Project Title:
Low-cost IT center for the Philippines

Recipient Institution:
Engineers Without Borders

Project Leader:
Nabeel Al-Kady
nabeela@ewb.ca; parker@ewb.ca

URL:
http://www.ewb.ca/

Amount and Duration: US$ 9,000 / 6 months

Project Proposal

1. Project Background and Justification

This project proposal is for phase two of a three phase project that is designed to help bring low-cost IT training and services to communities throughout the Philippines.

1. Phase one was the construction of a low cost IT center in the TESDA Lingayen training facility;
2. Phase two (current phase) is the research phase to test the results and replicability of the model in Lingayen, as well as setting up and testing three more centers
3. Phase three will be the role out, if it is deemed beneficial, of the model to those TESDA and other community centers that seek to offer IT services throughout the Philippines.

In this section we identify the research problem to be solved, review the first phase of the project, and then highlight the context of the current phase.

The need for a low cost IT center model for rural and peri-urban areas in the Philippines
The recent opportunities afforded by ICTs have led many development organizations to seek to set up IT centers in developing communities to offer access to computers and the internet. NGOs will set up such IT centers and build local capacity to ensure sustainability.

The Filipino government has identified a national competitive advantage in ICTs and is promoting a number of national strategies to support ICTs and computer training across the country.

However, this initiative risks leaving some Filipinos behind. Outside of major urban areas, IT training is not very widespread and there is a significant lack of low-cost IT training programs that are affordable to the less well-off. Also, many IT centers are offering very simple services: Internet access and basic computer training. There is an opportunity for community IT centers to offer more innovative programming that addresses the needs of the poorer members of their communities.

The challenge with IT centers is to design their creation and programming in such a way that positive development outcomes result and that they are replicable. As we all know, ICT is a means to improved development, and not a goal. To ensure positive development outcomes, sustainability and replicability, three principles must be followed:

• Low initial cost borne by the centre, so as to not force the centre to charge large fees to recoup the capital investment.
• Innovative programming that 1. Offers innovative services that benefit the poor and 2. Contains a cost structure for services that is based on a pay-what-you-can principle, such that all people can have access to the services.
• Local skills must be built to maintain and repair the IT centre long after the implementing company/organisation has departed.

This research proposal seeks to demonstrate the viability of a low-cost IT centre and produce guidelines on a training program and other services. The goal is to create a replicable model for the Philippines and beyond.

Phase 1 - Completed successfully
The project started when two groups worked together to set-up an IT centre in TESDA Lingayen. TESDA is the Technical Education and Skills Development Authority, a national government body providing technical and vocational skills to Filipinos. While TESDA is a national body, there is considerable provincial, local autonomy. TESDA Lingayen wanted to set up an IT centre to offer computer courses in their area, which was not served by any other organisation. They approached Engineers Without Borders to see about a partnership. The EWB representative in the Philippines, Ryan Ferrer and an EWB representative from Canada, Louis Dorval, met with TESDA Lingayen in July 2001 to determine the feasibility of the venture.

It was soon determined that there was a good fit. TESDA Lingayen had considerable expertise offering training courses in other areas, and was a respected organisation in the community. Engineers Without Borders had experience with IT centers and would provide technical, financial and IT support to the project. It was determined that the partnership would result in:

• The installation of 15 computers and all the necessary hardware and software in TESDA Lingayen
• The creation of a computer literacy training program
• The training of TESDA teachers to administer this computer literacy program
• The setting up of committee in the local government to ensure the long term financial and technical sustainability of the project

The goal was that this centre could then offer low cost services in the community.

This center is now operational; 7 sets of 15 people have benefited from one-month courses in IT training and many more will before the year is out. This center is providing a clearly valuable service (that people are willing to pay a moderate sum for) and is self sustaining is a strong suggestion that the project is an initial success.

Moreover, this partnership between TESDA Lingayen and EWB represented a cost-effective way to create an affordable IT centre for affordable training. The direct financial cost of the project was 7,000USD (supplied by EWB), which is extremely low for an IT centre. The low cost was possible due to the ability of both groups to provide in-kind donations of personnel time (no salaries were paid to complete this project) and of hardware and software.

Accessibility was ensured by a system of differential pricing based on ability to pay. This was tested by having TESDA officials interview prospective applicants for the programs; those deemed less-able to pay were charged »$6 (USD), individuals with reasonable income »$15 (USD), and businesses »$40 (USD)/employee to undergo the complete training program. The program was also modular so that one can choose to only register for individual parts and pay only for the desired modules. This ensured that the centre covered costs, and yet was accessible. Finally, due to the low initial cost, these training fees were less than 20% of commercial comparable courses.

