NGO "ANOTHER WAY" (STICHTING BAKENS VERZET), NETHERLANDS, SUSTAINABLE INTEGRATED SELF-FINANCING DEVELOPMENT PROJECTS AND ADVANCED DEVELOPMENT TECHNOLOGIES

It would seem that the installed structures do not need any maintenance. This is not the case. Systematic preventive maintenance systems are provided at all project levels.

The secret lies in the fact the almost all maintenance operations take place under the local money systems set up in each project area. For example, annual cleaning of 15m3 water tanks is carried out by teams paid under the framework of the local money systems. Their local money credits are debited to and distributed amongst the families served by the tank (commission) in question.

Suppose that a group of three needs 2 hours to clean the inside of a tank and that their hourly tariff is 11,50 local money units. The team of three works for 6 person/hours. At 11,50 units an hour, the cost of the operation is 69 units. The 69 accounting units are divided amongst the adult members of the tank commission area. Supposing the adult population is 250, each adult would be debited with 0,276 units. (Note that in reality, to simplify administration, the tank commission would accumulate debits and distribute them in packages of 250 units, or a multiple of 250, being one (or more) unit for each adult).

Similarly, activities such as the control of access to the tank, cleaning the tank area, regulation of the number of litres collected by each person and family etc are part of the operation and maintenance of the drinking water service, organised by the tank commissions. The costs are determined by the tank commissions on the basis of offers made by people interested in doing the work., usually by way of a sort of «annual » tender. Suppose the various tasks together call for 8 hours or work a day over 365 days at an hourly tariff of 9 accounting units, the management of the service would be 26.280 units a year, or 105.12 per adult per year, or 0,288 units per day. Supposing an average system retribution of 10 units per hour, the cost for the management of the tank system would be 0,0288 a day, or 103,68 seconds, or 1,728 minutes. . (Note once again that in reality, to simplify administration, the tank commission would accumulate debits and distribute them in packages of 250 units, or a multiple of 250, being one (or more) unit for each adult).

The same concepts apply to the management of all project structures.

For instance, a 24 hours/day guard service is planned for the photovoltaic pumping installations installed near each bore-hole or well. Each guard would work for 6 or 8 hours a day. Their tasks include cleaning (where necessary) the solar panels, operating the manual «tracking » systems so the panels follow the movement of the sun. ( Automatic tracking is not foreseen). It is a «soft » job during which other activities can also be carried out. Study, for example, of the cultivation of a garden near the washing place. This would justify the payment of the minimum allowable hourly salary – say 8 units an hour.

8 units an over 24 hours produces guard costs amounting to 192 units a day. Over 365 days, the total mount comes to 70,080 units a year. Suppose the borehole in question serves 6 tank commissions. The amount charged t each tank commission would be 11,680 units a year. With 250 adults served by each tank commission, that means 46,72 accounting units per adult per year, ort 0,128 units per person per day. On the basis of an average retribution of 10 units per hour, that means 0,0128 hours, or 46,08 seconds of work per day.

The tasks of the well commissions include control of access to the bore-hole area, maintenance of footpaths, cleaning of the washing places, cleaning of the hand-pumps, management of the garden recycling the waste water from the installation. (Note that the garden itself can be a micro-enterprise operating under the local money system). Exactly how these matters would be organised depends on the independent decisions taken by each well commission. Suppose the different tasks together call for 8 hours of work per day over 365 days at an hourly tariff of 9 accounting units, the cost of the service would be 26.280 units a year. Suppose the well serves 6 tank commissions. The amount charged to each tank commission would be 4,380 units a year. With 250 adults served by the tank commissions, that means 17,52 units per adult per year, or 0,048 units per day. On the basis of an average retribution of 10 units per hour, that means 0,0048 hours, or 17,28 seconds of work per day.

Summing up the cost of the three interventions (tank maintenance, guard, and maintenance of the well area) the total comes to 103,68 + 46,08 + 17,28 seconds, or 166,36 seconds, or less than 3 minutes’ work per adult per day. Adding to that cover for the costs of the general maintenance of the drinking water system and a few seconds to cover the service relating to water quality sampling, it can be said that on-going maintenance of the drinking water systems « costs » each adult about 3 minutes’ work per day, or 0,50 accounting units, or 182,50 units per year..

Taking the formal money costs item by item :

Coordinator/permanent administration.

The amount of € 25.000 covers external electricity costs; telephone costs ; CD’s ; and the like.

System maintenance.

The amount of € 12.000 covers (external) costs for computer maintenance, for PV panels and the like. Notes that each project will have maintenance teams qualified to carry out most operations.

Tank commissions.

Each tank commission receives Euro 5 per month, for a total at project level of € 13.200. This money is in principle intended to subsidise the poorest families to help them make their monthly contributions to the Cooperative Local Development Fund. Supposing a total of 50 families served by a given tank commission, and the average number of members of each family is 5. The monthly contribution of the average family to the Cooperative Local Development Fund would be € 3. The monthly subsidy of € 5 allows a subsidy of 33% for 10% of the families; a contribution of 50% to 3 families etc. In the absence of families considered «needy », the tank commissions are free to spend the money or save it as they wish. For example for an annual feast for all of the families served.

Spare parts.

The amount of € 20.000 a year forms a reserve to cover the purchase of spare parts which cannot be locally produced in the project area under the local money system. Note that a basic stock of spare parts, for instance for solar pumps, is included in the initial project budget. During the first years of activity the amount reserved to cover the cost of «external » spare parts will accumulate to cover long term costs. Meantime the ear-marked reserve is recycled interest-free for micro-credit loans.

Unforeseen

The annual amount of € 29.800 is intended to cover accidental loss and, where necessary, theft of equipment. It can accumulate over time to create a sort of insurance pool. If not used, the ear-marked funds are recycled interest-free for micro-credit loans.

1. Research.

Suppose the management of the local money system of a project «employs » :

a) One person 12 hours a day at tank-commission level serving 250 adults at 10 units an hour.

b) 4 tank commission meetings per month, where the tank commission has 5 members, each meeting lasts for 2 hours, and the members are paid 10 units an hour.

c) A transactions registration centre at well-commission level serving 5 tank commissions each with 250 adult members. Two teams of three persons each serving for 8 hours a day. (48 hours a day) at 10 units an hour.

d) A central structure serving 35 well commissions, each serving 5 tank commission each with 250 adult members. The structure settles disputes. It has .three members, 10 hours each person per week ,at 13 units an hour.

e) A central structure serving 35 well commissions, each serving 5 tank commissions each with 250 adult members. The structure is responsible for the maintenance of statistics. Three members, each 20 hours a week ,at 14 units an hour.

f) A central structure serving 35 well commissions, each serving 5 tank commissions, each with 250 adult members. The structure is responsible for the management of external relations with other local money systems. Three members, each one 20 hours a week, at 15 units an hour.

Calculate the annual and the daily cost of the local money system for each tank commission member, and convert the results into hours’ work at 10 local money units an hour.

2. Opinion.

Make a on-page commentary of the results of your calculations under 1. What are your conclusions ?

Opinion.

3.Make a critical one page analysis of each item for on-going formal money expenditure.

◄ ►

◄ Eighth block : Section 3 : Costs and benefits analysis.

◄ Eighth block : Economic aspects.

◄ Main index for the Diploma in Integrated Development (Dip. Int. Dev.)

◄ List of key words.

◄ List of references.

◄ Course chart.

◄ Technical aspects.

◄ Courses available.

◄ Homepage Bakens Verzet

"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, 58^th annual NGO Conference, United Nations, New York 7^th September 2005.

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