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Yaakrom Report - Aug 2004

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Yaakrom Report - Aug 2004 Powered By Docstoc
					Yaakrom: An Introduction




                                   Figure 1: Yaakrom Entrance

Yaakrom is a village approximately one hour from Dormaa Ahenko that is home to over 2000
residents. It is located in the Dormaa District of the Brong Ahafo Region. In 25 minutes time one
can walk from the town center west across the Côte d‟Ivoire border to reach the Ivorian village
Kwadwokrom. Forty-five minutes drive South is the village Nkrankwanta, home to over 5,000
surrounding residents and a very large dynamic market. This market is the commercial center for
all the villages in the southern part of the Dormaa District. A map of the Dormaa District and
each of these three villages can be seen on in Figure 2.

Including the MFP, Yaakrom now has 3 corn mills, 1 cassava grater, 1 battery charger, 1
grinding wheel, 3 boreholes, 3 schools, 1 blacksmith, 2 cold stores, 3 locations that sell ice water,
4 bars, 3 drug stores, 10 small stores, 12 large poultry farmers, over 10 churches, 1 small clinic,
and 1 mid-wife. It is under the government‟s Self Help Electrification Program (SHEP) 4 and has
already purchased the required poles. These poles are currently lying in one of the school yards.

The forest reserve seen in the map of the Dormaa district in Figure 2 presents the largest obstacle
to delivering electricity to the area. Many hopeful estimates of when electricity will arrive (based
on political promises from “reliable sources”) have been made by the residents of Yaakrom and
Nkrankwanta and they expect the grid to reach both towns before the election in December 2004.
However, after talking to the Dormaa District Assembly, the team believes that the grid will not
likely extend to either Yaakrom or Nkrankwanta in the near future.




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                           Figure 1: Map of the Brong Ahafo Region




                          Figures 2 and 3: Maps of the Dormaa District

In the past Yaakrom was a wealthy cocoa farming village however wild fires from the Cote
d‟Ivoire wiped out their cocoa crops on several occasions. As a result the farmers now prefer to
plant crops that do not require as much investment, such as cassava, maize, plantains, palm, and
many others. Yaakrom is still a prospering village and home to several very wealthy poultry
farmers, notably the Unity Brothers, owners of Unity Farms. The Ministry of Food and
Agriculture (MOFA) estimated the number of chickens in the Dormaa Distract at 4.5 million,
producing over 1.2 million eggs per day.




                                                                                                   2
Yaakrom is also home to Ghana‟s first Multifunctional Platform (MFP), which was installed in
December, 2003. The MFP was installed with a cassava grater, a corn mill, an alternator for
battery charging, four DC lights, and two 12V batteries. This summer a grinding wheel was also
added to sharpen machetes and other tools. The MFP entrepreneur is Mrs. Akua Kyeremaa
Fukouh and she has decided to name the business „Wonya No Saa Daa‟ which roughly means
„You can‟t get it everyday‟. She is also a producer and seller of Gari and has supplied it to the
Dormaa Secondary School in large quantities for over 20 years. Her husband Mr. Peter Kwaku
Fukouh, a retired head teacher, has become the manager of the MFP, and her nephew, Ofousu
Agymang is the primary MFP operator.

As of the end of June 2004 the Yaakrom MFP project, on paper, has had a total gross revenue of
6,015,300 cedis ($557 US) a total entrepreneur wage of 1,004,340 cedis ($111 US) and total
payments to KE of 1,980,425 ($212 US). In reality however only 600,000 cedis ($67 US) has
been saved by the entrepreneur. This will be discussed in detail later in the report.




                                                                                                    3
Current Status of Yaakrom:
This section outlines the current status of the MFP in Yaakrom. It includes maintenance and
supply of spare parts, contract negotiations, registering the MFP as an enterprise, machine use,
and the financial summary.


MFP Maintenance and Supply of Replacement Parts:

There is a small shop in Dormaa Ahenkro that sells replacement parts for the corn mill and the
Lister engine. Mr. Fukouh knows the location of this shop and purchases parts from here.
However the belt clips that the training sessions recommended to use instead of bolting the belt
together are only available in Kumasi. It was stated at a UNDP training session in October 2004
that these belt clips increase the efficiency of the engine. However they cost 35,000 cedis ($4 US)
and were consistently failing in the field. When compared to two bolts that cost only 5,000 cedis
($0.55 US) and will never fail, we were unable to justify continually spending money on the
clips. Currently the belt in Yaakrom is bolted together.




                    Figure 4: Current Method of Bolting the Belt in Yaakrom

Mr. Kwasi Fielmuagyi is a skilled and reliable corn mill repair artisan in Dormaa-Ahenkro. An
initial contract between KITE, the entrepreneur, and Mr. Fielmuagyi was signed with the
intention of encouraging Kwasi to perform preventative maintenance on MFPs. It was deemed
that the contract was not realistic considering there was only one MFP and resultantly unfair to
Kwasi. The contract would however be acceptable if there were several MFPs installed that he
could visit in one day. It was decided to no longer follow the contract and the entrepreneur
currently pays Kwasi his market rates for maintenance and repair when there is a problem with
the MFP.

Contract Negotiations – Operator:

The original contract between KITE, the entrepreneur, and the operator, called for an operator‟s
wage of 15% of total revenues. He was receiving this at the beginning of the project. However, it
was later decided that 15% was too high and reduced to 10%, to the obvious disappointment of
the operator. Difficulties then began to arise when the operator began taking long breaks in town
and neglecting his duties. He expressed that currently he was expected to spend the entire day


                                                                                                   4
waiting for customers and often he would sit idle for many hours. Becoming bored he would go
into the town. The entrepreneur acknowledged that the operator should be allowed a break to
visit the town as long as he agreed upon a reasonable time to return.

The operator also wanted to receive the additional 5% wage but it was decided that if he were to
be paid more he would have to do more work. It was proposed to him that he could take the
delivery cart to Kwadwokrom, or any other place, and this extra work would justify the
additional 5%. He declined the offer, preferring not to pull the delivery cart around town, and
agreed that 10% was sufficient and signed the contract. The additional 5% lost by the operator is
now adding to the net revenues.

The operator later expressed his dissatisfaction with being paid a small amount each day and
requested being paid a lump sum at the end of the month. The entrepreneur agreed to this and
currently sets aside the operators wage each day, to be paid out at the end of the month. Other
boys related to the family have also been operating the MFP and are paid accordingly however
we are concerned that they are not sufficiently trained as operators.


Contract Negotiations – The Entrepreneur and Manager:

Throughout the contracts written by KITE Mrs. Akua Fukouh is stated to be the entrepreneur of
the Yaakrom MFP, the sole owner of the equipment, and the only person capable of accessing
the businesses bank account.

Mr. Fukouh is unable to farm due to an injured shoulder. As a result Akua has used the time
saved by the MFP on the farm and to make more Gari while Mr. Fukouh has taken up the role of
the MFP manager. He does all of the bookkeeping, purchases diesel, contacts the repair artisan,
purchases replacement parts, pays the operator, and in general is much more involved with the
MFP than Akua. This, combined with the difficulty in communicating with Akua as she only
speaks Twi, has resulted in the team often unconsciously treating Mr. Fukouh as the entrepreneur
and not Akua. We have observed that on occasion this has resulted in creating conflict between
the two as Akua is very proud to be the owner and entrepreneur of the MFP.

Akua is attempting to be very involved with the MFP but the majority of her time is consumed
by farming cassava. She helps clean it every night, supervises the operator, searches for
additional customers, and often operates it herself. The two have proven to be a very dedicated
and hard working managing team for the MFP. Mr. Fukouh was concerned however that he was
doing a great deal of work and not receiving a wage. We then discussed alone with Akua if she
would be willing to split the 20% entrepreneur wage between herself and Mr. Fukouh,
employing him as the manager of the MFP. To this she replied that we could give him the whole
20% if we wanted to because she trusted him. We verbally agreed that the contract should be
changed to 10% for Akua and 10% for Mr. Fukouh and he would become the official manager of
the MFP.

Recently however Mr. Fukouh has expressed concerns that the 10% he is receiving as the
manager is the same wage being paid to the operator. He rightly feels that the manager and the



                                                                                                  5
entrepreneur should not be paid the same as the operator. We explained to him that they were
actually making more than the operator but it was the same on paper because they had to pay for
the equipment each month. In the end they would own the equipment and the operator would not.
He agreed that this was true however his name was not mentioned anywhere on paper as an
owner of the equipment, as a manager only verbally, and like the operator he is an employee of
Akua. Currently the contracts need to be rewritten to properly include and compensate Mr.
Fukouh.


Registering the MFP as an Enterprise:

Considerable time was spent working towards collecting the required information to allow the
entrepreneur to register the MFP as an enterprise. We were told that this has to be done in Accra
as the Dormaa District Assembly lacks the proper forms. However, we travelled to the Register
General‟s office in Sunyani where the forms were promptly provided to us. They state that the
entrepreneur has to pay an initial cost of 400,000 cedis ($44 US) and an annual cost of 100,000
cedis ($11 US) in order to register the business. The forms can be mailed directly to Accra or
submitted to the Sunyani office for forwarding to Accra. We were told that it would take 3 weeks
to obtain the certificate. She has the forms and in the future it may be in her interest to register
the business but currently this initial cost is too much for her to burden. It must also be explained
to her the value in registered the MFP in terms of being approved for future loans.


Initial Capital Cost

Several concerns were also raised with the planning and installation of the MFP in Yaakrom. The
installation errors have been mentioned in the previous Yaakrom report however it does not
mention the failure of KITE to do due diligence in their search for equipment and accounting of
equipment received by the entrepreneur. In Table 1 it can be seen that the actual cost to install
the MFP was 36,583,200 cedis ($4064 US). This includes the 6,097,200 ($677 US) installation
mark-up charged by Kumasi Energy. Currently the contract calls for the entrepreneur to pay off a
capital cost of 38,000,000 cedis ($4221 US). This number is based on receiving 4 batteries, 2 low
voltage disconnects, 3 DC lights, a pulley from TCC in Kumasi, and a cassava grater purchased
for 5,500,000 cedis ($611 US). In actuality they received 2 batteries, 1 low voltage disconnect, 4
DC lights, the fair market value of the cassava grater is 3,500,000 ($389 US, sourced from
GRATIS), and they did not receive the pulley from TCC. Furthermore the 20% fee was
calculated using a higher US to cedi exchange rate many months after the equipment was
purchased.

