PROJECT DOCUMENTS

Challenge:

Finding a strategy that improves the service to the children but also allows the project to achieve self-sustainability.

Establishing the real costs:

In order to establish the basic facts for a concept of self-sustainability the real costs for the operation of the telecentre had to be established. Extensive calculations have been undertaken to establish these, and would go to far here to represent them here in detail, but the following cost factors have been taken into account:

Local:

• Rental Local
• Local conversion
• Installation phone lines
• Furniture
• light
• Water
• Cleaning
• Sanitary services
• Security ( security equipment & guard )
• Air conditioning (incl. Maintenance)
• Electrical installation ( incl. Maintenance)
• Computer hardware:
• pC’s
• printer
• CD burner
• Scanner
• Fax
• Regulators
• Upgrades

Note: ( based on a expected lifetime/need to replace of the equipment of 2 years and maintenance costs of 20% of the equipment purchase costs per annum.

Software:

• Initial Software purchase
• Software upgrades
• Reference materials
• Training manuals

Computer consumables:

• Discs
• Write able RD-Rom’s
• paper
• Ink Cartridges

Staff:

• Salaries
• benefits

Training Staff/Volunteers:

• Training courses/ trainers
• Equipment use
• Reference materials
• Training manuals

Training Children/Educators:

• Trainers
• Equipment use
• Reference materials
• Training materials

Other operation costs:

• phone
• Administration/Accounting/Legal Costs
• Outreach and promotion
• Insurance
• Taxes
• Operational Reserve

The following operational costs (excluding Staff/ Training/Technical support, External support, Development of teaching materials, Measuring and Evaluation.), after the start-up costs have been established: ( all in USD $ )

Usage of desktop pC, without Internet accessUSD 0.52 per hour
Usage of desktop pC, with Internet accessUSD 1.16 per hour
Printout, black/whiteUSD 0.10 per page
ColourUSD 0.20 per page

This results in:

Training a group of 10 children/educators for one hour without the use of the Internet minimum costs:USD 2.6/ hour
Training a group of 10 children/educators for one hour with the use of the Internet minimum costs:USD 5.8/ hour
Use of pC for children/educator without the use of the Internet:USD 0.52/ hour
Use of pC for children/educator with the use of the Internet:;USD 1.16/ hour

The telecentres average use per week:

Training courses children/educators without Internet use: 8 hoursUSD 20.8
Training courses children/educators with Internet use: 12 hoursUSD 69.6
Use of pC for children/educator without the use of the Internet: 40 hours;USD 20.8
Use of pC for children/educator with the use of the Internet: 60 hoursUSD 69.6
Resulting in real operational costs after the start-up costs of the telecentre of USD 180.8 per week, or 723.2 per month or 8678.4 per year.
Including the present staff costs of a average USD 250 per month, this results in USD 243.3 per week, or 973.2 per month or 11678.4 per year.
Including the real cost for staff/training children, educators and volunteers of an average USD 300 per month ( = 4 days of training ), this results in USD 318.3 per week, or 1273.2 per month, or USD 15278.4 per year.
Including the cost of a technician (currently covered by Chasquinet staff )of USD 450 per month, this results in USD 430.8 per week, or 1723.2 per month, or USD 20678.4 per year.
Including the real costs of external support of the telecentre (Chasquinet/CEFODI) of USD 300 per month, this results in USD 505.8 per week, or 2023.2 per month, or 24278.4 per year.
Including the costs of developing training strategies and materials, research and evaluation strategies and implementation of USD 250 per month (currently covered by Chasquinet), this results in USD 568.3 per week, or 2273.2 per month, or 27278.4 per year.

Looking for possible models of self-sustainability

(keeping in mind the mission and the needs of the community)

The recently published book: "Assessing Community Telecentres. Guidelines for Researchers" by Anne Whyte, IDRC 2000, offers on page 38 a useful of list of possible revenue options, worth quoting here:

1. Grants
2. public subsidies
3. private donations, fund-raising events
4. In-kind support (e.g., equipment, volunteers)
5. Community support (e.g. rent-free building)
6. Membership fees
7. Revenues earned from core business:

1. Connectivity (phone, fax. Internet, web pages)
2. Direct computer access to users
3. Office services (photocopying, scanning, audiovisual aids

1. Revenues earned from ancillary activities:

1. business services ( word-processing, spreadsheets, budget preparation, printing, reception services
2. Educational services (distant education, training courses)
3. Community services (meeting rooms, social events, local information, remittances from migrant workers)
4. Telework and consulting
5. Specialized activities (telemedicine)
6. Sales (Stationary, stamps, refreshments, etc.)

All the options of the above list have been discussed in detail with the following results:

Grants. The project is based on a existing IDRC/DFAIT grant that is running out in Jan 2000 and a further grant is not likely as no indications in this directions have been made by the original funders. The project has too investigate if there are other funders available and has to prepare funding applications. However given the shortness of time between now ( August ) and the time the original funding runs out ( January ) it is very uncertain that a funder can be found.

public subsidies. public subsidies are simply not available in Ecuador given the economical situation at the moment.

private donations, fund-raising events. Esmeraldas is one of the poorest regions of Ecuador with a average income of USD 30 per month. past experiences have shown that fundraising events show very poor results and private patronage was not forthcoming so far and cannot be expected in the future. However it might be worth a try to create a information brochure about he project and to approach private persons and companies active in the region, requesting support.

In-kind support: (e.g., equipment, volunteers). The project is supported by technology students of the catholic University of Esmeraldas who act as volunteer educators. This provides the students with valuable practical experience. Fundacion Chasquinet is supporting the project with equipment and technical support.

Community support: (e.g. rent-free building) The present local of the telecentre has been provided rent-free by the Salesianos Chico’s de la Calle project but all other costs connected with the local, like electricity, water etc. have to be covered by the project.

Membership fees: No membership fees can be asked for at the present as the Street Children have not the resources to contribute even a nominal sum. However a membership fee could be considered if the services are expanded to the wider public.

Revenues earned from core business: This option of self-sustainability had not been developed by the project. It was decided to develop a structure to offer the services of connectivity (phone, fax, Internet) direct computer access and scanning but at this stage not web pages as the expertise for this does not exist in the moment and not photocopying and audiovisual aids as either there are enough facilities available in the region or as lack of the necessary equipment and their high purchase costs (photocopier, data-show).

Revenues earned from ancillary activities: business and reception services, telework and consulting, Special activities and community services can not be offered due to lack of expertise or available space. These services could be offered as the IT expertise of the project is developing.

remittances from migrant workers represents a very interesting element for self sustainability as Ecuador and in particular Esmeraldas are a remittance based economy, the costs of money transfers are very high ( typically 53 dollars per 1000 dollars transferred) and the project has with CEFODI and Chasquinet partners that have either experience in the implementation of the technology or long term experience with managing finance (CEFODI has a successful micro finance section).

Sales: If the telecentre could be opened up for the wider public revenue could be secured through sales of computer consumables.

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