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
Sustainable fully
ecological self-financing poverty alleviation in rural and poor urban
environments, incorporating an innovative package of social, financial, and
productive structures, with basic services necessary for a good quality of life
for all, a leading role for women, and numerous renewable energy applications.
"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 16: 26
November, 2006.
The accompanying project has been prepared following
an innovative Model for Sustainable Ecological Self-financing Integrated
Development. It covers a complete package of
social, financial, and productive structures and basic services for
sustainable development in beneficiary communities. It includes hygiene education,
the provision of drinking water and sanitation services, PV lighting for study,
PV lighting and refrigeration in clinics, waste removal, high-efficiency stoves
and bio-mass to fuel them. It provides a strong thrust for on-going local
development, productivity, and employment. It contains many decentralised solar
energy applications.
The project is strongly demand response
oriented. It has been worked out together with the people concerned, who
execute, run, own and pay for the social, financial and productive services set
up.
The project provides practical working
solutions for sustainable ecological integrated development and covers all
major development priorities. It constitutes a practical way of applying modern
development concepts such as those outlined in the DFID "Guidance manual
on water supply and sanitation programmes" (WEDC for DFID, 1998). It
integrates in a practical and feasible manner policy, finance, technology and
human capacity building to offer sustainable solutions to development in the
project area.
Where initial seed capital is not available by
way of grant, project applications can be self-financing, subject to an
interest-free seed loan repayable in 10 years. Projects under the Model are
structured for communities of 10000 households (50000 users) but can be adapted
to smaller and larger project areas as required. The nominal value in Euros of a project is
usually Euro 4.000.000 – Euro 5.000.000.
The amount of the foreign currency or formal money seed loan necessary for the
project is typically Euro 3.000.000 –
Euro 4.000.000 or usually less than Euro 100
per user. This means that project
applications require about 75% financing in the form of a grant or an
interest-free loan by an External Support Agency together, eventually, with the
state and/or public institutions in the host country. The local people in the
project area contribute the remaining 25%. They are responsible themselves for
most of the activities necessary for project execution. They carry out this
work for full payment under the local money systems set up during an early
phase of project execution. The debits to cover the cost of this work are distributed amongst the adult population
in the project area. For the purposes of calculation of the total value of the
participation of the local people, the local contribution is typically
converted into Euros at an agreed rate for each eight-hour working day. This
rate is often about Euro 3 per working day.
The present project is for a nominal value
of (Euro 5.000.000). It is structured
for (10.000 households) (50.000) users. The (formal money grant or
interest-free seed loan) necessary is (Euro 3.707.150).
The beneficiary populations make a monthly
payment of (at least Euro 3) per family into a Cooperative Local Development
Fund. This is enough to cover the entire basic package of services offered.
Where water sources are deep-set throughout a project area, boreholes need to
be drilled and costs will tend to be higher than those in areas where protected
wells can be dug under the local money systems set up. In this project the
water-table is (deep, shallow) and the professional services of a drilling
company (are, are not) needed.
Extra services can be made available in project
areas where users are able to pay more than Euro 3 per family per month. For this project, the following extra
services are made available for an extra monthly sum of (amount in Euro).
(List of services)
Project applications are self-financing because they
allow the recipient communities to fully exploit a network of sustainable development
activities using:
(i) The initial capital grant or interest-free seed loan itself
(ii) Local Exchange Trading Systems (LETS)
(iii) Multiple re-cycled interest-free micro-credits administered by the people
themselves. The micro-credits (typically at least Euro 1500 per family during
the first ten years’ period) are generated by recycling as rapidly as possible
the monthly contributions paid by families into their Cooperative Local
Development Fund, the repayments of
loans for productivity structures established as part of project
execution, and any project reserves
available during the loan term.
The project application, in its minimum configuration, is centred on the
following components:
01. Hygiene education at community level ((200) Health Clubs) and in
schools.
02. Distributed clean drinking water ((200) using solar pumps at tank
commission level, with (35) sets of hand pumps at well-commission level as
backup), in (46) schools and (4) clinics.