It was decided at the Accra workshop that the amount charged to the entrepreneur should be
31,367,400 cedis ($3484 US). This is based on correctly charging them for equipment received,
reducing the price of the cassava grater to the fair market value, and charging a 15% fee as
opposed to 20% for Kumasi Energy‟s services, based on the exchange rate at the time of
equipment purchase. The capital cost of 31,367,400 includes the delivery cart and the grinding
stone which were explained to the entrepreneur as being on loan from KITE until we could




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verify their value. If the entrepreneur decides she does not want either of these then KITE will
have to remove them and reduce the current amount owed.

                            Table 1: Summary of Capital Costs to the Entrepreneur
                                                                                                     Charged to
Basic Equipment                                         Quantity   Unit Cost Budgeted      Actual   Entrepreneur
10-hp, 1000 rpm diesel engine (Rhino type)                1        8,500,000 8,500,000    8,500,000     8,500,000
8-hp corn mill                                            1        4,500,000 4,500,000    4,500,000     4,500,000
8-hp, cassava grater machine of capacity: 500-600kg/h     1        5,500,000 5,500,000    5,500,000     3,500,000
24-Volt / 25A Kumatsu alternator                          1        4,200,000 4,200,000    2,500,000     2,500,000
Fabricated alternator pulley at Suame ITTU                1          500,000   500,000      500,000             0
17-plate GTJ 100AH battery                                4          360,000 1,440,000    1,520,000       760,000
2-feet 18W, DC fluorescent tube for lighting              3          352,000 1,056,000    1,056,000     1,408,000
Low voltage disconnect (LVD) for batteries                2          310,000   620,000      612,000       310,000
Framework construction                                    1        3,200,000 3,200,000    3,467,000     3,467,000
Miscellaneous (piping, fasteners, etc.)                                                     940,000       940,000
SUBTOTAL                                                                      29,516,000 29,095,000    25,885,000

Expansion Equipment
Delivery cart                                                 1     800,000      800,000     800,000      800,000
Grinding stone                                                1     500,000      500,000     591,000      591,000
SUBTOTAL                                                                       1,300,000   1,391,000    1,391,000

TOTAL                                                                         30,816,000 30,486,000    27,276,000

Installation Markup - 20%                                                      4,622,400   4,572,900    4,091,400

GRAND TOTAL                                                                   35,438,400 35,058,900    31,367,400



Machine Use:

The monthly use of each function of the MFP can be seen in Figure 5. It can be seen that the
majority of the MFPs revenue comes from the corn mill, which is also unfortunately the machine
that is most prone to failure. The largest customers of the corn mill are poultry farmers, as can be
seen in Figure 5. This pile of bagged corn is small and often the entire MFP building is filled
with bags.




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                                                Figure 5: Bags of Corn for the Poultry Farmers

The cassava grater is also doing well, mostly due to Akua‟s gari business. We believe the battery
charger in Yaakrom is being under utilized and action should be taken to increase its use. The
alternator can charge a maximum of 5 batteries over a 3 hour period and if the demand for
charging batteries exceeds the alternator‟s capacity a second alternator could be purchased for
approximately 2.5 million cedis ($278 US).

                                      900,000
                                                                                                 Corn Mill
                                      800,000                                                    Cassava Grater
           Monthly Revenue (cedi's)




                                      700,000                                                    Battery Charger

                                      600,000

                                      500,000

                                      400,000

                                      300,000

                                      200,000

                                      100,000

                                           0
                                                                                        Jun
                                                                                  May
                                                        Jan




                                                                      Mar


                                                                            Apr
                                                 Dec




                                                              Feb




                                                                    Month

                                            Figure 6: Monthly Summary of Equipment Revenues




                                                                                                                   8
                              10                                                Corn Mill
                               9                                                Cassava Grater
                                                                                Battery Charger
                               8
            Downtime (days)    7
                               6
                               5
                               4
                               3
                               2
                               1
                               0




                                                                         May
                                           Jan




                                                            Mar



                                                                  Apr
                                   Dec




                                                  Feb


                                                    Month


                                         Figure 7: Monthly Equipment Downtime

Financial Summary:

Initially the entrepreneur was responsible for paying back the capital cost of the equipment plus
an additional service charge of 20% to Kumasi Energy (KE) through deposits into a KE account
in Dormaa Ahenkro. Mrs. Akua Fukouh now has her own business account in the Dormaa
Ahenkro Agricultural Development Bank in which she has made an initial deposit of 100,000
cedis ($11 US) to open the account. A Kumasi Energy (KE) bank account has also been created
at the same bank but it is awaiting an initial deposit of 500,000 cedis ($56 US) to become
operational. Originally it was intended that she would make weekly deposits but it proved too
inconvenient and it was agreed that deposits would be made whenever a trip to Dormaa Ahenkro
was required for other business. As of the end of June, on paper the entrepreneur should have
deposited 1,980,425 cedis ($220 US) into the KE bank account and received a total wage of
1,004,340 cedis ($112 US).

Figure 8 shows what the wages paid and deposits to the KE account should have been since the
installation of the MFP.




                                                                                                  9
                               500,000
                                                                                     Operators Wage
                               450,000                                               Entrepreneurs Wage
                               400,000                                               KE Payments

            Payment (cedi's)   350,000
                               300,000
                               250,000
                               200,000
                               150,000
                               100,000
                                50,000
                                    0




                                                                         May
                                                             Mar
                                               Jan




                                                                               Jun
                                                                   Apr
                                                     Feb
                                         Dec




                                                           Month


                                         Figure 8: Monthly Wages and KE Payments

The Fukouh‟s claim that they have not been spending the 20% entrepreneur wage and intend on
putting the entire amount towards paying off the machine. If this is true then on paper
approximately 3,000,000 cedis ($333 US) should have been saved towards paying off the capital
cost. In actuality Akua has a personal savings account at a credit union in Dormaa Ahenkro that
she told the team contained 500,000 cedis ($56 US), saved from the MFP. It was decided that
this money should go into her business account and would be used to pay for MFP expenses.
Once more money had accumulated in the business account they would transfer a portion into
the KE account, leaving a balance of approximately 500,000 in the business account for
expenditures.

There are three main reasons why the amount saved from the MFP is only 500,000 cedis ($56
US) rather than 3,000,000 ($333 US). The first is the great difficultly KITE had in opening a KE
bank account. It took much longer than anticipated and thus for the first six months the
entrepreneur had no account in which to deposit into. The second is that they claimed they were
not aware that they were responsible for the full cost of the building housing the MFP as it was
not adequately explained to them when the previous MFP team first arrived. However in their
excitement to get the MFP it is possible that they did not listen completely. Regardless, in order
to expand the building housing the MFP the Fukouh‟s were required to borrow from another
resident in the town. As such during the first six months when the KE account was not open they
did not save the money that they owed to KITE as instead used it to pay off the debt owed on the
building. We agreed that KITE had not adequately explained the building cost and encouraged
them to use both their MFP and gari revenues to pay off this debt.

The third reason for the lack of deposits into the KE account is that although the Fukouh‟s are
recording the cost of grating the cassava for Akua‟s gari business they were not actually able to
pay for it. This is because the gari that they have been producing has been sold to the Dormaa


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Secondary School on credit. When many of the students did not pay their school fees the school
informed them that they could not pay until later. We informed the Fukouh‟s that any dealings
with their gari business must be paid out of their personal money, not the money owed to KE,
and they must begin depositing money into the KE account as soon as possible.


Payback Period

From March to June 2004, the Yaakrom MFP averaged 254,660 cedis ($28 US) in gross
revenues per week. Diesel and maintenance averaged 21% and 7% of gross revenues
respectively. Contingency averages 9.3% of gross revenues for the same period. With the
entrepreneur required to pay back 31.4 million cedis ($3488 US) and an interest rate of 10%
compounded yearly (as stated in the contract), the actual simple payback will be just under 14
years, as seen in Figure 9. If revenues drop to an average of 150,000 cedis ($17 US) per week
the entrepreneur will not be able to pay the yearly interest.

The current payback period of the MFP in Yaakrom is not acceptable as a business investment.
However KITE has the ability to significantly improve it by reducing capital costs and increasing
revenue generation. In the recommendations section it will be proposed that MFP installations
should be considered as retailers of DC lights. Figure 9 shows in blue the payback periods if the
capital cost remains at 31,367,400 cedis ($3485 US) and in yellow the case if it were reduced to
25,420,000 cedis ($2824 US). The value of 25,420,000 cedis ($2824 US) is based on removing
the initial equipment mark-up charged by Kumasi Energy and making assumptions as to the
reduction in costs due to better sourcing the equipment. These two capital costs are then graphed
as revenue increases. It can be seen that in the case that the capital cost is reduced and 30 DC
lights are sold in Yaakrom, the simple payback period becomes approximately 5 years. The value
associated in introducing 30 DC lights in Yaakrom assumes one light is used for 4 hours each
day, 7 days a week, resulting in charging the battery once per week, at a profit to the MFP of
5,000 cedis ($0.55 US). It should also be noted that 30 lights does not necessarily mean thirty
customers as in most cases the one who can afford the lights will want, and be able to afford,
more than one.




                                                                                                 11
                                 16
                                                                                                                                     Current
                                                                                                                                     Future MFPs
                                 14


                                 12
 Simple Payback Period (Years)




                                 10


                                 8


                                 6


                                 4


                                 2


                                 0
                                      150,000 cedis/week Current Revenues - Current Plus 15     Current Plus 30 600,000 cedis/week
                                                         254,660 cedis/week Batteries - 329660 Batteries - 404660
                                                                             cedi's per week    cedi's per week



                                                       Figure 9: Simple Payback Projections, 10% Interest


Figure 10 shows the resulting payback period if zero interest is charged. Zero or low interest is
very critical for MFP enterprises to stand on their own, which suggests that it may not be
reasonable for KITE to completely recover any loans, especially when the time value of money
is considered. This also emphasizes the need to find an MFP configuration that is economical
from the beginning. It may also not be reasonable to burden the entrepreneur by charging the
initial Kumasi energy mark-up.




