Application
Data Sheet for pre-qualification under the EU-ACP Water Facility
The Applicant, the Ministry of Water, Resources Management and
Environment Development of the Government of Kenya has set up the following
national and regional level programmes to honour its obligations under the
Millennium Development Goals (MDG’s) adopted in 2000 to reduce by 50% the
proportion of the Kenyan population without access to clean drinking water by
2015, and those under the 2002 Johannesburg World Summit on Sustainable
Development (WSSD) to reduce by 50% the proportion of the population without
access to sustainable sanitation, and the promotion of integrated and effective
structures for the management of water resources.
Kenya’s National Drinking Water Plan 2004-2005 (???????change as
required) provides for a series of regional actions involving (?????? change as
required) the rehabilitation of existing drinking water structures, the supply
of new boreholes and water sources. In particular in the Trans Nzoia District,
the National Plan includes projects for the decentralisation and transfer of
responsibility for water services, an improvement in the supply of clean
drinking water and a reduction of the proportion of the un-served population,
together with an improvement in the condition of health of the population and a
contribution towards poverty reduction in the area.
The Saboti Division, the subject of this project, is one of the six
administrative divisions of the Trans Nzoia district. It is divided into five
locations and six sub-locations. The Division covers an area of about 200 km2,
being about 25 kilometres from north to south and 18 km from west to east. The
population in the area is estimated to be 60.000. Activities under the National
Plan in the district include ?????????????????? for a total value of Kenyan
shillings ???????????????????
The innovative project “New Horizons for Saboti” here presented covers
40 localities in the Saboti Division, Trans Nzoia District, Kenya. As a result
of an innovative approach to the inter-relationship between the social and
financial structures necessary for development and poverty alleviation, a wide
range of basic services can be made available to the entire population in the
project area for the same price as the water facilities originally included in
the National Plan.
The project qualifies under both section 1.2.2.1 “Co-financing of Water
and Sanitation Infrastructures” and under section 1.2.2.2 “Co-financing of
Civil Society Initiatives” of the ACP-EU Water Facility. It is based on the
improvement of the quality life of all of the inhabitants in the project area and
in particular of that of the poorest, but is not limited to water supply and
sanitation. It also covers, by way of example, structures for hygiene
education, for the autonomous management of services at local level, local
money systems, interest-free micro-credit systems for productivity increase,
local production of most of the goods necessary for the basic services and
structures to be set up, waste recycling, communication, lighting for study
purposes, local production of high efficiency stoves and the production of
mini-briquettes for them, rain-water harvesting, etc.
The project sets an interest-free, inflation-free, cooperative financial
environment up for all of the inhabitants in the project area under which
private initiative and genuine economic competition can flourish. It gives
direct employment to about 15% of the local adult population and powerfully
influences the economic development potential of the remaining 85%. All of the
social and economic structures set up are executed, and sustainably managed and
maintained by the local populations who also own them, without any form of
public support following their formation.
The project contributes to the fight against AIDS and to the general
conditions of health of the people in the project area through the creation of
Health Clubs, hygiene education courses in schools, the supply of clean
drinking water, the supply of a complete sanitation system for homes and in
public places and schools, the recycling of waste, better aeration with smoke reduction
in homes and in villages, the elimination of stagnant surface waters and
improved nursing for the sick made possible under the local money systems set
up.
The project has been submitted under category 1.2.2.2 “Co-financing of
Civil Society Initiatives” because it promotes a general mobilisation of the
entire population as foreseen under decision 7300/04 dated 17/03/2004 of the
Council of Europe, which provides that funds be destined for:
-
innovative systems for the solution of the problems cited by the World Panel on
Financing Water Infrastructures “Financing Water for All”
- ensuring access of the poorest to water supply and sanitation schemes as set
out in art. 65 of the Cotonou Agreement
The project establishes a new form of public-private cooperation
combining the wide executive experience and technical expertise of the
applicant Ministry in the supply of drinking water and sanitation in Kenya with
a powerful and direct social and economic mobilisation of the inhabitants in
the project area.
Most of the project activities are carried out by the local populations
themselves under the local economic and autonomous management structures set up
during a series of “Capacitation Workshops” using methods developed by the
Brazilian sociologist Clodomir Santos de Morais.
