible for permanent on-going on site monitoring of project progress and of the operation of the project coordinator and his team. The applicant is the controlling organism, or the “parliament”. The project coordinator plays the role of the executive, or the “government”. Following these concepts, the executive must always remain entirely independent from the applicant NGO, so as to avoid all risk of conflict of interests. The applicant NGO, responsible for the project vis à vis funding agencies exercises on-going continuous control over project execution and over the activities of the project coordinator. The applicant NGO, once he has approved the project at the start, may always express its opinion but may not intervene directly in project execution. The monitoring activities of the applicant NGO are in turn subject to control by the independent auditing commission. The work of the auditing commission is in turn submitted to the control of an independent auditor.

For its activities as first level monitoring (“parliamentary control”) the applicant has many sources of information available.

Most of the social, financial and productive services set up by the project are physically quantifiable. Since they are the services are put at the disposal of all of the inhabitants in the project area, without exclusion, monitoring them is relatively easy. The structures are concentrated in a limited territory. In particular, drinking and sanitation structures are physically present following a systematic known pattern.

For the Health Clubs, reports on the workshops setting them up are available. The applicant NGO participates in the workshop activities. Reports on the activities of the individual clubs are available. The applicant NGO may attend meetings of Health Clubs chosen at random. Copies of the materials prepared for the courses are available. The applicant NGO can carry out surveys amongst the women in the project area. The same principles apply to the hygiene courses in the schools.

For the Tank Commissions, the heart of the project, reports on the workshops setting them up are available. The applicant NGO participates in the workshop activities. Reports on the activities of the individual commissions are available. The applicant NGO may attend monthly meetings of Tank Commissions chosen at random and can inspect the physical structures they are responsible for and check their operation. The applicant NGO can carry out surveys amongst the women served by the tank commission concerned. The same applies to monitoring the activities of the well commissions.

In particular, the physical execution of clean drinking water facilities according to the project plan can be physically inspected, starting with the wells/boreholes, their equipment, the photovoltaic installations installed, the presence of guards; pipe-line laying activities. He can check progress made on the construction of the gypsum composite production units for the production of tanks, tank supports and panel supports, and the designs for and the preparation of forms and moulds for their manufacture. Subsequently he can monitor their production and installation. He can check the physical distances between the tank installations and the homes served and the activities for monitoring water quality.

In relation to sanitation, the applicant NGO can carry out physical on-site inspection of the construction of the planned production units, and the exploitation of local gypsum deposits. He can then check the design and preparation of forms and moulds for the manufacture of the eco-sanitation systems and their installation and operation. He can carry out surveys of operation and monitoring at household level with households chosen at random. He can organise general surveys amongst the populations.

In relation to the financial structures set up, the applicant NGO can make a statistical comparison between the level of economic activity in the project area before the start of the project and the level of productivity after the start of the project. He can carry out surveys amongst users; make a list of activities start after the commencement of the project; study information and statistics on the number of and value of the micro-credits made available. He can check the operation of the local money LETS systems by on-site random surveys, by viewing the number of transactions at each tank commission, well commission and project level and their value; he can calculate the rate at which the local money credits are recycling in the project area.

The recycling network can be monitored by making random checks on the cleanliness of the environment in the project area, by way of surveys amongst users, and by physical visits to the individual recycling stations.

The introduction of high efficiency cookers can be monitored by checking the accounts of the stove production units, by checking the actual on-site production of the stoves; by visiting and checking the mini-briquette production units and their statistics and books, by checking the physical presence and use of the stoves in the homes of users chosen at random, and the elimination of smoke inside and around the households. He can carry out surveys amongst

Forward: Initial environmental survey.

Back: Four page summary for funding purposes.

Menu of files for funding purposes.

Complete index of the Model.

Model Homepage.

Typical list of graphs and drawings.
List of maps.
Documents for funding applications.

Homepage Bakens Verzet