AIDG Appropriate Infrastructure Development Group Sustainable Solutions to the Infrastructure Needs of the Rural Poor
Dec 29, 2015
AIDGAppropriate Infrastructure
Development Group
Sustainable Solutions
to the Infrastructure
Needs of the Rural Poor
Overview
• Mission
• Method
• Motivation
• Technologies
• Xela Teco
• Our Partners
Mission
• AIDG seeks to increase the use of appropriate technologies in developing countries through education, training, outreach, and business incubation
Appropriate Technology: Affordable
Appropriate Technology: Environmentally Sound
Appropriate Technology: Repairable
Our Method
A Business Model to Create Change
• Market based development strategy
• Spreads appropriate technology solutions through incubation of small employee-owned businesses
• After 3 yrs, business is transitioned to a worker-owned cooperative
Assistance to Workshop
• Financial Assistance– Seed capital– Community exposure
through grant supported and pre-negotiated projects
• Material & Equipment Procurement
• Business Planning– Market Analysis– Client Procurement– Financial planning Fine casting sand, power tools
Assistance to Workshop
• Technical Assistance– Access to Technology,
Training, Product Development, Quality Control, Good Manufacturing Practices
– Computer training, Web development
Model Sustainability
• Post-incubation temporary agreements– Profit-sharing agreement: 10% of profits
incubate next AIDG business– Sole product distribution rights in N. Amer,
Europe, Japan
• Previous workshops help AIDG techs to train new workshop employees
Motivations
Cuba Experience I.
• 2 pig farms about 20 miles outside of Havana
– Farm A. One with a biodigester for treating pig excrement
• Farm was clean with an uncontaminated source of well water.
• Biogas used for lighting, a stove and a hot water heater.
• The fertilizer bolstered the productive capacity of soil.
• Tree cover maintained
Cuba Experience II.
– Farm B. No biodigester• Pig excrement contaminated the nearby water source
• Inefficient wood fires which created a good deal of smoke
• Most of the surrounding trees were cleared.
• Cost of kerosene for lighting
– Issue: Nowhere Farmer B could purchase this technology
Sustainable Development
• “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs
– The Brundtland Commission, Our Common Future (Oxford : Oxford University Press, 1987).
Sustainability Triangle: Economic Development
Sustainability Triangle: Ecologic Integrity
Creation of small scale foundry for casting recycled aluminum
Sustainability Triangle: Equity
Our Technologies
Biodigester
Windmill
Micro-hydroelectric
Water
AIDG in Guatemala
• 08/2005 AIDG began training at its 1st manufacturing facility.
• Team: 10 engineering, electrical, & metal-working specialists
• 2008, Xela Teco will transition into a worker-owned cooperative
Quetzaltango, Guatemala
Guatemala Assessment:Electricity & Water
• Electricity– 50+ % non-electrification rate among rural villages – Households using trad alternatives for lighting pay about
80 times the price of electricity.
• Water– 50+ % rural households no access to water service; use
natural sources– 75% of home w/ piped water, buy bottled or treat water – Lack of access to clean water major contributor to <5
mortality
Guatemala Assessment: Cooking
• Liquid propane gas (LPG) most common in urban areas.
• Firewood is used more often in rural locales– Purchased firewood is also common; costs
more than LPG – Cooking with biomass fuels (e.g.
wood, dung, etc.) is linked to
acute respiratory tract infections,
particularly in children.
Guatemala Assessment: Sanitation in Animal Husbandry
• Most common solutions – Construction of pigpens
near rivers or creeks
– Use of PVC pipe to transfer waste to a river or creek
– Daily collection of manure
– Creation of a waste lagoon in a field. Waste Lagoon
Opportunities provided by Guatemalan Law
• Law of Promotion of New and Renewable Sources of Fuel – Compels the Bank of Guatemala to offer a credit line
for the financing of certain renewable energy projects
• Article 129 of the Constitution declares the country's electrification a national urgency
• Electricity Law (Decree 93-96) of 10/06/96 de-monopolized the energy sector & opened it to full private-sector participation.
Local Partner: CEDEPEM
• Experimental rural technology development organization
• Largest development agency in Xela • Has done significant greenhouse & water
pump projects with EU support. • AIDG installed 2 windmills at CEDEPEM
demonstration centers in Rancho de Teja and Chichaclan
Recruiting
Starting the Business
• Starting a corporation was prohibitively expensive– $1200, mostly notary public fees– Compared to $50 in Massachusetts
• Started Xela Teco as a sole proprietorship– $300
Changes in Wages by Sector (1990-1999)
Source: World Bank, 2001 $1=7.5Q; 3000Q= $400; 1000Q=$133
Existing Protection for Workers in Guatemala
• Living Wage
• IGSS– Social Security– Health Insurance– Worker’s Compensation
Potential Customer Base
• Advantage: low cost products, installation & repair/maintenance services
• Infrastructure development NGOs• Public institutions• Large farming operations• Private contractors• Private individuals
Barriers to Uptake
• Lack of knowledge of technologies• Ease of use• Cultural practice or other needs
– Wood fire: energy, warmth, light
• Pricing:– Significant efforts to make base products affordable to
an individual rural family using a micro-loan• HPDE biodigester, high efficiency stove, ram pump
– Typical micro-loan about $70
The Xela Teco Team
Our Partners
Casa Guatemala
Biodigester Project
Comunidad Finca Nueva Alianza
Biodigester Project
Rancho de Teja & Chicaclan
Windmill Projects
For more information
• AIDG– www.aidg.org
• Appropriate technologies– www.aidg.net
• Xela Teco– www.xelateco.com