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,
Edition 01: 21 November,
2002.
This work is licensed under a Creative Commons
Attribution-Noncommercial-Share Alike 3.0 License
MPONUA INTEGRATED SELF-FINANCING RURAL DEVELOPMENT PROJECT
"NEW HORIZONS FOR ATWIMA MPONUA"
ATWIMA DISTRICT, KUMASI , GHANA
INCORPORATING LETS AND COMMUNITY BANKING
PREPARED FOR THE NGO "POVERTY REDUCTION
AND EMPOWERMENT FOR DEVELOPMENT" (PREDEV)
BY
AGEYMANG KOFOROBOUR AMO, OF KUMASI , GHANA
AND
T.E.MANNING, CONSULTANT, WIERINGERWERF, THE NETHERLANDS
EXECUTIVE
SUMMARY OF PROPOSED MULTILATERAL INTEREST-FREE LOAN FINANCED PROJECT
1.0 INTRODUCTION
The
accompanying Integrated Self-financing Development Project for the Mponua area
of the Atwima District, Ashanti Region ,
Ghana
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
Mponua 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 application are
self-financing, subject to an interest-free seed loan repayable in 10years. It
is structured for about 13000 households (65000 users). The amount of the loan
is US$ 4.000.000 or approximately US$ 60 (or equivalent in Euro) per user. This
is repaid by a monthly payment of US$3 per 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
x. A local PV powered radio station
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 Atwima 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 (PREDEV)
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. Atwima District council
x. State Health Authorities
and the WATEER AND SANITATION COMMITTEES
xi. The Ministry of
Education
xii. The Local Tax
Authorities
xiii.The Mponua Cooperative
Development
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 |
32.000 |
|
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 |
|
315
Solar Pumps |
3 |
357.000 |
|
315
Supports for solar panels |
3 |
50.000 |
|
Solar
panels (97kW) |
3 |
560.000 |
|
Handpumps
groups (158 pumps) |
3 |
68.000 |
|
Cables, feedpipe for
pumps/wells |
3 |
65.000 |
|
Pipe lines from wells to
tanks - 150000m @ US$ 0.65 |
3 |
100.000 |
|
Labour for laying water
pipelines- LETS |
3 |
pro-memoria |
|
315 Water tanks (@ 2m *
1.7m)- mostly LETS |
3 |
50.000 |
|
315 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 |
|
315 PV lighting units for
study purposes |
4 |
255.000 |
|
PV
television for study |
4 |
pro-memoria |
|
PV
lighting for schools |
4 |
50.000 |
|
PV lighting for clinics
outside the project area |
4 |
pro-memoria |
|
PV lighting for clinics
inside the project area |
4 |
30.000 |
|
PV refrigeration for clinics
@ US$ 5000/clinic |
4 |
30.000 |
|
Water
testing equipment |
4 |
5.000 |
|
Transport costs US$ to |
3 |
30.000 |
|
Transport costs internal to
Mponua |
3 |
22.500 |
|
Administration and
supervision at Mponua |
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 |
180.000 |
|
Sanitation facilities with
exception of some additvites will be manufactured and installed within the
local LETS systems |
|
15.000 |
|
OW
radio station |
4 |
25.000 |
|
Fund
for radio station |
4 |
52.000 |
|
Reserves
18.825% of total |
5 |
753.000 |
|
General
total |
5 |
4.000.000 |
SHORT ANALYSIS
|
Outgo (Capital) |
Phase |
Estimate (US$) |
|
Total
first phase |
1 |
0 |
|
Total
second phase |
2 |
589.500 |
|
Total
phase 3 |
3 |
1.669.000 |
|
Total
phase 4 |
4 |
788.5.500 |
|
Fees
project coordinator |
1/5 |
100.000 |
|
Total
supervision Manning |
1/5 |
100.000 |
|
General
total all phases |
|
3.247.000 |
|
Reserves
18.825 |
5 |
753.000 |
|
Total
1+2+3+4+5 |
|
4.000.000 |
ON-GOING COSTS
|
On-going costs |
US$ |
|
|
|
|
|
|
Coordinator
for administration |
15.000 |
|
|
Maintenance
operators |
5.000 |
|
|
Tank commissions (315*5 |
18.900 |
|
|
Spare
parts |
15.000 |
|
|
Reserve
for theft |
15.000 |
|
|
Unforeseen |
7.500 |
|
|
Total
recurrent costs |
76.400 |
|
INCOME
|
Income |
US$ |
|
|
|
|
Annual contribution for use
of water (13.000 households @ US$ 3 p.m.) |
468.000 |
|
On-gong costs per year |
76.400 |
|
Net annual income for loan
repayment |
391.600 |
Comments
1. The
above net income is sufficient to finance and repay an interest free loan for
US$ 4.000.000 over a period of 10 years, taking the various reserves into
account.
2. Interest-free loan for Beosite (R) each factory US$ 60.000, for repayment
over a period of 4 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.
7.0 ACCESS TO THE COMPLETE
PROJECT
The
project has been placed in the pubic domain and can be freely accessed and
downloaded together with drawings, charts and graphs in colour together from
the home page of the website : www.flowman.nl
8.0 LIST OF KEY WORDS
Anhydrite
use of, Atwima 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 Atwima 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, Mponua
Atwima district Ghana, 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, 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.
Back to:
The draft project for the Atwima district in Ghana.
Some draft projects in English and French.