The funds of the project “New Horizons for Saboti” are destined:
-
for the creation of autonomous social and economic structures, with particular
reference to the integration of water supply structures with other services
necessary to ensure a good quality of life for all of the people living in the
project area and in particular of the poorest
- to act as catalyst for a general social and economic mobilisation in the
project area to establish a “Best Practices” precedent which can be emulated in
other regions throughout Kenya and in both rural and poor urban areas in other
countries throughout the world.
- to ensure that property in all of the cooperative social and economic
structures set up following a carefully organised logical order, remain in the
hands of the local people through the formation of a Cooperative called “New
Horizons for Saboti” registered in the name and for the benefit of the entire
population in the project area.
- for an innovative and flexible project which promotes the integrated
development of the local economy and supplies the missing link between the
financing of sustainable projects and productive activities.
- for a project where all activities foreseen, including factories, materials,
and products are 100% ecological and recyclable, where used water is treated at
the lowest possible level, usually that of the individual households.
- for a project which reduces and attempts to sustainably eliminate all
pollution of water resources, the earth, and the atmosphere due to human
activity in the project area, advantages which will be progressively spread at
regional, national, and international levels as the new concepts introduced are
applied there.
- for a project where women play a dominant role both in the execution and
administration of the project structures and works, and in respect of the
individual benefits in terms of improved living conditions deriving from the
project execution.
- to launch a new cooperative interest-free, inflation-free non-profit
cooperative economic environment in the project area operating in parallel with
the national formal currency system without replacing it, which leads to a
powerful mobilisation of resources and increased local private productive
capacity.
- to create a grassroots interest-free micro-credit system favouring
productivity increase in the product area which is managed without the need for
any national formal money (Kenyan shillings) under the framework of the local
money systems set up.
- to create a local economic system which inhibits financial leakage from the
project area and promotes the continual recycling of the limited formal money
resources available in the project area for the purposes of productivity
increase.
- to create three-tiered cooperative structures managed and paid for by the
populations themselves for the execution, management, monitoring, financing and
ownership of the goods and services supplied under the project.
- to the creation of inherently sustainable structures including financing for
the long-term replacement of capital goods and for the extension of services.
- to setting up a complete range of structures passing from hygiene education
to the supply of drinking water and rain-water harvesting, to a complete system
of sanitation (eco-sanitation), waste recycling, high efficiency cooking stoves
and briquettes for them, the fight against de-forestation and the destruction
of local eco-systems and to improved education structures for the benefit of
the poor and un-served.
- to make a complete range of social, financial and economic structures
available to the poorest to enable them to increase their productivity.
- to create employment for about 15% of the adult population in the project
area.
- to enable coverage of the monthly contributions paid by the population into a
Cooperative Development Fund by way of strong direct and indirect reductions in
their Current outgo for water, fuel, kerosene, batteries and medicines etc
- to create a strong reduction of CO2 emissions in the project area and qualify
for the issue of CER certificates for sale to industrialised nations.
The applicant Kenyan Ministry of Water, Resources Management and
Environment, through its District Water Officer for the Trans-Nzoia is
responsible for the execution of the project and in particular for the drilling
of the boreholes foreseen.
In accordance with the above-described description of the activities,
inclusion under category 1.2.2.2 Financing of Civil Society Initiatives is
justified because most of the project activities take place within the
framework of social and financial cooperative structures financed by the
populations as an integrated part of the project. These activities may be
coordinated by an NGO, the Sima Community Based Organisation, which is already
based in the town nearest the project area, Kitale, Kenya.
The NGO will act as “sub-contractor” and will nominate a coordinator for
the creation of the social and local structures foreseen. The coordinator will
in turn use the services of a consultant “sub-contractor”, T.E.Manning of the
Netherlands, the author of the new development concepts, which have been duly
placed in the public domain, at the basis of this pilot project (Details
www.flowman.nl)
The participation of specialist sub-contractors is foreseen for the
management of the Moraisian Capacitation Workshops, for the adaptation by the
people of the Health Club material already available, and for the setting up of
the three low-cost, labour-intensive, zero-energy input factories for the
production of articles based on anhydrite (Beosite).
