Business Plan for a Startup Business

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                           Taller Xela Teco

                         (AIDG sponsored Xela Workshop)


                   Soluciones Sostenibles Para Xela

                           (Sustainable Solutions For Xela)




                              Business Plan




AIDG, Inc.
P.O. Box 104
Weston, MA 02493
866-450-8016
xela@aidg.org
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                                                           I.            Table of Contents

I.      Table of Contents...................................................................................................................................................... 2

II.     Executive Summary .................................................................................................................................................. 3

III.        General Company Description .......................................................................................................................... 5

IV.         Products and Services .......................................................................................................................................... 6

V.      Marketing Plan .........................................................................................................................................................10

VI.         Operational Plan .................................................................................................................................................14

VII.        Management and Organization ........................................................................................................................20

VIII.       Startup Expenses and Capitalization ...............................................................................................................22

IX.         Financial Plan ......................................................................................................................................................23

X.      Appendices ...............................................................................................................................................................24
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                                    II.      Executive Summary

In rural Guatemala, as in many developing countries, poverty is a broad geographic category. Forty percent of
the population of Guatemala lives on less than 2USD a day. Most of these people live in agricultural areas, and
for many, food security is dependent on what they can grow in their home plots. Fifteen minutes from the
center of the second largest city in the country, small corn plots hide the roofs of scattered mud brick homes.
Cattle and pigs roam freely in the streets. This city, Xela (Quetzaltenango) is at the gateway of a large
agricultural region where basic services and infrastructure were never developed, partly due to political
obstacles during prolonged civil war, partly because of geographic constraints. Xela is a crossroads city where
language schools and technical colleges brush elbows with cement block manufacturers and welding shops,
and where a chemical haze from burning plastic rises above ecotourists trekking through pristine forests on the
edges of volcanoes. This fall, Xela will become the home of a manufacturing enterprise that aims to bridge the
divides between manufacturers and educators, between ecotourists and polluters, and most importantly,
between subsistence farmers and the infrastructure improvements that can change their lives.

This enterprise is currently called the Xela Workshop; its final name will be chosen by the initial employees.
This is the first example of a development strategy that spreads diversified appropriate technology solutions
through incubation of small employee-owned businesses. The Workshop is being supported by the
Appropriate Infrastructure Development Group (AIDG), a US-based non-profit engaged in the promotion of
appropriate technology in rural areas of developing countries through education, outreach and business
development.

The Xela Workshop will be financially supported and trained by the AIDG during a three-year incubation
period. The Workshop was started as a Guatemalan sole proprietorship managed by the AIDG. The workers
in the facility are trained to provide goods and services, as well as trained to run their business. Assuming the
Workshop is successful at the end of the three-year incubation period, it will be transferred to the workers in
the form of a worker-owned cooperative. In return for these incubation services, the cooperative will enter
into a profit sharing agreement with the AIDG over the next 15 years for 10% of profits, which will be placed
into a fund specifically dedicated to the creation of similar facilities in other regions in developing countries.

During the incubation phase the employees of the Xela Workshop will be trained in the manufacture of
appropriate technology. These are low cost, environmentally sound, locally repairable solutions to problems of
irrigation and pumping, waste management, water purification, energy production, cooking, heating, housing,
soil management, transportation and communications. These technologies present cost-effective alternatives to
expensive infrastructure options for farmers and the general populace that simultaneously help the
environment.

The Workshop will market these technologies initially to the over 40 international and local development
NGOs, for distribution to rural communities through existing direct infrastructure outreach and micro-credit
programs. Most of these organizations lack the internal productive capacity to produce appropriate
technologies. The AIDG will also demonstrate these technologies by paying for the Workshop to perform
installations at community-based organizations such as schools, churches, etc., to boost awareness of the
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Workshop and its technologies in remote communities. Eventually, the Workshop will develop enough brand
recognition and awareness of the benefits of appropriate technology to sell directly to the communities with
the most pronounced infrastructure need.

The Workshop will infuse production with educational training by offering training and experimentation space
to students from local technical colleges. Students working part-time will have the opportunity for full-time
work when they graduate. The AIDG will contract the Workshop to experiment with and develop new
appropriate technology designs. The active international volunteer community in Xela will be given the chance
to work with the Workshop on these projects, fostering an exchange of knowledge and technical expertise. All
developments of the Workshop will be presented openly to other students and researchers as part of the public
domain repository of appropriate technology designs available through the AIDG’s web site.

The Xela Workshop represents a powerful opportunity for the residents of Xela and surrounding indigenous
communities, and for the efforts of the people of Xela to positively impact the lives of the global rural poor.
This approach to development recognizes that helping the rural poor does not require a huge financial
investment; instead, providing small amounts of capital, some basic training, and employment opportunities
allows people to build productive capacity and develop economic stability within their own regional
economies.
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                           III. General Company Description

The Xela Workshop is a micro-manufacturing enterprise concerned with the production, maintenance, and
installation of appropriate technology infrastructure solutions for the greater Quetzaltenango region. The Xela
Workshop is an incubated company of AIDG Inc., a Massachusetts based nonprofit organization with federal
501 (c) 3 status, and in its nascence the Workshop will be fully supported by AIDG. Initially, the Workshop
will be recognized as a Guatemalan sole proprietorship, managed by AIDG team members. As the Workshop
becomes a viable business, it will evolve into a worker owned cooperative under Guatemalan statutes. This
cooperative will have a profit sharing agreement with the AIDG Workshop Establishment Fund. The financial
success of the Xela Workshop will aid the creation of similar shops by AIDG in other underserved regions.

Mission Statement: The Xela Workshop seeks to produce appropriate technology (low cost, repairable, and
environmentally sound) infrastructure improvements for the rural poor in the greater Xela region. Through
education, professional services and manufacturing it provides an outlet for the acquisition of appropriate
technology based infrastructure improvements such as irrigation, water pumps, high-efficiency stoves, biogas
creators and electricity generators.

Company Goals and Objectives: The Xela Workshop has three primary goals delineated below:

       To provide an outlet for the purchase of and consulting on appropriate technologies in the Xela
        region.
       To become a self supporting worker-owned and operated institution, capable of donating capital
        towards the creation of similar institutions in other regions and other developing countries.
       To be an effective outlet for research, development, experimentation and education in the creation of
        appropriate technologies.

In efforts to meet these goals the Workshop has set objectives to win contracts for the supply of biodigesters
to remote communities from 4 of the over 40 major local and international infrastructure development NGOs
operating in the greater Xela region before the end of its first fiscal year. It plans to support and provide
workspace for four local technical college students and one international experimenter (e.g. an appropriate
technology expert or engineer) in demonstration appropriate technology projects in its first year of operation.
It expects to have a functioning retail front within the first 3 months of production.

Business Philosophy: The Xela Workshop is a combination of educational, production and professional
services. It seeks to provide a low-cost venue for the generation of appropriate technologies while providing
hands-on educational opportunities for local students in the context of a group-owned manufacturing center.

