STICHTING
BAKENS VERZET
1018
AM AMSTERDAM , THE NETHERLANDS
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
"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,
This work is licensed under a Creative Commons
Attribution-Non commercial-Share Alike 3.0 License
YERI INTEGRATED
SELF-FINANCING RURAL DEVELOPMENT PROJECT
"NEW HORIZONS
FOR YERI"
MVOLO COUNTY , SOUTH SUDAN
A HUMANITARIAN
RELIEF PROJECT INCORPORATING LETS AND COMMUNITY BANKING
PREPARED FOR THE
NGO "SUDAN INLAND
DEVELOPMENT FOUNDATION (SIDF)", MVOLO, SOUTH SUDAN
BY
YOWANI NGOLI, OF
YERI, SOUTH SUDAN
AND
T.E.MANNING,
CONSULTANT, WIERINGERWERF, THE NETHERLANDS
Edition 02: 23 July
2003
EXECUTIVE SUMMARY OF PROPOSED
INTEREST-FREE LOAN FINANCED PROJECT
01. INTRODUCTION
The accompanying
Integrated Self-financing Development Project for Yeri and surrounding areas in
It also includes as a separate tranche an emergency project for the
eradication of Onchocerciasis (River Blindness) 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 Yeri 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 is self-financing, subject to an interest-free
seed loan repayable in 10 years. It is structured for about 7500 households
(46700 users). The amount of the loan is Euro 3.500.000 or approximately Euro
70 per user. This is repaid by a monthly payment of Euro 0,70
per user into a Cooperative Development Fund. This is enough to cover the basic
package offered.
The project requires 95% financing by an External Support Agency within
the framework of a programme with a donor
partner. Regional or state authorities in
The
project allows the recipient communities to
fully exploit a network of sustainable development activities using:
(i) The interest-free loan itself
(ii) Local Exchange Trading Systems (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 communities
pay the seed money back into a cooperative development fund which is repeatedly
recycled interest-free over a ten year period, when the seed money is repaid.
02. THE MAIN PROJECT PACKAGE
The project is centred on the
following main components:
A.
The emergency onchocerciasis eradication project. This is based on the
following approach:
1.Action to limit the breeding of the black-fly along the Naam river
2.Avoiding the need to fetch water from the Naam river.
3.Action to cure existing infections so as to avoid further cases of blindness
4.Means of transport for the Onchocerciarsis eradication project
5.Means of communication for the Onchocerciarsis eradication project
6.Reintegration of the blind into the community
B.
Integrated self-financing development
01.Hygiene
education at community level (Health Clubs)
02.Distributed clean drinking water (solar pumps with hand-pumps backup)
03.Sustainable sanitation (based on the separation of urine, faeces, grey
water, other organic waste)
04.Supply of efficient stoves for cooking (plus solar cookers)
05.Production of biomass to fuel the cookers
06.Recycling of non-organic waste products (rubbish collection)
07.PV lighting for study
08.PV lighting and vaccine refrigeration in clinics
09.Rainwater harvesting
10 A local high frequency radio network for communications
03. GENERAL ECONOMIC BASES OF THE PROJECT
a)The project will be
financed by interest-free seed capital in the form of a 'green' loan repayable
over a period of 10 years. The special tranche for Onchocerciasis will be
financed separately by way of grant.
b)95% of this capital will be
contributed by a external support organisation recognising the urgent
humanitarian nature of this project, and the remaining 5% by the Mvolo County Council
and/or the Government of Southern Sudan.
c)General financial supervision will be
in line with section 2.14 of this project, 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)Local currency (LETS) systems set up within the framework of the
project will form the general method of payment for most local goods and
services produced 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 loans until it is
needed for the project.
h)Users will be 100% responsible for
on-going administration, capital repayments, and maintenance costs. Each
household will pay a monthly contribution of Euro0.70 per family member (Euro
4.20 per family of 6) to cover all on-going maintenance and capital repayment
costs. The instalments may be tosome extent covered by savings on the social
costs of colelcting fuel and water and by way of registration for 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 mostly in
local LETS currencies.
k)Local work will be paid for at
current local pay rates expressed in the local LETS currencies.
l)The on-going administration costs
of the Project Coordinator are specified in the project budget.
