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.
Sustainable fully
ecological 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,
This work is licensed under a Creative Commons
Attribution-Noncommercial-Share Alike 3.0 License
ASOKORI INTEGRATED SELF-FINANCING RURAL DEVELOPMENT PROJECT
SEKYERE EAST DISTRICT, KUMASI , GHANA
INCORPORATING LETS AND COMMUNITY BANKING
PREPARED FOR THE NGO "NEW HORIZONS FOR
ASOKORI"
BY
JAMES BOAMPONG OF KUMASI , GHANA
AND
T.E.MANNING, CONSULTANT, WIERINGERWER, THE NETHERLANDS
EXECUTIVE SUMMARY OF PROPOSED MULTILATERAL
INTEREST-FREE LOAN FINANCED PROJECT
Edition 01: 22 November 2002
1.0 INTRODUCTION
The accompanying Integrated
Self-financing Development Project for the Asokori area of the East Sekyere
District, Ashanti
The
project is strongly demand response oriented. It has been worked out together
with the people concerned, who will execute, run, own and pay for it.
The
project provides practical working solutions for sustainable integrated
development in the Asokori area 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.
The
project is self-financing, subject to an interest-free seed loan repayable in
10years. It is structured for about 6500 extended households (60000 users). The
amount of the loan is US$ 3.500.000 or approximately US$ 60 (or equivalent in
Euro) per user. This is repaid by a monthly payment of US$5 per extended family
into a Cooperative Development Fund. This is enough to cover the basic package
offered.
The
project requires 75% financing by an External Support Agency. Regional or state
authorities in
The
project is self-financing because it allows the recipient communities to fully
exploit a network of sustainable development activities using:
(i) The interest-free loan itself
(ii) Local Exchange Trading Systems (LETS)
(iii) Multiple re-cycled interest-free micro-credits to be administered by a
local bank. They are generated by recycling loan repayments and reserves during
the loan term.
2.0 THE MAIN PROJECT PACKAGE
The project is centered on the
following main components
i. Hygiene education at community level (Health Clubs) and in schools
ii. Distributed clean drinking water (solar pumps with handpumps backup)
iii. Sustainable sanitation (based on the separation of urine, faeces, grey
water, other organic waste)
iv. Supply of efficient stoves for cooking (plus solar cookers)
v.Production of biomass to fuel the cookers
vi.Recycling of non-organic waste products (rubbish collection)
vii.PV lighting for study
viii.PV lighting and vaccine refrigeration in clinics
ix. Rainwater harvesting
3.0 GENERAL ECONOMIC BASES AND PRINCIPLES OF THE PROJECT
a)The project will be financed
by interest-free seed capital in the form of a loan repayable over a period of
10 years.
b)75%
of this capital will be contributed by an external support agency and the
remaining 25% by the Government of Ghana.
c)General
financial supervision will be on terms agreed with the lenders of the seed capital,
but with the elimination of unnecessary bureaucratic restraints.
d)Seed
capital repaid by users in monthly instalments will be retained in the local
area until the end of the loan term. During that time, the repayments will be
used to grant revolving interest-free micro-credits for local development.
e)Seed
capital not required for short term use, will similarly be used to grant
interest-free revolving micro-credits.
f)The
local currency (LETS) systems 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.
g)The
part of the maintenance money destined for long term replacement of capital
items will also be recycled as interest-free micro-credits until it is needed.
h)Users
will be 100% responsible for on-going administration, capital repayments, and
maintenance costs. Each household will pay a monthly contribution sufficient to
cover those costs. The instalments will be to a large extent covered by savings
on funds traditionally spent on fuel, water and waste removal.
i)The
project encourages open competition and free enterprise within the framework of
a cooperative and non-profit-making global financial structure.
j)Administration,
construction and maintenance work will be done by local operators and villagers
who will be paid mostly in local LETS currencies.
k)Local
work will be paid for at current local pay rates expressed in the local LETS
currencies.
l)The
on-going administration costs of the Project Coordinator are set out in the
project budget.
m)Users
must make their first monthly contribution in advance, when their project
systems are put into use.
n)The
tank commissions will be paid a small monthly allowance in formal currency for
their work. The well commissions will be paid a monthly allowance under the
local LETS currencies for their work.
o)Individual
women or women's groups will, without payment, each look after their own
sanitation units.
p)Regular
inspection by installations will be paid as necessary in the local LETS
currencies.
q)The
operation of the local bank will be supported and supervised by (Green Bank)
r)The
Government of the Ashanti Region and the Sekyere East District Council will
undertake not to intervene to impede the development of the local LETS
currencies either during or after the project period.
s)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.
t)Before
the project starts, a formal agreement will be made to ensure ownership of the
project is vested in the beneficiary communities.
