1771 ED Wieringerwerf,
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
CASH FLOW DIAGRAM.
HOW THE ORIGINAL SEED LOAN MONEY IS USED.
TANK COMMISSIONS - THE KEY STRUCTURES.
The responsibilities of the various parties which would presumably be involved in the project are:
04.10.01 THE LOCAL NGO (name)
The NGO (name) officially fronts for the project. It is formally constituted and operative. It is respected and accepted by the population in the project area and enjoys their confidence. The NGO has (number) board members, whose task is honorary.
Financing parties may nominate their representatives (eventually paid by the financing parties themselves) to the board, with the task of participating in the auditing commission and for the purpose of monitoring project progress.
The NGO has approved the project and presented it for financing within the framework of (a country programme (name) supported by a donor government (name)) (the financing facility in question) .
The NGO nominates the project coordinator and puts the project funds at the free and unconditional disposal of the Project Coordinator in a bank account in the name of the Project.
The NGO may not interfere in the execution of the project, except to carry out its auditing and monitoring duties.
The local NGO may delegate a representative to countersign together with the Project Coordinator movements of projects funds from Euro or US$ accounts with the External Bank to formal currency accounts in the currency of (the host country). The representative (may be, is) authorised to counter-sign Euro or dollar payments from Euro of US$ accounts with the External Bank to foreign consultants contractors and suppliers. The representative is also authorised to counter-sign period lump sum payments made from the Formal currency accounts in the currency of (the host country) to the Cooperative Local Development Fund.
The local NGO answers to the auditing commission.
04.10.02 THE PROJECT COORDINATOR.
The project coordinator is responsible, together with the general consultant, for the project preparation, for contacts with local authorities and banks and with the users, for the actual implementation of the project. The project coordinator is also responsible for all professional work or operations that cannot, at the time of the project, be provided from within the local communities. The project coordinator is also in charge of the maintenance of the project, for collecting the monthly contributions of the users (through the tank commissions and other project structures set up) and for general supervision of payments out of the project accounts. The project coordinator will also coordinate the establishment of the local gypsum composite production units and the network of recycling centres. The fees of the project coordinator have been agreed and are formalised in the budget documents, which are in the public domain.
The project coordinator has exclusive control over formal currency funds deposited by the project in the Cooperative Local Development Fund.
04.10.03 GENERAL CONSULTANT
The general consultant is responsible for formulating the project, initial coordination with the NGO Africa A.H.E.A.D., initial contacts for setting up the Organizational Workshops, for the organisation (through the Workshops) of the local money LETS systems, setting up a Micro Credit system, coordinating with the gypsum composites specialist in setting up local gypsum composites production units, delivering pumps, PV-panels and related materials needed to implement the project. He will act as consultant to the Project Coordinator (through the Workshops) for the training and supervision of water supply, water quality and hygiene control and maintenance personnel identified during the Workshops.
04.10.04 ORGANISATIONAL WORKSHOPS
Most activities will be executed by the local people themselves. Organizational workshops (mass capacitation workshops or OW's) following the method of the Brazilian Clodomir Santos de Morais will be held for the various sectors of activity involved. During the workshops the users will organise themselves respecting the principles of the division of labour.
See Schedule 2 for information on Organizational Workshops.
Amongst the activities for which Organizational Workshops will be held are:
up Health Clubs.
Setting up Tank- and Well-commissions and the central project management unit.
Setting up the local money (LETS) systems.
Setting up gypsum composites production units.
Setting up structures for the water supply systems.
Setting up structures for the sanitation systems.
Setting up structures for the growing of bio-mass to fuel high efficiency stoves.
Setting up the Cooperative Local Development Fund and the interest-free micro-credit system.
Setting up the waste recycling system.
Setting up structures for rainwater harvesting.
Setting up the local radio station.
Setting up export-import cooperatives.
Setting up a net-work of local agrarian consultants.
The costs of the Workshops are set out separately in the balance sheet.