Subsequent to this project being completed, a number of TESDA centers and other groups would like to replicate this model in different areas in the Philippines, and they approached EWB to initiate a similar partnership. The partnership requires both parties: local groups with experience in training drive the project, but EWB supports them through in-kind contributions of hardware, software and technical assistance. It was determined that such a project wascertainly replicable, but that before such IT centers were started, research should be conducted to determine the model most likely to have positive development outcomes.

This research will be undertaken with three partner organizations: EWB, TESDA Lingayen and the province of Sarangani, which is planning to set up three IT centers in 2003 with EWB support . The province of Sarangani was chosen due to its rural characteristics and current state of IT. The end result of this initiative will be two-fold: there will be three additional IT centers in Sarangani province, serving the rural population there, and there will be research outcomes to prove the sustainability of this project in other areas in the Philippines.

Current project
Phase II (the current phase) of this project involves evaluating and developing the three principles behind the project:

• How can an IT center be set up for the lowest possible cost without sacrificing
  development outcomes or long-term sustainability? Given that TESDA Lingayen was a pilot project, is it possible to bring this cost down to 3,000-4,000USD per 15-computer IT center? How can this set-up minimize the intervention of an outside agency such as Engineers Without Borders? Such a low cost will ensure replicability.
• What type of IT training program (duration, content, cost, training method etc.) will
  ensure the development outcomes of making ICT available to the less well off while
  not sacrificing sustainability? This mainly relates to cost-of-programming - costs must be recuperated in order to ensure upkeep. What other services could the IT center offer that would help the local community?
• How can local capacity be built to ensure sustainability?

It is for this research phase that TESDA center, Engineers Without Borders and the province of Sarangani are applying for the PAN Asia ICT R&D Grant.

Once further research has identified the desired outcomes and roles of each of the actors, phase three will involve roll out to 20-40 TESDA (and other) centers in underserved areas of the Philippines

3. Project beneficiaries

The immediate benefits of the project are that three more IT centers will be servicing between 500 people each per year, offering them a one month, affordable IT training. This is calculated by: 15 people, 12 one-month courses, 3 centers - just over 500 people per year.

Assuming a minimum life of three years per project (very conservative), this means that 1500 people will be computer literate. This translates to a cost of less than 10$ per person, based on current project costs of roughly $12,000 USD (part of the direct project costs are borne by the involved parties). With a realistic lifespan of 5 years, this drops to 5$ per person.

Thus, the direct project beneficiaries are less-well-off Filipinos who will have access to affordable IT training. Their families will also benefit from their new skills and knowledge. Without a low cost introduction to IT, these Filipinos risk being left behind as the Philippines build computer literacy skills. The immediate benefits are increased employability. As well, many unforeseen secondary benefits will likely arise as poorer members of society understand how they can use ICTs to accomplish their own development objectives.

Secondly, research benefits include a better understanding of the above questions for TESDA, EWB, the province of Sarangani and other partners. This improved programming will enable the project to progress to phase three and to ensure low cost ($5 - 10$ per person) access to IT training for thousands of poor Filipinos. Thus, Filipino and other NGOs who are interested in setting up IT centers for training or other purposes will benefit from having access to in-depth reports about such centers.

Finally, TESDA, DOLE and the three municipalities in Sarangani province will now have the capability and trainers to offer IT training. This access will improve their own internal capabilities.

4. Project sustainability

The IT centers are designed to be independently sustainable. Once they are set up, four characteristics ensure this:

1. They are integrated into an existing training and management facility

TESDA is an established educational authority in the Philippines offering the constituents of each provincial TESDA centre training in trades such as carpentry, welding, automotives, among others. By locating the low cost IT Centre there, it will result in the addition of computer and ICT literacy to the list of trades already offered at TESDA centers.

2. The setting up of the IT center is done by the local TESDA staff, in collaboration with EWB.

Many TESDA centers in the Philippines currently lack the capital and human resources to be able to add computer and ICT literacy to their list of programs. However, each TESDA centre does have an infrastructure already in place for enrolling and certifying applicants and students. The strategic fit is in that EWB supports TESDA centers with the up-front capital and expertise costs associated with the option of adding computer and ICT literacy to their menu; the enrolment procedures, certification, and other administration is already performed by TESDA. TESDA centers also have instructors who teach numerous trades; these people have considerable knowledge and experience in pedagogical methods. EWB trains these instructors to be able to teach computer literacy as well. Essentially, EWB is contributing resources and training, but the IT centre is set up, run, and sustained by the local TESDA staff.