03. Sustainable sanitation (based on the separation of urine, faeces,
grey water, other organic waste) in all (10.000 houses in the project area).
04. Supply of (20.000) efficient stoves for cooking (plus solar cookers).
05. Contracts (400) for the production of biomass and (35) production units for
mini-briquettes to fuel the cookers.
06. Recycling of organic (200 structures) and non-organic waste products
(rubbish collection) (35 structures).
07. Study rooms (200) with PV lighting for study.
08. PV lighting and vaccine refrigeration in (4) clinics.
09. Rainwater harvesting structures in (10.000 homes)
10. Other services the local people may be particularly interested in having included in the
project activities. Typical examples of these 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 typical initiatives, for instance,
creating sports clubs, theatre groups, local consultants’ offices, communications
centres, plant nurseries, reforestation etc are carried out under a combination
of the LETS local money systems and the interest-free micro-credit systems set
up.
01.The project encourages open competition and free
enterprise within the framework of a cooperative and non-profit-making project
level financial structure.
02. 75% of the formal money project costs are
financed by seed capital in the form of
a capital grant or in the form of
an interest-free seed loan repayable over a period of 10
years. The remaining 25% is contributed by the local inhabitants themselves in
the form of payment for work carried out for the project. The onus of
this payment is equably debited within the framework of the local money
systems set up by the project to all the adult beneficiaries in the project
area.
03. General financial supervision will be on
terms agreed with (donors or the lenders
of the seed capital), but with the elimination of unnecessary bureaucratic
restraints. Project execution is the responsibility of a single project
coordinator. The coordinator is supported by a single consultant for the
application of the sustainable ecological self-financing integrated development
concepts involved, and, for periods varying between six months and twelve
months, by an expert on Moraisian
capacitation workshops, an expert on hygiene education courses, and an expert
on gypsum composite technologies. (In this case, since the level of the water
table in the project area is deep, the services of a specialist well-drilling
company are required.) The coordinator and his small team are the “government”.
The NGO responsible for the project, (name) is the “parliament”. Its job is to
carry out on-going specialist independent monitoring of project progress. Once
it has approved the project, the NGO responsible will not intervene in project
execution. The project coordinator may not be a member of the NGO responsible.
The NGO responsible for the project answers in turn to an auditing commission.
04. Seed capital repaid or contributions made
by users in the form of monthly instalments typically of about Euro 0,60 per
person into the Cooperative Local Development Fund are retained in the local
project area until the close of the first ten years’ project operation period.
During that time, the repayments in the Fund are used to grant revolving
interest-free micro-credits for local productivity development. Seed capital
not required for short term use, and any part of the maintenance money destined
for long term replacement of capital items will similarly be recycled as
interest-free micro-credits until it is needed. Interest-free seed loan funds are
repaid at the end of the first ten years’ period.
05. The Cooperative Local Development Fund is
run by the Central Administrative Office of the project by local people chosen
by the Well Commissions.
06. The local currency (LETS) systems set up
during an early phase of the project will form the general method of payment
for (most) local goods and services at community level, including those
provided for the project from within the local community and most of the costs
of on-going administration and maintenance of project structures. Local work
will be paid for at current local pay rates expressed in the local LETS
currencies. It is expected that the average rate be based on 10 local money
units for one hour’s work.
07. Users will be 100% responsible for on-going
formal currency administration and maintenance costs. A part (about 25%) of the
monthly contributions paid by users into the Cooperative Local Development Fund
is sufficient to cover these costs. The monthly contributions are paid by each
family into the Cooperative Local Development Fund. They are expected to be to
a large extent covered by savings on funds traditionally spent on fuel, water,
batteries, waste removal and similar.
08. The on-going administration costs of the Project
Coordinator have been agreed and are set out in the project documentation.
09. Users must make their first monthly contribution
in advance, when their project systems are put into use. This is expected to be
after about 9 months, when the interest-free micro-credit structures are in
place.
10. The tank commissions are paid a small
monthly allowance in formal currency.
