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

 

 

"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.

 

 

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WASO INTEGRATED SELF-FINANCING RURAL DEVELOPMENT PROJECT

NEW HORIZONS FOR WASO

SAMBURU DISTRICT,KENYA

INCORPORATING LETS AND COMMUNITY BANKING

PREPARED FOR THE NGO "PARAN INTEGRATED PROGRAMME", ARCHER'S POST, KENYA

BY

PETER GATUNA, READING, ENGLAND

AND

T.E.MANNING, CONSULTANT, WIERINGERWERF, THE NETHERLANDS


Edition 01: 24 May 2004


SAMPLE LETTER OF APPLICATION TO BANKS

(Letter from the fronting NGO)

Place, 24th May, 2004

(Address)

FUNDING FOR THE "NEW HORIZONS FOR WASO" INTEGRATED DEVELOPMENT PROJECT IN THE SAMBURU DISTRICT IN KENYA

A fully detailed self-financing integrated development project for the Waso area (Samburu National Park) in the Samburu County in Kenya has been prepared at the request of and adopted by (fronting NGO). The project has been placed in the public domain. A short executive summary of it is attached and a CD with the complete project documents is enclosed.

The project involves some 50.000 users or about 10.000 households. The cost of the project is Euro 65 per inhabitant, with a total budget of Euro 3.000.000. The innovative structures set up under the project enable the people to collect Euro 3.000.000 in an interest-free, inflation-free, cooperative development fund over a period of ten years, after which all the seed money is paid back in a sngle lump sum. During the mentioned ten years' period, each family in the project area makes a small monthly contribution to the cooperative development fund. As these monthly contributions are made, they are recycled in the form of interest-free micro-credit loans for productivity increase purposes. Over each ten years' period, the average amount made available for each family is at least Euro 1500.

To set up the economic and social structures enabling fully sustainable integrated self-financing local development to take place, a seed loan of Euro 3.000.000 for a period of ten years is needed. We think this loan is best covered for 75% by aid partners interested in investing in Kenya's development. The remaning 25% is best covered by the government of *********.

The Model on which the "*****************" project is based provides for an interest-free cooperative financial environment within which private enterprise and genuine competition in the project area can develop and flourish. The ten years' seed loan should therefore be interest-free. However the project could support an interest rate of up to 2% on part of even all of the seed loan, after the initial two years' franchise period necessary to set up the project structures. Annual interest payments would be at least partly financed through the sale of CER carbon emission reduction certificates issued under the Kyoto Treaty. Progressive reduction of the available seed fund itself, while possible, is not desirable during the first period of ten years. This would limit the funds made available in the form of interest-free micro-credits for productivity increase and slow down local economic development in the project area.

The "****************" project is inherently "clean". We, as NGO fronting the project, nominate an independent salaried project coordinator who is solely responsible for project execution. We, as the fronting NGO are the "project parliament", the project coordinator is the "government". Systematic on-going audit is assured through an independent auditing commission with members nominated by us and by our aid partners, who may also, is they so wish, nominate representatives with an auditing function to our board of governors. The project coordinator answers to us. We answer to the auditing commission. Funding parties may also have their own field auditor, who answers to the auditing commission and directly to his principals.

A scheme for project auditing is attached. This will be adjusted to meet your requirements.

The bank structures for the project need to be modeled on each partner bank's requirements. These will include the national level corespondent of the partner bank and its regional correspondent in the **************** District, if there is one. If the regional correspondent has an office in the ************ district, the project coordinator will open a project account there. Otherwise the Project, with the help and under the supervision of the partner bank and/or of an international Green Bank will set up its own local banking facility. A basic cash-flow diagram is attached. A more complex banking system is illustrated in the yotobankstructure.jpg file on the enclosed CD.

Your attention is drawn to Section 2.10 "The effects of inflation on seed loan payments and gift content" and to Section 2.11 "Insurance and gift content" of the main project document, which cover situations outside of the control of the local beneficiaries, the project, and the fronting NGO, for which appropriate financial guarantees at national government level may be required.

Your financial assistance, by way of gift, interest-free loan, or interest-bearing loan, in helping to get the "***************" project off the ground will be greatly appreciated. Please advise whether you are in a position to finance a quota of the budget for this project, if so which quota, and on which terms and conditions.

In faith,

Attached:

- Short executive summary of the **************** project
- CD with details of the ************** project and of the Model on which it is based
- Suggested plan of audit
- Indicative cash flow diagram
.


Project:

The Waso project.

The project in detail

Short executive summary.

Executive summary


List of draft projects in English and in French.

Main project programme.

Model homepage.

Bakens Verzet homepage.