4.0 LONG TERM GOALS OF THE PROJECT
The long term goals of the
project are:
a)To
sustain on-going improvement of the general quality of life wellbeing and
health of the local people.
b)To
free more human resources for local production and development.
c)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.
d)To
decrease infant mortality and promote family planning.
e)To
increase literacy levels.
f)To
eliminate dependency on fuels imported from outside the project area.
g)To
help reduce deforestation and global warming.
h)To
create value added from locally recycled non-organic solid waste.
i)To
create a "maintenance culture" to conserve the investments made.
j)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.
k)To
create full employment in the project area.
l.To
offer meaningful opportunities to youth and help stop movement of population
from rural areas to towns.
5.0 INSTITUTIONAL STRUCTURES
The various parties which
would be presumably usually be involved in project applications are:
i.
The Local NGO New Horizons for Asokori
ii.
Project Coordinator, who is from the project area
iii.
Consultant to the Project Coordinator
iv.
The Organisational Workshops
v.
Country programme administrators
vi.
King ... of the
vii.
Local Funding Authority
viii.Locally
Elected MP
ix.
Sekyere East District council
x.
State Health Authorities and the WATEER AND SANITATION COMMITTEES
xi.
The Ministry of Education
xii.
The Local Tax Authorities
xiii.The
Asokori Rural Bank
xiv.
The External Bank
xv.
The Local Beosite Production Units
xvi.
Tank Commissions - the Key Structures
xvii.Well
Commissions
xviii.Zimbabwe
AHEAD (NGO)
xix.
EOS CONSULT
xx.
Medical Commissions
xxi.
Teachers' Commissions
XXII.The
independent auditor
The
details of the roles of each of the above and how they all interact with one
another are set out in detail in section 2.6 of the project and in the diagrams
and charts part of the project documents.
6.0 BUDGET AND BUDGET
ANALYSIS
|
Outgo (Capital) |
Phase |
Estimate (US$) |
|
OW
health clubs |
2 |
30.000 |
|
Formation
of health clubs |
2 |
10.000 |
|
Material
for health clubs |
2 |
5.000 |
|
Training
of health workers |
2 |
10.000 |
|
OW health courses in schools |
2 |
10.000 |
|
Material
for school courses |
2 |
2.500 |
|
OW
social structures |
2 |
40.000 |
|
OW
LETS systems |
2 |
60.000 |
|
Office and equipment LETS
systems |
2 |
30.000 |
|
OW
Micro-credit system |
2 |
20.000 |
|
Office/equipment
Micro-credit system |
2 |
10.000 |
|
OW
Beosite production units |
2 |
30.000 |
|
Shovel/preparation anhydrite
supply site |
2/3 |
10.000 |
|
Construction and equipping
anhydrite factory (*30000 FOR EACH FACTORY) ASSUMING 3 UNITS |
2/3 |
60.000 |
|
Moulds for anhydrite
products (*20000 FOR EACH FACTORY) ASSUMING 2 UNITS |
2/3 |
60.000 |
|
Location gypsum depots and
quality control |
2 |
3.000 |
|
OW
recycling system |
2 |
30.000 |
|
Setting up recycling centre
network |
2 |
150.000 |
|
Setting up compost
collection network |
2 |
5.000 |
|
OW
Bio-mass system |
2 |
15.000 |
|
OW
Drinking water system |
2 |
25.000 |
|
Setting up of project
workplace |
2 |
29.000 |
|
Vehicles and materials for
wells |
3 |
150.000 |
|
Fuel
and maintenance vehicles |
3 |
26.000 |
|
Labour for wells - LETS
systems |
3 |
pro-memoria |
|
47
Washing places- LETS systems |
3 |
pro-memoria |
|
47 Platforms for handpumps -
LETS systems |
3 |
pro-memoria |
|
377
Pumps (300W per pump) |
3 |
400.000 |
|
377
Supports for solar panels |
3 |
50.000 |
|
Solar
panels (377*300 W=113kW) |
3 |
600.000 |
|
47
Triple handpump groups (141 pumps) |
3 |
68.000 |
|
Cables, feedpipe for
pumps/wells |
3 |
65.000 |
|
Pipe lines from wells to
tanks - 200000m @ US$ 1 |
3 |
100.000 |
|
Labour for laying water
pipelines- LETS |
3 |
pro-memoria |
|
377 Water tanks (@ 2m * 1.7m)-
mostly LETS |
3 |
50.000 |
|
377 Bases for water tanks -
mostly LETS |
3 |
25.000 |
|
Supervision of installation
and training maintenance operators |
3 |
15.000 |
|
Purchase
spare parts supplies |
3 |
20.000 |
|
Permits
and formalities |
2 |
1.000 |
|
Preparation and formulation
of project specifications |
2 |
6.000 |
|
100 Solar water purification
installations for clinics and schools |
3 |
47.500 |
|
900 Solar water purification
installations (inc.15.000 Wp panels) |
4 |
128.500 |
|
377 PV lighting units for
study purposes |
4 |
255.000 |
|
PV
television for study |
4 |
pro-memoria |
|
PV
lighting for schools |
4 |
pro-memoria |
|
PV lighting for clinics
outside the project area |
4 |
pro-memoria |
|
PV lighting for clinics
inside the project area |
4 |
15.000 |
|
PV refrigeration for clinics
@ US$ 5000/clinic |
4 |
15.000 |
|
Water