This allowance can be used to subsidise poorer families temporarily or
permanently unable to make their (full) monthly contributions to the
Cooperative Local Development Fund, the aged, the sick, and the
handicapped.. The members of the tank commissions and the well commissions are paid a monthly
allowance under the local LETS currencies for their work.
11. Individual women or women's groups will,
without payment, each look after their own domestic composting eco-sanitation
units. Regular inspection of the installations will be paid for under the local
LETS money systems as required.
12. (The Regional Government of (name)) and the
Local Council of (name) have undertaken to fully support the development of the
local LETS money systems during both the
first two years’ project execution period or during the agreed period of
tax-moratorium ( period in years)
following execution. The Project
Coordinator will reach a specific agreement with the applicable tax authorities
before the start of the project as to taxation of activities under the Local
Exchange Trading (LETS) systems.
13. The ownership of all project structures by
the beneficiary communities has been ensured, and when and how this will take
place is clearly set out in the project documents for each structure.
The long term goals of the development project are:
01. To sustain on-going improvement
of the general quality of life well-being and health of the local people.
02. To stop financial
leakage from the project area.
03. To free more human
resources for local production and development.
04. 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.
05. To decrease infant
mortality and promote family planning.
06. To increase literacy
levels.
07. To eliminate dependency
on fuels imported from outside the project area.
08. To help reduce
deforestation and global warming.
09. To create value added
from locally recycled organic waste and non-organic solid waste.
10. To create a
"maintenance culture" to conserve the investments made.
11. 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.
12. To create full employment
in the project area.
13. To offer meaningful
opportunities to youth and help stop movement of population from rural areas to
towns.
- 001 Environmental impact study completed.
- 001 Permanent central system coordination structure.
- 200 Self-sustaining local social and financial structures created.
- 200 Tank commissions (1000 women responsible) established.
- 035 Well
commissions (200 women responsible) established.
- 001 Capacitation workshop for
water structures completed.
- 001 Central water management structure set up.
- 035 Bore holes (sometimes wells) with a diameter of at least 8” dug.
- 100 Back-up hand pumps installed.
- 200 Tank commission level distributed drinking water structures installed.
- 200 Solar water pumps installed.
- 050 Kilowatt photovoltaic panels for distributed drinking water
systems installed.
- 200 Kilometres of channels for drinking water pipeline dug.
- 200 Km of pipeline for drinking water laid.
- 001 Solar and hand pump maintenance structure set up complete with
spare parts stocks.
- 035 Well-level water management structures created.
- 035 Washing places at well level built..
- 035 Back-up systems for drinking water treatment installed in
schools and clinics in the project area.
- 001 On-going drinking water quality testing structure set up.
- 001 Capacitation workshop to set up
200 health clubs completed.
- 001 Capacitation workshop for the formation of 200 social structures
completed.
- 001 Capacitation workshop for the
formation local money systems in the project area completed.
- 035 Local money LETS transaction registration centres formed.
- 001Capacitation workshop for the formation of micro-credit structures
completed.
- 001 Complete structure for the management of
micro-credits set up.
- 001 Capacitation workshop for the sourcing quality control and
operation of gypsum deposits completed.
- 003 Factories for production of
articles from gypsum composites built..
- 001 Capacitation workshop for study, and design of gypsum composite products completed.
- 001 Capacitation workshop on recycling structures completed.
- 001 Compost collection network set up.
- 001 One non-organic waste recycling network set up.
- Installation of 10.000 eco-san systems
in private homes begun (about 500-1000
systems installed by end of 24 months’ execution period.)
- Installation of 10.000 water harvesting structures in private homes
begun (about 250-500 systems installed by end of 24 months’ execution period).
- Production of 20.000 high efficiency cookers for private homes begun (
about 1500-2500 delivered by end of 24 months’ execution period).
- 001 Capacitation workshop
for bio-mass production completed.
- 035 Units for the production of
mini-briquettes for the high-efficiency cookers set up; production of the
mini-briquettes will just have begun by the close of the 24 months’ execution
period.
- 400 Agreements for the production of bio-mass for the mini-briquettes
signed; production of bio-mass
commenced.
