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
Edition 01: 23
June, 2003
The accompanying Integrated
Self-financing Development Project for the Sanarpatty Block in the Dindigul
district in
The
project is strongly demand response oriented. It has been worked out together
with the people concerned, who will execute, run, own and pay for it.
The
project provides practical working solutions for sustainable integrated development
in the Sanarpatty area and covers all major development priorities. It
constitutes a practical way of applying modern development concepts such as
those outlined in the DFID "Guidance manual on water supply and sanitation
programmes" (WEDC for DFID, 1998). It integrates in a practical and
feasible manner policy, finance, technology and human capacity building to
offer sustainable solutions to development.
The
project application are self-financing, subject to an interest-free seed loan
repayable in 10years. It is structured for about 12000 extended households
(61000 users). The amount of the loan is Euro 3.750.000 or approximately Euro
60 per user. This is repaid by a monthly payment of Euro 0,60 per user into a
Cooperative Development Fund. This is enough to cover the basic package
offered.
The
project requires 75% financing by an External Support Agency within the
framework of a country programme with a partner donor. The state of Tamil Nadu
is expected to supply the remaining 25%.
The
project is self-financing because it allows the recipient communities to fully
exploit a network of sustainable development activities using:
(i) The interest-free loan itself
(ii) Local Exchange Trading System (LETS)
(iii) Multiple re-cycled interest-free micro-credits to be administered by a
local bank. They are generated by recycling loan repayments and reserves during
the loan term.
The project is centred on the
following main components
i. Hygiene education at community level (Health Clubs) and in schools
ii. Distributed clean drinking water (solar pumps with hand-pumps backup, where
possible locally manufactured)
iii. Sustainable sanitation (based on the separation of urine, faeces, grey
water, other organic waste)
iv. Supply of efficient stoves for cooking (plus solar cookers)
v. Production of biomass to fuel the cookers
vi. Recycling of non-organic waste products (rubbish collection)
vii. PV lighting for study
viii. Rainwater harvesting
ix. A local PV powered radio station
a)The project will be financed
by interest-free seed capital in the form of a loan repayable over a period of
10 years.
b)75%
of this capital will be contributed by an external support agency and the
remaining 25% by the Tamil Nadu State Government.
c)General
financial supervision will be on terms agreed with the lenders of the seed
capital, but with the elimination of unnecessary bureaucratic restraints.
d)Seed
capital repaid by users in monthly instalments will be retained in the local
area until the end of the loan term. During that time, the repayments will be
used to grant revolving interest-free micro-credits for local development.
e)Seed
capital not required for short term use, will similarly be used to grant
interest-free revolving micro-credits.
f)The
local currency (LETS) systems will form the general method of payment for
(most) local goods and services at community level, including those provided
for the project from within the local community.
g)The
part of the maintenance money destined for long term replacement of capital
items will also be recycled as interest-free micro-credits until it is needed.
h)Users
will be 100% responsible for on-going administration, capital repayments, and
maintenance costs. Each household will pay a monthly contribution sufficient to
cover those costs. The instalments will be to a large extent covered by savings
on funds traditionally spent on fuel, water and waste removal and if possible
through the sale of carbon emission reduction certificates under the
i)The
project encourages open competition and free enterprise within the framework of
a cooperative and non-profit-making global financial structure.
j)Administration,
construction and maintenance work will be done by local operators and villagers
who will be paid at current local pay rates mostly expressed in the local LETS
currency when it is set up.
k)The
on-going administration costs of the Project Coordinator are set out in the
project budget.
l)Users
must make their first monthly contribution in advance, when their project
systems are put into use.
m)The
tank sangams will be paid a small monthly allowance in formal currency for
their work. The well sangams will be paid a monthly allowance under the local
LETS currency for their work.
n)Individual
women or women's groups will, without payment, each look after their own
sanitation units.
o)Regular
inspection by installations will be paid as necessary in the local LETS currency.
p)The
operation of the local bank will be supported by a leading Green Bank.
q)The
Dindigul District Council and the state government of Tamil Nadu will undertake
not to intervene to impede the development of the local LETS currency either
during or after the project period.
r)The
Project Coordinator will reach a specific agreement with the applicable tax
authorities before the start of the project as to taxation of activities under
the Local Exchange Trading (LETS) system.
s)Before
the project starts, a formal agreement will be made to ensure ownership of the
project is vested in the beneficiary communities.
t)Ownership
of existing structures may be transferred to or vested in the tank and well
sangams to be set up under the project.