m)Users must make their first monthly
contribution in advance, as project structures are put into use.
n)The tank commissions will be paid
a small monthly allowance in formal currency, and receive an allowance in local
LETS money for their work. The well commissions will be paid a monthly allowance
under the local LETS currency for their work.
o)Individual women or women's groups will,
without payment, each look after their own sanitation units.
p)Regular inspection of installations
will be paid as necessary in the local LETS currency.
q)The operation of the local bank
(The Mvolo Cooperative Local Development Bank) to be set up may be supported
and supervised by a international Green Bank to be named.
r)The Mvolo County Council, the
Government of Southern Sudan have undertaken not to intervene to impede the
development of the local LETS currency either during or after the project
period.
s)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.
t)Before the project starts, a formal
agreement will be made to ensure ownership of the project is vested in the
beneficiary communities, suject to formal handing over when the final
instalment of the interest-free seed loan is repaid.
u)The local people design, execute,
install, run, maintain, own and pay for all project structures.
v)All products and services
supplied by the local people for the project will be paid under the local money
system. Those supplying products or goods for the project before the local
money system is set up will be paid from the project funds in formal currency.
04. PRINCIPLES BEHIND THE PROJECT
The basic principles behind
the project are:
a)The enhancement of self-sufficiency in the local Yeri economy.
b)Existing social traditions will not suffer.
c)Local expertise, labour and materials will be used.
d)Women will play an active role in the project.
e)The people of the Yeri area must be able and willing to take full
responsibility for all goods and services provided under the project and for
its administration.
f)The users must contribute financially to loan repayments, cover on-going
costs and accept the powers of the elected tank- and well commissions.
g)With the exception of the tranche for the eradication of onchocerciasis, the
project will be self-funding. Savings on the social costs for collecting water
and wood for cooking and services will compensate most of the project costs.
h)The supply of traditional natural fertiliser for agricultural purposes will
not be compromised.
i)Each individual user will be enabled to meet his financial commitments
to the project.
Household
difficulties in meeting monthly quotas can be cushioned either from the monthly
formal money allowances received by the tank commissions, or by creating a
simple LETS system safety net. Members temporarily in difficulty could be
allowed to run up a larger than usual local money debit balance. Members
permanently in difficulty could perform services within the LETS group in
exchange for group payment of their outstanding debts.
j)'Small is beautiful'. Small decentralized systems are to be preferred
wherever possible. This promotes close contact of the people of Yeri with the
installation and running of their own local infrastructure.
k)
The local LETS currency will complement the use of formal money. It will make
up for the lack of formal money that would otherwise be needed to expand the
quantity of local goods and services. Economic development within the LETS
system will also stimulate growth in the formal economy and increase its formal
tax base.
l)The seed loan capital will be systematically recycled to users as
interest-free micro-credits for productivity development. The micro-credits
will allow goods and services that cannot be locally produced to be bought with
formal currency outside the project area.
m)Leakage of formal currency out of the project area will be reduced. Seed
capital will be retained and repeatedly recycled in the local area during the
10 year interest-free loan period.
05.LONG TERM GOALS OF 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.
b)To free more human resources for local production and development.
c)To eradicate onchocerciasis in
d)To decrease infant mortality and promote family planning.
e)To increase literacy levels.
f)To avoid future dependency on fuels imported from outside the project
area.
g)To help reduce global deforestation and global warming.
h)To create value added from locally recycled wastes.
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 integrate the disabled and blind into the local society.
06.INSTITUTIONAL STRUCTURES
The parties are involved in
the project:
The local NGO "SIDF Sudan Inland Development Foundation", Mvolo,
Southern Sudan (see 2.6.01)
The project coordinator (Yowani Ngoli) (See 2.6.02)
The consultant Terry Manning (see 2.6.03)
The Organisational Workshops (see 2.6.04)
External support agency administrator(s) (see 2.6.05)
The Mvolo county commissioner (or government of South Sudan) (see 2.6.06)
County secretary for rehabilitation and relief (see 2.6.07)
The Yeri Payam administrator (see 2.6.08)
The health department (see 2.6.09)
The education department (see 2.6.10)
The Local Tax Authorities (see 2.6.11)
The Mvolo Local Cooperative Development Bank (to be formed) (see 2.6.12)
The External Bank (Barclays ???) (see 2.6.13)
The Local Gypsum Composites Production Units (see 2.6.14)
The Tank Commissions - the Key Structures (see 2.6.15)
The Well Commissions (see 2.6.16)
Zimbabwe AHEAD (NGO) (see 2.6.17)
EOS Consult (see 2.6.18)
Medical Commissions (see 2.6.19)
Teachers' Commissions (see 2.6.20)
The independent auditors (see 2.6.21)
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.
