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
and
"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,
Analysis
of the financial viability and the economic
justification économique of the project
and of its environmental impact.
I Introduction
Description
Component C
Sustainability
III.1:
Sustainable results with respect to the populations.
The action
sets up a complete range of permanent basic services for the benefit of the
entire population in the project area. The services in question include social, financial and productive structures
and service , entirely managed and maintained by the populations themselves,
who own them.
The
populations pay a monthly contribution of
Euro 0,60 (first three years) and Euro 0,75 (following seven years) per
person into a Cooperative Local Development Fund. Part of the monthly contributions covers the formal money costs
of management, for example the cost of spare parts for capital goods which
cannot be produced locally. The greatest part of the monthly contributions is
used to finance interest-free micro-credits for productivity increase. A large
capital fund build up in the Fund during the first ten year project activity
period. The accumulated amount is comparable to the initial formal money
investments made in Euro and amounts to about Euro 6.000.000.
At
the end of the ten years' period, on repayment, where appropriate, of the ten
year interest-free loan, large capital reserves will again be built up during
the following ten years for use in Micro-credits and, subsequently, for the
extension and renewal of the capital goods. In case of loan repayment after ten
years, funds available for interest-free micro-credits will be reduced to zero.
Since the families continue to make their monthly payments to the Cooperative
Local Development Fund, the capital in the Fund for micro-credits will
gradually build up again during the second ten-year period as it did during the first period of ten
years and is then available for the replacement of capital items goods. The
system continues indefinitely and sustainably
in cycles of ten years to cover project extensions and the replacement
of capital goods. Where the original seed funding was by way of grant, the
large amount of capital in the Fund at the close of the first period of ten
years will continue to circulate to finance interest-free micro-credits. It can
also be used to finance extensions to project structures.
III.2:
Environment.
An
initial report on the environmental impact
of the project has been prepared and is attached to the project documentation.
The
project is 100% ecological.
It
is based on the utilisation of renewable energies and in particular on
photovoltaic energy application for clean drinking water supply. The sanitation
structures foreseen are of the
dry-composting eco-sanitation type with on-site recycling of organic wastes.
Urine and faeces never have the chance of mixing with surface or underground
waters.
Non-organic
wastes are collected and locally recycled wherever possible in the project area
in support of local productive activities carried out within the framework of
local money systems set up as part of the project. The utilisation of
high-efficiency cooking-stoves using locally produced mini-briquettes promotes the elimination of smoke hazards and
fine particles inside and around users’ homes. The mini-briquettes replace
wood, charcoal and traditional fuels, safeguarding forests, local eco-systems,
and the flora and fauna in the project area. The local financial systems set up
enable the people to pay for guards to defend and conserve the natural
resources in the project area and for the responsible promotion of tourism
there.
The
production of articles from gypsum composites is also entirely ecological. The
work cycle is such that very small quantities of water used during one phase of
the cycle are recycled during a second phase, without the loss of any
contaminated or used water into the environment. Gypsum composite products are
always repairable on site. If they are no longer needed, they can be returned
to the factories for 100% recycling for the manufacture of new products. Used
material is never lost in the environment, where, furthermore it would never
cause harm to persons or things.
Use
of gypsum composite materials may bring with it some risk of fine dust in and
immediately round the production units and the gypsum quarries. Appropriate
means of protection for eyes and lungs should be adopted where gypsum is worked
in confined areas. Gypsum mining and manufacture in the production units is
manual and on a very small scale, to the order of a few hundred tons a year.
Use
of gypsum could in principle require the re-location of families whose homes
are literally situated on the gypsum deposits. However, the amount of material
to be consumed is so small, that re-location is extremely improbable.
III.3:
Integrated water resources management.
The
project concerns relatively small amounts of drinking water (about 2140m3 per
day) and the management of supplementary rain-water harvested at household level.
Measures to improve drainage of public places are also foreseen as part of a
general campaign to reduce the incidence of water-borne diseases in the project
area. All possibility of contact between contaminated water and surface and
underground waters is eliminated.