- 200 Study rooms built.
- 200 Photovoltaic lighting systems for study purposes installed.
- 005 Kilowatt of photovoltaic panels for the study rooms installed.
- 035 Photovoltaic lighting systems installed in schools.
- 005 Kilowatt photovoltaic panels installed in schools for study
purposes.
- 001 Reproducible integrated development project for emulation
elsewhere in the host country completed.
Funds for the “productive structures”
included in the above list are individually listed on the balance sheet to
cover the formal money costs of their formation. These interest-free formal money loans are
paid back into the project’s Cooperative Local Development Fund, over a period, usually 4-5 years, considered
realistic by the participants in the capacitation workshops in question. The
repayments are financed by the sale until loan repayment is completed of a part
of the production for formal money OUTSIDE THE PROJECT AREA. In the case of the
waste recycling structures by the “exportation” of non-organic wastes which
cannot be recycled in the project area.
The various parties involved in
this project application under the Model include:
01. The Local NGO,
responsible for the project.
02. Project Coordinator who is (from the project
area), (from (area of origin)) responsible for project execution.
03. Consultant to the Project Coordinator for the
application of the innovative concepts incorporated in the project.
04. A consultant for the Moraisian Organisational
(capacitation) Workshops.
05. External Funding Authority (typically 75% of
project funds).
06. (Local Funding Authority, where applicable.)
07. Regional Administrative Authority
08. Locally Elected MP's
09. Local councils
10. The Local/State Health Authorities
11. The Local/State Education Authorities
12. The Local Tax Authorities
13. The Project Level Micro-Credit Institution
14. The External (International) Bank to handle Euros
accounts.
15. The Local Bank to handle national currency
transactions.
16. The Local Production Units for the manufacture of
items using gypsum composites.
17. Tank Commissions - the Key Structures
18. Well Commissions
19. Africa AHEAD (NGO) for the formation of the health
clubs foreseen.
20. Consultant for gypsum composites.
21. Medical Commissions
22. Teachers' Commissions
23. On-going auditing committee (5-7 members).
24. Independent auditor.
The details of the roles of each of the above and how
they all interact with one another as provided in the Model are set out in the
section describing the various
parties participating in the project and in the drawings and graphs.
Outgo |
Phase |
Estimate (Euro) |
Total first phase |
1 |
0 |
Total second phase |
2 |
1.593.480 |
Total phase 3 |
3 |
2.384.310 |
Total phase 4 |
4 |
707.510 |
Total phase 5 |
5 |
8.750 |
Unforeseen |
1/5 |
228.800 |
Administration |
1/5 |
77.150 |
Total |
|
5.000.000 |
On-going costs : formal
money |
Euro |
(excluding activities under local money
systems) |
|
Coordinator for administration |
15.000 |
Maintenance operators |
5.000 |
Tank commissions (200*5 Euro p.m.) |
12.000 |
Spare parts |
15.000 |
Reserve for losses |
15.000 |
Unforeseen |
7.500 |
Total recurrent formal money costs |
69.500 |
Income |
Euro |
|
|
Annual contribution for use of water (10.000
households @ Euro 3 p.m.) |
360.000 |
On-gong costs per year |
69.500 |
Net annual income for loan repayment or reserve
capital build-up |
290.500 |
1.The budgeted net income of Euro 290.500 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 set out in comment 2. 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.
2. 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. They are taken into account in the
calculations in point 1. 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). 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 to finance interest-free
micro-credits. It can also be used to finance extensions to project structures.
4.
Payments for water facilities for schools and clinics are included in the
users' monthly contributions.
5. Payments and financing for eventual PV lighting and refrigeration facilities
in clinics within the project area are covered in the users' contributions.
6.
Savings on the purchasing of bio-mass for cooking and on the costs of drinking
water and batteries etc. will at least partly offset the costs of the project.
7.
Funds may be made available to the project through the sale of rights under
Carbon Emission Reduction certificates under the Kyoto Treaty.
Forward: list of drawings and graphs.
Block 1 of the working files: general
information.
Complete working file index of the Model.