#### STICHTING BAKENS VERZET

#### 1018 AM AMSTERDAM, THE NETHERLANDS

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T.E.(Terry) Manning,

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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 14: 31 October, 2007

(EN FRANÇAIS)

#### Comments

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. Recent UNFCCC proposals on programmes of activities.

### GRAPHS FORMING AN INTEGRAL PART OF THE PROJECT DOCUMENT

GRAPH SHOWING DEVELOPMENT OF MICRO-LOANS .
CASH FLOW DIAGRAM.
THE INTEREST-FREE LOAN CYCLE.
HOW THE ORIGINAL SEED LOAN MONEY IS USED.
TYPICAL PROJECT EXPENDITURE BY QUARTER.
DETAILED EXPENDITURE FIRST QUARTER.
DETAILED EXPENDITURE SECOND QUARTER.
DETAILED EXPENDITURE THIRD QUARTER.
DETAILED EXPENDITURE FOURTH QUARTER.
DETAILED EXPENDITURE FIFTH QUARTER.
DETAILED EXPENDITURE SIXTH QUARTER.
DETAILED EXPENDITURE SEVENTH QUARTER.
DETAILED EXPENDITURE EIGHTH QUARTER.

Forward : Funds available for micro-cedits.

Back: Calculation of net project income.

Menu group 7 work files: Financial justification.

Main menu for project work file groups.

Complete index of the Model.

Main menu for the Model.

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