Activities
carried out under this project are independent of other eventual plans for
large-scale regional or national management of water resources.
However
they inherently supplement and can be integrated in any such plans.
III.4:
Sanitation and hygiene education.
Sanitation
and hygiene education are both basic components of project activities. Complete
eco-sanitation systems will be installed in each of the 8.000 extended family
homes in the project area and in schools and public places. Production
installation and maintenance of these systems and of structures to house
them are carried out under the local
money systems set up in an early phase of the project without the need for any
formal money.
III.5:
Social aspects.
An
important role in project education is reserved for women, both in relation to
the management of the structures set up and to the benefits they bring to the
population. The very first structures created are the Health Clubs which enable
women to organise themselves to play an active role in the tank commissions,
which are the heart of the project. The tasks of the tank commissions are set
in details and graphically illustrated in the project documentation. Women no
longer have to fetch firewood and water. Smoke hazards are eliminated at
household level. The introduction of local money systems enables women to
monetise their work. Each family will on an average receive interest-free
micro-credit loans for about Euro 4.500 for productivity increase during the first
ten years’ project cycle.
The
proposed activities do not involve the treatment of HIV/AIDS directly. However,
they do have a powerful indirect impact on social environments where HIV/AIDS
is a problem. First, through the permanent and institutionalised activities of
the Health Clubs and hygiene education courses in the schools. Secondly through
a gradual reinforcement of the role of women in the community. Finally, through
the possibility of improved nursing and care which can be made available to
patients within the framework of the local money systems set up.
The
elderly, the sick and the handicapped living in the project area all benefit
fully, without exclusion, from all of the benefits created as a result of
project execution. The financial structures set up offer advanced social
security protection at several levels in respect of their formal money
obligations to the Cooperative Local Development Fund and for their consumer
debits under the local money systems. For instance the debit points accumulated
by an elderly, sick or handicapped person under the local money systems can be
distributed amongst the adult members (some of them, the youngest, or all of
them) of his family; of the entire group referring to a given tank commission;
of the entire group referring to a well commission; or where appropriate to the
entire group in the project area.
The
structures set up should lead over a period of a few years of operation to full
employment in the project area, including employment for handicapped people
such as the blind. A cooperative local radio-telephone communications
structure, for instance, could alone give employment to 400-600 blind people. Such initiatives are
not specifically included in this project, as they are not directly related to
hygiene education or drinking water supply or sanitation. Since they would
involve an initial formal money capital input for transmission equipment, a
separate item for them could be included in the project budget where this is an
option acceptable to financing parties.
III.6:
Financial aspects.
The
financial concepts introduced in this project are innovative. Formal money
maintenance costs, essentially for spare parts for certain structures, are
covered by the monthly formal money contributions paid by families into the
Cooperative Local Development Fund. The operation of this Fund is described in
section III.1 above and in the project documentation which also contains a
graphic presentation. Maintenance, related labour and administration costs are
covered under the local money systems set up. The local money units rotate
continuously in the local community. Their value is referred to the perceived
value of an hour’ work. Powerful social control exists over the work and the
services offered. In principle, the cost of maintenance of structures and
services expressed in local money units is not important, as it is in any case
recycled locally. For example, the cost
of a full-time drinking water supply system maintenance cooperative would
represent an annual debit the equivalent of one hour’s work for each of the
50000 adults in the project area. Social insurance aspects protecting the
weakest members of the community are described in section III.5 above.