                                                                                                                                                   12
                                16
                                                                                                                         Current
                                                                                                                         Future MFPs
                                14
Simple Payback Period (Years)




                                12


                                10


                                8


                                6


                                4


                                2


                                0
                                      150,000      Current Revenues Current Plus 15     Current Plus 30      600,000
                                     cedis/week        - 254,660    Batteries - 329660 Batteries - 404660   cedis/week
                                                      cedis/week     cedi's per week    cedi's per week



                                                  Figure 10: Simple Payback Projections, 0% Interest




                                                                                                                                       13
Training Provided:

KITE recognises that success of a project depends on how it is implemented in the field.
Participatory techniques toward education and rural appraisals are critical to the success of the
MFP project. We attempted to use participatory education techniques whenever appropriate to
ensure that the entrepreneur and manager understood every aspect of their business so in the
future they will not rely on KITE to ensure that their business is a success. This section discusses
the training provided to the entrepreneur, manager, and operator of the Yaakrom MFP by the
KITE MFP team. It includes operational efficiency, battery education, market surveys, and the
value of bookkeeping. Participatory methods, specifically participatory rural appraisals (PRAs)
are discussed more in depth in the team‟s second report, MFP Pilot Expansion Survey, which is
also included in the KITE work binder following this report.


Participatory Development:

The following was taken from the United Nations Development Program website.

       People‟s participation is now seen as a basic operational principle in the development
       process. People‟s participation cannot be simply proclaimed it must be actively
       promoted. The true road to empowerment can only be travelled with the participation of
       those on the journey. People's participation can ensure sustainability, it can make
       development activities more effective, and it can help build local capacities. But
       promoting people's participation implies a very different way of working, different
       approaches, methods and expectations.

       Participatory approaches are necessary to truly understand needs and assets of those one
       is working with. This is a good technique to understand people‟s objectives and the
       obstacles they face in reaching those objectives. Those most affected by the outcomes of
       development work need to be actively involved in that work in order for it to be
       successful. Capacity can only be built when there is an aspect of action, of doing
       something. Participation is needed in order to take the actions that will help build the
       desired capacity.


Operational Efficiency:

Three mechanical tachometers were purchased to determine if the MFP and other engines that
we visited were being operated at the manufacturers recommended speed. We observed an
average speed of 828 RPM for the seven 8 hp engines measured at other corn mills. It was
explained several times to the Yaakrom entrepreneur and the operator that they must keep the
engine running around 1000 RPM to reduce their diesel costs. However 1000 RPM was much
higher than what the operator was used to and at that speed the engine and chassis vibrated too
much, causing the operator to feel unsafe. We feel that had the MFP been correctly installed,
specifically a single large concrete foundation under the engine with anchor bolts in the correct


                                                                                                 14
positions as opposed to 4 small corner foundations, the equipment would vibrate much less. It
was also noticed that the cassava grater appears to vibrate at a resonance frequency when the
engine is between 900-1000 RPM. If the cassava grater was heavier and thicker metal was used
for the legs the vibrations may be reduced. Reducing the pulley size of the engine to 200mm
would also help, but a quality 200mm pulley has not been sourced.

We are still not confident that the entrepreneur and the operator fully understand the significance,
in a scale that they can understand, of engine speed on fuel consumption and the resulting
monetary impact. A graph of fuel consumption versus speed would allow the operator to
determine how much they save but it would be much more effective to walk the entrepreneur and
the operator through a small test to measure fuel efficiency. For example they could run the
engine for an hour at two different speeds and measure the amount of diesel used. We
unfortunately did not have time to try this with them.


Battery Education:

The batteries being used in Yaakrom and by the majority of villagers in Ghana for powering
televisions, radios, DC lights, etc. are regular shallow cycle car batteries. As they are shallow
cycle they are designed to be continuously charged. If they are used to the extent that they
become completely drained the battery becomes dead. At this point the electrolyte has to be
replaced and boiled each time the battery is charged to redistribute the ions in solution as
discharging completely causes the ions to absorb into the plates. The battery will not last long
this way and soon becomes useless. Almost every battery brought to the Yaakrom battery
charger is in this state.

Mr. Edwin Adjei and the technicians at KNUST developed a low voltage disconnect (LVD) for
their work with solar energy. The LVD is attached to the battery and acts as a safety switch to
protect it. Once the battery reaches 70% of its fully charged state the LVD disconnects the circuit
and the battery must then be taken to be charged. In their experience a battery with an LVD will
last 2-3 years, as opposed to being ruined the first time it is used. As such any new batteries used
by KITE in their projects should have an LVD attached. Furthermore, education is needed to
explain the purpose of this LVD to prevent rural patrons from bypassing it.

It was explained to Mr. Fukouh that he did not need to boil the batteries supplied with the MFP
as they were new and only needed to be charged to 12V. Later it was observed that he was still
boiling the batteries. We explained again, in much more detail, each step of the process and the
reasons why there was a LVD and why he did not have to boil his batteries. A more accurate
voltmeter would be beneficial, the current has a scale of 0-50 V but the battery voltage should
never exceed 15 V, so that any new batteries could be disconnected from the charging circuit
when they reach 12V, whereas old batteries would be further charged until boiling. After
explaining each step in the battery charging process and what the low voltage disconnect does,
Mr Fukouh no longer boils his batteries. The battery charging system can be seen in Figure 11.




                                                                                                    15
                              Figure 11: Battery Charging System

The team also had a conversation with a man who works at the Vatican Communication center in
Nkrankwanta. He told us that he took his batteries to Dormaa Ahenkro to charge them rather
than Yaakrom because he believed that batteries charged by electricity from the grid would last
longer than those charged by the alternator in Yaakrom. We explained that this was not the case
and he said that he would begin charging his batteries in Yaakrom. Future MFP teams however
need to be aware of these types of issues and the need to educate potential customers.


Market Surveys – Who, What, When, Why, Where, How:

The initial project proposal for the MFP in Yaakrom included a communication center but at the
last minute the donors removed it from the project document. Since then it has been identified
that there is a definite need for a communication center in Yaakrom and Mr. Fukouh has
continually expressed an interest in owning it. It was explained to Mr. Fukouh that we could not
just bring him a communication center, first he must perform a market survey. We were also
interested in identifying other services and potential businesses in Yaakrom so we decided to use
participatory education techniques to work through a market survey of Yaakrom with Mr.
Fukouh.

We began with Mr. Fukouh holding a pen and a blank piece of paper and discussed with him
both what services were needed in Yaakrom and what he would need to know before he started
any type of business. We began by asking the basic questions who, what, where, why, when,
how, and followed up by asking him many open ended sub-questions. The two services he
expressed the most interest in investigating was the communication center and refrigeration. Mr.
Fukouh‟s notes from this session can be seen in Figure 12:




                                                                                               16
          Figure 12: Participatory Education – Who, What, When, Why, Where, How


Following this participatory training session Mr. Fukouh took his notes and said he would
commence his survey the following day. The next morning it was observed that he was sitting in
his chair reading his notes and explaining them to his wife Akua. He then left and commenced
his market survey, which can be seen below in Figure 13. The full survey has been included at
the end of this report.




                        Figure 13: Market Survey Report by Mr. Fukouh


He identified 8 groups of customers he could target for the communication center and 36
individuals who would benefit from refrigeration services. The only aspect lacking in his survey
was the absence of data collected to support his survey, such as competitors prices and capital



                                                                                              17
costs to purchase the required equipment. In a following meeting is was agreed that Mr. Fukouh
would complete the remaining market research for the communication center and that KITE
would complete the remaining technical research. Mr. Fukouh produced the following for his
second survey.




                    Figure 14: Second Market Survey Report by Mr. Fukouh


Original copies of both survey‟s and Mr. Fukouh‟s initial AREED application can be found in
the MFP binder following this report.


The Value of Bookkeeping:

The bookkeeping sheets designed by KITE can be seen in Appendix A. Daily and weekly sheets
are filled out and KITE collects carbon copies of each for their own records. Mr. Fokouh has
been keeping very good books but it was noticed that he was still making some small mistakes.
The team spent time going over several weeks worth of sheets with him to make sure he fully
understood the bookkeeping system. We feel that he currently understands the bookkeeping
sheets but small mistakes will always occur and thus they should be double checked when
entered into the computer by KITE.




                                                                                              18
                   Figure 15: Reviewing Records With Mr. and Mrs. Fukouh


It was felt that there is the potential that once the KITE leaves an MFP and the entrepreneur is
left to run the business on their own bookkeeping may no longer be seen as required and would
stop. We therefore wanted to work through a participatory method of showing an entrepreneur
the value of bookkeeping. Sitting down with Mr. Fukouh we asked him why he felt that book
keeping was important and what he would like to be able to use his book keeping records for. He
replied that he would like to track each machine and also the monthly earnings. We then assisted
him in using his records to graph the earnings of each machine and the net monthly earnings for
the past three months. We also encouraged him to write the highest recorded profits from each
machine, highest entrepreneur wage, highest operator wage, and highest net earnings. The goal
of displaying these was to set benchmarks for the entrepreneur and operator to continually
exceed. We assisted with the first month and Mr. Fukouh graphed the remaining on his own. The
graphs Mr. Fukouh produced can be seen in Figures 17 and 18.




                       Figure 16: Discussing the Value of Bookkeeping


                                                                                             19
                       Figure 17: Mr. Fukouh Graphing MFP Performance




                         Figure 18: Finished Graph of MFP Performance


One month after working with Mr. Fukouh to draw the graphs the team returned to find the
blackboard completely erased, redrawn in an improved form, and updated. The new board can be
seen in Figure 19. There is still the potential that he will decide that graphing on the blackboard
is not beneficial. However if he does then we will work with him to determine another way that
it can be used to add value to their bookkeeping. This addresses the concerns that have been
raised as to how successful we will be in working with an entrepreneur who is less educated that
Mr. Fukouh. The principle behind participatory development and using the blackboard is that we
will work with the entrepreneur to make it meet their needs.




                                                                                                20
Figure 19: Updated Graph, One Month Later




                                            21
Changes in Operating Practices:

This section discusses changes in operating practices suggested by the team to the entrepreneur,
manager, and operator of the Yaakrom MFP by the team. Our goal was to improve the operation
of the MFP, improve working conditions, and collect more information for further improvements.
It includes introducing safety equipment, the operator recording more information, and
encouraging a standardized measuring system.


