Director,
T.E.(Terry)
Manning,
Schoener 50,
1771 ED
Wieringerwerf,
The
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
Edition 13:
5.69
BENEFICIARIES’ CONTRIBUTIONS
5.69.1
CONTRIBUTIONS TO PROJECT COSTS.
Willingness
to pay at least Euro 3 per month per family of 5 into a Cooperative Local
Development Fund was a condition precedent for the drafting of these project
documents.
Drawing showing how
the users' contributions are built into the financial structures of the
project.
The
monthly payment of (Euro 0,60) per person is enough to cover the entire basic
package of services offered. As soon as users are able to pay more than Euro 3
per family of 5 per month, the services offered can gradually be extended. The
minimum services set up during the first two executive years of the project are
not, therefore, necessarily permanent. Dynamic local development will take place
over the following years. This development will vary considerably from one part
and another in the project area.
Water
sources throughout the project area (are, are not) deep-set. Boreholes (need, do
not need) to be drilled. (Distributed drinking water costs will tend to be higher than those
in areas where protected wells can be dug under the local money systems set
up.)
This
project application is self-financing because it allows 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
compensation principle.
Under
the compensation principle applied in the Model, users’ monthly contributions of
(about Euro 0,60) per person are covered by savings on some of their current
expenditure as a result of the execution of the project. For instance, where
families now spend a large slice of their income for wood for cooking or for
drinking water or medicines, these costs will be eliminated or reduced under the
projects, releasing formal money for other uses. Wood will not be used. It will
be replaced by mini-briquettes grown, produced, and distributed under the LETS
local money systems. The supply of drinking water and the maintenance of water
supply structures are already covered under the monthly contributions. General
increases in living conditions (hygiene education, clean drinking water,
sanitation, elimination of smoke, better drainage, a more varied diet) should
lead to less illness and less need to buy medicines.
The
Kyoto Treaty.
Some
sustainable applications under the proposed project reduce CO2 emissions. The
main one is through the use of locally-produced high efficiency cooking stoves,
others are the substitution of the use of kerosene lamps by solar home systems,
and of some pumping systems by solar or advanced hand-pump technologies, and the
reduction of the use of non-rechargeable batteries. The application therefore
qualifies under the Kyoto treaty for the issue of CER certificates, which can be
traded to industrialised countries. The value of these certificates will
contribute to covering the cost of the projects and may, over time, cover all
their costs, enabling the seed capital to be recycled for other poverty
alleviation initiatives.
Each
typical family in the project area typically uses 10kg of firewood per day for
cooking. Efficient cooking stoves should reduce this by 65%, or 6.5kg of
firewood per day. There are
(10.000) families in the project area. They represent a typical expected
saving of (10.000) x 6.5kg of wood per day. This
is (65) tons per day and (23.750) tons per year. Expressed in CO2 at a typical
ratio of 0.80 tons of CO2 to 1 ton
of wood, annual CO2 savings amount to 18705 tons. The credit for one ton of CO2 has fluctuated
violently since the Kyoto Treaty entered into effect. In Europe it is currently
worth (6,25) per ton, but higher prices can be negotiated in other regions. At
Euro 6,25/ton the total annual credit for the project would be about Euro
(120.000). This is in addition to social savings deriving from improved health,
especially of women and children, time-savings for women who no longer have to
fetch wood, and formal money savings on present outgo for the purchase of fuels
for cooking.
(Status
of application under the Kyoto Treaty)
5.69.2
CONTRIBUTIONS TO HEALTH COSTS.
Curative
health structures are not formally a part of this project. The relationship of
the project with them is described
in section 5.62 of the project documents. As nursing, doctors’, hospital and
ambulance structures are set up, users at the levels of the respective tank
commissions, well commissions, will
make modest formal money contributions into the various sub-funds of Cooperative
Health Fund to cover formal money costs of medicines, materials, and long term
capital replacement of equipment and structures.
5.69.3
CONTRIBUTIONS TO COOPERATIVE PURCHASING FUNDS.
Cooperative
purchasing groups can be set up amongst interested users, or amongst all the
users reporting to a tank commission, well commission or to the project as a
whole. The project will on request provide free
of formal money charges bulk purchasing and administration facilities for the
purchasing groups, provided all the members of the groups are able to cover both
their normal monthly formal money contributions to the project costs and the
extra costs as a member of the cooperative purchasing
group.
Typical annual income
of a project under the Model.
Typical annual
expenditure of a project under the Model.
Forward: 06.01
Activities schedules per year.
List of drawings and
graphs.
Typical list of maps.
List of key
words.
List of
abbreviations used.
Documents for
funding applications.