The following are some of the innovative aspects of the project:
a)The
project is financed by a seed-capital investment of Euro 75 per inhabitant,
which covers a very complete range of structures and services necessary for a
good quality of life for all of the inhabitants without exception in the
project area.
b)The project sets up an open competitive free-enterprise productive system
within the framework of an interest-free, non-profit, cooperative financial
environment operating in parallel with but not replacing the existing formal
money system.
c)No-one is required to carry out work for the project on a voluntary basis
without due payment. All administrative, construction and maintenance operations
will be carried out by local village operators paid according to local tariffs
expressed in the local money structures set up.
d)Users pay Euro 0.75 per person per month into an interest-free cooperative
local development fund. This formal currency fund, which is the property of the
inhabitants, remains in the project area and is used and continuously recycled
for interest-free micro-credits for local productivity development.
e)Funds destined for long term replacement of capital goods and for extensions
to services are also used for interest-free micro-credits until they are
needed.
f)The local money systems set up constitute the usual means of payment for most
locally produced and consumed goods and services, including those necessary for
the execution of the project itself, but without substituting the formal
economic system based on the Kenyan shilling.
g)Users are 100% responsible for operation, administration, maintenance,
long-term capital goods replacements, and for future extensions to the structures
set up. The monthly contribution paid by each inhabitant is enough to cover
these costs, with a “fail safe” system at several levels to protect the
interests of the poor, the sick, and the elderly.
j) The project, with the exclusion of the initial seed capital provided, is
self-financing. Savings on current outgo for fuel, energy, water and other
services will be sufficient to cover most, if not all, of the monthly
contributions made by the families.
k)Women play an active role in the execution and the administration of the
project.
l) Financial leakage of formal money funds (Kenya Shillings) from the project
area is reduced, and if possible, eliminated altogether.
Within each of these local economies:
a)
Each local money system in the project area must have a zero balance the others
in the project area.
b) The local money systems in a project area must have a zero balance with
local money systems outside the project area
c) The formal money system in the project area must have a zero balance with
the formal money system within the host country
d) The foreign currency balance in the project area (items imported into the
project area from outside the host country must be balanced by the export of
items from the project area outside host country) must be zero.
So long as these balances tend towards zero, it is impossible for one
local economic system to get rich at the cost of another. The idea is to set up
a patchwork quilt of these local money systems in a given country. Local
development is powerful and decentralised. The local people are fully empowered
and manage their own decentralised structures.
So how are the local economies set up?
A number of structures are created in each project area. The order in
which this is done is critical.
1) Health clubs are set up. The health clubs are based on groups of
about 40 families (200 people) based around what I have called tank commissions
but which could be called local development committees. The health clubs are
important because they constitute a platform enabling women to organise
themselves so that they can vote in block at meetings and participate fully in
the structures. It is women who are expected to take most of the responsibility
for the projects. The initial costs of the health clubs are covered by the
project funds until the local money systems are set up.
2) Once the women's groups are working, the local tank commissions are
set up. These are based on about 40 families (200 people) . The people can
decide how many members the tank commissions will have, typically 3 or 5.The
tank commission is the heart of the project. It's functions are fully described
in the Model and draft projects and illustrated in diagrams. The cost of
organising the tank commissions is covered by the project until the local money
systems are set up.
3) Once the tank commissions have been formed, local money systems can
be created. Poverty is often coupled with "lack of formal money". If
the people haven't got any formal money, they cannot buy goods and services.
Yet the absence of formal money does not mean they do not have goods and
services to transfer. The local money systems give the people the means of
transferring all goods and services produced within the project area. The art
then is to use technologies enabling most of the items basic to local
development to be built with 100% local value added in the project area, so
that they can be produced, installed, maintained and paid for within the local
money systems, without the need for formal money. Under the Model and the draft
projects, the entire sanitation system can be built, installed, run and
maintained without a cent of formal money! The costs of running the local money
systems are covered under the local money systems themselves.
4) Once the local money systems are in place, a distinction can be made
between what can be done within the local money systems and what can't. At that
time the interest-free micro-credit structures are put in place. These recycle
the users' monthly contributions interest-free for credits for productivity
purposes, for the purpose of purchasing goods which cannot be locally produced.
The 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 costs of
running the micro-credit structures are covered under the local money systems.
Where local cooperative bank structures willing to work within the local money
systems do not exist, the project in question will set one up.
5) Once the micro-credit systems and the local money systems are in
place, the Beosite factories can be set up. Amongst the priority items for manufacture
in these factories are products necessary for the water supply project, water
tanks, well linings, water containers, etc. and even some or all of the water
pumps themselves. (We are currently working on Beosite water pumps - one pump
should be ready in a few months' time, the deep well pump about mid 2004.) When
capacity is available they can start making the sanitary systems and other
items such as high efficiency stoves.