Safety Equipment:

The corn mill on the MFP is very loud and anyone in the building should always wear ear
protection while it is operating. Two hearing protectors were supplied to the operator and are
being sporadically used. The protectors would have been better received had they been
introduced from the beginning before the operator was accustomed to working without them.
The entrepreneur was also instructed not to allow the operator to use the grinding stone without
using protective glasses and gloves.


Operator Bookkeeping:

We felt that it would be useful to include the following additional information to the records kept
by the operator: weight of the product processed, the time the machines are run, the name of each
customer, and the time they bring their product to be processed. We explained why we wanted
him to make this change and he is now recording the added information in his book. The weigh
scale currently in Yaakrom however is a small bathroom scale and not suitable for most products,
particularly the large poultry bags. Now that the operator is tracking the names of customers and
what they use the MFP for, KITE can determine what needs are being met by the community.

For example if 80% of the revenue from the corn mill is due to poultry farmers how successful
will an MFP be in a community that does not have a poultry farm? We hope this added
information will be useful in the future, particularly the tracking of the MFPs customers. After
some time has passed KITE will also need to go through the book for other useful information
that can be passed on to the operator and the entrepreneur. We will then need to teach them how
to look for relevant trends themselves and actions they can take to improve their business.


Standardized Measuring System:

We are concerned that the method of measuring pre-processed product is inconsistent and there
is the potential for the entrepreneur to be under or over charging their customers. Currently
customers are being charged in measurements of buckets and bags. Our main concerns are the
different types of products being measured as equal (wet versus dry corn) and the large bags of
corn the poultry farmers bring to be processed into poultry feed. We recommend purchasing a
large flat scale, similar to the ones used to measure cocoa, in Kumasi and instructing the operator


                                                                                                22
to weight each product before processing. We must then monitor the resulting weights to see if
the variance in weight is significant. If it is, a new method of measuring, or better measuring
practices, will have to be encouraged. We would prefer to make changes in practice versus
purchasing a scale for each MFP and charging by weight as a large scale unnecessarily increases
the initial capital cost. This first scale should be purchased by KITE, not the entrepreneur.




                                                                                             23
Expansion Options Explored:

This section discusses the expansion options explored in Yaakrom by the team. An important
impact of an MFP being in a community is its ability to be an energy source to other micro-
businesses. It is one thing to meet a communities current needs and another to help them develop
to be something more. The options explored by the team include a delivery cart system, assisting
other corn mill operators, adding a grinding wheel, advertising the MFP, a communication center,
DC lights, DC refrigeration, and fixing Mr. Fukouh‟s vehicle.


Delivery Cart System:

It was believed that a small cart would assist the MFP by allowing the operator to collect raw
material from distant customers, particularly a women‟s group in Kwadwokrom who make
Attieke and grind the required cassava by hand. On April 3 a cart costing 800,000 cedis ($89 US)
was given to the entrepreneur. We informed the entrepreneur of the women‟s group in
Kwadwokrom and hoped to return later and see the cart being used. However for many months
the only customers that used the cart were local poultry farmers. In fact the cart‟s main use was
for the family‟s own personal farm work, as seen in Figure 20. We believe that the reason why it
took so long was that the value of the cart and the business from the women in Kwadwokrom
was not adequately explained. Once we sat down with the entrepreneur and the manager and
showed them how to calculate how much money they had lost because the cart was not being
used (540,000 cedis, $60 US, over a three month period) the entrepreneur finally took the
initiative to seriously work towards creating a delivery system.

It has proven to be very difficult to convince the women in Kwadwokrom to use the cassava
grater. Initially we were told they were concerned with the quality of the product, some even
claiming that it would come out black. It was also learned that the head of the women‟s
association may have been misinforming the women as to the cost of using the MFPs services.
At this point in time the majority of the women have stated that they would rather grate their
cassava by hand. This is because the time saved by the MFP cannot be used to make more than
their cost of paying for the services. They are not interested in having more time to rest, they
want to be able to process and sell more cassava. Without the ability to sell more than what they
currently produce they would rather continue to grind their cassava by hand.




                                                                                               24
                                 Figure 20: Delivery Cart in Use


Existing Corn Mill Operators:

The MFP project also intents to focus on assisting existing corn mill operators. The team met
with several existing corn mill operators throughout the Dormaa District. All of the corn mills
observed cemented their equipment into the floor, and placed their equipment such that the belt
was required to be in a figure eight shape or on the opposite side of the engine, which is unsafe.
There are two corn mills in Yaakrom and at least one in Kwadwokrom. We did not find time to
work with existing operators but it should still remain as part of the projects focus. We did make
time to specifically meet with the other corn mill operators in Yaakrom and ask them if the MFP
had impacted their business in any way. The first said that he had not experienced any change in
his business however he does not keep records and we are unsure if he would openly express any
negative feelings towards us or the Fukouh‟s. The second only uses his corn mill for his personal
farm and therefore has not been impacted in any way.




       Exhaust


                   Figure 21: Corn Mill Owner and Operator in Kwadwokrom



                                                                                               25
                           Figure 22: Example of a Pre-Existing “MFP”


Grinding Wheel:

While walking through Dormaa Ahenkro we noticed that there were several shops engaged in the
sharpening of machetes and other farming tools. We felt that a simple low cost grinding wheel
could be easily added to the MFP, increasing its current number of functions. The grinding wheel
was subsequently designed and built at KNUST under the assumption it would be used, without
any investigation into the market and its potential use. It was built at a cost of 567,000 cedis ($63
US) to the entrepreneur and can be seen in Figure 23. It is now operational on the MFP in
Yaakrom. Operational training was provided, although the MFP team needs to become more
familiar with its use.

Currently the grinding wheel is not being regularly used in Yaakrom. This is because the
majority of the farmers purchase their cutlasses later in the year, during farming season, and only
new cutlasses are sharpened using grinding wheels. Mr. Fukouh stated that he still felt the
grinding wheel was a good addition to the MFP and during the next farming season he would
purchase cutlasses to sharpen and sell at the MFP. The largest potential use for the grinding
wheel however is sharpening of the corn mill grinding plates (both for the MFP itself and
surrounding corn mills) as the grinding of the corn mill plates represents a large portion of the
MFPs maintenance cost. This skill should be first learned by the KITE team and then passed on
to the operator. A complete report on the grinding wheel, including recommendations for
improving its design, can be found in Appendix B.




                                                                                                  26
                        Figure 23: Grinding Wheel Installed in Yaakrom


Advertising the MFP:

One large metal sign and one small wooden sandwich board were built and painted in Dormaa
Ahenkro to advertise the MFP in Yaakrom. The total cost for the signs was 750,000 cedis ($83
US, 350,000 to build the metal sign and 200,000 to paint, 50,000 to build the wooden sign and
150,000 to paint). The metal sign has been placed at the main junction in the village and will be
seen by cars passing from Nkrankwanta, Kwadwokrom, and Dormaa Ahenkro. The wooden sign
is on the road adjacent to the MFP and points it out to passing traffic. The signs can be seen in
Figures 24 and 25.




                                                                                               27
                          Figure 24: Large Metal Sign in Town Center




                       Figure 25: Wooden Sign Identifying MFP Location


Subsequent to the placement of the sign several people came to the MFP site inquiring about the
grinding stone and cutlass displayed on the sign and wondering when they would arrive. The
signs were quite costly to make but as this is the first MFP in Ghana it was felt that it was
important to promote the program. It should also be possible to purchase the signs at lower price
but at the time we were unable to negotiate one.



                                                                                               28
The team also made two versions of an MFP brochure that was given to communities, other
NGO‟s, district assemblies, and other people that we visited and discussed the MFP project with.
These brochures can be found in the MFP project binder following this report.


Communication Center:

Nearly every member of every community that we have spoken to has expressed their desire to
have a communication center in their village. As previously mentioned, realizing the potential
for a communication center in Yaakrom the team used participatory education techniques to
work with Mr. Fukouh on developing a market survey for a communication center in Yaakrom.
Upon our return to Yaakrom the following week he provided us with a very detailed and
impressive survey of the market for a communication center and refrigeration services in
Yaakrom. He then again expressed his interest in receiving a loan to provide these services.

Solomon Kodjo Quansah of KITE provided an estimate cost for the equipment required to run a
communication center at 20,000,000 cedis ($2222 US). There is currently a building in Yaakrom
that was built and finished to be used as a communication center however the entrepreneur
decided to travel abroad. The furnishings in the room would need to be bought at a cost of
999,000 cedis ($111 US) and the room rental is 180,000 cedis ($20 US) per year. This places the
initial investment to finish the communication center in Yaakrom at roughly 21,000,000 cedis
($2333 US). Solomon is also currently working on KITE‟s REeSI project which involves rural
communication centers. REeSI‟s potential involvement in Yaakrom will be discussed further in
the recommendations section.


DC Lights:

A proposal written on prior to this report for KITE to support research into MFPs becoming
retailers of DC lights can be seen in Appendix C.




         Figure 26: Florescent DC Tube in Yaakrom, Built in the University (KNUST)




                                                                                              29
When the MFP was first installed several people in community noticed that the Fukouh‟s had
lights that were not run off a generator. They did not think this was possible and approached
them to inquire how they worked and if they could purchase one themselves. Realizing that there
were many people in Yaakrom who were interested in the lights a quick survey was done to
assess the market. When speaking with people a cost of at most 1,000,000 cedis ($111 US) to
purchase one light (the cost charged by the University shops for a battery, LVD, and one light)
was given and they were asked if they were interested. A list of over 40 names was created of
people who are interested and willing to pay the cost up front. This list includes the clinic, the
midwife, teachers, schools, churches, poultry farmers, businesses in Yaakrom, and many
individuals. The complete list is available in Appendix D. An interesting potential consequence
of introducing DC lights to villages without electricity is the reduction in turnover of teachers
and other workers placed in communities. One teacher in Yaakrom told us that if he had a light
in his house he would remain in Yaakrom but if he has to continue without one he will likely
leave much sooner. There is obviously a market for DC lights in large communities lacking
electricity such as Yaakrom and Nkrankwanta.

