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Estimated cost of bamboo in Esperanza

This is the calculation made by the bamboo factory team for the price of bamboo at which the factory can sell it. With these calculations future projects can easily make and estimation of costs of bamboo projects

Estimated price of bamboo in Esperanza

To come up with a payable price for bamboo where the community and volunteers will still benefit from a lot has to be taken in account. Most of the research is gained by personal experience during the project and takes the worst case scenario for the final price. We divide two kinds of bamboo prices, one is the full price as you buy borax or boric acid for the normal price and one is the price with discount on the borax or boric acid.

Borax/boric acid solution

For the solution needed to entirely fill the new Pila, which is 5000L, we need the following amounts:

4750l of river water, costs are zero

150kg of borax, can be bought in Managua for 44NIO/kg, discount price 39,2NIO/kg

100kg of boric acid, can be bought in Managua for 44NIO/kg, discount price 39,2NIO/kg

The borax and boric acid used by the project can be bought in bags of 25kg for either borax and boric acid. They both have the same price for each bag, which is 1100NIO/bag. 1100NIO/bag divided by 25kg gives 44NIO/kg and 980NIO/bag gives 39,2NIO/kg when divided by 25kg.

Total price for one solution: (150kg borax*44NIO)+(100kg boric acid*44NIO)=11000NIO

Total price for one solution, with discount: (150kg borax*39,2NIO)+(100kg boric acid*39,2NIO)=9800NIO

Adding costs

As bamboo subtracts borax and boric acid while submerged in the solution, the amount of borax and boric acid are reduced with 15% every batch. This loss of borax and boric acid has to be filled up again every time you put a new batch of bamboo in the pila. It is said that the solution can handle seven batches of bamboo before it becomes ineffective. After those seven batches you have to refresh the content of the pila.

Total price for borax and boric acid for seven batches: ((6*0,15)+1)*11000C$=20900NIO

Total price for borax and boric acid for seven batches, with discount: ((6*0,15)+1)*9800NIO=18620NIO

Cost for a single bamboo of 6m

As one batch of bamboo which can be treated in once should contain 50 bamboos of 6m, the total amount of bamboo will be 350 bamboos. The solution can handle seven batches of bamboo.

Cost for a single bamboo of 6m: 20900C$350 bamboos=59,7NIO/bamboo

Cost for a single bamboo of 6m, with discount: 18620NIO350 bamboos=53,2NIO/bamboo

Transport costs ( borax/boric acid)

Since the borax and boric acid have to be bought in Managua, there is no other place you can buy borax or boric acid, transport costs have to be added to the price of bamboo. In Nicaragua they use the same transport costs for either boat or bus, which is 1NIO/lbs.

Weight of borax/boric acid needed for 350 bamboos: (150+100)*1,90=475kg

Weight in pounds: 475kg*2,2046=1047,18lbs

The materials first have to be transported from Managua to Waspam by bus/truck and later on by boat from Waspam to Esperanza. For both types of transport you have to pay 1NIO/lbs.

Transport costs: (1047,18lbs*1NIO)+(1047,18lbs*1NIO)=2094,36NIO

Final costs: 20900NIO+2094,36NIO=22994,36NIO

Final costs: 18620NIO+2094,36NIO=20714,36NIO

Final costs per bamboo: 22994,36NIO350=65,7 NIO/bamboo

Final costs per bamboo, with discount: 20714,36NIO350=59,2 NIO/bamboo

However, this are the costs excluding the costs for the cutting of bamboo and maintenance costs. If people want to treat their own cut bamboo they have to pay either the full price in the worst case scenario or the price with discount. When people decide they want their bamboo been cut, additional costs will be added to the total amount.

Price with added maintenance costs plus labor costs

For the maintenance costs the bamboo factory team discussed what the minimum costs should be for small maintenance on the factory for either materials, tools or unforeseen costs. The team came up with an amount of 500NIO per 350 bamboos, the total amount of bamboo treated with one solution.

Price with added maintenance costs: 22994,36NIO+500NIO350=67,1 NIO/bamboo

Price with added maintenance costs, with discount: 20714,36NIO+500NIO350=60,6 NIO/bamboo

At last you should take in account the labor costs of the volunteers as they have to get paid for their work. While farmers earn the least amount of money, 150NIO for one day of work, professionals like carpenters earn the biggest amount of money, 250NIO/day. As all of the volunteers earn their money as farmers and they should be compensated for their work the labor costs should be at least 150NIO/day. Besides, the factory provides the volunteers seven days of work per 350 bamboos, as the bamboo has to be submerged in the solution for seven days before they can take it out. In seven weeks, seven batches of bamboo can be treated and seven days of work in seven weeks are necessary.

Price with added maintenance costs and labor costs: 22994,36NIO+500NIO+7*6*150NIO350=85,1 NIO/bamboo

Price with added maintenance costs and labor costs, with discount: 20714,36NIO+500NIO+7*6*150NIO350=78,6 NIO/bamboo

These prices are still without the additional costs of the cutting of bamboo.

Costs of cutting bamboo

To come up with a good price for the price of a single untreated cut bamboo Henky’s supervision and the help of the leaders were necessary. After a compromise had been made between each side, the price had been estimated to be 45C$/bamboo. This includes either the cutting of bamboo and the transportation of bamboo. The entire community can in this way benefit from this system, as everybody can sell their own bamboo. Also taken in account are the price being in use in El Rama. The average of the prices of the three types of bamboo in El Rama is 50C$/bamboo.

Total price for untreated bamboo: 45NIO/bamboo

Total price for treated cut bamboo: 85,1NIO + 45NIO = 130,1NIO/bamboo

Total price for treated cut bamboo, with discount: 78,6NIO + 45NIO = 123,6NIO/bamboo