Legal form of ownership: The Xela Workshop is a sole proprietorship that upon being financially successful
will be transferred into a federally recognized worker-owned cooperative. In transparent and communicative
process, the proprietor was determined in an election with the help of our rural development organization
partner, CEDEPEM. The final candidate selection was managed by the AIDG team in an interview process.
Management of the shop, equipment and lease titles will be retained by the AIDG until transfer into a
cooperative.
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                                  IV. Products and Services

The Xela Workshop has the capability to produce numerous appropriate technologies for the underserved
agricultural population in the greater Xela region. It markets these products and services to development
organizations, general contractors, and the direct populace. The Workshop will initially restrict its first small
scale kit production to its biodigester products as a boutique operation. It will however have the capability to
produce small batches of many of the technologies listed below (not an exhaustive list) in the first 3 months of
operation. As the shop is contracted by the AIDG for experimental installations and supports student
research, the product range will grow and adapt. The product and service descriptions and target prices as of
July 2005 are listed below (7.5 Q = 1 USD; A successful farming wage is 60Q a day; 40% of the population
lives below 15Q a day) All prices exclude a 7% VAT. A 6 month maintenance or replacement warranty is
offered on all kits. After that period maintenance is at consulting rates of 250 Q per man per day.

Biodigesters

Biodigester technology offers a low cost and environmentally sound solution to several needs facing farmers,
namely waste management, energy and fertilizer. Three different biodigester technologies are described below.
The majority of pig farmers do not have adequate sanitation remediation systems for the proper disposal of
animal wastes. Most common solutions are 1) the construction of pigpens near rivers or creeks to assist with
waste disposal, 2) the use of PVC pipe to transfer waste to a river or creek, 3) daily collection of manure or 4)
the creation of a waste lagoon in a field. The use of leach fields, biodigesters or septic systems by such farmers
is currently uncommon. Large farmers tend to employ agricultural fertilizers, while small farmers generally use
untreated manure. Patterns of energy use are discussed in detail below in the Marketing Plan.

High Density Polyethylene (HDPE) tube Biodigesters (built as a self install kit) 575 Q:
HDPE biodigesters are highly affordable to manufacture, install and maintain. They are made
primarily out of rolled tubular 250 micron HDPE, with PVC pipe elements, and custom gaskets
made from recycled or purchased bicycle tube. Gas is collected in HDPE bladders. They process
pig, cattle and human excrement killing parasites and cysts, creating a sanitized fertilizer product
suitable for use on crops. In this processing they generate biogas, a mixture of methane and other
gases, that is low pressure, flammable and is harnessed as an alternative to propane. They can

support up to 20 pigs. A small pig farm with 5 pigs can cook 2 hours a night on the biogas
generated from their digester. This supplements the equivalent of 100 Q a month in propane
costs. They have a functional life span of up to 7 years, if well protected from the elements and
animals. There are thousands of HDPE biodigester installations around Southeast Asia. There are
only a few in Guatemala. Biodigesters seriously reduce pig related water contamination.

50 Gallon Drum biodigesters (built as a self install kit) 775 Q: 50-gallon drum biodigesters are based
around modified 50-gallon drums. They are more expensive and more durable than HDPE digesters with a
much smaller volume. They are best suited towards the processing of chicken excrement with occasional input
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from pigs or cattle. They can be connected in series to create larger capacity systems. Gas is collected using
HDPE bladders. If well protected from physical damage and the elements they will last indefinitely.

ABS tank biodigesters (custom large installations) 20,000 Q and up: ABS tank digesters are
custom designed systems for large pig farms. They can handle the waste of thousands of pigs and
generate gas suitable for running a generator, large-scale propane refrigeration, agricultural dryer
or other similar high volume gas endeavors. They are made with ABS water tanks, PVC pipe
elements, and gas fittings. If well protected the digester components will last indefinitely.

Windmills

Axial Flux Windmills (custom large installations) 4000-12000Q depending on location:

The Axial flux windmill design can produce from 1.2 to 3.3 kilowatts depending on blade and
rotor size. They are appropriate for community centers, schools, orphanages, etc. Due to size
and weight they are initially being provided as custom installations. They are made from wood,
auto salvage quality wheel rotors and spindles, fiberglass, copper wire, magnets and welded steel

water pipe. These windmills have a functional lifespan of 10 years without significant
maintenance. With maintenance they can last indefinitely.


Radial Flux Windmills (built as a self install kit) 2550Q:

Radial flux windmills are smaller and produce around 300 watts (better in line with the average power demands
of a typical Guatemalan home) built around custom permanent magnet alternators, created with auto salvage
quality rebuilt alternators, machined to accept permanent magnet installations, and custom injection molded
plastic blades. With maintenance they can last indefinitely.

Wind Pumps (built as a self install kit) 6750Q: Tropical windmill design windpumps are constructed with
steel water pipe, lightweight aluminum piping, and custom cast aluminum parts connected to an automobile
rotor and a ratcheted PVC sleeve pump. They can pump from as deep as 25 meters, with up to 15 cubic
meters of water movement a day in heavy winds.

Water Pumps or Purifiers

In Guatemala, access to clean water is provided by municipal utilities in urban areas, providing nearly universal
coverage, and community-based organizations in rural areas. Over 50% of rural households are without any
water service and generally collect water for natural sources which may or may not be potable. Of note, 75%
of households with piped water, buy either bottled water or treat water by boiling or using another purifying
process. Lack of access to clean water is a leading cause of diarrheal and other diseases and a major contributor
to mortality in children under the age of five.
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Ram Pumps (built as a self install kit) 575 Q: A simple pump made from PVC pipe and commercial
plumbing fittings that uses the continuous flow of a large body of water to create pressure differentials that
pump a small body of water over 100 meters. They are extremely rugged and can last 10 years without
gasket replacement.

Hand/Bike Pumps 200Q: Hand and bike pumps use a crank that can be geared to a stationary bicycle or
run by hand. It uses PVC plastic elements, rope, wood, rebar, and custom cut rubber gaskets to produce a
low cost system for pumping water short distances. A small sleeve hand pump similar to the ones used in
the wind pumping system will be offered for the same price.

Slow sand filtration systems (custom installations): Slow sand filtration systems are the cheapest and most
common form of water purification used by development agencies. In general they are performed in
community-sized installations due to space requirements of filtration equipment.

Other

Micro-hydroelectric (both small kit and custom large installations) 1500-25,000Q: Micro-hydro setups
use stream or river water diverted with PVC pipe in mountainous or hilly areas to a drop where the water is
shot from custom jet into an injection molded plastic turbine blade. The turbine spins an auto salvage quality
rebuilt alternator, machined to accept permanent magnets, or in the case of larger installations an electric
motor that is rewired and rebuilt to act as a permanent magnet generator. Power outputs can range from 300W
for a small rebuilt alternator, to 10 kW for a large rebuilt motor.

High Efficiency Stoves (kit) 575 Q: High efficiency stoves control airflow to allow fuel to burn longer at
more controlled temperatures. They are all based on the principals of the Winiarski rocket stove, a commonly
used design in development applications. These designs are extremely low cost to produce and can have
incredible returns in terms of fuel cost savings for families. These designs have been modified to incorporate a
low cost refractory cement lining. This extends the life of the stove many-fold and reduces the chance of stove
failure at its joints, a common problem with rocket stoves. These stoves significantly reduce indoor air
pollution and the risk of acute respiratory tract infections which are a major killer of children under five.

Solar Water Heaters (both kit and custom large installations) 1500-25,000 Q: A basic solar collector
system for heating water. Made from bent water pipe, wood framing, foam insulation and Plexiglas.

Electronic charge control systems (completed independent products) 400-3000Q: Low cost charge
control systems are vital for wind and hydro battery charging systems. They are included in the price of the
wind and hydro charging systems. Additional stand-alone units will also be sold. While such equipment in the
United States costs about 1200USD, low cost alternatives can be manufactured using recycled electronic
components for 250-3000 Q depending on functions.

