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.
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 Kyoto treaty.
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.
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.
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 India - Kambiliampatty and its correspondent in the donor partner's country.
xv. The Local Beosite 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 Beosite 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-memoria |
| 28 | 63 Washing places- LETS systems | 3 | pro-memoria |
| 29 | 63 Platforms for handpumps - LETS systems | 3 | pro-memoria |
| 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 | Handpumps groups (132 pumps) | 3 | 80.000 |
| 34 | Cables, feedpipe 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-memoria |
| 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-memoria |
| 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-memoria |
| 49 | PV lighting for clinics inside the project area | 4 | pro-memoria |
| 50 | PV refrigeration for clinics @ Euro 5000/clinic | 4 | pro-memoria |
| 51 | Water testing equipment | 4 | 5.000 |
| 52 | Transport costs Euro to India | 2/3 | 30.000 |
| 53 | Transport costs internal to Sanarpatty | 2/3 | 22.500 |
| 54 | Administration and supervision at Sanarpatty India | 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 additvites 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 |
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 (eg repayments for the Beosite (R) 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.