The Organizational workshops will typically directly involve about 4.000 users representing some 10% of the adult population.
04.10.05 (EXTERNAL FUNDING AUTHORITY – NAME)
The external funding authority (NAME) will, on acceptance, make available its 75% share of the interest-free loan necessary for the project and nominate structures and channels for supervising the project expenditure and liaison with other parties.
04.10.06 LOCAL FUNDING (USUALLY THE LOCAL POPULATION)
Local funding will usually come from the local population, through conversion of its contribution in work at the rate of Euro 3 for each 8 hours working day. The total expected contribution is (number) of working days, representing (number of hours) work.
04.10.07 REGIONAL ADMINISTRATIVE AUTHORITY (NAME)
The (regional administrative authority) will be an enabling body only. It will guarantee the continuity of the local currency (LETS) systems. Before the project begins, it will guarantee transfer of ownership of the project to the local communities subject to reversion of ownership to the project in case of default in payments. It will ensure, by agreement with the Central Government, that goods imported for the project come into (the project’s host country) Duty Free. It will authorise without creating unjustified obstacles the positioning of boreholes, wells, feed-pipes, tanks and others structures necessary to the execution of the project.
It may take full political credit for the project, but will agree not to otherwise intervene in its organisation, implementation or day to day running.
04.10.08 LOCALLY ELECTED MP'S
The local MP's will do everything in their power to guarantee respect by the national, regional and local administrative authorities the continuity of the local currency (LETS) systems, the importation of goods destined for the project without the application of customs duties taxes or other formal levies, and the transfer of the project structures to the users.
They will act as liaison points between the Project Coordinator on the one hand and the local funding authority and the local political institutions on the other. They may take full political credit for the project, but will agree not to otherwise intervene in its organisation, implementation or day to day running.
04.10.09 THE LOCAL COUNCILS IN THE PROJECT AREA
The local councils are enabling bodies only. They may take full political credit for the project implementation, but will not otherwise intervene in the organisation, implementation or day to day running of the project. They will guarantee and respect the decisions of the (Regional) Authority in relation to ownership of the project goods and services, and fully support the local currency (LETS) systems and the duty-free entry into the project area of goods to be used in the project.
The Local Councils will approve reasonable project proposals for laying and embedding water pipelines to dedicated water tanks, drilling bore holes, digging wells, locating and building sanitation facilities, positioning of gypsum composite manufacturing units, gypsum composites of, and collection of rubbish by, recycling centres.
04.10.10 THE LOCAL (REGIONAL?) HEALTH AUTHORITIES
The local health authorities are responsible for health services in the project area.. They will respect the administrative decisions taken by the Regional Government relating to the Project and will approve of the use of their own Health Workers within the framework of the Community Health Clubs' hygiene education programme to be set up by Africa A.H.E.A.D.
The health authorities (will approve, have approved) that their health workers be paid in the local LETS currencies for any work not already covered under their existing salaries.
They (will approve, have approved) that ownership of drinking water facilities, sanitation services where supplied, PV lighting, PV refrigeration, and water testing equipment placed in clinics within the project area be vested in the tank commissions in whose areas the clinics are situated.
They support hygiene education courses in schools in the project area.
They (will reach, have reached) an agreement with the project coordinator to ensure training of (women) users at on-going checks of water quality, and systematic inspections of the sanitation facilities built within the framework of the project. Testing and inspection work not already included within the Health Workers' salaries will be paid for in the local LETS currencies. The equipment for conducting such systematic water quality tests will be made available under the project to a local clinic or hospital and financed by testing work carried out by the clinic for third parties outside of the project area.
PV lighting, sanitation where needed and refrigeration for medicines for the clinics in the project area would be paid for by the communities as they do for drinking water facilities dedicated to the clinics and schools in the project area. Ownership would in this case be vested in the tank commission in whose territory the clinic is located. PV lighting and refrigeration installations in clinics outside the project area serving users inside the project area need to be separately discussed. The disposal, where required, of specialised waste from clinics will be addressed separately.