Appropriate Technology Consulting and Experimentation 250 Q per man per day: General consulting
on the above products and experimentation with new products. Initially the AIDG will be the only consumer
of these services as it contracts the Workshop to do experiments with different technologies to attempt to
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expand the AIDG tested technical offerings. Results from these experiments also determine which
technologies will be used in demonstration installations contracted by the AIDG.

Soil cement, Lightweight Cement, Rammed Earth, and Straw Bale Construction Consulting and
Experimentation Services 250 Q per man per day: Similar to the General consulting services but oriented
around appropriate technology construction services. The large amounts of time and capital involved in
construction merited this delineation of this service from the other appropriate technology consulting services
for accounting reasons.

Sand casting and injection molding and recycling services: The Workshop is equipped with hand built
small scale aluminum foundry equipment (green sand casting), in addition to hand built small scale injection
molding equipment. These are necessary to produce the custom parts needed for certain windmill and micro-
hydro products. To save capital and to promote the environmental mission of the Workshop, raw materials for
these processes are purchased from Xela plastic and aluminum collection centers, and at a low volume directly
from the general public, who commonly incinerate plastic and other domestic waste. These materials are
compacted and melted. Some custom molding and casting services will be offered in special cases as a form of
side revenue and as a service to the community (Xela has no small foundry or injection molding services).
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                                       V.      Marketing Plan

Strategy: The Xela Workshop will market its infrastructure improvements through a number of outlets. Kit
based improvements will initially be marketed to the 40 major local and international development agencies in
the greater Xela region. Interestingly enough these agencies represent the most direct competition to the
provision of appropriate technology infrastructure solutions to the region. The Xela Workshop will work with
them so that it becomes easier to purchase and install items manufactured at the Xela Workshop than to build
them internally. These products will be co-branded between the Xela Workshop, AIDG Inc., and, in cases
where it is requested, the development agency performing the installation. In most cases these improvements
will be sold by the agencies to farmers under existing micro-credit programs for farm infrastructure
improvements (see appendix D). In some cases installation will be provided as an end service by the
development agency. Rarely will the Xela Workshop provide professional services, consult or perform
installations in the first 3 months. The notable exception to this will be that AIDG will contract the Workshop
to install donated and experimental products to increase market awareness at selected high visibility
community-based organizations such as schools, churches, orphanages, community centers, etc. The Xela
Workshop will also offer direct sales to the community with traditional sign and paper-based marketing.
Special advertising efforts will focus on attracting interest from general contracting and small construction
firms.


Economics
One of the primary goals of the Xela Workshop is to transition into a worker-owned cooperative once it has
become a profitable independent business. There are many social and economic factors that indicate the
feasibility of the Xela Workshop achieving this goal.

       Many of the technologies produced by the Xela Workshop fit a pronounced niche. Below, the
        prospects for technologies to be produced initially, namely biodigesters, windmills, and solar water
        heaters, are described:

            o   From AIDG interviews it is estimated that there are 12,000 agricultural sites in the greater
                Xela region that tend 2-20 pigs. There are roughly 1,000 sites with greater than 20 pigs, some
                with as many as 4,000. All of these sites would reap both economic and sanitation benefits
                from a biodigester installation.

            o   In the state of Huehuetenango just north of Xela there is a 70% non-electrification rate
                among rural villages due to difficult terrain preventing grid extensions. Most of this area is
                mountainous and sufficiently windy for electricity production and would benefit from
                windmill installations.

            o   Many of these same villages could support a micro-hydro installation.

            o   90% of homes in Xela have the solar potential to support solar water heating. Due to a lack of
                low-cost alternatives, these homes use costly electric on-demand water heating, 50 amp
                “calentadores”. The cost if using a calentador for two years is equivalent to the purchase price
                of a solar water heater with a lifespan of ten years.
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      Figure 1. details how 4 energy sources, electricity, firewood, liquid propane gas (LPG), and kerosene,
       are used in Guatemala for lighting and cooking. Use of each of these resources however differs greatly
       between urban and rural areas. Access to electricity is nearly universal in urban areas and reaches less
       than 50% of rural households. Households without grid electricity using traditional alternatives for
       lighting such as candles and kerosene lanterns pay an estimated $11/Kh, about 80 times the price of
       electricity. LPG is the most common fuel used for cooking in urban areas. The use of electricity for
       cooking is rather uncommon. Self-collected or homegrown firewood is used more often in rural
       locales, chiefly for cooking. Purchases of firewood are also common in rural areas and amount to
       larger expenditure than if LPG or other hydrocarbons were used as a cooking fuel. One hypothesis
       explaining this finding is that the upfront costs of buying a propane range make it prohibitively
       expensive though the long-term savings from such a switch would be great. Cooking with biomass
       fuels (e.g. wood) is also linked to acute respiratory tract infections, particularly in children.

      There are no producers of HDPE biodigesters, windmills or solar water heaters in Guatemala, outside
       of small non-profit development agencies that perform small installations. One of the primary
       marketing goals of the Xela Workshop is to demonstrate to these NGOs that it is easier to buy these
       items from the Workshop than to produce them internally. For simple reasons of bulk purchasing of
       materials and scale the workshop is able to do kits for much cheaper than an individual agency could
       on their own. There are over 40 major infrastructure development NGOs operating in the greater
       Xela region, of 160 general social and economic development NGOs in the region (see appendix F).

      Individual micro-credit systems have an established and successful track record in the Xela region,
       particularly re-lending systems managed by women’s groups. The average loan amount to rural groups
       in the area is 500Q.

      In recent years, ecotourism has arisen in Guatemala as a viable means of sustainable economic
       development. Xela, in particular, enjoys a strong ecotourism sector due to its relatively high level of
       development and location near several volcanic ranges and other sites of natural beauty. An informal
       survey of tour operators in the Xela region indicates that advertising of socially and/or
       environmentally responsible activities is used as a means of attracting international customers. For this
       reason, ecotourism service providers seek environmentally sound technologies as a means to tap into
       the international tourist market as well as cut costs. In addition, hard currency from tourists provides
       disposable income for the service providers, which can be used for direct purchase of appropriate
       technologies.

Figure 1. Composition of Total Energy Expenditures in Guatemala. Source: World Bank, Household
Energy Use in Developing Countries, 2000.




                                                                    24% LPG
                                                                    44% Electricity
                                                                    2% Kerosene
                                                                    29% Cash wood
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Customers
       International and Local Development NGOs – These organizations will be the initial primary
        consumers of Workshop’s products. There are over 40 major local and international infrastructure
        development organizations in the greater Xela region (see appendix F). NGOs will be targeted for
        bulk orders, for use in their development projects for the most underserved communities.

       General Contractors – Many of the technologies produced by the Workshop, such as the solar water
        heaters, are easily incorporated into new construction projects. With remittances from the US at an all
        time high of 1.2 billion, and people seeking stable investments, construction in Guatemala is visibly a
        booming industry. Print marketing and traditional sales channels will be used to pursue contracts from
        traditional construction firms and general contractors.

       Large Farming Operations – Large farming operations are capable of supporting larger custom
        installations, such as the ABS tank biodigester or micro-hydroelectric systems, requiring significant
        planning and professional services. Tours of demonstration sites and longer-term sales relationships
        will be leveraged to convince local large farming operations of the economic and environmental merits
        of utilizing appropriate technology solutions provided by the Workshop.

       Community Based Organizations – The AIDG will purchase demonstration products from the
        Workshop to install in schools, churches, and community centers. Possible products include but are
        not limited to electricity generating technologies, such as windmills, sanitation systems, and water
        pumps/purification systems.