The long term goals of the
project are:
a)To
sustain on-going improvement of the general quality of life wellbeing and
health of the local people and of Dalits and Dalit women in particular.
b)To
free more human resources for local production and development.
c)To
reduce water-borne diseases so that medical staff and financial resources can
be re-directed to other health objectives such as vaccination programmes and
preventive medicine.
d)To
decrease infant mortality and promote family planning.
e)To
increase literacy levels.
f)To
eliminate dependency on fuels imported from outside the project area.
g)To
help reduce deforestation and global warming.
h)To
create value added from locally recycled non-organic solid waste.
i)To
create a "maintenance culture" to conserve the investments made.
j)To
increase the local pool of expertise so that local people can improve their
sustainable well-being and development by identifying and solving problems,
including erosion, with a minimum of outside help.
k)To
create full employment in the project area.
l)To
offer meaningful opportunities to youth and help stop movement of population
from rural areas to towns.
The various parties which
would be presumably usually be involved in project applications are:
i.
The Local NGO (DBGDS - District Boodhan Gramadhan Development Sangh)
ii.
Project Coordinator, who is from the project area
iii.
Consultant to the Project Coordinator
iv.
The Organisational Workshops
v.
Country programme administrators
vii.
Local Funding Authority
viii.
Locally Elected MP
ix.
Dindigul District council
x.
State (Tamil Nadu) Health Authorities
xi.
State (Tamil Nadu) Education Department
xii.
The Local Tax Authorities
xiii.
The Sanarpatty Cooperative Local Development Bank (to be instituted)
xiv.
The Central Bank of
xv.
The Local gypsum composites Production Units
xvi.
Tank Sangams - the Key Structures
xvii.
Well Sangams
xviii.
Zimbabwe AHEAD (NGO)
xix.
EOS CONSULT
xx.
Medical Commissions
xxi.
Teachers' Commissions
xxii.
The independent auditor
The
details of the roles of each of the above and how they all interact with one
another are set out in detail in section 2.6 of the project and in the diagrams
and charts part of the project documents.
|
Item |
Outgo (Capital) |
Phase |
Estimate (Euro) |
|
01 |
OW health clubs |
2 |
30.000 |
|
02 |
Formation of health clubs |
2 |
10.000 |
|
03 |
Material for health clubs |
2 |
5.000 |
|
04 |
Training of health workers |
2 |
10.000 |
|
05 |
OW health courses in schools |
2 |
10.000 |
|
06 |
Material for school courses |
2 |
2.500 |
|
07 |
OW social structures |
2 |
40.000 |
|
08 |
OW LETS systems |
2 |
60.000 |
|
09 |
Office and equipment LETS
systems |
2 |
30.000 |
|
10 |
OW Micro-credit system |
2 |
20.000 |
|
11 |
Office/equipment
Micro-credit system |
2 |
10.000 |
|
12 |
OW gypsum composites
production units |
2 |
30.000 |
|
13 |
Shovel/preparation anhydrite
supply site |
2/3 |
10.000 |
|
14 |
Construction and equipping
anhydrite factory (*20000 FOR EACH FACTORY) ASSUMING 3 UNITS |
2/3 |
60.000 |
|
15 |
Moulds for anhydrite products
(*20000 FOR EACH FACTORY) ASSUMING 3 UNITS |
2/3 |
60.000 |
|
16 |
Location gypsum depots and
quality control |
2 |
3.000 |
|
17 |
OW recycling system |
2 |
30.000 |
|
18 |
Setting up recycling centre
network |
3 |
150.000 |
|
19 |
Setting up compost collection
network |
3 |
5.000 |
|
20 |
OW Bio-mass system |
3 |
15.000 |
|
21 |
OW Drinking water system |
2/3 |
25.000 |
|
22 |
Setting up of project
workplace |
2 |
32.000 |
|
23 |
Project transport |