The health authorities will train make regular hygiene inspections of the local recycling centres.
04.10.11 THE LOCAL (REGIONAL?) EDUCATION AUTHORITIES
The education authorities (will approve, have approved) that ownership of drinking water and sanitation facilities and PV lighting placed in schools within the project area be vested in the tank commissions where the schools are located. They (will also approve, have approved) that the teachers' commissions nominated to operate water and sanitation services and PV lighting report to the local tank commissions.
They support hygiene education courses in the schools in the project area and approve the reasonable course curriculum presented by the Project Coordinator and apply it during normal school hours.
04.10.12 THE LOCAL TAX AUTHORITIES
The Project Coordinator will reach a binding agreement with the tax authorities, before the Project gets under way, to ensure that the tax authorities are not deprived of current tax revenue.
The project is based on a tax moratorium of at least 20 years on all LETS activities.
The tax authorities will define LETS activities carried out in LETS currencies under the project as non-commercial, and therefore non-taxable.
04.10.13 THE COOPERATIVE LOCAL DEVELOPMENT FUND AND MICRO-CREDIT INSTITUTION
The Cooperative Local Development Fund set up under the project will administer project funds actually deposited in the project area.. On the instruction of the Project Coordinator, it will formally administer Grameen Bank style micro-credit loans and repayments and the project funds, in cooperation with the (External Green Bank, name). It will NOT intervene in the decisions relating to the granting of the loans themselves which will be made by the project coordinator in consultation with the communities.
The Cooperative Local Development Fund will autonomously finance and administer micro-loans for the installation of solar home systems for individual non-productive household use.
04.10.14 THE EXTERNAL BANK (NAME)
The external funding authority (name) will pass its financial contribution through an appropriate financial institution, possibly a Green Bank capable of acting as adviser to the Cooperative Local Development Fund. The external Bank will, on the instruction of the project coordinator, administer the project monies deposited in the project area under the supervision of the External Funding Authority and will support the Cooperative Local Development Fund in setting up the Micro-credit system for local development.
04.10.15 THE LOCAL GYPSUM COMPOSITE PRODUCTION UNITS
These units will make, with a sanitary finish where necessary, ecological items such as water tanks, water containers, well-linings, san-plats in low cost labour intensive production units with up to 100% local value added. They will also make the high efficiency stoves and solar cookers. The Project will finance them on an interest-free basis with a pay-back period of 3-5 years. They will operate autonomously and negotiate payment of any royalties directly with the Technology Owner. They will usually sell their products within the project area in the local LETS currency, and outside the Project areas in formal currency. Precedence will be given to making items of top priority to the Project. Ownership of the production units passes to the cooperative factory owners after construction, subject to reversionary rights of the project in case of default in repayments. Until full repayment the cooperative factory owners answer to the Project Coordinator.
04.10.16 TANK COMMISSIONS
TANK COMMISSIONS - THE KEY STRUCTURES.
Every water tank supplies an area or group of households with water. A tank commission, elected by the users, will supervise the use of the tank and its associated works, the collection of the monthly contributions and the carrying out of minor operations such as keeping tank areas clean. Each tank commission will be paid a small monthly fee in formal currency, equivalent to perhaps Euro 5 per month, which it is free to spend as it wishes. Since women enjoy the greatest benefits from the execution and on-going management of the project, they should provide most of the tank commission members.
The tanks commissions will be set up using the Moraisian organisational workshop method. Their form may vary from one are of the area to another.
The tank commissions will nominate one of their members to liaise with the system maintenance structures set up.
The tank commissions would also be responsible for study rooms and PV lighting and for coordination of recycling in their area.
They will nominate a literate person to liaise with the local LETS system coordinator.