Within their MFP and REeSI projects KITE is proposing to install 200 MFPs and 500
communication centers in rural communities. If each MFP has 4 lights and each communication
center has 2, then in the next 5 years KITE will have purchased 1800 florescent lamps. Using the
amount charged by the University in the case of Yaakrom, the cost to purchase the lamps for the
MFPs would be 240,000,000 cedis ($26660 US), the cost for the MFP low voltage disconnects
would be 70,000,000 ($7776 US) cedis , and the cost of the lamps for the communication centers
would be 150,000,000 cedis ($16663 US), for a total cost of 460,000,000 cedis ($51100 US).

If it is assumed that Mr. Armstrong is able to produce and sell the low voltage disconnects at
150,000 cedis ($17 US) then if KITE were to switch from using the University as a supplier to
him, the cost for the lights and low voltage disconnects becomes 80,000,000 cedis ($8887 US),
30,000,000 cedis ($3332 US), and 50,000,000 cedis ($5554 US). The total savings in capital
costs to the entrepreneurs would amount to 300,000,000 cedis ($33,325 US). Purchasing the
lights alone from Armstrong, which we know he can already produce, would result in a total
savings of 260,000,000 cedis ($28,882 US). Thus we highly recommend investigating the
potential of using Mr. Armstrong‟s lights.


DC Refrigeration:

During his market survey in Yaakrom Mr. Fukouh identified 36 individuals who require
refrigeration services, many of which currently purchase ice blocks from Dormaa Ahenkro. This
includes two cold stores which purchase frozen fish from Dormaa Ahenkro and store them in
large dilapidated freezers until they thaw. The price of fish in Yaakrom is 7,000 cedis/kg ($0.78
US/kg) and the cost of one small 500 ml bag of ice in Dormaa-Ahenkro is 1,000 cedis ($0.11
US). The team felt that it may be possible to economically run a small efficient freezer off
batteries. The list of people in need of refrigeration also included poultry farmers as they need to
store vaccines for their birds. These farmers, several shop owners, and the owners of the cold
stores all said they could afford the large capital cost (we provided an estimate of 8,000,000
cedis $889 US) to purchase the equipment.



                                                                                                  30
Sun Frost, an American company that works primarily with solar systems, was contacted for
quotes on their DC freezers. They claim to makes the world's most energy efficient domestic
refrigerators and freezers. Sun Frost has experience in supplying developing countries and their
domestic and DC vaccine refrigerators are currently being used in more than 50 countries and are
available for use with AC or DC power. Appendix E contain the Sun Frost correspondents, their
product list, wholesale price list, and interior dimensions.

At the current exchange rate the DC F4 model freezer, which can be seen in Figure 27, costs
10,451,322 cedis ($1,161 US) plus shipping. The daily energy use of this model is 36 amp hrs at
32ºC which can be met by one regular 12 V car battery using a low voltage disconnect (LVD) set
at 64%. This is lower than the current ones built at KNUST, which are 70%, but should still be
acceptable. The daily cost would therefore be 6,000 cedis ($0.67 US) and a minimum of two
batteries would have to be cycled and charged at the MFP. To make ice the F4 model requires 4
amphrs/lb and can make approximately 10 lb of ice per day. The cost of shipping via sea the F4
model has been quoted from Sun Frost (see Appendix E) at 4,945,00 cedis ($550 US). This
places the estimated cost to purchase all the necessary equipment and shipping around
16,000,000 cedis ($1,777 US).




                            Figure 27: Sun Frost Model F4 DC Freezer


There are several entrepreneurs willing to pay a large portion of the capital cost up front to start
this business. However we currently do not have enough information to determine an estimated
payback period on a 16,000,000 ($1,777 US) cedi investment in refrigeration. This freezer could
quite easily produce and sell well over six bags of ice each day and store frozen fish. At only
6,000 cedis ($0.67 US) per day to run the freezer and such a large number of potential customers,
using DC refrigeration in a rural cold store could prove to be a very profitable business. This
added business would also result in an additional 1,825,000 cedis ($203 US) each year for the
MFP entrepreneur, assuming a profit of 5,000 per charge, charging one battery per day.

Another option that avoids the large capital cost of importing the energy efficient freezer would
be to purchase one locally. However local freezers have much higher power requirements,
increasing the number of batteries required and the operational costs due to a higher frequency of
charging them. An economic comparison should be made between the energy efficient model


                                                                                                 31
and those locally available. This should also include an investigation into the need and feasibility
of repair and maintenance.


The Gari Market:

As a result of the MFP Akua, and the whole community, can process more cassava and in turn
make more gari and attieke. The problem that has arisen however is that they do not have access
to a market to sell their product and do not want to sell to middlemen who purchase gari as they
pay significantly less than they could make selling it themselves. Recently the Fukou‟s attended
a meeting in Dormaa-Ahenkro where they and many of the other cassava farmers in the Dormaa
District were told that they could purchase two new high yield varieties of cassava. The response
from the group was unanimous that they already had cassava rotting in their fields and what they
really need is a market to sell to. Further increasing the Fukouh‟s worries about the market is that
the Dormaa Secondary School, which they have been selling gari to for over 20 years, has
become an unreliable customer.

Mr. Fukouh proposed to the team that he would like to fix his vehicle, a small mini van (Tro Tro)
that can be seen in Figure 28, at a cost of 8,000,000 ($889 US). He could then take large loads of
gari to the Western Region where he is confident he can sell them at a significant profit. He has
even begun negotiating purchasing gari from women in Kwadwokrom to sell theirs as well.
Another idea for solving the problem with the market that the Fukouh‟s have suggested to KITE
is purchasing a plastic bag sealer so they can bag and preserve their gari. Small bag sealers can
be purchased for 280,000 cedis ($31 US).




                            Figure 28: Mr. and Mrs. Fukou‟s Tro Tro




                                                                                                 32
Recommendations:

This section of the report outlines the team‟s recommendations for the future expansion of
Yaakrom and implementation of future MFPs.


Work Plan / Monitoring Reports:

Located in the MFP binder prior to this report is a monitoring report created on June 18th for the
team‟s field visits to Yaakrom. These monitoring reports are very valuable and should be
completed for every trip to the field.


Grinding Wheel:

Prior to building the grinding wheel, the general opinion amongst the project team was that it
would be a valuable addition to the MFP. It was thought that it would be well patronized as
currently Yaakrom residents travel to Nkrankwanta or Dormaa Ahenkro to sharpen cutlasses. It
did not require a large capital investment and it could be run at the same time as the cassava
grater or corn mill and battery charger, generating another source of income by the running the
engine the same amount of time. While currently not in use it still has potential, particularly if
the operator can be trained to sharpen the corn mill plates. Careful monitoring and marketing of
the wheel must be done to determine its value. It may be best to move the grinding wheel to a
new MFP in Nkrankwanta where it is more likely to be used.


DC Refrigeration:

At this time we cannot comment on the economic viability of battery powered refrigeration. We
are unsure what costs are currently involved in purchasing and storing the frozen meat that is
sold in existing cold stores and thus we cannot compare it to the cost of charging batteries. If
KITE is interested in investing in these types of businesses a minimal amount of work should be
required to determine their feasibility. We did not investigate it further however as we did not
want to raise expectations in communities. KITE should create their own rough business model
for DC refrigeration as opportunities to install such systems might arise in the future.


Other Machines:

There have also been numerous other requests from members of the community in Yaakrom for
additional machines to be added to the MFP. This includes a palm nut processor and a mixer for
mixing poultry feed. Large electric poultry feed mixers can be found in Dormaa Ahenkro. Both
machines would likely be highly patronized however they were not looked into in any detail. As
a reference, quotes for a fibre nut separator, a palmnut cracker with engine, and a palm
kernel/shell separator were obtained by Reverend George Fuachie of Nkankwanta and can be


                                                                                                 33
seen in the work binder following this report. It is also possible for the cassava grater to be used
to grate pineapple, mango‟s, oranges, etc. to make jams and juice. There is an entrepreneur in
Krakrom, Mr. Ampofo Richard, who is working with a women‟s group to make pineapple juice
and pineapple jam. In the off season they make cassava flour. If another community expressed
interest in making jams or juice he would be a good person to contact. One idea presented by the
Fukouh‟s that may have potential was electric bag sealers but the feasibility and payback of a
battery powered sealer would need to be looked into.


Entrepreneur Education

Thought needs to be given in the future to the level of education required to be selected as an
entrepreneur or manager for the MFP and how much time and money KITE is willing to spend
on educating them. In the case of Yaakrom, a retired head teacher has become the manager of the
MFP as his level of education made the training process much easier and shorter. The business
was initially set up with Akua as the MFP manager. She is only semi-literate, so if she were to
manage the MFP entirely, as the project intends, what would be KITE‟s responsibility in terms
of educating her? How much time and money is KITE capable of spending on entrepreneur
education? Will KITE only select educated people? These are questions that need to be clearly
defined before further expanding the project.


Communication Center:

Mr. Fukouh has repeatedly expressed an interest in owning a communication center and he has
done a great deal of background market research to support his appeals. Solomon has also
expressed an interest in using Yaakrom to pilot a communication center for KITE‟s REeSI
program. Having a MFP and a REeSI communication center in the same community provides
KITE with an excellent opportunity to reduce costs and be more effective in the field. Therefore
all of the information gathered by the team has been provided to Solomon and he has begun
investigating whether it is a good investment as a REeSI pilot.


Contracts and Ownership

If Mr. Fukouh was encouraged to teach his wife, Akua, the required skills to have a larger role in
the management and bookkeeping of the MFP, potentially she could fully assume the role of
manager and entrepreneur. This may solve a lot of contract and ownership issues that have arisen
in Yaakrom. With the prospect of acquiring a communication center in the future, Mr. Fukouh
may be adequately motivated to do this. However, further contract negotiations and discussions
of communication centers should be put on hold until a decision is made by the REeSI
stakeholders.




                                                                                                  34
DC Lights:

The battery charger in Yaakrom is being under utilized, which will likely be the case for most
small communities that an MFP is installed in. KITE should explore options to increase the
potential of the battery charger, which includes selling DC lights to MFP communities. As little
as 15 lights in a community will have a large impact on the revenues of an MFP. The value of
exploring the sale of DC lights in MFP communities is clear.