       General Public – A retail storefront at the manufacturing center will target a range of consumers from
        infrastructure-poor farmers using micro-credit to ecologically minded tourist service providers. The
        products on offer will typically be those priced at 1500Q or lower.


Competition
Because of its unique range of product offerings, there are no direct competitors to the Xela Workshop in all
of its facets. Though each individual technology has competing solutions, there is no center that offers a
comprehensive selection of available technologies. The closest indirect competitors are individual NGOs and
development agencies, but most of these groups lack the local technical manufacturing capability to produce
such products. Many agencies, like the Peace Corps, are comprised of volunteers with access to funds but with
little time or capability for experimentation. For many of these organizations a one-stop shopping center for
appropriate technology solutions would represent a far more attractive solution than internal construction.


Niche
In general there is a niche market in developing countries for market-supported appropriate technology
solutions. Most infrastructure improvements are currently installed by NGOs, governmental organizations, or
private parties for personal use. Because of limitations of knowledge, size, or bureaucracy, these groups often
choose solutions that are too expensive for the local market or lack the attention for maintenance to protect
the investment beyond a few years. Often the engineer installing such a project has long returned to Glasgow
or London by the time the project breaks down. A small business such as the Xela Workshop creating and
installing these technologies has an economic interest in providing low cost solutions and maintenance for
these solutions. Resultantly, the Workshop has the potential to succeed where these other organizations have
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experienced significant difficulties; it will remain available for repair services and thereby gain market
acceptance and improve the image of the technologies in the eyes of the consumers.

Pricing
Prices for most items are based on material costs, labor in manufacture, and micro-credit loan size. 500Q is the
most common micro-credit loan in the greater Xela region. Though costs of production vary based on the
technology, most tend to be below 500Q.

Distribution Channels
Bulk orders of kit products are picked up by truck by development groups. Individual orders are available for
pickup by truck or foot at the Workshop. Custom consultations and installations are performed with
transportation rental, usually 50Q per day, until such time as the AIDG provides a grant for a vehicle or the
Workshop can afford one (see financial plan).

Table 1. 12-Month Sales Forecast:

 Product Name                     Retail Price (Q)     Unit Sales          Revenue      AIDG Purchased Units
 HDPE BD                                 575               120              69,000                 10
 50 Gallon BD                            775                15              11,625                  2
 Tank BD                                45,000              1               45,000                  1
 Axial Flux Wind 2.5 kW                 10,000              3               30,000                  1
 Radial Flux Wind                       2,550               15              38,250                  2
 Wind pump kit                          6,750               4               27,000                  1
 Micro-Hydroelectric (2 kW)             5,500               15              82,500                  3
 High Efficiency Stove                   575                25              14,375                  4
 Solar Water Heater                     1,750               30              52,500                  5
 Ram pump                                575                74              42,550                  4
 H/B Pumps                               200                25              5,000                   5
 Slow sand filtrations                           Not expected first year                            0
 Electronic controllers                  650                10              6,500                   1
 A.T. Consulting/Training days
                                         750                12              9,000                  12
 (3 person team)
Building Consulting/training
days (3 person team)                     750                12              9,000                  12
                                                                                                       Page 14 of 36



                                        VI. Operational Plan

The Xela Workshop will be a combination manufacturing center, research and development facility,
educational extension, consulting provider, and direct retail enterprise. It will have six purely technical staff
concerned entirely with production and educational extension. One staff member will be responsible for
business development, project management and occasional technical support.


Production


       Production techniques will overlap for similar technologies, but will vary greatly between classes. For
        example, different biodigester installations will utilize similar materials and methods, as will different
        wind products, yet biodigesters and wind products will utilize vastly different methods for
        construction.

       Quality control will include visual inspection and lot testing. Each individual product will be asset
        tagged. Tag numbers, production crew and date of production will be recorded in a simple Excel
        spreadsheet. During the incubation period this information will be emailed monthly to the AIDG
        where it will be imported into the AIDG's asset management and trouble tracking system. Any
        product failures and follow-ups will be monitored with this system. Technically capable NGOs will be
        able to email problems with the asset tag information to problems@aidg.org and receive follow-up
        support from both the AIDG and the Workshop.

       A customer service warranty lasting six months to one year will be available for products, guaranteeing
        either repair or replacement.

       The AIDG will contract the Workshop to make experimental designs and demonstration installations
        for community organizations.

       Planned production levels and associated costs, prices and profit margins are detailed in the 12-month
        projection in section IX.

       Production/capacity limits of the planned physical plant are unlikely to be reached in the two-year
        lease of the workshop space. Limiting factors on production will be primarily related to personnel and
        demand.
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Location
The Xela Workshop is acquiring a 6,400 square foot, three-story office and workshop space in the industrial
supply zone surrounding the Marimba Rotunda in Xela. Its location in an industrial area is convenient to most
major suppliers as well as freight shipping. The property is wired with hot 110 and 220-volt service. Since the
location is beyond the city water supply, well water is pumped to a holding tank on the third story. It has a
single bathroom, a basement, a secured parking area, a tented external welding area, and an incinerator area
suitable for conversion to a small-scale foundry. Additional property (3/4 acre) is available for expansion of
corrugated steel tented work and storage space. There is significant room for installation of product
demonstrations. The workspace is on the edge of Xela on one of two major routes out of the city. The two
stories of glass fronting will showcase product models to people entering and leaving the city from agricultural
areas.

The rent is 3000Q a month. Anticipated electricity costs when welding are 250Q per month. High-speed
Internet costs are 550Q per month. Telephone services, which will be cellular prepaid, will add another 100-
200Q per month to overhead costs.

The building, perimeter fencing, and barbed wire all require some basic improvements. An expected 2000Q in
improvement costs will be necessary to make the building a high quality space. In comparison to many spaces
in the Xela region, the building is extremely modern and well maintained.

The shop will be open from 10 am–7 pm Monday through Thursday to accommodate part-time afternoon
work for students. On Fridays, the shop will be open from 10 am to 2 pm.

Students and volunteers will be provided with project space when appropriate.

The building is being entered with a 2-year lease. Discussions about the desired permanent location of the
cooperative will be made in the Workshop before the end of that lease.


Legal Environment
Once formed as a sole proprietorship the Xela Workshop will retain legal counsel to help ensure compliance
with all local and national regulations. In Guatemala, recently enacted income tax reform measures were
effective beginning July 1, 2004, and included the following amendments or provisions: Taxpayers must adopt
the calendar year as their tax period. There are two tax rates that apply to taxable income (tax base) computed
as follows: 5% of taxable income (taxable income = gross income less exempt income) 31% of taxable income
(taxable income = net income less exempt income plus non-deductible expenses). Sales of goods or services
are subject to a withholding tax of 5% (if not taxed under the 31% tax rate option). The 5% rate is also subject
to Impuesto Extraordinario y Temporal de Apoyo a los Acuerdos de Paz –IETAAP, an additional 1.25% tax
rate until December 31, 2007.

Once the Workshop has transformed into a cooperative, it will benefit from numerous advantages under
Guatemalan tax law. Legally constituted cooperatives are exempt from corporate taxes. They also receive duty-
free imports on machinery and inputs for productive process.
                                                                                                    Page 16 of 36

If properly registered as a renewable energy provider, the Workshop would receive the following exemptions
and benefits under the Law of Promotion of New and Renewable Sources of Fuel for projects or research
in wind, solar, biomass, tidal or hydroelectric power.

    a.    Duty-free import of consumable materials, machinery, equipment, spare parts, and accessories that
          cannot be found in Guatemala of the same quality or in the same amounts;

    b. Temporary suspension of customs duties on foreign machinery, equipment, and accessories to be used
       in the projects;

    c. Up to 100% income tax deduction of the value of the investment, in the case of persons who live in
       the country.

    d. 100% income tax deduction of donations made for new and renewable energy source projects.

