Multi Purpose Cooperative Project Proposal by fex67687

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									                          A
                       PROPOSAL




             BULASI                Project
(Build Up a Long-term and Alternative Source of Investment)
  A Pilot Project for Payatas Alliance Recycling Exchange
                 Multi-Purpose Cooperative
                        (PARE-MPC)




                      Covered Period
                        2008-2012

                      Requested by:

                     Ricardo Basister
                        Chairman
                       PARE-MPC


                      Prepared by:
                     Ms. Lai Briones
                    Project Consultant
Title                                 :      BULASI PROJECT


Recycling Station
Beneficiaries                         :      2500 payatas scavengers


Lead Organization /                   :      PAYATAS ALLIANCE
Implementer                                  RECYCLING EXCHANGE
                                             MULTI-PURPOSE COOPERATIVE



Project Duration                      :      2008 - 2012

Budgetary Requirement                 :      P 500,000.00
                                          (FIVE HUNDRED THOUSAND PESOS)


SCOPE AND LIMITATIONS:


        This project aims to promote welfare and to provide an alternative means of livelihood to

the 2,500 scavengers who are members of the Payatas Alliance Recycling Exchange Multi-

Purpose Cooperative (PARE-PC) through the support of their respective recycling organizations

Almost 98% of the scavengers are very much dependent on the garbage waste disposal in

Payatas Dumpsite. The BULASI Project will serve a as vehicle to implement other potential

source of income through the cooperative formation of direct buying and selling of the recyclable

waste materials. Our goal is to also increase the income of the payatas scavengers through profit

sharing, establish a reasonable buying control rate, to enhance the capability of the members

through values formation and skills training and to be able to provide economic stability as well.
BACKGROUND


       PARE-MPC is a cooperative duly organized by major recycling centers and scavenger’s

association in Barangay Payatas through the support of Payatas Operations Group led by Col.

Roberto Jaymalin. These recycling centers are pillars of the 3R operation of the solid waste and

management in Payatas Dumpsite since 1990s. The said dumpsite composed of more less 11

hectares has been the main provider of jobs for local residents in the Barangay. Before, Payatas

has catered 4.5 metric ton from the garbage’s of Metro Manila, even then the scavengers has

enjoyed their earnings from P350 to P400 pesos daily. But due to the implementation of local

laws and ordinances of the Quezon City Government, only respective barangays and business of

districts of QC are allowed to dump their waste in Payatas nowadays. Through the effort of Hon.

City Mayor Sonny Belmonte, Quezon City is now one of the most ideal and progressive City in

the country. Today, the payatas dumpsite operation is more organize and have provided required

safety standards by the POG. The changes and solid waste management reforms in the local

government has directly affected the income of the payatas scavengers when they have been

solely dependent on the pile-up garbage’s being dumped. Given on the lesser volume, the income

of the scavenger has been dragged down to 50 or 60% less compared to their earnings 5 years

ago. This entirely brought the per capita income of an individual scavenger from 4,800 pesos per

month before down to 2,500.


       The member alliance of PARE-MPC has finally decided to make the necessary measures

in order to support and provide other opportunities for the scavengers by regulating the buying

and selling operation of the recyclable waste material. It has been noted that the capital key

operators in the Payatas Dumpsite are the middle sales agent who is capable of earning 30% to
40% higher than the recycling centers due to controlled buying rate. The capital investment has

been provided by these middle sales agents even prior to the selling and delivery of the stocks to

the major recycled plants. These middle capital investors have acquired the stocks from the

dumpsite by lending some amount to the local recycling operators in Payatas. Thus, the buying

rate of the local recycling operators to the member scavenger is fully controlled stated on the

price prescribed by these middle sales businessmen. The role of PARE-MPC through its

cooperative entity is to minimize or eliminate the buying rate control system by merely

supporting its members through a micro-credit investment and posting a reasonable or

competitive buying price for the scavengers. And by patronizing the services and projects of the

PARE-MPC each member will have the opportunity to gain more, aside from the selling of

stocks, they will also directly benefit from the profit shares of the cooperative.


