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
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
“Poverty is created scarcity”
Wahu Kaara, point 8 of the Global Call to Action Against Poverty, 58th
annual NGO Conference, United Nations, New York 7th September 2005.
Edition 12: 17
January, 2008
In the first place,
partners sign their partnership declaration as in section 4.10 Partners and co-donors.
The partners then form the 05.22 Project NGO
[project name] for project execution.
Article.21 of the project NGO
statutes provides that the members
of the association are named one for each of the signatory partners.
Article 23 of the project NGO statutes provide that all of the members of the Board of Directors countersign authorisation for withdrawals from the capital fund on request of the Project Coordinator.
Article 24 of the project statutes
provides that funds withdrawn from the capital account be placed in executive
accounts operated by project coordinator.
Article 25 of the project statutes
provides that withdrawals from the EXECUTIVE ACCOUNTS for amounts greater than
[amount] be subject to the co-signature of the Chairman of the Board of
Directors of the Project NGO, and that withdrawals for amounts greater than
[amount] be subject to specific authorisation of the Board of Directors.
In practice this means that funds supplied by funding
parties for the project are paid into a capital account in the name of the
project directly controlled by the Board of
Directors who directly represent
the funding parties.
The project coordinator (who is nominated by the Board
of Directors of the Project NGO who are in turn nominated by the project
partners and funding parties) asks the Board of the Directors to pay the money
needed into one or more executive accounts. The project coordinator is
authorised to make smaller payments of up to [amount] independently, without
further formalities. For larger payments, he must have payment vouchers
countersigned by the Chairman of the Board if they are between [amount] and
[amount]. For payments over [amount] he must seek the express approval of the
Board of Directors.
4.20 audit
structures enable the auditing commission (nominated by the partners and
other funding parties) to carry out
on-going checks of work progress. The auditing commission can do this both as a
preliminary to release of funds from the capital account of the project to the
executive account(s), and as a preliminary to the payment of larger sums from
the executive accounts.
This form of protection is
the most effective and innovative.
Project execution passes
through a series of logical steps in the creation of the project structures.
First the social structures are created, then the financial structures, then
the productive structures, and finally the service structures. Exposure of investors at any one point of
project execution is limited. Work on next following structures does not take
place until the preceding structures are in place and in operation.
The new capital content of project structures
tends to increase with progress in project execution. The first (the social and
financial) structures to be set up have relatively low formal money capital
content. The second (the productive) structures have an intermediate level of
capital content. The last (the service) structures, and especially the
distributed drinking water structures, have the highest level of capital
content. By the time the service structures are to be installed, most of the
work on them can be done under the local money system, operational costs and
formal money reserves for maintenance and long-term replacement are already
being collected, and local production of
items necessary for the service structures is already under way.
The
graphs in section 7.11
quarterly outgo show how a given structure must be created, according to the point reached in project
execution, before the following structures can be set up. They also show that the most important formal
money investments, especially the ones for distributed drinking water supply,
can only be made once the social, financial and productive structures are in
operation. The exact sequential order for
execution of the various project activities
is set out in section 06.01 the annual activity plan.
The formal money investments needed for the creation
of the social and financial structures are not very large. Refer to :
Hygiene clubs, items 60101-60203.
([amount])
Social and financial structures,
items 60301-60505. ([amount])
Much of the work
for the project is done by the local populations. Until the local money
system and the micro-credit system are in operation, it is not possible to
proceed beyond the first 15 items part of the activities of the third quarter.
Funding parties
never have risk from following investments until the preceding structures are successfully operating. Total costs of
setting up the social and financial structures up amount to about
Euro 800.000, of which at least half should be recoverable through the sale of
capital goods.
In the same
way, service structures, the ones with
the most formal money capital content, are not set up until the local
production structures are in place and in operation.
The total amount at
risk at any given moment during the project may not be greater than about
Euro 1.000.000, part of which is expressed in capital items part of the cost of
which should be recoverable.
Forward : 07.20 Systematic outgo.
Back: 07.13 Technical Excel files for the
preparation of budget graphs.
