"Business Plan for a Startup Business"
Page 1 of 36 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 email@example.com Page 2 of 36 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 Page 3 of 36 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 Page 4 of 36 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. Page 5 of 36 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. Page 6 of 36 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 Page 7 of 36 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. Page 8 of 36 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 Page 9 of 36 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). Page 10 of 36 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. Page 11 of 36 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 Page 12 of 36 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 Page 13 of 36 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 firstname.lastname@example.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. Page 15 of 36 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 email@example.com 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 Page 36 of 36 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.