       Out of the potential income from the BULASI Project, the PARE-MPC wishes to develop

more programs and services for its members such as by putting up a cooperative store, health and

nutrition support program, other livelihood and skills training. That’s why PARE-MPC is

interested in partnership with a possible funding institution in order to implement the BULASI

project.


       Henceforth, there will be a time to implement the closure of the open dumpsites in Metro

Manila and how prepared the organization to support their economic survival, thus, PARE-MPC

will initiate to develop a long term plan and programs in order to sustain and help the members.



SITUATIONER:

       One of the main activities of PARE-MPC at present is the recycling operation in Payatas

Dumpsite. There are more than 4000 scavengers who are very dependent in this work and half of
 the said manpower are members of the cooperative. How do we define recycling materials?

 RECYCLE: Recycling converts used items back into raw materials, which are then used in

 making new products. "Recycle" comes third, after "Reduce" and "Reuse," because recycling

 requires new resources for transportation and the manufacturing process. Nevertheless, the

 economic and environmental benefits are significant. Recycling conserves our resources, reduces

 waste, and creates about six jobs for every one that would be created by dumpsite or landfill the

 same amount of waste.




         A. SELECTIVE RECYCLING WASTE MATERIAL THAT ARE SELLABLE


            ITEM                  QUANTITY         BUYING RATE OF            BUYING RATE OF
                                                  LOCAL RECYCLING               MIDDLE
                                                      STATIONS                 CAPITALIST
                                                                                 GROUP

CBAK (PLASTIC BOTTLE)               1 KILO                P13.00                    P 17.00



TIN CAN                             1 KILO                 P 4.00                   P 7.00



BAKAL (IRON STEEL)                  1 KILO                P 10.00                   P 12.00



P.E. (PLASTIC SHEETS)               1 KILO                 P 2.00                   P 3.00


KARTON                              1 KILO                 P 1.00                   P 2.00
SAKONG SABOG                1 PC.         P 1.00            P 2.00


JOLLIBEE SPOON             1 KILO         P 20.00           P 23.00


FANTA (TIN                 1 KILO         P 50.00           P 60.00
CAN/SOFTDRINKS)


ALUMINUM                   1 KILO         P 55.00           P 65.00


TANZO (COPPER)             1 KILO        P 240.00          P 260.00


DILAW                      1 KILO        P 150.00          P 170.00


BAK-BAK                    1 KILO         P 1.00            P 1.25

       A.1) ACTUAL BUYING EXCHANGE PER RECYCLING STATION/ PER DAY


          ITEM           QUANTITY   GROSS SALES OF    GROSS SALES OF
                                    THE RECYCLING     THE MIDDLE
                                    STATION           CAPITALIST
                                                      GROUP


CBAK                       300 KL        P 3,900.00        P 5,100.00


LATA                       300 KL        P 1,200.00        P 2,100.00


KARTON                     400 KL        P 400.00          P 800.00


P.E.                       250 KL        P 500.00          P 750.00


SAKONG SABOG               400 KL        P 400.00          P 800.00


JOLLIBEE SPOON             5 KL.         P 100.00          P 115.00
FANTA                     5 KL.         P 250.00         P 300.00


ALUMINUM                  7 KL.         P 385.00         P 455.00


TANZO                     1 KL.         P 240.00         P 260.00


DILAW                     1 KL.         P 150.00         P 170.00


BAK-BAK                  300 KL.        P 300.00         P 375.00


                TOTAL DAILY SALES    P 7,825.00          P 11,225.00




 A.2) DAILY SALES COMPARATIVE RESULTS BETWEEN THE RECYCLING STATION
                        AND THE MIDDLE GROUP
                               CHART # 1


                  GROSS SALES OF    GROSS SALES OF   NET INCOME OF
        ITEM      THE RECYCLING      THE MIDDLE      THE RECYCLING
                     STATION          CAPITALIST       STATIONS
                                        GROUP


CBAK                 P 3,900.00        P 5,100.00      P 1, 200.00


LATA                 P 1,200.00        P 2,100.00       P 900.00


KARTON                P 400.00         P 800.00         P 400.00


P.E.                  P 500.00         P 750.00         P 250.00


SAKONG SABOG          P 400.00         P 800.00         P 400.00
JOLLIBEE SPOON          P 100.00                P 115.00              P 15.00