In addition, the Bank of Guatemala is compelled by this law to offer a credit line for the financing of
renewable energy projects provided that the goals are:

  a.     The reduction of national hydrocarbon consumption;

  b. Supplying energy to rural areas;

  c. Improving the people's quality of life;

  d. The rational utilization of natural resources.

The New and Renewable Energy Source Service, an agency of the Ministry of Energy and Mines, is in charge
of enforcing this law.

The other legal framework of importance, besides Article 129 of the Constitution, which declares the
country's electrification a national urgency, is the Electricity Law (Decree 93-96) of October 6, 1996 and its
Regulations. The Electricity Law de-monopolized the energy sector and opened it to full private-sector
participation. Foreign investment is allowed in all forms of electricity generation, transmission, and
distribution. The Electricity Law established that electricity generation does not require an authorization of the
State; an authorization is required only for transmission lines and power plants that require the utilization of
public property. Prices may be set freely, with the exception of prices for transmission and distribution
services, which are subject to authorization


Personnel
The Xela Workshop staff will be comprised of eight full and part-time workers and a variable number of
volunteers and students. There are three full-time workers. The highest paid worker will be the Workshop
Manager and Master Technician. The prime candidate for this position, a 60-year-old experienced mechanic,
welder, and informal engineer, has spent the last eight years training young engineers and technical students,
most recently in the structural and cosmetic reconstruction of historic buildings in the greater Xela region.
                                                                                                   Page 17 of 36

The Workshop Manager’s salary will be 3000Q a month. The other two full-time employees are another
technician working closely with the master technician and a technician/business development lead/project
manager who will fulfill multiple non-technical roles for the Workshop in addition to providing technical
assistance on large projects. These two employees will make salaries of 2500Q and 2200Q a month,
respectively. These positions have not yet been filled but many promising graduates from local technical
colleges are being interviewed. The other part-time workers consist of current local technical college students,
earning a salary of 88Q per full day equivalent. The legal sole proprietor acts as an intermediary between the
AIDG and the Workshop Manager; he or she will work a few times a year and be paid a part-time salary of
150Q per day directly by the AIDG as a consultant. Workers are given 26 holiday days a year, 8 national, 15
personal, and 3 sick. Health care, emergency insurance, and social security is covered by Guatemalan Social
Security IGSS, the company rate is 10.67%.

To gauge these values currently, the industry minimum wage is $3.70 (Q29) per day plus a variety of
production bonuses arbitrarily calculated and inconsistently awarded by the owners of the maquila. With
production bonuses and overtime, a good machine operator in a large maquila earns about $170 (Q1300) per
month. Minimum living expenses for an average family (5.38 members) calculated by the national institute of
statistics for April 2000 was $284 (Q2185) per month. According to the UN Mission for Guatemala, the
majority of Guatemalan workers would need a 140% salary increase to reach a decent standard of living. Figure
2 indicates the general trend in monthly salary by sector.

Table 2. Salary by employee title and status.

  Employee
                                       Full time Daily Salary     Full time Days/month        Monthly Salary

  Workshop Manager                              150Q                         20                    3000Q
  Technician/Business
                                                125Q                         20                    2500Q
  Development/Project Manager
  Full-time Technician                          110Q                         20                    2200Q
  8 part-time students                    88Q (11 Q/hour)                     3                    2112Q
              TOTAL                                                                                9,812Q

 Table 3. Anticipated Monthly workshop expenses.
                                                                                                Page 18 of 36

   Expenses per Month                        Cost
   Salary                                    9,812Q
   IGSS 10.67%                               1047Q

   Rent                                      3000Q

   Telecom                                   200Q

   Maintenance                               400Q

   Internet                                  550Q
   Electric                                  300Q
   Petty                                     63Q
               TOTAL                         15,372Q


Figure 2. Changes in Wages by Sector (1990-1999). Source: World Bank, 2001




Inventory
As a boutique manufacturing enterprise, the Xela Workshop is able to maintain only a small stock of finished
products to support walk-in and individual customers. Most orders will be produced on demand upon receipt
of a contracted order. A similar small inventory of raw materials is also possible as many of the designs the
Workshop will produce leverage the same raw materials. Proximity to suppliers of large materials helps to keep
down the need to maintain a large inventory, and thereby reduce the potential loses from theft.
                                                                                                     Page 19 of 36

Suppliers
The Xela Workshop is located in the Marimba Rotunda, one of two major commercial industrial supply areas
in Xela. The following suppliers are situated within 800 yards of the Workshop: welding supply shops, used
auto part lots and new auto part stores, bicycle repair shops, cement suppliers, PVC and steel pipe suppliers,
plastic suppliers, battery rebuilding shops, auto repair shops, hardware stores, and the only international freight
operator in Xela. A five-minute walk increases the range of suppliers significantly. If a specific part or material
were unavailable near the rotunda, it could be found at the other major supply center in Xela, a 5-minute drive
away.


Credit Policies
The Xela Workshop will be strictly a cash-for-service business. Cash will be due on pickup of contracted
orders. External micro-finance and development institutions will handle all lending for individual purchases.
                                                                                                  Page 20 of 36

                          VII. Management and Organization

Xela Workshop Management: The general management of daily activities in the Workshop for the
incubation period will be by the full time employees, with directive inputs from AIDG team members and
volunteers. The goal of incubation period is to create a self-managing worker owned cooperative. Initially the
AIDG is taking the model of several Argentine cooperatives and avoiding specialized management roles.
Instead the AIDG is supporting distributing management tasks among the people working within the facility.

AIDG Advisors: The AIDG team members and outside volunteers who will provide the Workshop with
the training and support are:

Peter Haas, Lead Technician, CEO, Chairman

Peter Haas received a B.A. in 1998 from Yale University in philosophy and psychology. Before founding
AIDG he worked both in the information technology field as a consultant in network provisioning, telecom
wiring, RF and wireless consulting, electronic systems, and programming, and on an organic farm / horse
ranch doing infrastructure improvement work in water systems, electrical systems, masonry, plumbing,
drainage, erosion control, irrigation, welding, carpentry and sustainable building.

Adam Hyde, Agricultural and Community Development Specialist, Board Member

Adam received a B.S. in 1997 from the University of Vermont in Environmental Studies and an MSc in 2005
from Schumacher College, Devon, UK in Holistic Science and Ecological Design. His undergraduate thesis
addressed small-scale regenerative soil fertility management. He spent 8 months in Peru, Bolivia, Venezuela,
and Ecuador studying tradition agriculture, seed saving, and fertility management. He has since started a
Community Supported Agriculture project, and worked in different capacities for land conservation,
stewardship, community building, and environmental education organizations.

Grey Lee, US Coordinator, Board Member

Grey Lee is a LEED certified green buildings consultant in Boston MA. He holds a Master's in Real Estate
Finance from the London School of Economics and a BS cum laude in Environmental Studies from the
University of Vermont's College of Agriculture and Life Sciences. He has worked as an extension agent in
Brazil with the MST (Landless Peasant's Movement) and as an environmental educator teaching sustainable
agriculture and local natural history in his hometown. He is fluent in Portuguese and Spanish.