6) Interest-free self-terminating building society type structures can be
set up at tank commission or other level to finance the purchase of
interest-free solar home systems and other structures of common interest.
Apart from structures basic to 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, neither
the Model nor the draft projects attempt 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 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, the creation of a seed bank, perhaps
the draining and re-structuring of market squares, all of which may require
some formal money funds. Other initiatives, for instance, creating sports
clubs, theatre groups, local consultants offices, or communications centres,
plant nurseries, re-forestation etc would be done under the local money and
micro-credit systems.
Project applications directly mobilise about 15% of the adult population
in the project area and the remaining 85% indirectly. I would expect
unemployment to be eliminated within three or four years.
The financial structures have not been discussed here in detail - these
are fully described in the introduction, in the Model, in the draft project
applications, and in specific papers written. Of particular interest are the
application of the compensation principle and the new possibilities offered under
the Kyoto treaty.
Under the compensation principle, the monthly contributions of users are
covered by savings on some of their current expenditure. For instance, where
families now spend a large slice of their income for wood for cooking or for
drinking water or medicines, these costs will be eliminated or reduced under
the projects, releasing formal money for other uses. Wood will not be used. It
will be replaced by mini-briquettes made under the local money systems. The
supply of drinking water and the maintenance of structures are already covered
under the monthly contributions. General increases in living conditions
(hygiene education, clean drinking water, sanitation, elimination of smoke,
better drainage, a more varied diet) should lead to less illness and less need
to buy medicines.
Some applications under project applications reduce CO2 emissions. The
main one is through the use of high efficiency 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-pumping technologies. They therefore
qualify for the issue of CER certificates which can be sold to industrialised
countries. The value of these certificates will contribute to the cost of the
projects.
The concepts apply equally to (poor) urban areas and rural areas. First
applications in a given host country should however be carried out in mainly
rural areas, as it is important to block migration from rural areas to shanty
towns in the larger cities.
The elimination of all possibility of corruption is a condition
precedent to the success of the project. Subject always to full compliance with
the conditions laid down by financing parties, the ACP-EU funds will be paid
into a Euro account, and those of the government of Kenya into a Kenya
shillings account, in the name of the “Ministry of Water, Resources Management
and Environment Development of Kenya Project New Horizons for Saboti, for and
on behalf of the inhabitants of the Saboti Division, Trans-Nzoia District,
Kenya”. Only a combination of authorised persons, being the District Water
Officer, Trans-Nzoia District, Kenya working with the project coordinator for
social and financial structures nominated by the SIMA Community Based
Organisation, and/or the consultant T.E.Manning, together with an independent
auditor nominated by the ACP-EU Water Facility can make payments from or
withdraw money from the account. The project will set up, together with the
independent auditor nominated by the ACP-EU Water Facility a system for
on-going continuous preventive auditing and subsequent monitoring of all
payments from time to time made during the project execution.
The sequence of project execution is critical.
The most delicate phase is the first one, where a platform is created
for the active participation of women in the project execution and
administration through the formation of Health Clubs. The first Moraisian
“Capacitation Workshop” will be held. In case of necessity, the first workshop
may have to be repeated. Purpose of the first initiatives is the creation of a
local economic system within which most of the structures can operate and most
of the project works can be executed. Since on project start-up there is still
no local economic system in place, the first activities have to be financed out
of the project funds. Once the local economic systems are in place, financial
risks in connection with project execution are minimal. The most important
purchases of capital goods, such as the purchase of water pumping systems, can
only be made once the social and economic structures are in place.
Final project results are subject to physical monitoring and counting,
in accordance with the execution of the various phases of the project, by way
of a practical visual check of the structures actually operating in the field.
The extent of utilisation of the various structures will, however, be
progressive, and the speed of acceptance by the populations of the various
structures will vary from operator to operator, from village to village,
according to the personal capacity of those nominated by the populations during
the Capacitation Workshops to carry out the various functions.
Formation
of the permanent project home base : Buildings, offices
etc. Check physical presence and operation.
Hygiene education structures : 276 health clubs are foreseen; physical
check of their formation; individual evaluation of their operational level.
Local administrative structures : 276 tank commissions: physical check
of their formation; individual evaluation of their operational level.
