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8.3.2 Non-Monetary Costs
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8.3.2 Non-Monetary Costs

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For many rural vitalization projects, households are expected to contribute non-monetary support or costs (NMC) towards the project. NMC may include providing a set number or quota of hours for labor, providing local raw materials (sand, gravel, wood, and other materials), donating land to construct the project or to store materials during the construction of the project, providing or transporting of heavy equipment or materials to the site, providing room and board for outside construction workers, and time spent for project administration and coordination in the village.

 

Prior to expending any NMC, it is important for the villages and the project sponsors to clearly establish the valuation of the NMC, such as, the equivalent monetary rate for one hour of labor or the cost per ton of sand provided. Establishing the exchange rate of NMC upfront will avoid potential conflicts and misunderstandings later. It is also very important for a village to maintain a good accounting of all the NMC expended on the job.

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