Catherine Lainé, Public Health Impact Advisor

Catherine Lainé received her B.A. from Swarthmore College in Biology. After spending a year and a half as an
academic visitor at the Wellcome Trust Center For the Epidemiology of Infectious Diseases at Oxford
University, she began her studies at Harvard School of Public Health in Infectious Disease Epidemiology
where she is a PhD candidate. She is fluent in French and proficient in Haitian Creole and Spanish.
                                                                                                 Page 21 of 36

Benny Lee, Central America Coordinator

Benjamin Lee is a Master’s candidate in Urban and Environmental Policy and Planning at Tufts University in
Boston, Massachusetts. He focuses on environmental policy in the built environment, and renewable energy
issues in sustainable development. Having obtained his B.A. in Science, Technology and Society from Vassar
College in 2001, he worked for 3 years as a field geologist and environmental scientist with an environmental
consulting firm. He is fluent in Spanish.

Erica Mintzer, Business Process Advisor

Erica Mintzer worked as a Research Analyst at Tellus Institute, a non-profit environmental research and
consulting firm in Boston, MA, since 2003. She supported projects in solid waste management, environmental
health, corporate social responsibility and sustainable consumption. Prior to working at Tellus, she worked as
an environmental educator for the Appalachian Mountain Club and taught at the Centro de Educación
Creativa, an environmental school in Monteverde, Costa Rica. She graduated with a BA in Latin American
Literature from Dartmouth College in 2002. Erica will be studying medicine and environmental health at Yale
Medical School in Fall 2005.

Peter Zink, Manufacturing Process Analyst

Peter Zink is a Master’s of Engineering Candidate in manufacturing engineering at Boston University. Prior to
returning to school he worked as a Business Systems Analyst at the Commonwealth Financial Network in
Waltham MA, and as a master carpenter in his own woodworking business. He holds a B.A. in physics from
the University of Colorado.

Legal Organization and Long Term Management expectations: During the course of its first 3 years, the
expected AIDG incubation period, the Xela Workshop will be run as a sole proprietorship. The hope is the
Workshop will expand to 20 employees within the first 3 years, and manage to expand both its productive
output and profitability. If the Workshop succeeds in this and does not need further assistance a transition of
ownership will take place in the Workshop whereby the ownership of the proprietorship will be transferred to
the workers within the context of a cooperative under Guatemalan law. To facilitate this transition an effort
will be made to train the workers during these three years in all aspects of managing the business, including
group accounting, personnel, and marketing decision making practices. To this end the legal sole proprietor
has a hands off role in the management of the business and is essentially a liaison consultant between the
business and the AIDG. At the point of the transfer of ownership to the workers the new business will enter
into a profit sharing agreement with the AIDG whereby 10 percent of profits will be donated to an AIDG
fund for the creation of additional workshops in other regions of other countries. This agreement will last for
15 years.
                                                                                                Page 22 of 36

                      VIII. Startup Expenses and Capitalization

Start up expenses and one month’s salary and raw materials total 35,000Q. Prices for various equipment needs
are based on preliminary investigation at locally recommended shops. The first month’s labor, social security
and health care costs are 10,859Q calculated Personnel section of Chapter VI. Rent of the workshop space is
3,000Q. Other associated costs, such as electricity and phone, bring total monthly labor and overhead to
15,372Q. Incorporation fees, marketing of our products, and miscellaneous expenses bring the total startup
expenses to 35,000Q ($4605)

Table 4. Startup Expenses and Capitalization for the Xela Workshop

                                  Initial AIDG grants for
                                                                  Cost (USD)
                                 equipment and overhead
                               1 Month Labor and Overhead           $15,372

                              Metalworking/ Welding materials        $5,593

                               Electric/non electric hand tools      $4,985

                                       Raw Materials                 $2,850

                                  Shop improvement costs             $3,000

                                     Marketing/Printing               $500

                                     Incorporation Fees              $1,200

                                       Miscellaneous                 $1,500

                                           TOTAL                    $35,000
                                                                                                  Page 23 of 36

                                        IX. Financial Plan

The financial plan for the Workshop details the projected activities for the Workshop and the financial inputs
to be provided by the AIDG for a 12-month period beyond the first startup month. The goal of the AIDG is
to create a self-sufficient profitable entity within the Workshop. Should there be any major failures within the
financial plan the AIDG will increase its support through contracted demonstrations and experimental projects
and will help the Workshop revise its marketing and business plan to ensure that the Workshop maintains
productivity. In the instance of complete sales failure it will still be more cost-effective for the AIDG to
perform research and development of new technologies in Xela through the Workshop than it would be to do
so even with volunteer labor in the United States. In addition, these projects would allow for the proper
execution of the AIDG mission. In the projected plan, the AIDG inputs including initial capital investments
total 158,650 Q (21,154 USD). From this input, the Workshop would have a post tax profit margin of 99,838
Q (13,312 USD). Excluding initial capital inputs, if all other AIDG expenditures were not present, the post tax
profit margin is still 62,030 Q (8,271 USD).

Should additional funding become available, the AIDG will endeavor to provide additional financial support,
of 25,000Q, not included in this plan, for the purchase of a truck for the Workshop.

The level of AIDG funding for the subsequent 2 years of the incubation will be determined at the completion
of each year from the date of founding.


12-Month Profit and Loss Projection and Projected Cash Flow in Q:

See appendix A spreadsheet.
                                                                    Page 24 of 36

                                    X.     Appendices

A: 12-Month Profit Loss Analysis

B: Xela Recruiting Materials

C: AIDG brochure Materials

D: Micro Credit Organization List

E: Potential Recipient Organizations of AIDG Donated Projects

F: Infrastructure Development Non-governmental Organizations List
                  Appendix A: 12 month Financial Plan                                                                                         Page 25 of 36




 Product Name          Retail    Unit   Revenue    Unit    Total    Unit   Total       Total     Total    Unit     Unit     Total   AIDG      Profit    Revenue
                       Price    Sales             Material Material Works Workshop    Labor      Cost     cost    profit/lo Profit/L Purch    from      From AIDG
                                                   Cost    Cost     hop    Days        and                          ss       oss    ased AIDG Purchased
                                                                    Days             overhead                                       Units Purchas Units
                                                                                       Cost                                                  ed Units
                                                                                     (862/day)

    HDPE BD             575      120     69,000     225    27,000   0.05     6         5,172     32,172   268       307    36,828    10       3,069       5750

  50 Gallon BD          775       15     11,625     325    4,875    0.25   3.75        3,233     8,108    541       235     3,518     2        469        1550

     Tank BD           45,000     1      45,000    8,000   8,000     20     20        17,240     25,240 25,240 19,760      19,760     1       19,760      45000

Axial Flux Wind 2.5    10,000     3      30,000    3,000   9,000    6.5    19.5       16,809     25,809   8,603    1,397    4,191     1       1,397       10000
        kW

 Radial Flux Wind      2,550      15     38,250    1,050   15,750    1      15        12,930     28,680   1,912     638     9,570     2       1,276       5100

  Wind pump kit        6,750      4      27,000    1,050   4,200     5      20        17,240     21,440   5,360    1,390    5,560     1       1,390       6750

MicroHydro (2kW)       5,500      15     82,500    1,250   18,750   3.75   56.25      48,488     67,238   4,483    1,018   15,263     3       3,053       16500

  High Ef Stove         575       25     14,375     150    3,750    0.25   6.25        5,388     9,138    366       210     5,238     4        838        2300

Solar Water Heater     1,750      30     52,500     350    10,500    1      30        25,860     36,360   1,212     538    16,140     5       2,690       8750