07. Short indicative budget main project
|
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 |
pro-memorium |
|
06 |
Material for
school courses |
2 |
pro-memorium |
|
07 |
OW social
structures |
2 |
40.000 |
|
08 |
OW LETS system |
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 |
20.000 |
|
18 |
Setting up
recycling centre network |
3 |
50.000 |
|
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
- (excluding work under LETS systems) |
3 |
30.000 |
|
28 |
36 Washing
places- LETS systems |
3 |
pro-memorium |
|
29 |
36 Platforms for
hand-pumps - (excluding work under LETS systems) |
3 |
20.000 |
|
30 |
200 Solar Pumps |
3 |
200.000 |
|
31 |
200 Supports for
solar panels |
3 |
50.000 |
|
32 |
Solar panels
(60.4 kW) |
3 |
360.000 |
|
33 |
Hand-pumps groups
(106 pumps) |
3 |
80.000 |
|
34 |
Cables, feed-pipe
for pumps/wells |
3 |
98.000 |
|
35 |
Pipe lines from
wells to tanks - 100000m @ Euro 0.65 |
3 |
65.000 |
|
36 |
Labour for laying
water pipelines- LETS |
3 |
pro-memorium |
|
37 |
200 Water tanks
(@ 2m * 1.7m)- mostly LETS |
3 |
50.000 |
|
38 |
200 Bases for
water tanks - mostly LETS |
3 |
20.000 |
|
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 |
50 Solar water
purification installations for clinics and schools |
3 |
12.500 |
|
44 |
Solar water
purification installations (inc.5.000 Wp panels) |
4 |
38.500 |
|
45 |
200 PV lighting
units for study purposes |
4 |
200.000 |
|
46 |
PV television for
study |
4 |
pro-memorium |
|
47 |
10 PV lighting
systems for schools/evening classes |
4 |
40.000 |
|
48 |
PV lighting for
clinics outside the project area |
4 |
pro-memorium |
|
49 |
PV lighting for
clinics inside the project area |
4 |
40.000 |
|
50 |
PV refrigeration
for clinics @ Euro 10000/clinic -excluding onchocerciasis programme |
4 |
30.000 |
|
51 |
Water testing
equipment |
4 |
5.000 |
|
52 |
Transport costs
Euro to |
2/3 |
30.000 |
|
53 |
Transport costs
internal to Yeri |
2/3 |
50.000 |
|
54 |
Administration
and supervision at Yeri |
3/4 |
36.000 |
|
55 |
Fee Project
coordinator @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 |
80.000 |
|
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 network |
4 |
25.000 |
|
60 |
Fund for radio
network |
4 |
100.000 |
|
61 |
Reserves 16.63%
of total |
5 |
582.000 |
|
62 |
General total
main project |
5 |
3.500.000 |
08.SHORT ANALYSIS MAIN
PROJECT
|
Outgo (Capital) |
Phase |
Estimate (Euro) |
|
Total first phase |
1 |
0 |
|
Total second phase |
2 |
524.500 |
|
Total phase 3 |
3 |
1.609.500 |
|
Total phase 4 |
4 |
584.000 |
|
Fees project coordinator |
1/5 |
100.000 |
|
Total supervision Manning |
1/5 |
100.000 |
|
General total all phases |
|
2.918.000 |
|
Reserves 16.63% |
5 |
582.000 |
|
Total 1+2+3+4+5 |
|
3.500.000 |
ON-GOING COSTS MAIN PROJECT
|
On-going costs |
Euro |
|
|
|
|
Coordinator for
administration |
10.000 |
|
Maintenance operators |
5.000 |
|
Tank commissions (200*5 Euro
p.m.) |
12.000 |
|
Spare parts |
15.000 |
|
Reserve for theft |
15.000 |
|
Unforeseen (about 15%) |
10.000 |
|
Total recurrent costs |
67.000 |
INCOME
|
Income |
Euro |
|
|
|
|
Annual contribution for use
of services (45000 people @ Euro 0.70 p.m.) |
378.000 |
|
On-gong costs per year |
67.000 |
|
Net annual income for loan
repayment |
311.000 |
Comments
1. The above net income should
be just sufficient to finance and repay an interest free loan for Euro
3.500.000 over a period of 10 years, taking the various reserves into account.