3. A local committee is set up to manage longer term issues

Due to the importance of sustainability of the project economically and socially, a committee is stuck in the local government to overlook and maintain the project. In TESDA Lingayen these members include administrators from the TESDA centre, members from the provincial Management Information Systems Office (MISO), as well as members from the Public Employment Services Office (PESO). An example of this committee's activities came in October 2002 when one of the computer machines installed in TESDA Lingayen required maintenance, and members from MISO (skilled in computer systems) were able to send a technician to the TESDA centre to perform the maintenance.

4. The training program is set up to provide revenues that cover cost of services.

There are many costs of running the center: teachers' salaries, regular maintenance, center overhead and new capital costs must be covered to ensure sustainability. These costs must be recouped through user fees/course registration costs. The project incorporates a differential fee structure (as explained above) to enable low-income people to be subsidized by regular-income people taking the course.

These four measures ensure sustainability.

5. Project methodology

The project is undertaken based on a number of principles. These principles ensure that:

a. Development outcomes are achieved.
b. These outcomes are achieved at the lowest possible cost.

The steps in the process of setting up an IT centre are as follows:

1. A local group in the Philippines identifies the potential benefits from setting up an IT centre in conjunction with their existing training courses (the three centers in this current proposal are located in Sarangani province in southern Philippines).
2. The group contacts EWB's representative in the Philippines, Mr. Ryan Ferrer, to determine feasibility. If the project will benefit those who would not otherwise have access to affordable ICTs and ICT training, EWB agrees to work with local group to support their efforts to set up an ICT Centre in the most cost-effective manner possible.
3. The local group prepares a centre for the introduction of computers and ensures that staff are trained and prepared to undertake both the setup and the subsequent teaching.
4. EWB sources computers, monitors, other hardware and software from corporate donations in Canada, works with the local partner to develop appropriate computer literacy training materials and ensures shipping of the material to the Philippines (This shipping is low cost by using a Filipino shipping agency).
5. This entire process is moderated by EWB's Filipino representative, Mr. Ryan Ferrer who ensures communication and that both groups are adequately prepared.
6. EWB members from Canada travel to the Philippines to spend 3-4 months with their local counterparts setting up the centre and sharing their knowledge of computer training programs.
7. The local partner shares with EWB the success and failures of the project so that future projects can have even more impact.

This was the process that built the first centre at such a low cost and future centers are equally replicable. The principles that ensure this are:

Pre-preparation
Both partners work together for 6-12 months prior to the initiation of an IT center to make sure that everything is in place for a successful center set up.
Partner commitment.
To ensure that both partners are committed to the project, EWB and TESDA both contribute their own resources to this project in-kind.
Use Appropriate technology
The newest computers are not necessary for these training programs. Pentium 1s running WindowsÒ 95 or Linux may be sufficient.
Leverage free/in-kind resources
Donated computers that are shipped to the Philippines (if they are not available locally) have proved to be a cost effective way of supplying the hardware. The Lingayen center is run from donated equipment and there is no problem as yet. The in-kind resources for this project are significant. The following table outlines donations per center:

Such in-kind contributions  which are sustainable due to the EWB network in Canada  enable the greatly reduced cost IT center.

In all, these four principles ensure sustainability, development outcomes and replicability of the IT centre and associated programming.

6. Project time-line
 

7. Project Outputs

Eight tangible outputs will be result from the this project

• Three new IT centers in Sarangani Province, Mindanao. These IT centers will serve the rural poor in these areas.
• New programming for the Lingayen and Sarangani Province IT centers, based on the a research paper evaluating the IT training center and training methodology implemented in Lingayen in 2002.
• A research paper evaluating the impact of increased availability of low-cost IT training on members of a local community. This will focus on IT centers that cater to the less well off and marginalized in society.
• A guide to setting up a low-cost IT center and guide for running low-cost training programs. This will be used by future IT centers around the world  as applicable  to make IT available to a greater number of people.
• A Policy paper on role of western NGOs in facilitating the setting up of low cost IT centers and training programs
• The set of training programs in English for basic computer literacy
• A series of technical appendixes on computer/LAN set-up
• A plan for phase III of the Scala project to help less well off Filipinos gain access to technology that will help them improve their lives.