    Ram pump            575       74     42,550     185    13,690   0.2    14.8       12,758     26,448   357       218    16,102     4        870        2300
                   Appendix A: 12 month Financial Plan                                                                                  Page 26 of 36

H/B Pumps                  200         25     5,000     75    1,875    0.075      1.875   1,616    3,491   140    60     1,509     5    302        1000

Slow sand filtrations      Not                                                      0       -        0                     0       0
                         expected
                         first year

Electronic controllers     650         10     6,500     225   2,250    0.25        2.5    2,155    4,405   441    210    2,095     1    210         650

        A.T.               750         12     9,000                    0.75         9     7,758    7,758   647    104    1,242     12   1,242      9000
Consulting/Training
days (3 person team)

      Building             750         12     9,000                    0.75         9     7,758    7,758   647    104    1,242     12   1,242      9000
Consulting/training
days (s person team)




Total Revenue –5% Total               Total   Extra    Total   Post   Total Profit/loss  Total   Total Initial   Total    Addl     .
 withholding TAX material             labor overhead: profit   Tax + AIDG disregarding Worksho revenue AIDG      AIDG    AIDG
                  Costs               over- transport,               sponso   AIDG      p Days   from grants     input   Grant
                                                             IETAAP
                                      head advertise, loss             red    inputs             AIDG                    (Truck)
                                                              -6.25%                            Purcha
                                             warranty                 profit
                                                              Profit                               ses

      420,185            119,640 184,403      8,500   107,642 99,838 37,807      62,030   214     123,650 35,000 158,650 25,000

Initial AIDG grants                         Expense                            Holliday    26
for equipment and                             per
                   Appendix A: 12 month Financial Plan                        Page 27 of 36

     overhead                             Month              Days

1 Month Labor and       15,372            Salary    9,812    National    8
     Overhead                                                Holliday

  Metalworking/         5,593             IGSS      1047     Personal    15
 Welding materials                       10.67%              Holliday

Electric/non electric   4,985             Rent      3000     Sick days   3
    hand tools

   Raw Materials        2,850            Telecom     200

Shop improvement        3,000           Maintena     400
       costs                               nce

Marketing/Printing       500             Internet    550

   Incorporation        1,200            Electric    300

  Miscellaneous         1,500             Petty      63

       Total            35,000            Total     15,372
                                                                                    Page 28 of 36

Appendix B: Xela Recruiting Materials




       Formación de un Taller en Quetzaltenango

El Grupo de Desarollo de Infrastructura Apropiada (AIDG) quiere aumentar la utilización de la
infrastructura buena para el medio ambiente por medio de la educación, el entrenamiento, y la
incubación de empresas.

Las tecnologías que promovemos son económicas, fáciles de
reparar, y ambientalmente saludables. Ejemplos de nuestros
diseños son molinos de viento, biodigestores y estufas
eficientes. Ya hemos instalados unos prototipos functionales,
incluso un biodigestor en Río Dulce y molinos de viento en
Chichatlán y Rancho de Teja.




                                            Estamos trabajando en Quetzaltenango para
                                            establecer un taller que produce tecnologías
                                            apropiadas para vender a ONGs y comunidades en la
                                            región. Buscamos trabajadores por tiempo completo
                                            y por medio tiempo. También habrán oportunidades
                                            para voluntarios que quieren involucrarse en nuestro
                                            proyecto. Esperamos ofrecer espacio en nuestro
                                            taller para proyectos experimentales.




Si tiene interés en trabajar con nosotros como empleado o como voluntario, o si quieres averiguar
más, por favor contacte:

                                            AIDG

                                          590-47332

                                        Xela@aidg.org

                                         www.aidg.org
                                                                                                                                      Page 29 of 36


cooking, fertilizer, and a more robust remediation                                                    d development organizations.
solution for animal waste. In addition, contamination
of the local water source, the Rio Dulce, and the
associated negative health and environmental effects
can be minimized.




                                                                                                         Affordable, Repairable, Environmentally
                                                                                                         Sound




                                                        How can you support the AIDG?
CEDEPEM
                                                             Donate online or by mail.
www.cedepem.org
                                                             If you’re getting married, please
The AIDG has been working with the Guatemalan                 consider donating to us through the I
rural development agency CEDEPEM to test its                  Do Foundation,
windmills in the highlands near Quetzaltenango,               www.idofoundation.org.
Guatemala. The AIDG is partnering with CEDEPEM
and other development organizations in the region to         The AIDG accepts in-kind donations.
find continued sites to field test its designs and            See our website for more details.
provide demonstration installations.                         Buy AIDG merchandise at our online
                                                              store, www.aidg.org/store .
                                                             Throw us a fundraising party.
                                                             Tell a friend about our work.
                                                             Subscribe to our newsletter.


                                                                         AIDG
                                                                      P.O. Box 104
                                                                    Weston, MA 02493
                                                                     www.aidg.org
                                                                     info@aidg.org
                                                                                                                                                  Page 30 of 36



                                                     OUR TECHNOLOGIES                                      OUR WORK

                                                     The AIDG has working designs for the following        AIDG team members have recently returned from
                                                     technologies:                                         Guatemala where they installed demonstrations of
                                                                                                           their biodigesters and windmills.
                                                     Technology      Solution       Benefits
                                                     Windmills,      Energy         Low cost, clean &       The AIDG is in the seeking to establish
                                                     Small-scale                    reliable source of      workshops in Guatemala, Thailand and
                                                     Hydroelectric                  energy
                                                     Biodigester     Sanitation,    Effective way to        Dominican Republic and will open its first
                                                                     Agriculture,   dispose of animal       functioning workshop in Guatemala this summer.
                                                                     Energy         waste and decrease
OUR MISSION                                                                         disease risk, source   CASA GUATEMALA
                                                                                    of fertilizer and
                                                                                                           www.casa-guatemala.org
                                                                                    biogas.
Persons living in impoverished areas of
                                                     High            Energy,        Require less fuel,
developing countries have similar infrastructure
                                                     Efficiency      Cooking        decrease indoor air
needs as their counterparts in developed nations –
                                                     Stoves                         pollution and
energy, sanitation and clean water. Yet the rural
                                                                                    decrease associated
poor have fewer resources with which to obtain
                                                                                    respiratory tract
them. The AIDG provides solutions to the
                                                                                    problems
infrastructure problems of the rural poor that are
                                                     Water Pumps,    Clean          Lack of access to
affordable, locally repairable and environmentally
                                                     Water           Water          clean water is a
sound.
                                                     Purification                   major cause child
                                                     Systems,                       mortality in
OUR METHOD                                           Solar Water                    developing countries
                                                     Heaters
The AIDG works with self-motivated
entrepreneurs to start businesses that produce and
install environmentally sound infrastructure at                                                            The AIDG is working with Casa Guatemala, a home
prices affordable within the local economy.                                                                for orphaned, abandoned, or abused children, to
                                                                                                           install several biodigester projects. In its efforts
The AIDG provides these enterprises with                                                                   towards self-sufficiency, Casa Guatemala engages in
    Training                                                                                              animal husbandry, organic and hydroponic farming.
    Financial assistance                                                                                  As their farming activities have expanded so has
    Technical assistance                                                                                  their need for a low cost pollution remediation
    Equipment and material procurement                                                                    solution. The AIDG recently installed a plug flow
    Aid in business planning                                                                              biodigester at a 30-pig installation on the farm This
                                                                                                           system will provide Casa Guatemala with biogas for
This input will in the long-term help foster the
development of these businesses as self-sufficient
entities in the local economy.
                                                                                       Page 31 of 36

Appendix D: Micro Credit Organizations:

ACACE
Micro-credit organization geared to finance small business proposals of rural women.