The
payments made by families into the Cooperative Local Development Fund typically
amount to between Euro 6 and Euro 7.5 per extended family of ten persons per
month. The project makes a wide range of services available to the beneficiary
families. Savings on their former formal money expenditure for these services
should be higher than the monthly
contribution to the Fund. Consider for example savings in the cost of drinking
water and fire-wood for cooking. Consider the social and financial advantages
created by the project and the
introduction of interest-free micro-credits
The
budget includes complete details on the financial management of the structures
set up. For the complete package of services offered, a monthly contribution
(during the first three years) of Euro
0,60 per person per month by 80.000 people produces a total annual contribution
of Euro 576.000. Only Euro
The
part of the annual income not required to cover formal money and maintenance costs
is continuously recycled in the form of interest-free micro-credits for
productivity increase. Within ten years this fund will have accumulated at
least Euro 6.000.000, taking repayment of initial loans for productive
activities made during the first two years’ execution phase of the project. At
the same time, each family will on an average have enjoyed interest-free
micro-credit loans for at least Euro 4.500 for the increase of the own
productivity. Where the initial funding is by way of interest-free ten year
loan, the loan can then be repaid in a lump sum. Since users continue to make
their monthly contributions into the Cooperative Local Development Fund, the
amount in the fund gradually builds up again during the second period of ten
years as it did during the first. At the close of the second period of ten
years, the amount in the fund is sufficient to cover the cost of the long-term
replacement of capital goods.
The
relationship between formal money revenues and formal money maintenance and
administration costs, can, according to the concepts applied in this project,
only be positive. Compare this with financial principles traditionally adopted
for international development projects. In this sense, the project constitutes
a world-wide precedent, as it is inherently permanently sustainable.
III.7:
Institutional aspects.
The
social, financial and productive structures and services set up by the project
operate independently of but in full harmony with the existing political and
administrative structures in the project area. They operate freely and
voluntarily in parallel with the existing structures. They do not substitute
the existing structures. Except for works and services carried out for the
execution of the project itself, users are always free to choose whether a
given transaction be carried out under the local money system set up or under
the traditional formal money system.
The
local populations themselves carry out most of the work and services needed for
project execution. They manage and maintain the structures within the framework
of the Cooperative for Kiogoro, which takes structures over from the Project as
they are set up. The local populations make formal money and local money
contributions necessary for the management, maintenance and long-term
replacement and extension of the structures of which, through the Cooperative
for Kiogoro, they are themselves the owners. Operation and maintenance are
carried out by permanent locally owned project structures and by local cooperatives and operators.
Economic
and financial feasibility.
V.1:
Description of the resources.
The
principles applied to the execution of this project follow two innovative
lines.
The
first is that the formal money (Euro) funds are almost exclusively destined for
the purchase of goods and services which are not locally available. For
example, the purchase of solar pumping systems and the solar panels for them.
The local populations are responsible for most of the work and services necessary
for project execution. The creation of
the structures necessary for them to do this takes place through a series of
Moraisian capacitation workshops, during which the people themselves set the
project structures up. The people themselves become, as it were, the
structures. Their contribution in works and services is for this project
estimated to amount to about 5.333.000 working hours carried out within the
framework of the local money systems set up. These have been converted into
Euro at the rate of Euro 3 for each
eight-hour working day, producing a local direct contribution by the
populations of about Euro 2.000.000, or 25% of the total project cost. The
budget fully justifies the number of hours worked by the local populations for
each budgeted activity. The 5.330.000
hours of work represent a true mobilisation of the local populations, 10%
(about 6.000 persons) of whom are
permanently usefully employed as a result of the project application.
The
second innovative line of approach is that, with the exception of the very
first structures leading to the creation of the local financial structures, the
management structures have to be set up before the formal money capital project
funds can be spent. Without the presence of the local social and financial
structures, no formal money investment, for example for drinking water
structures, can take place. This is because the local money structures under
which the project works have to be paid, have not yet been formed.
For
example, the installation of solar pumps for the supply of distributed drinking
water cannot take place until the water tanks are ready. The water tanks cannot
be built until the gypsum composite construction units are in place. The gypsum
composite construction units cannot be built until the local money systems have
been set up. The local money systems
cannot be set up until women’s participation in the structures is assured.
Women’s cannot organise themselves until they are given a platform, the
formation of the Health Clubs, enabling them to do so.
This
way, the interests of funding parties and investors are protected. Once
structures have been set up and are in operation they are handed over by the
Project to the Cooperative for Kiogoro.