Local money structures : Formation of two self-managed local money
systems; 276 self-managed structures at tank commission level; about 29
structures at intermediate (well) level; self-managed general management at
project level; physical check of their formation; individual evaluation of
their operational level.
Micro-credit structures : Formation of a self-managed interest-free
micro-credit structure for productivity increase; 276 administrative structures
at tank commission level; about 29 structures at intermediate (well commission)
level; a central general management structure at project level. Physical checks
on the institutions in operation; individual evaluation of the investments and
repayments plan will be supplied together with the project documents.
Micro-credit funds made available should be at least Euro 19.380.000 over the
first period of 10 years of activity, or about Euro 1500 per family. The state
of the fund at the moment of monitoring is the amount of micro-credits conceded
but not yet repaid plus the balance (which should tend towards zero) remaining
in the fund. The figures should conform with those in the graph supplied as an
integral part of the final project documents, but could be substantially higher
as the graph is based on an average pay-back time of two years.
Local production structures: Three low-cost, labour intensive,
zero-energy input production units to start with for items made for the
project; physical check on presence and operation; analysis products and
productivity.
Water supply structures: Creation of an integrated drinking water supply
system with water at a distance indicatively of not more than 150 metres from
dwellings; a self-managed central project level structure ; about 29
intermediate management structures at well-commission level ; triple backup
hand-pump systems, washing places; 276 structures at tank commission level with
water points equipped with solar photovoltaic pump systems ; drinking water
supply in all the schools and clinics and in market squares ; physical check on
presence and operation.
Sanitation Structures : Formation of an ecological integrated dry
composting sanitation system (Eco-San) at family level ; about 10000 systems in
the individual homes ; self-administered public systems in schools, clinics and
market squares. Physical check on presence and operation.
Waste recycling structures: Formation of an integrated system for the
collection and recycling of organic and non-organic waste and grey water.
Physical check of the presence of collection centres and effective waste
collection facilities in place.
Radio structures: Physical presence and operation of the radio station.
Structures for lighting for study : 276 study rooms with photovoltaic
lighting; photovoltaic lighting in schools where required; photovoltaic
lighting and refrigeration facilities in clinics in the project area where
required.
Rainwater harvesting structures : Physical observation and counting of
the structures installed.
Indicative cost
breakdown |
Budget in Euro |
Year |
|
|
|
First phase |
|
|
|
|
|
Formalities |
7.000 |
1 |
Workplace |
36.000 |
1 |
Administration |
36.000 |
1 |
Workshops for and formation of health clubs |
67.500 |
1 |
Workshops for and formation of local social structures |
130.000 |
1 |
Workshops for and formation of micro-credit structures |
30.000 |
1 |
Workshops for and formation of 3 Beosite production facilities |
163.000 |
1 |
Workshops for and formation of waste recycling structures |
185.000 |
1 |
Workshops for and formation of drinking water structures |
853.000 |
1 |
Other costs first phase |
648.200 |
1 |
|
|
|
Second phase |
|
|
|
|
|
Workshop bio-mass production |
15.000 |
2 |
Water points (276) |
1.123.800 |
2 |
Transport international and national |
45.500 |
2 |
Ecological sanitation structures |
15.000 |
2 |
|
|
|
Third phase |
|
|
|
|
|
Water purification installation |
176.000 |
3 |
PV lighting |
728.000 |
3 |
Radio station |
77.000 |
3 |
|
|
|
|
|
|
|
|
|
Total outgo |
|
|
|
|
|
First phase |
2.112.700 |
|
Second phase |
1.199.300 |
|
Third phase |
981.000 |
|
Salaries/pro-diem subcontractors |
200.000 |
|
|
|
|
Total |
4.500.000 (1st year Euro 2.112.700) |
|
|
|
|
Annual income and
outgo with structures in operation |
Budget in Euro |
|
|
Outgo |
|
|
|
Coordinator |
15.000 |
Maintenance |
5.000 |
Tank commissions (276) @ Euro 5/month |
16.560 |
Spare parts |
15.000 |
Theft fund |
15.000 |
Unforeseen |
19.940 |
|
|
Total recurrent annual costs |
84.500 |
|
|
Revenues |
|
|
|
Monthly contributions (60.000 people @ Euro 0.75) |
540.000 |
|
|
Less on-going costs |
84.500 |
Net annual income for Cooperative Development Fund |
455.500 |
Return to: Main Saboti project
documents