The project is strongly demand response oriented. It has been worked out together with the people concerned, who will execute, run, maintain, own and pay for it.
The project provides practical working solutions for sustainable integrated development in the Waso 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 is self-financing, subject to an interest-free seed loan repayable in 10 years. It is structured for about 10000 households (58000 users). The amount of the loan is Euro 3.750.000 or approximately Euro 65 per user. This is repaid by a monthly payment of Euro 0,65 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 government of Kenya 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 Systems (LETS)
(iii) Multiple re-cycled interest-free micro-credits for productivity purposes. 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 government of Kenya.
c)On-going auditing will be on terms agreed with the lenders of the seed capital, but with the elimination of unnecessary bureaucratic restraints. Indications for auditing are set out in the main project document.
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 productivity 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 an interest-free, inflation-free, 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 commissions will be paid a small monthly allowance in formal currency for their work. The well commissions will be paid a monthly allowance under the local LETS currency for their work.
n)Regular inspection by individual sanitation installations will be paid for in the local LETS currency.
o)The operation of the local bank may be supported by a leading Green Bank.
p)The Samburu county council and the government of Kenya will undertake not to intervene to impede the development of the local LETS currency either during or after the project period.
q)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.
r)Before the project starts, a formal agreement will be made to ensure ownership of the project structures is vested in the beneficiary communities.
s)Ownership of existing structures may be transferred to or vested in the tank and well commissions to be set up under the project.
a) To extend existing hygiene education activities by establishing Community Health Clubs in the Waso area and promoting formal hygiene education courses in schools.
b) To install technically appropriate sanitation for the people in the Waso area.
c) To provide a permanent safe drinking water supply in the project area in all foreseeable circumstances.
d) To make safe drinking water available within a radius of 150-200m from users' homes.
e) To contribute to the fight against water-related diseases through hygiene education, the supply of appropriate sanitation and clean drinking water systems.
f) To reduce the work load on women
g) To provide for the continuity of health, sanitation and drinking water systems by establishing appropriate institutional structures.
h) To support the construction and use of improved school facilities in the project area.
i) To enable students and others who wish to study in the evening to do so.
j) To reduce the use of wood and promote reafforestation and sustainable use of the Samburu National Park.
k) To introduce efficient bio-mass fuelled means of cooking and solar cookers for daytime applications.
l) To create added value through recycling of non-organic waste.
m) To keep available financial resources (LETS money and formal money) revolving within the beneficiary communities.
n) To stimulate on-going local industrial and agricultural development through the use of local currency (LETS) and micro-credit systems.
o) To set up water storage facilities to support small-scale cultivation in the dry seasons
p) To create large-scale job opportunities
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 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 and offer meaningful occupational opportunities to rural youth.
l)To stop migratory movement from rural areas to towns.
i. The Local NGO (Paran Integrated Programme)
ii. Project Coordinator, Mr Peter Gatuna, who is from the project area
iii. Consultant to the Project Coordinator
iv. The Organisational Workshops
v. Country programme administrators
vi. Local Funding Authority (Kenya)
vii.Locally Elected MP
viii.Samburu District council
ix. Department of Health, Kenya
x. Education Department, Kenya
xi. The Local Tax Authorities
xii.The Waso Local Development Bank (to be instituted)
xiii. Barclays Bank - Meru Branch, Kenya
xiv. The Local Beosite Production Units
xv. Tank Commissions - the Key Structures
xvi.Well Commissions
xvii.Zimbabwe AHEAD (NGO)
xviii. EOS CONSULT
xix. Medical Commissions
xx. Teachers' Commissions
xxi.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
| Outgo (Capital) | Phase | Estimate (Euro) |
|---|---|---|
| Total first phase | 1 | 0 |
| Total second phase | 2 | 483.250 |
| Total phase 3 | 3 | 1.833.550 |
| Total phase 4 | 4 | 844.000 |
| Fees project coordinator | 1/5 | 100.000 |
| Total supervision Manning | 1/5 | 100.000 |
| General total all phases | 3360.800 | |
| Reserves 10.35% | 5 | 389.200 |
| Total 1+2+3+4+5 | 3.750.000 |
| On-going costs | Euro |
|---|---|
| Coordinator for administration | 15.000 |
| Maintenance operators | 5.000 |
| Tank commissions (271*5 Euro p.m.) | 16.260 |
| Spare parts | 15.000 |
| Reserve for theft | 15.000 |
| Unforeseen (about 17.2%) | 13.740 |
| Total recurrent costs | 80.000 |
| Income | Euro |
|---|---|
| Annual contribution for use of all services (58000 people @ Euro 0.65 p.m.) | 452.400 |
| On-gong costs per year | 80.000 |
| Net annual income for loan repayment | 372.400 |
The funds recycled are approximately 18.439.540 Euro, or about Euro 1800 per family over the first period of ten years. 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.