The maximum exposure for investments made before passage of new
structures (in full operation) to the Cooperative is about Euro 1.250.000. Much
of the Euro 1.250.000 comprises outgo for capital items for project set-up and
much of it can, in case of necessity be recovered through resale of the capital
goods.
The
role of the applicant NGO Kiogoro Integrated Development Project, despite
indications often given in the guidelines published by donor organisations, is
the permanent on-going monitoring of project execution, which is for a large
part carried out by the local populations themselves under the guidance of the
project-coordination team and its four consultants. The inhabitants work
through the social, financial and productive structures they set up. They
follow the indications given them by the project coordination team and by the
general consultant, who for this first project is the author of the concepts,
who will work for just the current
pro-diem tariff foreseen by the European Union for expatriates in the
host country. In some specific areas, the project coordination team will obtain
the help of a single specialist, provided the specialist can be found within
the time span available. In the absence of a specialist, the general consultant
will take his place.
V.2
Relationship between the project activities and the expected results.
The
whole package of services provided by the project costs less in formal money
terms than any one of its numerous
elements following traditional methods of financing and execution. In the case
of this particular action, deep bore-holes have to be drilled in some parts of
the project area. Hand-dug wells will where possible be built using the local
money systems set up. This helps to keep the formal money content of the
project reduced.
All of
the social financial and productive structures and services made available
through the action are permanent. They enable the inhabitants to take action to
increase their productivity and improve their quality of life. Apart from an
average use of interest-free micro-credits for at least Euro 3.250 during the
first period of ten years, the local money systems set up make it possible for
them to do whatever they wish and to strongly reduce if not entirely eliminate
unemployment in the project area within a few years.
The people in the
Kiogoro project area do not enjoy adequate hygiene education, sanitation or
clean drinking water and. In this respect the situation in the project area is
critical. The people there use up to
Where water is purchased or where carriers are
hired to fetch it, the average cost can be as much as € 3,75 per person per
month, which alone is a large part of the total monthly contribution of an
extended family often to this integrated development project. Poor families cannot usually pay
this amount, and are forced to fetch water from contaminated sources.
Water is stored in
contaminated containers .
Poor water quality throughout the project area spreads diseases. Diseases such as
malaria, typhoid, dysentery, gastroenteritis, and skin diseases are endemic there. The cost of the fighting often deadly water-related diseases
takes up a large slice of the family incomes. A goal of the project is to
reduce water-borne disease so medical and financial resources can be
re-directed to other health objectives like vaccination programmes and
preventive medicines. Resulting diseases also affect the quality of life and
the productivity of the people.
Supply of readily accessible clean drinking water for personal and
household use should improve the health of the whole population and ease the
pressure of work on women and eliminate all risks currently involved in
fetching water over long distances.
The project includes
gypsum composite production units whose
first job will be to make water storage tanks and well linings for the project.
The project will provide at least
Health Club activities will increase awareness for the risks of poor
hygiene at household level, and ensure that the clean drinking water delivered
to them at tank commission level remains clean when transferred to household
water containers and that proper attention is paid to the cleanliness of
household utensils cutlery kitchen and tableware.
V.3
Financial viability.
Refer
to comments under points III.1, III.5, III.6, V.1, and V.2 above. The project
documents contain detailed information of the social and financial structures
set up, their tasks, and the benefits they offer to all, including the poorest
and the currently unserved. The position of women is strongly reinforced and
the project is fully in line with the draft charter for the rights of African
women, Addis Abeba 28th March 2003.
V.4 Specific financial aspects.
They
way the inhabitants participate in the project and contribute to its cost has
been described several times above. All
of the social, financial, and productive structures and services created are
independent and managed by the people themselves through the Cooperative for Kiogoro. The formal money Cooperative
Local Development Fund builds up over
each ten year project operation cycle to cover future replacement of capital
goods and new investments for the extension of services, together with all
formal money funds necessary for maintenance purposes. The principles applied
in this project for the first time create a precedent for integrated
development in poor countries. They do not follow any existing political and
economic principle except that of honest and responsible management of public
goods and interests.
