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STICHTING BAKENS VERZET

1018 AM AMSTERDAM, THE NETHERLANDS

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

 

 


KIOGORO  INTEGRATED SELF-FINANCING RURAL DEVELOPMENT PROJECT

 

KIOGORO DIVISION IN KISII CENTRAL DISTRICT IN THE REPUBLIC OF  KENYA

INCORPORATING LETS AND COMMUNITY BANKING

 

 

(partnership applications invited)

 

and

NGO STICHTING BAKENS VERZET, WIERINGERWERF, NETHERLANDS


"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 02 : 10th July, 2008)


05.40 DESCRIPTION OF THE PLANNED SERVICE STRUCTURES

 

05.51 DOMESTIC SOLAR HOME SYSTEMS

 

Home lighting in the project area is usually fuelled by kerosene lamps the average cost of which is about Euro 3,50 per month, but can be higher in case of shortage of fuel. This outgo constitutes a serious financial leakage from the project area which should be stopped. Some families may be able to finance the purchase of solar home systems through savings effected on the costs of petroleum and, for instance, batteries consumed for radios.

 

The central project management may set up a separate cooperative interest-free fund under which solar home systems can be installed and more efficient radios purchased. An amount of Euro (give amount) has been reserved for this purpose under section 6.15, item 61501 of the budget for this purpose).  This is a seed fund, to get the purchasing groups off the ground. It is enough to cover a first lot of  297 pilot installations to set an example in each tank commission  area and launch the system. The rest of the money must come from the cooperative contributions made by the users participating. The purchasing cooperatives will repay the funds included in budget item 61501 into the Cooperative Local Development Fund once every family in the group has a photovoltaic lighting system installed. When this repayment is made, the activities of the tank commission level purchasing group will be automatically terminated. Each tank commission decides independently when it opens its group purchasing facility for solar PV lighting.

 

An choice may be expected to be made in favour of LED lighting systems.

 

Users will usually set up self-terminating cooperative buying structures for the systems at tank commission level. In such cases it is expected that all families served by a given tank commission or well commission will participate in the cooperative.  The tank commissions may decide the social priorities for the gradual distribution of these systems. They may for instance decide priorities by drawing lots.  In that case, the speed of the distribution of the systems will depend on the time required by the individual families  to reimburse credits received. A family accustomed to paying Euro 20-30 a month for lighting and batteries will be able to repay a system from savings within about 2 years. A poorer family would need much more time. Where it is decided that all families participating make their repayments at the same rate, the rate chosen will be that affordable to the poorest family in the group. Where a more cooperative approach is taken, the rate of repayment could be variable according to the possibilities of each family.

 

Distribution of solar home systems is expected to commence in the last phase, phase 4, of the project. Various activities currently cause of financial leakage from the project area will then be taking place under the local money (LETS) systems, and it is conceivable that (some) users have more formal money available than before. Formal money funds may then be available for contributions to buying cooperatives for solar home systems. Where each family in a group formed contributes Euro 10 each month into its cooperative lighting fund, one extended family out of 25 should be able to  install a system each 4-6 weeks. This would mean that each extended family in that tank commission area would have a solar home system installed within about 2-3 years after the start of the cooperative. The elimination of financial leakage from the project area due to lighting and radios would become a reality within 4-5 years from the start of the project.

 

Financial leakage through the use of inefficient battery-driven radios could also be limited or  stopped by the use of high efficiency radios and/or mechanical wind-up radios. It should be possible to recover the cost of the new radios through savings on batteries within one year.

 


Next file :

 

05.61 Institutional developments.

 

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05.49 Reforestation.

 


 

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