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

– info@aidg.org

• Appropriate technologies– www.aidg.net

• Xela Teco– www.xelateco.com