All of the inhabitants in the project area have permanent access to all
of the structures and services created. There are no special categories of beneficiaries or levels of service.
Each inhabitants will receive at least
All of the formal money costs relating to drinking water supply are
covered by the monthly contributions made by users into their Cooperative Local
Development Fund. All of the costs of systems management and maintenance are
covered under the local money systems set up. Everyone in the project area pays
the same contribution. Several levels of cooperative social support structures
are set up to help families and individuals who may have temporary or permanent
problems in meeting their formal money or local money obligations.
The system has no qualification requirements or connection costs, except
bona-fide residence in the project area.
Management and maintenance of services at tank commission level is the
responsibility of the tank commissions, who own the structures in question.
Management and maintenance of services at well commission level is the
responsibility of the well commissions, who own the structures in question. The
role of each commission is carefully defined in the project documentation where
it is also graphically illustration.
Maintenance of all structures installed in the course of the project
will usually be in the hands of local cooperatives and local operators trained
and organised during the Moraisian water supply structures workshop. The formal
money costs are paid out of the Cooperative Local Development Fund. Maintenance
services are covered under the local money systems set up. Decisions concerning
extensions to services and to long-terms replacement of capital investments are
taken by the 66 member central committee of the Cooperative for Kiogoro on the
advice of the central management unit the members of which are nominated by the
Central Committee. The Central Committee comprises one member nominated by each
of the 66 well-commissions. The well commissions comprise one member nominated
by each of the 297 tank commissions. The tank commissions are chosen by with
the populations they serve. Each tank commission and each well commission is
autonomous. The commissions are free to take any initiatives in their own area
they may consider to be in the interests of their members.
All of the structures created are tax-free and free from any other
charge other than the monthly contribution of between Euro 0,60 and Euro 0,75
per person paid by the families into the Cooperative Local Development Fund.
The formal money costs for spare parts imported into the project are subject to
inflation. The central management unit of the project, chosen by the Central
Committee, may propose to the Central Committee changes to the monthly
contribution of the inhabitants into the Cooperative Local Development Fund.
Taking a presumed substantial increase in local productivity and consequently
of the general quality of life of the people in the project area over a period
of several years, increases to the monthly contribution over the years may
reasonably be foreseen. They are also in the interests of the inhabitants
themselves, as the amount of money available to them for interest-free
micro-credits for productivity development increases proportionally. On the
other hand, the cost of management and maintenance services should remain
stable over the years, as the local money systems under which payments for them
are covered are both interest- and inflation-free.
Sanitation structures, including most of those necessary for waste
recycling are supplied, installed, managed and maintained entirely under the
local money systems set up. They are therefore interest- and inflation-free.
Formal money costs for vehicles and transport for the collection and recycling
of non-organic wastes can be incurred by the network of cooperatives and
operators set up under the project for this purpose. They are generally
expected to cover these costs out of formal income for waste products which
cannot be recycled locally and which are “exported” for formal money outside
the project area. As stated in the project documents, their ability to repay
their formal money investments is expected to be lower than that of other
productive activities set up, and repayment may take place over a relatively
long term.
5.1 Beneficiaries
The
project area is rural, and includes 50 villages
(sub-locations) each with a population lower than 3000 inhabitants. 15 localities have a population between 2000 and
3000; 21 have a population between 1000
and 2000 inhabitants, and 14 have a population below 1000.
A full list of the
communities involved can be found under section 02.04 of the project
documentation together with details of
drinking water supply installations planned for each village.
The average annual income per
family is about Ksh 135050 (€ 935). This means that a typical extended family
of 10 controls an annual income of €
935. The average income per family in
the project area is therefore less than Euro 3 per day. The national GDP in Kenya in the UNDP’s
report on human development for 2006, based on figures for 2004, was
$1140 (about €786) per person per year; with a poverty index
of 35,5.