2. Interest-free loans for gypsum composites factories each factory Euro
40.000, are subject to repayment over a period of 3-5 years, and are to be
taken into account when calculating the fund available on repayment.
3. Funds for radio network and solar home systems etc are also subject to
repayment, and are to be taken into account when calculating the fund available
on repayment.
4. 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.
5. Payments for water facilities for schools and clinics are included in the
users' monthly contributions.
6. Payments and financing for eventual PV lighting and refrigeration facilities
in clinics within the project area are covered in the users' contributions. Those for clinics and schools outside the project area partly
serving users within the project area to be discussed.
7. Payments for PV lighting installations for study purposes will be financed
by each tank commission area separately.
8. 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.
09.Short indicative
budget onchocerciasis eradication programme
|
Item |
Outgo (Capital) |
Phase |
Annual amount Euro |
Estimate over 15 years (in
Euro) |
|
|
|
|
|
|
|
|
|
|
Onchocerciasis
eradication programme |
6 |
|
|
|
|
63 |
Spraying with
helicopter along |
6 |
pro-memorium |
pro-memorium |
|
|
64 |
Insecticides for
spraying unknown kg at unknown price |
6 |
pro-memorium |
pro-memorium |
|
|
65 |
Bacillus
Thuringiensis istaelensis BTI initiative unknown |
6 |
pro-memorium |
pro-memorium |
|
|
66 |
57 wells @ Euro
1000 |
6 |
|
57.000 |
|
|
67 |
95 hand-pumps @
Euro 500 |
6 |
|
47.500 |
|
|
68 |
57 platforms @
Euro 500 |
6 |
|
38.500 |
|
|
69 |
60 operators @US
900 per year |
6 |
60.000 |
900.000 |
|
|
70 |
60 bicycles @
Euro 100 |
6 |
|
6.000 |
|
|
71 |
|
6 |
|
38.000 |
|
|
72 |
Driver for |
6 |
900 |
13.500 |
|
|
73 |
Fuel maintenance
vehicle per year |
6 |
5.250 |
78.750 |
|
|
74 |
Solar powered
radio systems 20 @ 2500 |
6 |
|
50.000 |
|
|
75 |
Radio licence
fees 20 @ Euro250 p.a. |
6 |
5.000 |
75.000 |
|
|
|
Sub-total |
|
|
1.294.250 |
|
|
|
Reserve 13.72 % |
|
|
205.750 |
|
|
|
Total |
|
|
1.500.000 |
|
Comments
1.Items 63, 64 and 65 have
been entered pro-memorium pending further study.
2. Item 75 is subject to negotiation with the South Sudanese government.
10.GRAPHS FORMING AN INTEGRAL PART OF THE
PROJECT DOCUMENT
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
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
11.RECYCLING OF FUNDS FOR MICRO-LOANS
GRAPH
SHOWING DEVELOPMENT OF MICRO-LOANS
THE INTEREST-FREE LOAN CYCLE
HOW THE ORIGINAL SEED LOAN MONEY IS USED
The
funds recycled are approximately 16.430.000 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 (eg repayments for the Beosite (R) factories) and unused
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.
12. LIST OF KEY WORDS
Anhydrite use of, Banks role
of in development, 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, Gypsum composites products, Hand pumps, Health Clubs development
projects, Hygiene education, 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, Mvolo County development Yeri district, Organizational workshops
(OW), 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
projects, solar pumps submersible, Stoves high efficiency, Sudan development
Yeri, Sustainable 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, Yeri development Sudan
RETURN TO:
The main Yeri project document.
Maps of the project area.
The Yeri project in detail.
List of draft projects
in English and in French.