testing equipment |
4 |
5.000 |
|
Transport costs US$ to |
3 |
30.000 |
|
Transport costs internal to
Asokori |
3 |
22.500 |
|
Administration and
supervision at Asokori |
3/4 |
36.000 |
|
Fee Project coordinator @US$
50000/year |
1/5 |
100.000 |
|
General project consulting
Manning @US$ 50000/year |
1/5 |
100.000 |
|
Fund for PV lighting solar
home systems |
4 |
100.000 |
|
Sanitation facilities with
exception of some additvites will be manufactured and installed within the
local LETS systems |
|
15.000 |
|
OW
radio production |
4 |
25.000 |
|
Fund for high efficiency
radios |
4 |
52.000 |
|
Reserves
approx.9.5% of total |
5 |
333.000 |
|
General
total |
5 |
3.500.000 |
SHORT
ANALYSIS
|
Outgo (Capital) |
Phase |
Estimate (US$) |
|
Total
first phase |
1 |
0 |
|
Total
second phase |
2 |
586.500 |
|
Total
phase 3 |
3 |
1.767.000 |
|
Total
phase 4 |
4 |
613.500 |
|
Fees
project coordinator |
1/5 |
100.000 |
|
Total
supervision Manning |
1/5 |
100.000 |
|
General
total all phases |
|
3.167.000 |
|
Reserves
approx 9.5% |
5 |
333.000 |
|
Total
1+2+3+4+5 |
|
3.500.000 |
ON-GOING
COSTS
|
On-going costs |
US$ |
|
|
|
|
Coordinator
for administration |
15.000 |
|
Maintenance
operators |
5.000 |
|
Tank commissions (377*5 |
22.620 |
|
Spare
parts |
15.000 |
|
Reserve
for theft |
15.000 |
|
Unforeseen |
7.500 |
|
Total
recurrent costs |
80.120 |
INCOME
|
Income |
US$ |
|
|
|
|
Annual contribution for use
of water (6.500 extended households @ US$ 5 p.m.) |
390.000 |
|
On-gong costs per year |
80.120 |
|
Net annual income for loan
repayment |
309.880 |
Comments
1. The above net income is
sufficient to finance and repay an interest free loan for US$ 3.500.000 over a
period of 10 years, taking the various reserves into account.
2. Interest-free loan for Beosite (R) each factory US$ 50.000, for repayment over
a period of 3-5 years is included in the above figures.
3. At the end of the ten years' period, on repayment of loan, large capital
reserves will be built up for use in Micro-credits and, subsequently, for the
extension and renewal of the capital goods.
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.
Those for clinics and schools outside the project area partly serving users
within the project area to be discussed.
6. Payments for PV lighting installations for study purposes will be financed
by each tank commission area separately.
7. Savings on the purchasing of bio-mass for cooking and the costs of drinking
water will at least partly offset the costs of the project.
8.0 LIST OF KEY WORDS
Anhydrite use of, Asokori
Ghana development, Banks role of in development, Beosite (R) products, Bio-mass
for cooking, Briquettes bio-mass, Capacitation workshops, Chain control
integral, Clodomir Santos de Morais, CO2 emissions reduction of, Communication
flows in development projects, Compost recycling, Composting toilets, Cookers
high efficiency, Cooperation role in development, Development projects
structures for, Development sustainable, Drinking water supply, Economy
developing countries, Economy development projects, Economy foreign aid,
Economy industrial development, Economy interest-free development, Economy
Local Exchange Trading (LETS) systems, Economy nominal local currencies,
Economy micro credits, Economy self-financed development, Economy taxation and
development, Education hygiene, Gender role of women, Ghana Sekyere East
District development, Gypsum cheap, Hand pumps, Health Clubs development
projects, Hygiene education, Industrial development, Information flow in
development projects, Integral chain control, Integrated development projects,
Interest role of, LETS systems, Loans interest-free, Local currency systems,
Local Exchange Trading (LETS) systems, Micro-credit systems, Morais Clodomir
Santos de, Organizational workshops (OW), Photovoltaic (PV) home systems,
Photovoltaic (PV) lighting, Photovoltaic (PV) pumps, Photovoltaic (PV) refrigeration,
Poverty alleviation, Products regeneration of, Pumps solar, Pumps hand,
Rainwater harvesting, Recycling compost, Recycling shops, Recycling waste,
Regeneration of products, Rural water supply, Sanitation developing countries,
Sanitation dry, Sekyere East district Ghana,Self-financing development projets,
Solar pumps submersible, Stoves high efficiency, Sustainable development, Tanks
Beosite (R) local manufacture,Toilet facilities Beosite (R), Toilets dry, Urine
disposal, Washing places, Waste collection systems, Water purification UV,
Water supply projects, Water supply rural, Water tanks Beosite (R), Women role
of in development, Workshops Moraisian.
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