The total population in the project area is officially about 77772; the
actual population there is estimated to
be about 80.000.
All structures and services set up serve all of the inhabitants in all
of the villages in the project
area, without exception.
The gender issue and the question of sex equality has been addressed by
the adoption of a specific order of priorities for the formation of the various
structures involved. An active, usually dominating role, of women in project
execution and management is thereby ensured. One of the purposes of the first
structure to be put in place, the Health Clubs, is to enable women to organise
themselves in groups so they can play an active role at meetings and in the
management of the structures. Women are expected to play a dominant role in the
tank commissions (the heart of the project) and in all of the other structures
set up. However, men also have full right to participate in project management;
they can also take part in the Health
Clubs, although a large participation is not expected in the early
project execution years.
The specific needs of children are taken into account in the project
basic concepts. In particular through the supply of clean drinking water, safe
sanitation, hygiene education courses and water and sanitation facilities in
schools, the elimination of smoke hazards in and around homes, accommodation
and lighting for study purposes and the reduction of the work load on
women.
5.2 Current
level of services.
Sanitation
in the project area.
While
the level of access of the population in
Disposal
of domestic grey water constitutes a major problem. Coverage is zero in the
project area. This constitutes a health problem. Water from showers, grey water
mixed with urine are discharged into nature. Larger villages have poorly built
sumps which attract mosquitoes and other disease carrying animals and insects.
A chain of transmission of diseases passes via faeces to diarrhoea-based
illnesses including cholera and
intestinal parasites which are very common in the project area.
However, structures such as « VIP » toilets have already been
culturally accepted in rural area, The project provides for the local
construction, installation and maintenance of dry composting eco-sanitation
systems in every home in the project area under the local money systems set up.
Similar, collective, structures will also be installed in schools, clinics, and
markets and other public places.
Drinking water
supply in the project area.
There is an acute and urgent drinking water problem throughout the
project area, both in the larger villages and in the more isolated rural areas,
where there are in practice no clean drinking water structures at all.
In the project area there are no publicly owned drinking water
facilities. This is obviously inadequate and socially unacceptable. Without
improvement in the water supply, good
hygiene practices cannot be followed either at public level in the schools or
at home.
Women have to cover on an average two kilometres to fetch contaminated water
cause of water-borne diseases. The consequences of these illnesses for the
local populations are disastrous. Contaminated surface waters such as rivers
and small dams are currently the most common water source. Total water
consumption is just
All of the problems traditionally linked to poor water quality in
developing countries are present in the project area, including numerous deaths
due to water-borne diseases, the limits of seasonal supply, the distance between the water source and
users’ homes and the time lost in fetching water.
Where water is
purchased or where carriers are hired to fetch it, the average cost can be as
much as € 3,75 per person per month, which alone half the total monthly
contribution of a family of five to this integrated development project. This cost is not payable by poor families who are forced to go to
contaminated water sources, if they exist. . Very few people, even in
Kiogoro town, have piped water in their homes.
Population growth at national level in
Without this project, it is unlikely that the situation concerning the
provision of clean drinking water and safe eco-sanitation facilities improve
over the coming years. The authors of this project document are no aware of any
other alternative development initiatives currently planned in the project
area.
5.3 Situation
« with the project »
The
present situation with regard to drinking water supply and safe sanitation will
be improved throughout the project area through the formation of 297 health
Clubs, on-going hygiene education courses in the 60 schools in the project
area, the harvesting or rainwater at household level, the supply of
eco-sanitation systems in all households,
so that the families have a sufficient supply of good quality water for
their personal use, and sufficient water for general domestic use. The services
are at the disposal of everyone without exception in the project area. Women
and girls will no longer have to fetch water. Management and maintenance of the
structures is done by the people themselves. The structures are set up within
the framework of a stable, cooperative, interest-free and inflation-free
economic environment created in an early phase of project execution.
