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