The major concern that is raised over using Mr. Armstrong‟s lights is quality. He is using
recycled parts while the University is importing them. The assumption being made is that the
University will produce higher quality lamps that are less prone to failure. However, there is very
little evidence to support the high quality standards assumed of the University. In fact, as a
private entrepreneur, Mr. Armstrong has much more incentive than the employees of the
University to produce high quality lights. To further this point, currently two of the four lights in
Yaakrom are not working, most likely due to wiring rather than the lights, and no one is under
contract to travel there to repair them.

Over the next 5 years KITE and its partners could potentially purchase 1800 florescent lights.
Mr. Armstrong and the University both make DC lights that cost less and are easier to fix than
imported ones. At a current projected cost of 460,000,000 cedis ($51,100 US) to purchase from
the University, KITE should investigate both potential suppliers to see if this cost can be reduced.
This small investment will pay off greatly in the long term. KITE should support Mr. Edwin and
the University in better sourcing components to reduce the cost of their lights. KITE should also
support Mr. Armstrong to produce his own version of the low voltage disconnect with the goal of
producing a low cost one before the installation of the next MFP. Once Armstrong can build a
low voltage disconnect, KITE should purchase one along with four of his DC lights, to be
installed in the next MFP (which will most likely be in Nkrankwanta); once installed their
quality can be compared to those in Yaakrom. A decision based on field experiments and cost
can then be made as to the best supplier of DC lights.

KITE should also investigate other suppliers of DC lights such as DENG. New Energy, KITE‟s
partner in the Northern Region, has experience with DC lights and should also be contacted.


The Gari Market:

It was decided at the MFP workshop in Accra on July 16 that it would not be best for KITE to
give Mr. Fukouh a loan to fix his van. This is most likely a wise decision as the car is of low
quality and there is a high probability of it failing again in the future. However, this leaves the
problem of selling the extra gari produced from the MFP unanswered, greatly reducing the
potential revenues of the Yaakrom MFP.

We believe that identifying new markets where products of the MFP can be sold, expanding the
current level of agro processing in a community, as opposed to meeting its needs, is a valuable
step in the implementation of a MFP in a community. In the planning stages of new MFPs, KITE
should take the time to identify how a community will be connected to a suitable market such



                                                                                                      35
that they can expand their level of production. KITE must verify the potential market for a MFPs
products before they bring any machines to a community.


Finances and Payback Period:

In order for MFP enterprises to be profitable from the beginning and for entrepreneurs to pay
back their loans for the equipment capital costs need to be minimized and services maximized.
This will require a detailed and accurate market survey customized for each community, and
likely the simultaneous creation of a “service market” such as for batteries. It is also
recommended that the 20% mark-up and 10% interest rate be reconsidered and chosen based on
an economical model as currently they are far too arbitrary. It should also be considered that it
may be unreasonable for KITE to expect to recover all loans when considering the time value of
money. KITE must establish profitable enterprises for the rural MFP entrepreneurs. They cannot
be encouraging people to invest in MFPs if they themselves are unsure of the potential value of
this investment.




                                                                                               36
Conclusions:

The battery charger in Yaakrom is being under utilized, as will likely be the case for most small
communities. KITE must explore options to increase the potential of the battery charger and use
the MFP as a source of energy for micro-businesses. During the process of selecting
entrepreneurs for a MFP, the team often identified several potential entrepreneurs in one
community. While some may not have been appropriate for the MFP project, with a minimal
amount of assistance they could start their own smaller micro-businesses. If KITE is to claim that
MFPs have the potential to stimulate micro businesses in a community they should have
information and pilots to support these claims. While the funding to start the micro-business may
come from other sources KITE should create business models that they can recommend to other
potential entrepreneurs. They can then link them to an appropriate source of support. This
includes investigating the potential of battery powered lights, communication centers, freezers,
and water pumps. Where appropriate, KITE should strive to support both the MFP and small
micro-businesses in a community. This includes actively linking MFP and REeSI projects.

The value of taking time to explain in complete detail the financial relationship between all
stakeholders in the MFP project cannot be overstated. It has been seven months since the
installation of the platform, the amount owed to KITE is just under 2,000,000 cedis ($222 US),
and as of yet the entrepreneur has not made a single payment. Whenever the issue of money is
discussed with the Fukouh‟s they always claim a lack of understanding that the MFP was not a
gift and that KITE expected them to pay it back in full. An initial payment to KITE prior to the
arrival of the machines should help establish this relationship and confirm the seriousness of an
entrepreneur. Despite their lack of payment however while the installation of the MFP in
Yaakrom may have been missing vitally important steps during the planning stages, Akua and
Mr. Fukouh have proven to be incredibly hard working, competent, and innovative entrepreneurs.
They have however been reluctant in disclosing their use of the MFP revenues and they may be
over stating their lack of understanding. It is time for KITE to insist that payments begin being
made into the Kumasi Energy account in Dormaa Ahenkro.

The response to the MFP by the women‟s group in Kwadwokrom has proven that to them saving
time is not reason enough to spend money on the services of a MFP. Unless they can use the time
saved to generate more income they would rather continue to process their cassava by hand.
KITE must ensure that the products of a MFP have a market in which they can be sold. MFP
communities will benefit most if KITE were to enable community members to farm their land to
its full potential and receive a fair price for their labour.

We believe that KITE will be able to prove MFPs are sound business investments with the
potential to develop rural communities and reduce poverty. However, to achieve this they must
create a complete MFP business model. The standards for producing a successful business model
for an MFP should not be lower than those set for AREED and other entrepreneurs who apply to
KITE for funding. The team supports the enterprise approach for MFPs in Ghana and the
Yaakrom MFP has provided us with valuable information and experience that we hope will be
used to shape successful business models for future MFPs in Ghana.



                                                                                               37
Appendix A: Bookkeeping Sheets

        YAAKROM MFP DAILY BOOKKEEPING SHEET
  DATE:
                                      REVENUES (¢)
       Corn Mill              Cassava Grater       Battery Charger        Grinding Stone       GENERAL EXPENDITURES (¢)

  # of       Amount        # of       Amount       # of     Amount                 Amount
Buckets     Collected    Buckets     Collected   Batteries Collected      Job     Collected          Description       Cost




                                     DAILY TOTALS                                                       DAILY TOTALS



                DAILY EARNINGS (¢)                          Initials

Total Revenues (¢)                                                     Operator's signature for amount received:
Less Operator Wage (¢) - (7.5% of
Total Revenues)

Less Total Expenditures (¢)

DAILY EARNINGS (¢)




                                                                                                                              38
                              DAILY EQUIPMENT SUMMARY
                     Is it      Total
                  Working     Downtime
   Machine        Properly?    (days)    Description of Problem   Corrective Action Taken

    Engine

   Corn Mill

Cassava Grater

Battery Charger

Grinding Stone




                                                                                            39
  YAAKROM MFP WEEKLY BOOKKEEPING SHEET
DATES:
                                                  REVENUES (¢)
                Corn Mill             Cassava Grater         Battery Charger            Grinding Stone       EXPENDITURES (¢)
           # of          Amount       # of     Amount       # of        Amount                   Ammount     Operator
 Date    Buckets        Collected   Buckets   Collected   Batteries    Collected       Jobs      Collected    Wage        Other




Weekly
Totals


                    WEEKLY EARNINGS                        Initials

         Total Revenues (¢)
         Less Total Operator Wage (¢)
         Less Total Other Expenditures (¢)
         Subtotal (¢)                                                 Signatures for amount received:
         Less Weekly Managers Wage (¢) -
         10% of Total Revenues
         Less Weekly Entrepreneur Wage
         (¢) - 10% of Total Revenues
         WEEKLY EARNINGS (¢) -
         TO BE DEPOSITED



                                              WEEKLY EQUIPMENT SUMMARY
                                                                  Total Equipment Downtime (days)
                                                                                       Corn      Cassava Battery        Grinding
  Date                        Description of Problem                       Engine      Mill       Grater Charger         Stone




                                                                                                                                  40
Appendix B: MFP Addition – Grinding Wheel

Introduction:
While walking through Dormaa it was observed several shops, over four, were using electric
grinding wheels to sharpen tools, primarily cutlasses. We felt that a mechanical grinding wheel
could easily be added to the MFP to increase its current number of functions. The grinding wheel
was subsequently designed, built, and installed in Yaakrom. It can be seen below in Figure 29
and in Appendix A.




                     Figure 29: Grinding Wheel Installed on Yaakrom MFP

The current grinding stone in Yaakrom was built under the assumption it would be used, without
any investigation into the market and its potential use. The lack of investigation into the value of
the grinding wheel was justified by the low estimated cost to produce, around 500,000 cedis ($56
US), and the confidence felt that it would be a success.


Grinding Wheel Manufacturing:

On June 19th the KNUST shops were first supplied with the drawings and materials required to
produce the grinding wheel. The required materials and parts were purchased in Suame, Kumasi,
and the KNUST shops was responsible for the required machining, welding, and assembling of
the parts. Nineteen days later, after several trips to the university, the grinding wheel was not
complete and a final trip to welders in both Suame and Dormaa Ahenkro was required to finally
complete the grinding wheel. The total cost to produce it was $657,000 cedis ($73 US). The
breakdown of these costs can be seen in Table 2.




                                                                                                 41
Table 2: Cost Breakdown of Producing the First Grinding Stone (cedis)

                     Description                            Cost
                     Paint, brush, and sandpaper              6500
                     Drive belt                              30000
                     Grinding stone                          67500


         Materials
                     Bolts and washers                       32000
                     Plate for belt guard                    40000
                     Shaft and mounting plate               120000
                     Pulley                                  50000
                     Bearings                               180000
         Services




                     Cast Welding Rods                        8000
                     Welding in Dormaa Ahenkro                7000
                     Making belt guard                       30000
                     Tro tro loading fees                     6000
         T&T




                     Transportation charged by university    20000
                     Taxi's                                  60000
                     Total Cost                             657000




                                                                        42
                        Figure 30: Grinding Wheel




Figure 31: Grinding Wheel                       Figure 32: Grinding Wheel




                                                                            43
Recommendations:

Initially the belt guard was designed to be a guard for the grinding stone, however upon
installation it was determined that the greatest danger presented by the grinding wheel came from
the belt and pulley, not the stone. When sharpening tools an operator has the tendency to focus
only on the stone, neglecting to pay attention to the belt and pulley. Without a guard it is possible
for the tip of the cutlass to accidentally enter the pulley or the operators arm to rub against the
belt. The guard thus needs to be re-designed to better protect the operator, including shaping it to
direct sparks downwards into the floor.