The planned level of consumption of clean drinking water is
Thanks to the project, all of the 80.000 inhabitants in the project area
will have access to basic clean drinking water and safe sanitation services as
defined in the Millennium Development
Goals (MDGs) adopted in 2000 with a purpose of reducing the part of the world
population without sustainable access to clean drinking water by 50% by 2015) and the decisions taken
during (example: the World Summit on Sustainable Development (WSSD) held in
Johannesburg in 2002 with a purpose of reducing the part of the world
population without sustainable access to sustainable sanitation by 50% and
promoting efficient integrated structures for the management of water
resources.)
During
the first twelve months of project execution, the local social and financial
structures necessary for the formation of the planned productive structures and
services are set up. The first water supply structures at well level should be
ready after about 15 months. The physical water supply structures at tank
commission level will be ready after abut 18 months. Installation of household
rain-water harvesting systems should start after about 21 months. The
installation of eco-sanitation systems in private houses should start after
about 8 months.
The
success of this pilot project should lead to the adoption of the concepts at
national level. In this case
The
decision to make extensions to the services set up under this project lies with
the populations themselves, who are responsible for the management of them. In
principle, water supply at existing water tanks can be increased by 30% at a
very low extra cost, by adding 100Wp to the existing installed power of the solar arrays. In most
cases, it should be possible to install an extra water tank system (solar pump,
photovoltaic panels, feed-pipe, tank structure)
in an existing well or borehole.
The construction of new houses will be automatically covered by the
installation of eco-sanitation and rain-water harvesting structures. The
concepts adopted therefore offer a flexibility of adaptation unknown until now.
Existing structures can be adapted at a very low cost to any new situation
which might arise.
Efficiency
and effectiveness
5.5.1
Efficiency
Cost
per beneficiary (in Euros per person):
What
is the average cost under the project for each person gaining access to basic clean
drinking water facilities?
The
average investment cost in formal money = Euro 75 per person in
coverage of the entire package of services offered. It is extremely difficult to separate the net
costs of the various structures made available. The structures are completely
integrated with each other. An indicative separation for the initial formal
money investment for drinking water services = 40% of the total, or about
Euro 30 per person.
What
is the average cost under the project for each person gaining sustainable
access to basic hygienic sanitation facilities?
See
comment above. An indicative separation for the initial formal money
investment for hygienic sanitation facilities = 15% of the total, or about
Euro 11,25 per person.
What
is the average cost for each person gaining access to hygiene education
promotion structures?
See
comment above. An indicative separation for the initial formal money
investment for hygiene education promotion structures = 15% of the total,
or about Euro 11,25 per person
2)
Costs per installed unit (in Euro per m3):
What
is the unitary cost per m3 of water distributed through the
project’s systems?
Taking
the amount of distributed drinking water at tank commission level (2140m3/day)
the unitary formal money cost per installed m3 is Euro 1121. This price includes the cost of the
hand-pump back-up facilities at well commission level which have a similar
capacity. The formal money cost of the rain-water harvesting structures to be installed at
household level is negligible. Over 20 years, including formal money
costs of maintenance, the cost would be about Euro 1635 per installed m3, including the
cost of the back-up hand-pump structures with a similar capacity. This amounts
to a formal money cost per m3 of water pumped (not taking into account use of the back-up
hand-pumps) of about Euro 0,22 per cubic
metre of water pumped over the period of 20 years.
What
is the unitary cost of the eco-sanitation structures installed under the
project?
The
unitary formal money investment cost of complete eco-sanitation
structures, including recycling structures assuming the installation of 8.000
systems is Euro 112,50.
General
administration costs of the project. These are the general and agency costs
directly connected with the project execution, expressed as a percentage of the
total project costs.
About
2%.
5.5.2
Effectiveness
The
project offers a complete package of social, financial, and productive structures
and services for all or the inhabitants in the project area, without exclusion.
Most
of the project activities are executed by the inhabitants themselves. The
inhabitants own the structures themselves through their elected organs which
form part of the Cooperative for Kiogoro. Their monthly contributions into
their own Cooperative Local Development Fund cover all of the formal money
management, maintenance, service extension, and long-term capital replacement
costs.
