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
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,
07.00 Financial justification.
07.50 Observations on the budget.
1.The budgeted net income of Euro 466.000 during the first four years and Euro 610.000 during the second period of six years is sufficient to finance and repay an interest free formal currency loan for up to Euro 6.000.000 over a period of 10 years, taking the various reserves and loan repayments set out in comment 2. into account. Should payments out of reserves be higher than expected, the project administration may choose to increase the monthly contribution of the families after four or five years, as their standard of living improves.
2. Interest-free loans for various project structures transferred to private
persons or cooperatives are paid back into the Cooperative Local Development
Fund over a period of 3-5 years. They are taken into account in the
calculations in point 1. These loans include those for the gypsum composites
manufacturing units, the briquette manufacturing units, public transport
cooperatives (buses), and the maintenance and installation cooperatives
(vehicles). 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 as it did during
the first period of ten years. 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.
4.
Payments for water facilities for schools and clinics are included in the
users' monthly contributions.
5. Payments and financing for eventual PV lighting and refrigeration facilities
in clinics within the project area are covered in the users' contributions.
6.
Savings on the purchasing of bio-mass for cooking and on the costs of drinking
water and batteries etc. will at least partly offset the costs of the project.
7.
Funds may be made available to the project through the sale of rights under
Carbon Emission Reduction certificates under the Kyoto Treaty. Recent UNFCCC proposals on programmes of activities.
GRAPH SHOWING INITIAL CAPITAL INVESTED FOR
MICRO-LOANS .
GRAPH SHOWING RECIRCULATION OF FUNDS FOR
MICRO-LOANS
CASH FLOW DIAGRAM.
THE INTEREST-FREE LOAN CYCLE.
HOW THE ORIGINAL SEED LOAN MONEY IS USED.
TYPICAL PROJECT EXPENDITURE BY QUARTER.
DETAILED EXPENDITURE FIRST QUARTER.
DETAILED EXPENDITURE SECOND QUARTER.
DETAILED EXPENDITURE THIRD QUARTER.
DETAILED EXPENDITURE FOURTH QUARTER.
DETAILED EXPENDITURE FIFTH QUARTER.
DETAILED EXPENDITURE SIXTH QUARTER.
DETAILED EXPENDITURE SEVENTH QUARTER.
DETAILED EXPENDITURE EIGHTH QUARTER.
FROM
01.02 THE EXECUTIVE SUMMARY
Return to:
01.02 Menu of the project executive summary.
Next file :
01.03 List of drawings and graphs.
Back to:
FROM
07.00 FINANCIAL JUSTIFICATION
Forward
: 07.60 Funds available for micro-credits.
Back: 07.40 Formal money income.
Complete
index of the project.