A second improvement to the design would be to increase the length of the drive shaft. Currently
the shaft is shorter than the length of a long cutlass, resulting in the operator having to work
around the pulley. The combination of lengthening the shaft and re-shaping the guard will result
in safer conditions for the operator. The price of the grinding wheel could also be decreased if
the grinding stone was purchased used from a saw mill instead of from a store (Adai Cutlass,
Adum, Kumasi).

The university has the potential to be a valuable partner however working with them proved to
be frustrating. Approximately 120,000 cedis ($13 US) and many hours of time were needlessly
spent as a result of dealing with them. It should be noted however that Mr. Isaac Adjei-Edwin
was very competent and helpful. We recommend that a private manufacturer produce all further
grinding wheels. It should be possible to produce future grinding stones at the originally
estimated cost of 500,000 cedis ($56 US), perhaps even as low as 400,000 cedis ($44 US).




                                                                                                  44
Appendix C: Proposal to Support DC Light Research

This proposal was written on July 21st and submitted via email to Harriette Amissah-Arthur, Dr.
Abeeku Brew-Hammond, Frank O. Atta-Owusu, and Ishmael Edjekumhene for their review.


Background: Batteries, Low Voltage Disconnects (LVD), and DC Lights

The batteries being used in Yaakrom and by the majority of villagers in Ghana for powering
televisions, radio‟s, DC lights, etc. are regular shallow cycle car batteries. As they are shallow
cycle they are designed to be continuously charged. If they are used to the extent that they
become completely drained the battery is dead. At this point the water has to be replaced and
boiled each time they are charged. The battery will not last long this way and soon becomes
useless. Every battery brought to the Yaakrom battery charger is in this state.

Mr. Edwin and the technicians at KNUST developed a low voltage disconnect (LVD) for their
work with solar energy. The LVD is attached to the battery and acts as a safety switch to protect
it. Once the battery reaches 70% of its fully charged state the LVD disconnects the circuit and
the battery must then be taken to be charged. In their experience a battery with an LVD will last
2-3 years, as opposed to being ruined the first time it is used. As such any new batteries used by
KITE in their projects should have an LVD attached.


DC Lights and MFPs:

The battery charger in Yaakrom is being under utilized, which will likely be the case for most
small communities that an MFP is installed in. We should explore options to increase the
potential of the battery charger. If 20 new batteries were purchased by the residents of Yaakrom,
used to power DC lights, charged once per week, at a profit of 5,000 cedis ($0.55 US) per charge,
for 40 weeks out of a year, this would result in an additional 4,000,000 cedis ($444 US) profit
each year.

Currently the MFP in Yaakrom has 4 DC lights that connect to the LVD, which then connects to
the batteries. When the MFP was first installed several people in community noticed that the
Fukou‟s had lights that were not run off a generator. They did not think this was possible and
approached them to inquire how they worked and if they could purchase one themselves.
Realizing that there were many people in Yaakrom who were interested in the lights I did a
survey and spoke to people about the lights, explained how they worked, told them it would cost
at most 1,000,000 cedis ($111 US) to purchase one (the cost charged by the University shops for
a battery, LVD, and one light) and asked if they were interested. We currently have a list of over
40 names of people who are interested and willing to pay the cost up front. There is also the
potential of selling lights to the clinic, the midwife, and to the schools for a reading room.

The lights and LVD should not be sold to rural people without first educating them as to how
they work and why the LVD is necessary. As part of the MFP program it is already KITE‟s


                                                                                                     45
responsibility to educate the entrepreneur on how the batteries, lights, and LVD work. Once they
understand they can then educate others who purchase the lights, making them ideal retailers of
DC lights and LVD‟s.


The Issues Surrounding Supply:

The lights currently in Yaakrom were made at KNUST by Mr. Edwin and Mr. Acheampong at a
cost of 1,000,000 cedis ($111 US); 350,000 ($39 US) for a 12 V battery, 350,000 ($39 US) for
the LVD, and 300,000 ($33 US) for the DC light. The high cost of the LVD and the light is
because they are being built individually using imported components.

A man named Mr. Armstrong in Kumasi is currently making DC lights for 100,000 cedis ($11
US). They are significantly cheaper because Mr. Armstrong uses recycled components that he
locates in Kumasi. His work is being supported by Professor Fred Akuffo of KNUST and
Kumasi Energy. Prof. Akuffo provided funding to Mr. Armstrong to build 20 DC lights, several
of which will be monitored by Mr. Edwin and the KUNST staff to assess their quality. Mr.
Armstrong also builds DC to AC inverters (3,500,000 cedis for a 1000 W inverter) at a third the
cost of imported inverters.

Mr. Armstrong‟s lights are in fact more efficient than the lights being produced by the University
and will run off a battery charged as low as 6 V. This means that if a new battery is used to
powers his lights it is guaranteed to be ruined if a LVD is not present. He has been selling DC
lights for over 20 years but until now he has not encountered problems with this all of his
customers have batteries that are already dead. The LVD currently being used in Yaakrom was
designed by Mr. Acheampong and until today Mr. Armstrong was unaware that we were using
them. It has now been explained to him what they are and why they are needed.

Mr. Edwin has a list of all of the required components to make the LVD and believes that all
except for three can be purchased locally. He suggested sending Mr. Acheampong to Accra to
verify that the components can be purchased locally and then locate the cheapest and most
reliable suppliers. Upon his return they would then be able to give a quote for the cost of a LVD
which should be less than the current 350,000.

Both Mr. Armstrong and Prof Akuffo are confident however that Mr. Armstrong can built his
own version of the LVD for significantly less than the university shops. However he has not
made one yet and will need to spend time and money experimenting until he has a circuit that is
reliable. He is requesting that KITE find funding to support him to develop his own LVD.


Recommendations:

First, someone in the KITE office in Accra should contact Mr. Edwin (Mobile: 0208156538),
obtain the list of components from him, and ask him and Mr. Acheampong where the best place
to locate the components is. They can then conduct the search and Mr. Edwin can give us an
updated price for their LVD.


                                                                                               46
However Mr. Edwin and Mr. Acheampong desire to build professional systems that are
guaranteed to be reliable and meet international standards. This requires new, high cost
components, and while quality is a concern I believe that even with the locally purchased
components their design for the LVD is unnecessarily expensive (as their design for the DC
lights has already proven to be). I am confident that anything build by Mr. Armstrong will be
significantly less expensive than something purchased from KNUST and be of acceptable quality.

In addition to the low cost of using recycled materials, Mr. Armstrong‟s lights have the added
benefit of being better for the environment. Electronic waste is a significant problem and it is
much better to recycle components versus bringing new ones into the country. The disposal of
car batteries is also a significant environmental problem. KITE should be promoting the use of
LVD as they significantly increase battery life, reducing the rate of battery disposal.

It would be very beneficial for the MFP project if entrepreneurs were able to collect money up
front from customers and place an order for batteries and lighting systems from an urban supplier.
Currently Mr. Armstrong‟s business is small and he is having difficulty selling his lights because
he cannot afford to market them in rural areas. We can solve these two problems and support two
entrepreneurs by connecting the MFP to Mr. Armstrong. It would then be the MFP
entrepreneur‟s option to sell the lights. They could charge a small mark-up on the lights but the
real benefit to their business comes from the subsequent charging of batteries.

Supporting Mr. Armstrong to build the LVD and linking him with the MFP may be the first step
in growing his business to a size that it could be supported by AREED. DC lighting, ideal for
both the MFP project and solar projects, combined with using recycled components, reducing
electronic waste, is clearly a clean energy technology that could benefit Ghana‟s rural population.
KITE is also working on the REeSI project to install rural ICTs in Ghana. They have proposed to
use shallow cycle batteries and are investigating the use of locally made inverters. As such it is
also in REeSI‟s interest to support Mr. Armstrong‟s work.

I believe KITE should support Mr. Armstrong to develop his own LVD. Once he can produce
and deliver the complete lighting system an MFP entrepreneur can place orders with him at a
significantly lower cost than the University. We can compare this cost to the price given by Mr.
Edwin once the component search is completed in Accra. A small investment, in the range of
2,000,000 - 3,000,000 cedis ($222 - 333 US), in Mr. Armstrong has a great deal of potential. As
stated previously, 20 new lighting systems in Yaakrom alone will produce an additional
4,000,000 ($444 US) in a year‟s time. If an MFP is installed in Nkrankwanta, the number of
potential battery chargers could easily increase to over 100.




                                                                                                   47
Appendix D: List of Potential DC Light Customers

The following is the list of names gathered in Yaakrom of people who said they would be willing
to pay 1,000,000 cedis ($111 US) for a DC lighting system with one florescent lamp. We did not
expect such a large response and decided to stop taking names and focus on just counting the
number of people. Many people insisted however on having their names written down so we
could contact them later. There were 21 people in addition to the following list whose names
were not recorded, for a total of 47 people. This includes 4 people from Kwadwokrom.

   1. Charles Frempong – Poultry farmer
   2. Simon – Cold store owner
   3. Mr. Ameyew Kofi – Storekeeper by Tro Tro station
   4. Mr. Frimpong – Beer bar owner
   5. The new Roman Catholic church
   6. Kwabena Adu – Head teacher
   7. Mr. Yaw – Retired teacher, owns drugstore. Requested a minimum of 3
   8. Ben – Poultry farmer and customs officer in Accra
   9. Edward Yaw Barima – Assembly man‟s brother
   10. Daniel Amouko
   11. Mr. Steven Owousu
   12. Kwame Badu – Assembly Man
   13. Kwasi Peter
   14. Martin Chiray
   15. Mr. Amousis
   16. Yeboa Michael
   17. Mr. Vincent Opong
   18. Frimpong Maa
   19. Yah Adenkra
   20. Josephina
   21. Boakye Steven – Teacher
   22. Takyiwaa Grace – Teacher
   23. Kwadwo Alankesa
   24. Abraham
   25. Grace Tabeah – Midwife (only person we spoke to who was concerned she could not
       afford it)
   26. Amma




                                                                                            48
Appendix E: Sun Frost Product Information

The following are emails from Sun Frost (www.sunfrost.com), an American company that works
primarily with solar systems. They claim to makes the world's most energy efficient domestic
refrigerators and freezers. Their domestic and DC vaccine refrigerators are currently being used
in more than 50 countries, and are available for use with AC or DC power. They were very
helpful and knowledgable and would be an excellent resource if DC refrigeration was further
investigated.