Asociación de Desarrollo Comunitario Indigenista Occidental de Guatemala (ADCI)
Gives micro-credit loans to small businesses.

BanRural
Commercial Bank and largest rural micro-credit lender.

CEDEPEM (Center of Experimental Development of Small and Medium
Enterprise)
Rural development agency. Create network for local artisans, agriculturalists and producers to
improve and promote their products. Gives micro-credit loans for agricultural infrastructure and
enterprise projects. Performs greenhouse and water pump projects.

Colaboración Mundial
Provides training for youth about to enter the workforce and provides micro-credit loans to women.

The Guatemala Conservation Trust Fund (FCG)
 A revolving fund focused on micro-enterprise lending for projects under 3500 USD involving
sustainable use of natural resources.
                                                                                       Page 32 of 36

Appendix E: Potential Recipient Organizations of AIDG donated Projects

Casa Guatemala:
Orphanage outside of the Xela region on the Caribbean coast of Guatemala. Beneficiary of previous
AIDG projects.

CEDEPEM (Center of Experimental Development of Small and Medium
Enterprise)
Rural development agency. Create network for local artisans, agriculturalists and producers to
improve and promote their products. Gives micro-credit loans for agricultural infrastructure and
enterprise projects. Performs greenhouse and water pump projects.

El Paredon
Organization whose work consists of teaching English to local children in the small village of El
Paredon, situated on the shores of the Pacific Ocean, surrounded by the mangroves of El Naranjo-
Sipacate National Park.

Aldea Infantil Rudolf Walther
German-run orphanage for abandoned children

Aldea Infantil S.O.S.
Orphanage for abandoned children.

Aldea Juvenil S.O.S.
Orphanage for abandoned youth.

Hogar Comunitario
Home for abused, abandoned or orphaned children located in Cantel.

Hogar Cuña de Quetzaltenango
Shelter for orphaned and abandoned children.

Hogar de Niños Minusvalido Hermano Pedro
Orphanage connected to San Bartolomé Church; also serves disabled children.

Projecto Metodista "Ruth y Nohemi"
Home for children and families of extreme poverty.

Rayito de Luz Orphanage
Small orphanage connected to the Volunteers in Mission of the United Methodist Church

Skawil Conob
Community Clinic in an isolated area of the northwestern highlands.

Escuela de Autogestion Communitaria
A Community School that specializes in elementary education

Escuela Elisa Molina de Stahl
School for children with impaired hearing.

Escuela Guatemalteca de Comunicación
School and center to promote compunter skills, communication, and independent TV and radio
media.
                                                                                        Page 33 of 36


Estación Biológica Las Guacamayas
Biological Station in the Parque Nacional Laguna del Tigre (PNLT) in San Andrés, Petén

REMAR Centros Cristianos Beneficios de Rehabilitación y Reinserción de Marginados
Religious organization involved in the rehabilitation of drug addicts and alcoholics. Also works with
orphaned children.
                                                                                           Page 34 of 36

Appendix F: Infrastructure Development Non-governmental Organizations:

International:

Habitat for Humanity
Builds affordable houses with low- income families, and provides interest-free credit. Operates across
Guatemala.

United States Agency for International Development (USAID)
Distributor of US government development aid

Peace Corps
US government volunteer organizations. Volunteers determine their own projects and have a 3-year
period to enact them. New Volunteers begin projects annually.

Rights Action/Derechos en Accion
US based organization that works in the fields of economic, social, health, civil and political
development. Has school projects in remote areas without electricity.

Asociación Intervida Guatemala
Spanish organization that offers general assistance and support to children. Builds schools in remote
areas. Many schools currently lack electricity.

Local:

ADIPSA Asociación de Desarrollo Integral Progresista de San Agustín
Acasaguastlán
Promotes the economic and social development of the communities in the municipality of San
Agustín, located in the Sierra de las Minas Mountains in northeastern Guatemala

ADP Asociación Pro-Agua del Pueblo
Assists in community development through public health education and the implementation of clean
drinking water supplies.

APOFADI Asociación de Formación para el Desarrollo Integral
Assists in community development through education and information on agriculture, healthcare and
communal organization.

Asociación AK' Tenamit
The association works in different programs that benefit the population of the Livingston, Izabal
municipality.

Asociación de Servicios para el Desarrollo Comunal "ASEDEC"
Assists in socio-economic development of rural communities.

Asociación Memoria y Vida de los Pueblos
Aids in economic development of disabled persons living in the Western and Southern Guatemala.

Capacitacion en Producion en Agropequario para la Zona (CAPAZ S. C.) CARE Región
Occidente
Improves domestic and community living conditions in Western Guatemala.

CEDEPEM (Center of Experimental Development of Small and Medium
                                                                                          Page 35 of 36

Enterprise)
Rural development agency. Create network for local artisans, agriculturalists and producers to
improve and promote their products. Gives micro-credit loans for agricultural infrastructure and
enterprise projects. Performs greenhouse and water pump projects.

Chico Mendez
Project for the environmental protection and education.

CODEIN
Community development organization.

Colaboración Mundial
Provides training for youth about to enter the workforce and micro-credit loans to women.

Cooperación para el Desarrollo Rural de Occidente CDRO
Development Agency for 53 rural communities in Guatemala.

Crianza de Aves
Project promoting the production and sale of eggs for rural community development.

ECAO Equipo de Consultoria en Agricultura Orgánica
Consultancy to help campesinos with sustainable methods.

Escuela Primaria Cantón Xetuj
Rural educational development program that engages in the construction of rural primary schools
and libraries.

Fundacion Cristiana para los Niños y Ancianos: Proyecto "Jóvenes de María"
Provides affordable family health services, education and apadrinamiento.

GUATEMAYA
Sales and marketing outlet for ECAO agricultural produce.

Hermano Pedro
Rural health initiative

Instituto Alinaza Nacional Contra la Pobreza
Works to counteract poverty in rural areas of Guatemala

InterAlianza Foundation
Supports ongoing reforestation projects in several highland indigenous communities (Pachaj, Cantel
and Toninshaq).

Ixchel
Engages in projects to build stoves in rural communities to improve women’s health and rights.

La Hortaliza del Niño of Guatemala
Provides environmental education, agricultural/horticultural training as well as cooperation skills to
children

Madres Angustiadas
Xela based group working towards the development of local women.

Mayalan
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A popular organization which works with 14 different Mayan communities in the northwest
highlands of Guatemala. Includes help with small businesses.

Mundo Verde
Economic Development for rural women (campesinas).

PROECOS Xela (Proyectos Ecologicos, Comunitarios y Sociales)
Ecological center that engages in various environmental projects and social programs in Xela.

SER Servicios para el Desarollo
Water and sanitation infrastructure.

SIEA Sociedad el Adelanto
Works to improve the standards of living for the Guatemalan population, with a special focus on the
Mayan population.

Tzuk Kim Pop
Network of local organizations working to improve the lives of Mayans in the Western Highlands.

UAM
Asociación Unión de Agricultores Minifundistas de Guatemala

Vivamos Mejor
Organization working for the social, cultural and economical community development. Specializes in
education, health, and forestation.

Xekik´el
Promotion and protection of natural resources and development thereof, through formal
education and progressive agricultural techniques.

Currently Unnamed Biodiesel Producer
Produces biodiesel for buses in Xela.

Maya Pedal
Builds bike based water pumps, battery chargers, etc.

				
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