FANTA                   P 250.00                P 300.00             P 150.00


ALUMINUM                P 385.00                P 455.00              P 70.00


TANZO                   P 240.00                P 260.00              P 20.00


DILAW                   P 150.00                P 170.00              P 20.00



BAK-BAK                 P 300.00                P 375.00              P 75.00

TOTAL NET INCOME FOR THE RECYCLING STATION PER DAY:                P 3,500.00


              NET SALES OF THE MIDDLE CAPITALIST GROUP
                              CHART # 2


              GROSS SALES      GROSS SALES        BUYING RATE      NET INCOME OF
              OF THE           OF THE             OF THE           THE MIDDLE
       ITEM   RECYCLING        MIDDLE             RECYCLING        GROUP
              STATION          GROUP              OR               CAPITALIST
                               CAPITALIST         PRODUCTION
                                                  PLANT

CBAK             P 3,900.00        P 5,100.00        P 6, 630.00        P 1,530.00


LATA             P 1,200.00        P 2,100.00        P 2,730.00          P 630.00


KARTON           P 400.00          P 800.00          P 1,040.00          P 240.00


P.E.             P 500.00          P 750.00           P 975.00           P 225.00


SAKONG           P 400.00          P 800.00           P1,040.00          P 240.00
SABOG
JOLLIBEE          P 100.00        P 115.00       P 149.50              P 34.50
SPOON


FANTA             P 250.00        P 300.00       P 390.00              P 90.00


ALUMINUM          P 385.00        P 455.00       P 591.00           P 136.00


TANZO             P 240.00        P 260.00       P 338.00              P78.00


DILAW             P 150.00        P 170.00       P 221.00              P 51.00


BAK-BAK           P 300.00        P 375.00       P 487.50           P 112.50

TOTAL NET INCOME FOR THE MIDDLE BUSINESS CAPITALIST :    P 3,367.00
                             PER DAY
  A.3) NET INCOME PER DAY BETWEEN THE RECYCLING STATION AND THE
                      MIDDLE CAPITALIST GROUP
                              Chart # 3


           ITEM               NET INCOME OF A        NET INCOME OF THE
                             RECYCLING STATION         MIDDLE GROUP
                                                         CAPITALIST


CBAK                             P 1, 200.00                P 1,530.00


LATA                              P 900.00                  P 630.00


KARTON                            P 400.00                  P 240.00


P.E.                              P 250.00                  P 225.00


SAKONG SABOG                      P 400.00                  P 240.00
JOLLIBEE SPOON                     P 15.00                    P 34.50


FANTA                              P 150.00                   P 90.00


ALUMINUM                           P 70.00                    P 136.00


TANZO                              P 20.00                     P78.00


DILAW                              P 20.00                    P 51.00


BAK-BAK                            P 75.00                    P 112.50


             Total net income      P 3,500.00               P 3,367.00



B. PAYATAS ALLIANCE RECYCLING EXCHANGE MULTI-PURPOSE COOPERATIVE
  PROPOSED BUYING RATE AND DISTRIBUTION OF INCOME/ PROFIT SHARES
                              Chart # 1

                                 BUYING RATE    BUYING        PARE-MPC
      ITEM            QUANTITY   OF LOCAL       RATE          PROPOSED BUYING
                                                              RATE BASED ON
                                 RECYCLING      OF THE        20% SALES PROFIT
                                 STATIONS       MIDDLE        INCREASED BASED
                                                GROUP         ON BUYING RATE
                                                              OF THE MIDDLE
                                                              GROUP

CBAK (PLASTIC           1 KILO      P13.00        P 17.00           P 20.50
BOTTLE)

TIN CAN                 1 KILO       P 4.00       P 7.00            P 8.50


BAKAL (IRON             1 KILO      P 10.00       P 12.00           P 14.50
STEEL)

P.E. (PLASTIC           1 KILO       P 2.00       P 3.00            P 3.50
SHEETS)

KARTON                  1 KILO       P 1.00       P 2.00            P 2.50
SAKONG SABOG       1 PC.        P 1.00            P 2.00           P 2.50