2 |
100.000 |
|
24 |
Vehicles and materials for
wells |
3 |
150.000 |
|
25 |
Fuel and maintenance
vehicles |
3 |
26.000 |
|
26 |
Drilling/lining costs |
3 |
200.000 |
|
27 |
Labour for wells - LETS
systems |
3 |
pro-memorium |
|
28 |
63 Washing places- LETS
systems |
3 |
pro-memorium |
|
29 |
63 Platforms for hand-pumps
- LETS systems |
3 |
pro-memorium |
|
30 |
267 Solar Pumps |
3 |
357.000 |
|
31 |
267 Supports for solar
panels |
3 |
75.000 |
|
32 |
Solar panels (79.5 kW) |
3 |
496.800 |
|
33 |
Hand-pumps groups (132
pumps) |
3 |
80.000 |
|
34 |
Cables, feed-pipe for
pumps/wells |
3 |
98.000 |
|
35 |
Pipe lines from wells to
tanks - 150000m @ Euro 0.65 |
3 |
100.000 |
|
36 |
Labour for laying water
pipelines- LETS |
3 |
pro-memorium |
|
37 |
267 Water tanks (@ 2m *
1.7m)- mostly LETS |
3 |
60.000 |
|
38 |
267 Bases for water tanks -
mostly LETS |
3 |
30.000 |
|
39 |
Supervision of installation
and training maintenance operators |
3 |
15.000 |
|
40 |
Purchase spare parts
supplies |
3 |
20.000 |
|
41 |
Permits and formalities |
2 |
1.000 |
|
42 |
Preparation and formulation
of project specifications |
2 |
6.000 |
|
43 |
100 Solar water purification
installations for clinics and schools |
3 |
47.500 |
|
44 |
900 Solar water purification
installations (inc.15.000 Wp panels) |
4 |
128.500 |
|
45 |
267 PV lighting units for
study purposes |
4 |
200.000 |
|
46 |
PV television for study |
4 |
pro-memorium |
|
47 |
10 PV lighting systems for
schools in villages without electricity |
4 |
10.000 |
|
48 |
PV lighting for clinics
outside the project area |
4 |
pro-memorium |
|
49 |
PV lighting for clinics
inside the project area |
4 |
pro-memorium |
|
50 |
PV refrigeration for clinics
@ Euro 5000/clinic |
4 |
pro-memorium |
|
51 |
Water testing equipment |
4 |
5.000 |
|
52 |
Transport costs Euro to |
2/3 |
30.000 |
|
53 |
Transport costs internal to
Sanarpatty |
2/3 |
22.500 |
|
54 |
Administration and
supervision at Sanarpatty |
3/4 |
36.000 |
|
55 |
Fee Project coordinator and
assistant @Euro 50000/year |
1/5 |
100.000 |
|
56 |
General project consulting
Manning @Euro 50000/year |
1/5 |
100.000 |
|
57 |
Fund for PV lighting solar
home systems |
4 |
180.000 |
|
58 |
Sanitation facilities with
exception of some additives will be manufactured and installed within the local
LETS systems |
3/4 |
15.000 |
|
59 |
OW radio station |
4 |
25.000 |
|
60 |
Fund for radio station |
4 |
52.000 |
|
60 |
Reserves 8.97% of total |
5 |
336.200 |
|
61 |
General total |
5 |
3.750.000 |
|
Outgo (Capital) |
Phase |
Estimate (Euro) |
|
Total first phase |
1 |
0 |
|
Total second phase |
2 |
534.500 |
|
Total phase 3 |
3 |
2.053.300 |
|
Total phase 4 |
4 |
626.000 |
|
Fees project coordinator |
1/5 |
100.000 |
|
Total supervision Manning |
1/5 |
100.000 |
|
General total all phases |
|
3.413.800 |
|
Reserves 8.97% |
5 |
336.200 |
|
Total 1+2+3+4+5 |
|
3.750.000 |
|
On-going costs |
Euro |
|
|
|
|
Coordinator for
administration |
15.000 |
|
Maintenance operators |
5.000 |
|
Tank Sangams (267*5 Euro
p.m.) |
16.020 |
|
Spare parts |
15.000 |
|
Reserve for theft |
15.000 |
|
Unforeseen (about 12%) |
8.980 |
|
Total recurrent costs |
75.000 |
|
Income |
Euro |
|
|
|
|
Annual contribution for use
of water (61500 people @ Euro 0.60 p.m.) |
442.800 |
|
On-gong costs per year |
75.000 |
|
Net annual income for loan
repayment |
367.800 |
1. The above net income is sufficient
to finance and repay an interest free loan for Euro 3.750.000 over a period of
10 years, taking the various reserves into account.
