NGO
Another Way (Stichting Bakens
Verzet), 1018 AM
01. E-course : Diploma in Integrated Development (Dip. Int.Dev.)
Edition
02:06 November, 2009
Study points
: 05 points out of 18
Minimum study
time : 125 hours out of 504
The study
points are awarded upon passing the consolidated exam for
Section C : The Model.
[Study points 03
out of 18]
[Minimum study time: 85 hours
out of 504]
The study
points are awarded upon passing the consolidated exam for
Section C : The Model.
Section 1 :
Project costs.[40 hours]
01. General introduction. (02 hours)
02. General sketch of the financial structures.(02
hours)
03. Short budget analysis. (02 hours)
04. Budget organisation. (02 hours)
05. Description of the local contributions. (02
hours)
06. Method for calculating local contributions.
(02 hours)
07. Relationship between local money and formal money.(02
hours)
08. The budget (02 hours)
09. The budget in a form requested by donors/financing
parties. (02 hours )
10. Annual expenses (budgets per year). (02
hours )
11. Quarterly budgets. (02 hours )
12. Excel spreadsheets for the preparation of the budget.(02
hours )
13. The sustainability of the system.(02 hours
)
14. Tenders. (02 hours )
15. The bank structures with limitations imposed on the
project coordinator.(02 hours )
16. Auditing structures. (02 hours)
17. Protection of donors and financing parties.(02
hours )
Section 1 report
: (06 hours) .
Section 1 : Project costs. [40 hours]
17. Protection of donors and financing parties.(
A least 2 hours )
Integrated development projects incorporate
innovative mechanisms for the protection of the interests of funding
institutions and for the reduction of financial exposure during the various
project phases.
The most
effective and innovative protection is given by the order of execution of the
various project structures. For full information on this refer to Section 1. Justification of
the order of sequence for the creation of the structures of the fourth block: the structures to be created of the course.
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.
Social
structures, items 60301-60304.
Local money systems, items
60401-60409.
Micro-credit structures, items 60501-60505.
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 of the budget in 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 where necessary 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.
The introduction to the statutes of the NGO responsible for project execution (see project execution cooperative
in the section on the division of tasks
of the third block solutions to the problems :
«the management of the structures of the project as
they are formed pass to a management
Cooperative called [[project name]Cooperative] ”
The decision to deliver structures over to the Permanent Cooperative for the On-going
Management of the Project Structures is made from structure to structure by the
Board of Directors of the NGO responsible for Project Execution, on the
recommendations of the Project Coordinator.
1. Opinion.
On one page,
place the progressive transfer of
control over project structures to the Permanent Cooperative in the context of
the interests of financing institutions.
Suppose that
initial project financing is by way of a ten-year interest-free loan. That
would mean that the amount collected in the Cooperative Local Development Fund
over the first ten years of operation would
have to be repaid in a single lump sum at the end of the ten year period.
According to the statutes of the Cooperative for
the on-going operation of the project structures (see permanent
cooperative for project management
in the section on the division
of tasks in the third block solutions to the problems) the Central Committee must (amongst other
things):
“- [Hold] Ownership on behalf of the inhabitants in the project area of
all real and personal property connected with the structures and their
management
-Deliberate
individually on every decision connected with real property owned by the
Association.
-Deliberate individually on every purchase and/or investment and/or sale of
personal property of the association for a value equal to or greater than [
(example) Euro 15.000]. ”
2. Opinion.
On one page
give your opinion on the relationship between these tasks and the protection of
financing institutions for the investments they have made. Which other
agreements for the defence of investors’ interests do you think are
necessary ?
3. Opinion.
Make a
two-page comparison between the way integrated development try to protect
investors’ interests and the measures to this effect taken in the three most
important traditional development projects in your chosen area (if necessary,
in your country). Begin with a short introduction. Then make a brief summary of
the method followed by the Model. Then compare that i
turn with each of the three projects chosen. End with your conclusion.
Read
the following sections of the Model carefully :
4.17 A forfeit insurance aspects :
gift in case of loss of project structures.
4. Opinion.
You are responsible for the integrated
development project in your chosen area. On one page, present the issues raised in sections 04.16 and 04.17 to your donors and funding institutions,
with clear proposals for their solution. On the basis of your personal
experience, how do you think they would react ?
◄ Eighth block : Economic aspects.
◄ Eighth block : Project costs.
◄ Main index for the Diploma in Integrated Development
(Dip. Int. Dev.)
"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,
“Poverty is created scarcity”
Wahu Kaara,
point 8 of the Global Call to Action Against Poverty, 58th annual
NGO Conference, United Nations,
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