The drinking water installations and sanitation services dedicated to schools and clinics will be supervised by commissions of respectively teachers and medical staff who will report to the tank commissions where the schools and clinics are located. Ownership of these installations will be vested in the local tank commissions with the consent of the local Education and Health authorities. The costs of loan repayment and maintenance of these installations are built into the users' monthly payments.
PV lighting, PV refrigeration, and water testing equipment supplied to clinics in the project area would likewise be run by the medical commission supervising the water supply. Ownership of these structures will be vested, with the consent of the Health Authorities, in the tank commissions where the clinics located. The medical commission will report to the local tank commission.
The problem of specialist waste removal from clinics, where needed, will need to be studied separately.
The tank commissions will also convene regular meetings to discuss activities under their local LETS system and priorities for micro-credits.
The tank commissions will elect the well commissions.
The tank commissions will nominate a female candidate from their own area to carry out cooperative inspection of the sanitation, rainwater harvesting, and cooking facilities installed, and arrange for her training.
04.10.17 WELL COMMISSIONS
well/bore hole area comprises:
- The well or bore hole itself
- The backup hand pump installation
- The washing area
- The enclosure for PV systems and supports
- A guard system for the PV installations
The well commission, elected by the tank commissions, supervises the use of the structures common to the water supply system, and carries out minor maintenance operations such as cleaning washing areas, well areas, and backup hand pump systems. The well commission also regulates use of the well area in case of crisis or calamity. It collectively receives a small monthly payment in the local LETS currency (e.g. the equivalent of Euro 5 per month) which it is free to spend as it wishes. Since women enjoy the greatest benefits from the execution and on-going management of the project, they should provide most of the well commission members.
The well commission will nominate one of its members to liaise with the system maintenance structures set up and with those responsible at tank commission level for maintenance.
The well commissions will nominate a female candidate from their own area to monitor the cooperative inspection of the sanitation, rainwater harvesting, and cooking facilities carried out at tank commission level, and arrange for her training.
The well commissions elect the central project management unit.
04.10.18 AFRICA A.H.E.A.D.
This NGO originally from Zimbabwe and for political reasons now operating under the name Africa AHEAD will adapt and supply the material for the Health Clubs
The Community Health Clubs will be set up, and local health workers trained to lead the hygiene education courses during a Moraisian organizational workshop.
A hygiene education course for use in the schools in the project area will be developed the same way, and health workers and teachers trained to apply it.
04.10.19 THE GYSPUM COMPOSITES SPECIALIST
The gypsum composites specialist invited to participate will usually be Mr E.F.Meuleman from the Netherlands who developed the technology and is willing to make it available free of charge to bona-fide integrated development projects in developing countries..
The specialist will act as consultant during the Organization Workshop during which the local gypsum composite production units in the project area will be set up, and independently negotiate any conditions for technology transfer.
04.10.20 MEDICAL COMMISSIONS
Medical commissions will supervise installations supplied to clinics under the project. They will report to the tank commission where the clinic is situated. They will where required arrange with the Project Coordinator collection of special medical waste products.
04.10.21 TEACHERS COMMISSIONS
Teachers commissions will supervise installations supplied to schools under the project.
They will support and apply the approved hygiene education courses in the schools.
They will report to the tank commissions where the school is located.
04.10.22 THE AUDITING COMMISSION
The auditing commission is set up by the local NGO to review the work of the local NGO in monitoring project progress. It will have 5-7 members, some of which may be nominated (and paid by) by the external funding agency. Other members include (list the members, if known). The commission has full powers of inspection.
The auditing commission answers to the external funding agency and to the independent auditor.
04.10.23 THE INDEPENDENT AUDITOR
The independent auditor Financing parties may nominate an independent auditor to co-sign payment authorisations made by the project. The independent auditor answers to external funding agency, and informs the auditing commission and the project NGO of its actions.
Forward: The question of ownership.
Back: institutional structures.
List of drawings and
Typical list of maps.
List of key words.
List of abbreviations used.
Documents for funding applications.