It also includes as a separate tranche an emergency project for the eradication of Onchocerciasis (River Blindness) in Mvolo County itself. This disease has assumed disastrous proportions in Mvolo with 25% (120.000 victims) of the population in the County infected. Many have already become blind, including 300 in the Yeri project area alone.
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 South Sudan are expected to supply the remaining 5%.
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.
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 handpumps 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
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 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 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.
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.
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 Mvolo County and reduce water-borne diseases in the project area 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 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.
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 | pro-memoria |
| 06 | Material for school courses | 2 | pro-memoria |
| 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 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 | 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-memoria |
| 29 | 36 Platforms for handpumps - (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 | Handpumps groups (106 pumps) | 3 | 80.000 |
| 34 | Cables, feedpipe 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-memoria |
| 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-memoria |
| 47 | 10 PV lighting systems for schools/evening classes | 4 | 40.000 |
| 48 | PV lighting for clinics outside the project area | 4 | pro-memoria |
| 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 Mombasa | 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 additvites 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 |
| 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 | 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 | 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 |
| Item | Outgo (Capital) | Phase | Annual amount (Euro) | Estimate 15 years(Euro) |
|---|---|---|---|---|
| Onchocerciasis eradication programme | 6 | |||
| 63 | Spraying with helicopter along Naam River unknown per hour (with pilot) @ | 6 | pro-memoria | pro-memoria |
| 64 | Insecticides for spraying unknown kg at unknown price | 6 | pro-memotia | pro-memoria |
| 65 | Bacillus Thuringiensis istaelensis BTI initiative unknown | 6 | pro-memoria | pro-memoria |
| 66 | 57 wells @ Euro 1000 | 6 | 57.000 | |
| 67 | 95 handpumps @ 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 | Toyota Landcruiser | 6 | 38.000 | |
| 72 | Driver for Toyota | 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 |
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.