2. Interest-free loan for Gypsum Composites each factory Euro 40.000, for
repayment over a period of 3-5 years is included in the above figures.
3. At the end of the ten years' period, on repayment of loan, large capital
reserves will be built up for use in Micro-credits and, subsequently, for the
extension and renewal of the capital goods.
4. Payments for water facilities for schools and clinics are included in the
users' monthly contributions.
5. Payments for PV lighting installations for study purposes will be financed
by each tank Sangam area separately.
6. Savings on the purchasing of bio-mass for cooking and the costs of drinking
water will at least partly offset the costs of the project.
GRAPH
SHOWING DEVELOPMENT OF MICRO-LOANS
CASH FLOW DIAGRAM
THE INTEREST-FREE LOAN CYCLE
HOW THE ORIGINAL SEED LOAN MONEY IS USED
TYPICAL PROJECT EXPENDITURE BY QUARTER - budget
items 01-30
TYPICAL PROJECT EXPENDITURE BY QUARTER - budget
items 31-60
TOTAL 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
DETAILED EXPENDITURE NINTH QUARTER
DETAILED FINAL EXPENDITURE
GRAPH
SHOWING DEVELOPMENT OF MICRO-LOANS
THE INTEREST-FREE LOAN CYCLE
HOW THE ORIGINAL SEED LOAN MONEY IS USED
The
funds recycled are approximately 17.038.235 Euro. They are made up of:
a) Repayments
of the interest-free seed loan itself. These are shown as horizontal lines at
the bottom of the micro-loans graph. They are constant. During quarters 42-45
the amounts left for repayment UNDER THE PROJECT are reduced to zero. However
users continue to make monthly contributions on their own account, so the
recycling of funds will in practice continue. The capital fund will build up
again as shown in the micro-loans graph. It will drop again when replacements
of the original capital goods are made or the system services extended. It will
then build up for a third time to cover further collective capital investments
and so on for so long as the users continue making their monthly contributions.
b)
Certain capital sums (e.g. repayments for the gypsum composites factories) and
reserves.
c)
Repayments under the micro-loans. These are seen as diagonal lines in the
micro-loans graph. Towards the end of the project period, payback times are
shortened to ensure capital re-enters in time for repayment of the original
seed loan.
The project has been placed in
the pubic domain and can be freely accessed and downloaded together with
drawings, charts and graphs in colour together from the home page of the website
: www.flowman.nl
Anhydrite use of, Banks role
of in development, gypsum composites, Bio-mass for cooking, Briquettes
bio-mass, Capacitation workshops, Chain control integral, Clodomir Santos de
Morais, CO2 emissions reduction of, Communication flows in development
projects, Compost recycling, Composting toilets, Cookers high efficiency,
Cooperation role in development, Development projects structures for,
Development sustainable, Drinking water supply, Economy developing countries,
Economy development projects, Economy foreign aid, Economy industrial
development, Economy interest-free development, Economy Local Exchange Trading
(LETS) systems, Economy nominal local currencies development of, Economy micro
credits, Economy self-financed development, Economy taxation and development,
Education hygiene, Gender role of women, Gypsum cheap, Hand pumps, Health Clubs
development projects, Hygiene education, India integrated development,
Industrial development, Information flow in development projects, Integral
chain control, Integrated development projects, Interest role of, LETS systems,
Loans interest-free, Local currency systems, Local Exchange Trading (LETS)
systems, Micro-credit systems, Morais Clodomir Santos de, Organizational workshops
(OW), Sanarpatty India development, Photovoltaic (PV) home systems,
Photovoltaic (PV)lighting, Photovoltaic (PV) pumps, Photovoltaic (PV)
refrigeration, Poverty alleviation, Products regeneration of, Pumps solar,
Pumps hand, Rainwater harvesting, Recycling compost, Recycling shops, Recycling
waste, Regeneration of products, Rural water supply, Sanitation developing
countries, Sanitation dry, Self-financing development projets, solar pumps
submersible, Stoves high efficiency, Sustainable development, Tamil Nadu
Sanarpatty development, Tanks gypsum composites local manufacture, Toilet
facilities gypsum composites, Toilets dry, Urine disposal, Washing places,
Waste collection systems, Water purification UV, Water supply projects, Water
supply rural, Water tanks gypsum composites, Women role of in development,
Workshops Moraisian
List of draft projects in English and
French.