JOLLIBEE SPOON    1 KILO       P 20.00            P 23.00         P 27.50


FANTA (TIN        1 KILO       P 50.00            P 60.00         P 72.00
CAN/SOFTDRINKS)

ALUMINUM          1 KILO       P 55.00            P 65.00         P 78.00


TANZO (COPPER)    1 KILO       P 240.00          P 260.00         P 312.00


DILAW             1 KILO       P 150.00          P 170.00         P204.00


BAK-BAK           1 KILO        P 1.00            P 1.25           P 1.50

  B.1) COMPARATIVE PROJECTION BETWEEN IMCOME SALES TO THE MIDDLE
               GROUP AND DIRECT SELLING TO PARE-MPC

                                   RECYCLING                RECYCLING
                                   STATION GROSS            STATION GROSS
     ITEM           QUANTITY       INCOME BASED             POTENTIAL
                                   ON THEIR SALES           INCOME BASED
                                   TO THE MIDDLE            ON THEIR SALES
                                   GROUP                    TO PARE-MPC


     CBAK             300 KL              P 5,100.00            P 6,150.00


     LATA             300 KL              P 2,100.00            P 2,550.00


    KARTON            400 KL              P 800.00              P 1,000.00


        P.E.          250 KL              P 750.00              P 875.00


 SAKONG SABOG         400 KL              P 800.00              P 1,000.00
 JOLLIBEE SPOON                 5 KL.                   P 115.00            P 137.50


       FANTA                    5 KL.                   P 300.00            P 360.00


    ALUMINUM                    7 KL.                   P 455.00            P 546.00


      TANZO                     1 KL.                   P 260.00            P 312.00


       DILAW                    1 KL.                   P 170.00            P 204.00


     BAK-BAK                   300 KL.                  P 375.00            P 450.00


              TOTAL DAILY SALES                    P 11,225.00            P 13,584.50


    C. BUDGETARY REQUIREMENT FOR THE OPERATION OF BULASI PROJECT

     PARTICULARS                          AMOUNT                    TERMS/PERIOD
CAPITAL INVESTMENT
LOAN FOR
MEMBER RECYCLING                         P 240,000.00                  15-30 days
STATIONS:                                                          (3 % loan interest)

PSAI/SAMPI
UPC
AMPAT
PSAG
PAJOSA
BSAI
SAMAMI
PRM/PKR

OPERATIONAL
EXPENSES:                                P 40,000.00
Office Equipments, staffing,
miscellaneous

Transportation for the
delivery of materials to the             120,000.00                     30 days
manufacturing plants                                               40% down payment
(forward dump truck)

COOP SAVINGS/DEPOSIT                    P 100,000.00

TOTAL BUDGET REQUIREMENT                P 500,000.00

                           Distribution of Coop Sales and Income
  Percentage Projection on the Distribution of Profits and Expenses Based On The 30% Sales
  Income of the Cooperative Including The 3% Interest on the Cooperative Lending Program

ADDITIONAL 10%     ADDITIONAL 10%     7% WILL BE         3 % WILL BE        3 % WILL BE
SALES PROFIT       SALES PROFIT       DECLARED FOR       RETAINED BY        RETAINED BY
FOR THE            FOR THE            THE                THE                THE
PAYATAS            RECYCLING          OPERATIONAL        COOPERATIVE        COOPERATIVE
SCAVENGERS         STATIONS           EXPENSES OF        FOR THE            As SAVINGS
                                      THE                DISTRIBUTION
                                      COOPERATIVE        OF PROFIT
                                                         SHARES TO ITS
                                                         MEMBERS


PROCESS OF IMPLEMENTATION
All accredited members of the alliance will go to the process of coop basic orientation

seminar subjected to organizational fees and by-laws.

   1. The cooperative will issue a certificate of accreditation to the member recycling

       stations and a coop I.D. to individual member scavengers for profile purposes.

   2. The loan procedure and buying system operation should be approved by the Board

       of Directors of the Cooperative through a resolution such as:

       2.1 The loan application and payment procedure

       2.2 BULASI CARD System Entry of Sales for the individual members

       2.3 Monthly Accounting Report

       2.4 Membership Policy Handbook

       2.5 Project Plan and Implementation

       2.6 Annual Profit Distribution

   3. Project Evaluation

								
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