The
social and financial structures set up give full multi-tiered social security
guarantee with regard to coverage of formal money and local money obligation of
the elderly, the sick, the poor and the handicapped members of the community.
The
structures created offer full employment possibilities in the project area,
including activities suitable for the elderly and the handicapped. These
aspects are not specifically mentioned in the project documentation, as they do
not directly fall under the stated goals of the ( fund or programme under which
the application for financing is being made.)
Progress made towards the Millennium Development Goals
How many people will have obtained access to clean drinking water and
safe sanitation facilities as a result of the execution of this project?
Clean drinking water services:
At year one after delivery of service structures : 80.000 (being
all of the inhabitants in the project area)
In 2015 : 80.000 + demographic growth.
Safe sanitation :
At one year after delivery of service structures: 80.000 (being all of
the inhabitants in the project area). Delivery of the system will have commenced towards the end of
the 24 months’ project period, when about 1500 systems will have been installed.
The other systems will be installed during the following three years..
In 2015 : 80.000 +
demographic growth.
Which proportion of the total number of people needing access to basic
services will have received them by 2015 as result of the execution of this
project?
100%.
Number of people with access to basic services under the project
expressed as a percentage of the planned goals under the Millennium Development
Goals?
100% of the inhabitants and families in the project area.
Orientation note: types of water supply and sanitation structures
|
Types of water supply and sanitation systems. |
Water points with manual installations. |
Small autonomous system based on local communities. |
Urban distribution organisations |
|
Technology
and service level |
Triple
hand-pump groups next to 66 wells and bore-holes. The pumps serve as back-up
and support for the distributed drinking water systems. |
297 Local
tanks each serving 20-25 extended
families, each supplied by high-pressure solar submersible pumps installed in
66 (wells/ boreholes) with an internal diameter of
at least |
Not
applicable. |
|
Services |
According
to the preferences of the institutions in question. Service in
any case include washing points at well-commission level |
Independent
rain-water harvesting systems at individual household level for non-potable
household and personal use. |
Not
applicable. |
|
User types |
8.000
extended family households in rural areas and small villages. |
8.000
extended family households in rural areas and small villages. |
Not
applicable. |
|
Management |
66
Well-level commissions whose members are elected by the tank commissions. The
well-commissions elect a 66 member Central Committee which in turn nominates
a small general management team. |
297 Tank
commissions chosen by the households served. |
Not
applicable. |
|
Use and
maintenance requirements. |
Ownership
and management of the structures at well-commission level. Property
includes well or borehole, manual pumps, platforms, washing places, guards,
(also for solar pumps and PV generators), supervision of access to the well
area. Maintenance is carried out by the cooperatives set up for the purpose
operating under the local money system set up. Formal money maintenance and
long-term system replacement costs paid out of Cooperative Local Development
Fund. |
Ownership
and management at tank commission level. Property
includes feed-pipe installations, tanks, platforms, supervision, access to
tanks. It also
includes property installed at schools and clinics situated in the tank
commission area. Maintenance
by the cooperatives set up for the purpose. Formal money maintenance and
long-term system replacement costs paid out of Cooperative Local Development
Fund. |
Not
applicable. |
|
Typical way
of cost recovery. Periodic forfeit fees and contributions
to cover repairs and replacements. |
The
families pay a monthly contribution of (Euro 0,60 –0,75) per person into the
Cooperative Local Development Fund. About one
fifth of this contribution (Euro 110.000 per year) is reserved for the
coverage of formal money costs especially for spare parts. Most
management costs are covered under the local money systems set up as part of
project execution. |
Management
of the monthly contributions is in the hands of the 297 tank commissions. The
structures set up offer several layers of social security support to the
elderly, the sick, the poor, and the handicapped who either temporarily or
permanently have problems meeting
their formal money or local money contributions. |
Not
applicable. |
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07.04 Budget in form for funding applications.