1. AIDG Appropriate Infrastructure Development Group Sustainable Solutions to the Infrastructure Needs of the Rural Poor

2. Overview Mission Method Motivation Technologies Xela Teco Our Partners

3. Mission AIDG seeks to increase the use of appropriate technologies in developing countries through education, training, outreach, and business incubation

4. Appropriate Technology: Affordable

5. Appropriate Technology: Environmentally Sound

6. Appropriate Technology: Repairable

7. Our Method

8. A Business Model to Create Change Market based development strategy Spreads appropriate technology solutions through incubation of small employee- owned businesses After 3 yrs, business is transitioned to a worker-owned cooperative

9. Assistance to Workshop Financial Assistance –Seed capital –Community exposure through grant supported and pre- negotiated projects Material & Equipment Procurement Business Planning –Market Analysis –Client Procurement –Financial planning Fine casting sand, power tools

10. Assistance to Workshop Technical Assistance –Access to Technology, Training, Product Development, Quality Control, Good Manufacturing Practices –Computer training, Web development

11. Model Sustainability Post-incubation temporary agreements –Profit-sharing agreement: 10% of profits incubate next AIDG business –Sole product distribution rights in N. Amer, Europe, Japan Previous workshops help AIDG techs to train new workshop employees

12. Motivations

13. Cuba Experience I. 2 pig farms about 20 miles outside of Havana –Farm A. One with a biodigester for treating pig excrement Farm was clean with an uncontaminated source of well water. Biogas used for lighting, a stove and a hot water heater. The fertilizer bolstered the productive capacity of soil. Tree cover maintained

14. Cuba Experience II. –Farm B. No biodigester Pig excrement contaminated the nearby water source Inefficient wood fires which created a good deal of smoke Most of the surrounding trees were cleared. Cost of kerosene for lighting –Issue: Nowhere Farmer B could purchase this technology

15. Sustainable Development “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs –The Brundtland Commission, Our Common Future (Oxford : Oxford University Press, 1987).

16. Sustainability Triangle: Economic Development

17. Sustainability Triangle: Ecologic Integrity Creation of small scale foundry for casting recycled aluminum

18. Sustainability Triangle: Equity

19. Our Technologies

20. Biodigester

21. Windmill

22. Micro-hydroelectric

23. Water

24. AIDG in Guatemala

25. 08/2005 AIDG began training at its 1st manufacturing facility. Team: 10 engineering, electrical, & metal- working specialists 2008, Xela Teco will transition into a worker-owned cooperative

26. Quetzaltango, Guatemala

27. Guatemala Assessment: Electricity & Water Electricity –50+ % non-electrification rate among rural villages –Households using trad alternatives for lighting pay about 80 times the price of electricity. Water –50+ % rural households no access to water service; use natural sources –75% of home w/ piped water, buy bottled or treat water –Lack of access to clean water major contributor to <5 mortality

28. Guatemala Assessment: Cooking Liquid propane gas (LPG) most common in urban areas. Firewood is used more often in rural locales –Purchased firewood is also common; costs more than LPG –Cooking with biomass fuels (e.g. wood, dung, etc.) is linked to acute respiratory tract infections, particularly in children.

29. Guatemala Assessment: Sanitation in Animal Husbandry Most common solutions –Construction of pigpens near rivers or creeks –Use of PVC pipe to transfer waste to a river or creek –Daily collection of manure –Creation of a waste lagoon in a field. Waste Lagoon

30. Opportunities provided by Guatemalan Law Law of Promotion of New and Renewable Sources of Fuel –Compels the Bank of Guatemala to offer a credit line for the financing of certain renewable energy projects Article 129 of the Constitution declares the country's electrification a national urgency Electricity Law (Decree 93-96) of 10/06/96 de- monopolized the energy sector & opened it to full private-sector participation.

31. Local Partner: CEDEPEM Experimental rural technology development organization Largest development agency in Xela Has done significant greenhouse & water pump projects with EU support. AIDG installed 2 windmills at CEDEPEM demonstration centers in Rancho de Teja and Chichaclan

32. Recruiting

33. Starting the Business Starting a corporation was prohibitively expensive –$1200, mostly notary public fees –Compared to $50 in Massachusetts Started Xela Teco as a sole proprietorship –$300

34. Changes in Wages by Sector (1990-1999) Source: World Bank, 2001 $1=7.5Q; 3000Q= $400; 1000Q=$133

35. Existing Protection for Workers in Guatemala Living Wage IGSS –Social Security –Health Insurance –Worker’s Compensation

36. Potential Customer Base Advantage: low cost products, installation & repair/maintenance services Infrastructure development NGOs Public institutions Large farming operations Private contractors Private individuals

37. Barriers to Uptake Lack of knowledge of technologies Ease of use Cultural practice or other needs –Wood fire: energy, warmth, light Pricing: –Significant efforts to make base products affordable to an individual rural family using a micro-loan HPDE biodigester, high efficiency stove, ram pump –Typical micro-loan about $70

38. The Xela Teco Team

39. Our Partners

40. Casa Guatemala

41. Biodigester Project

42. Comunidad Finca Nueva Alianza

43. Biodigester Project

44. Rancho de Teja & Chicaclan

45. Windmill Projects

46. For more information AIDG –www.aidg.orgwww.aidg.org –info@aidg.orginfo@aidg.org Appropriate technologies –www.aidg.netwww.aidg.net Xela Teco –www.xelateco.comwww.xelateco.com