From: shipping@sunfrost.com           To: cjr312@mail.usask.ca              July 21

Hi Chris,

We build DC freezers which can be run directly off batteries (no inverter needed). A price list is
enclosed. We will sell the units to you at our lowest (Wholesale minus 5%) price.

Note from my boss: In terms of energy use it may make more sense to store the fish at about
30ºF (-1ºC) unfrozen. Fish caught in the tropics and rapidly cooled and stored at this
temperature can be stored for a long time. We suggest trying this mode of storage. If you do,
please let us know the results.

In terms of getting a freight quote, we would be happy to do so, but need to know which units
and quantities before we can get a valid quote. I am attaching our product list and interior
dimensions to help you decide.

Energy use for our units is provided on the attached product list. This information should help
you determine how often the batteries would need to be recharged.

Please let us know the details on unit types and quantities so we can help you further.

Regards,
Melissa


From: shipping@sunfrost.com           To: cjr312@mail.usask.ca              Aug 10

Hi Chris,

The cost to ship one F4 to Ghana would be about $900 by air or $550 by sea. The cost to ship
one F10 to Ghana would be about $1200 by air or $550 by sea. The per unit shipping cost would
decrease with more units shipped.

Regards,
Melissa



                                                                                                  49
                                                                SUN FROST
                                                                  Product List

                                                         Daily Energy Use                                    Dimensions                 Shipping
Model          Description                   (amp hrs @ 12 volt DC / Kwhrs @ 110 volt AC)               (see clearances below)       (Export add 40 lbs.)
                                               at 70°F / 21°C                at 90°F / 32°C         Height      Width      Depth     Weight       Volume

RF19* Half Refrigerator & Freezer        62 amp hrs/ .77 Kwhrs         82 amp hrs/ 1.02 Kwhrs        66"        34.5"      27.75"    320 lb.      46 C.F
 R19    Refrigerator Only                28 amp hrs/ .33 Kwhrs         47 amp hrs/ .56 Kwhrs         66"        34.5"      27.75"    310 lb.      46 C.F
 F19    Freezer Only                    100 amp hrs/ 1.25 Kwhrs 130 amp hrs/ 1.63 Kwhrs              66"        34.5"      27.75"    320 lb.      46 C.F

RF16 Refrigerator-Freezer                40 amp hrs/ .48 Kwhrs         58 amp hrs/ .70 Kwhrs        62.5"       34.5"      27.75"    300 lb.      44 C.F
RF12 Refrigerator-Freezer                24 amp hrs/ .29 Kwhrs         39 amp hrs/ .47 Kwhrs        49.5"       34.5"      27.75"    230 lb.      36 C.F

 R10    Refrigerator Only                13 amp hrs/ .17 Kwhrs         23 amp hrs/ .28 Kwhrs        43.5"       34.5"      27.75"    215 lb.      32 C.F
 F10    Freezer Only                     55 amp hrs/ .69 Kwhrs         70 amp hrs/ .88 Kwhrs        43.5"       34.5"      27.75"    215 lb.      32 C.F

 RF4    Refrigerator with ice tray       12 amp hrs/ .14 Kwhrs         18 amp hrs/ .21 Kwhrs        31.5"       34.5"      27.75"    160 lb.      23 C.F
 R4     Refrigerator Only                 8 amp hrs/ .10 Kwhrs         12 amp hrs/ .14 Kwhrs        31.5"       34.5"      27.75"    160 lb.      23 C.F
 F4     Freezer Only                     28 amp hrs/ .35 Kwhrs         36 amp hrs/ .45 Kwhrs        31.5"       34.5"      27.75"    160 lb.      23 C.F

RFVB Vaccine Storage Unit                14 amp hrs/ .17 Kwhrs         23 amp hrs/ .28 Kwhrs        31.5"       34.5"      27.75"    160 lb.      23 C.F


        Voltage: All models are available in 12 volt DC, 24 volt DC, 110AC, or 220AC. Listed energy consumptions are for 12 volt units;
                 24 volt units use half the listed amp hours. Kwhrs are listed for AC units.
        Colors: A wide variety of custom laminates and wood veneers are available. Standard color is white.
        Terms: Pre-payment required. Production will not begin on custom colors/wood veneers until full payment is received.
        Clearance: The doors are mounted on a continuous piano hinge. It is important to allow an aditional 3.75" width on the
                    hinge side for the door to open. All units require minimum 6" clearance above to allow for heat ventilatation.
        Base Cabinets: Custom built with two side by side drawers. Available in 13" and 24" heights or 4" stand.
        Interior Dimensions: See reverse side.
        Composter: Attractive Solid Oak Composter available. Please see enclosed brochure.
        *Model RF19: Choice of freezer on top or bottom
                                                                                                                                               prdctl03.xls




                                                                                                                                                       50
                                                     SUN FROST
                                                  Wholesale Price List

                                         Wholesale Prices        Wholesale-5%        Crating Weight Volume     Suggested Retail
Model Description                                                                     Fee    (lbs.)  (CF)
                                          DC       AC            DC       AC                                    DC       AC
RF19* Half Refrigerator/Half Freezer $2,324         $2,167      $2,208     $2,058     $60      320        46   $2,800    $2,645
 R19 Refrigerator Only               $2,062         $1,983      $1,959     $1,884     $60      310        46   $2,539    $2,460
 F19 Freezer Only                    $2,377         $2,219      $2,258     $2,108     $60      320        46   $2,855    $2,698

RF16 Refrigerator/Freezer                $2,177     $2,020      $2,068     $1,919     $60      300        44   $2,655    $2,497
RF12 Refrigerator/Freezer                $1,654     $1,574      $1,571     $1,495     $50      230        36   $1,979    $1,899

 R10   Refrigerator Only                 $1,364     $1,303      $1,296     $1,238     $45      215        32   $1,595    $1,515
 F10   Freezer Only                      $1,469     $1,396      $1,396     $1,326     $45      215        32   $1,700    $1,620

 RF4   Refrigerator with Ice-Tray        $1,175     $1,116      $1,116     $1,061     $45      160        23   $1,385    $1,305
 R4    Refrigerator Only                 $1,175     $1,116      $1,116     $1,061     $45      160        23   $1,385    $1,305
 F4    Freezer Only                      $1,175     $1,116      $1,116     $1,061     $45      160        23   $1,385    $1,305

RFVB Vaccine Storage Unit                $1,505     $1,505      $1,430     $1,430     $45      160        23   $1,725    $1,725


       RFVB Quantity Discount: Over 25 RFVBs on one purchase order: unit price $1,395

       Voltage: All Models are available in 12 volt DC, 24 volt DC, 110AC, or 220AC.
       Discounts: Pricing is Wholesale-5% once five units have been purchased within a 12 month period.
       *Model RF19: Choice of freezer on top or bottom

                      Base Cabinets:              Wholesale                  Suggested Retail
                                         White     Color        Wood       White Color Wood
                     Four inch stand      $53       $63         $68         $79     $89    $95
               Thirteen inch cabinet     $220      $252         $273       $260    $299 $325
            Twenty-four inch cabinet     $262      $294         $315       $305    $340 $365
                                                                                                                   Wholesale03.xls




                                                                                                                               51
                                                                           SUN FROST
                                                                       Interior Dimensions
                                           Freezer                                                    Refrigerator                              Total
                                                               Volume                                                   Volume               Volume
  Model           Height        Width        Depth          CF      Liters           Height   Width      Depth       CF      Liters       CF      Liters
   RF19             24            28         20.75         8.07         228.5          24      28        20.75       8.07     228.5      16.1           457
   R19 *            24            28         20.75         8.07         228.5          24      28        20.75       8.07     228.5      16.1           457
   F19 *            24            28         20.75         8.07         228.5          24      28        20.75       8.07     228.5      16.1           457
    RF16            13            26           20          3.91         110.8          31      28        20.75       10.4     295.2      14.3        406
    RF12            6.5           26           21          2.05          58.2          24      28        20.75       8.07     228.5      10.1       286.7
    R10            -----         -----        -----        -----         -----         28     27.5        20.5       9.13     258.7      9.13       258.7
    F10             28           27.5         20.5         9.13         258.7         -----   -----       -----      -----     -----     9.13       258.7
    RF4            2.25           26           20           .68          19.2         10.5     26          20        3.16      89.5      3.84       108.7
    R4             -----         -----        -----        -----         -----         13      26          20        3.91     110.7      3.91       110.8
    F4              13            26           20          3.91         110.8         -----   -----       -----      -----     -----     3.91       110.8
   RFVB              4            26           20           1.2          34.1           6      26          20         1.8      51.1       3.0        85.2
* Unit has two equal size compartments - both freezer for F19, both refrigerator for R19

                          Crated Dimensions                                                                         Base Cabinet Dimensions
   Model          Height   Width      Depth                 CF           CM                              Model     Height   Width      Depth        Weight
    19's           72         37        30                  45           1.27                          4" stand      4       34.5      27.75         25
    16's           69         37        30                  43           1.22                          13" cab      13       34.5      27.75         60
    12's           56         37        30                  35           0.99                          24" cab      24       34.5      27.75         110
    10's           50         37        30                  32           0.91
     4's           36         37        30                  23           0.65
   RFVB            38         39        31                  27           0.76
                       Export Crated Dimensions                                                                   Base Cabinet Crated Dimensions
   Model          Height   Width      Depth                 CF           CM                              Model     Height     Width      Depth       CF
    19's           75         39        31                  53           1.50                          4" stand       6         38        30         3.9
    16's           72         39        31                  51           1.44                          13" cab       16         38        30        10.56
    12's           59         39        31                  42           1.19                          24" cab        27        38        30         17.81
    10's           53         39        31                  37           1.05
     4's           38         39        31                  27           0.76
   RFVB            38         39        31                  27           0.76                                                              InteriorDim04.xls




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