Transcript Clean Water Initiative

Clean Water
Initiative –
Linking water to SelfSustaining Investment
Overview
Content Summary
• Linking Clean Water to Banking & Regional
Development
• Operational Costs & Revenue Opportunities
• Purification System – Capabilities
• Pilot Project – Katosi Fish Landing, Uganda
• Harrison Global Site Design
• Harrison Global overview & contact info
2
Linking Clean Water
with Banking and
Regional Development
3
Single Investment – Multiple Returns
Produce
Clean
Water
(cheaply)
Sales of
Water and
MicroLending
4
Improvements in
Community Development,
Health and Mortality,
Economic prosperity,
Education, Banking
Services, Capital Market
investment, positive
Population migration,
NGO/Aid opportunities
Investment Objective
•
Combining affordable but “For Profit” Clean Water Distribution
with localized Micro-lending
– Approach combines two key building blocks of local infrastructure
development into one deliverable
– Annual Operating revenues are self-generating
• Revenues pay for both operations and lending activities
• Project is self-sustaining with no additional assistance required after the
initial implementation cost
– Multiple Benefit Returns – that feed each other over time
• Health / Quality of life / Ongoing Local Capital Investment / Employment /
Financial Service implementation / Community Center development /
Sustainability created over the long term
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Development Benefits
•
Clean Water Infrastructure is “Off-Grid” and self-sustaining
– Technology does not require existing infrastructure to operate
– Operating costs are paid out of water sales – so the site does not
require further or ongoing Government or NGO investment
•
Micro-Lending activities are continually “Re-investing” at
the localized level
– New Capital supplied annually via water profits
• Over a 25 year period this could be in excess of $1,000,000 per purification site
– Lending activities further capitalize local growth and employment –
Creates New Markets!
– Lending profits supply additional working capital (beyond water profits)
• Can be re-lent to other borrowers and eventually used to develop first
stage commercial development over time
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Development Benefits (cont.)
• New Market Creation attracts additional new capital
– Positive Publicity of a success story and a new model for growth makes the project and local/national government look good
• which further drives investment opportunities
– Success increases investment partnership options for other local
development projects (lowers risk & increases odds of success)
• Government / NGO / Private Industry / World Bank
– “Clustering” sites whenever possible drives a regional transformation
strategy
• Increases inter-site trade possibilities
• Attracts “established business” investment into area
• Makes large scale infrastructure more cost efficient to develop
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Target Investment Sites
• Rural Urban Centers of 3,000 to 10,000 people
which:
– Lack sufficient access to clean purified water
– Lack access to the “infrastructure grid” of country
– Lack local access to Financial Lenders
– Local economy exists but is under-developed
– Have a source of water available (but is untreated)
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Target Investment Sites
• Rural Urban Centers are unique investment
points in that some disposable income exists
– Charging for water is affordable for most of the community
• One year’s worth of clean water ($20 – aprox. 5₵ daily) is less
than cost of one month’s typical cell phone bill 1 ($26)
• Could be supplemented via NGO or Gov’t aid sources for the
poorest of community
– The Community Structure already exists
• But lacks fully developed access to improved Infrastructures
• Financial markets, Clean Water, Power, Paved Roads, Medical,
Improved Schools
– Development funds are scarce
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1. MTN Uganda rural pay per use mobile phone service. Estimated 5 mins use per day for 30 days to
another MTN customer + monthly subscription fee.
The Harrison Global Big Bang!
On-going
Personal and
Community
Economic
Development
via loans
Improved
Health /
Lower
Mortality
Regional
Transformation
MicroLending
& Banking
Services
Clean
Water
(HG delivery model)
Increased
and
ongoing
Capital
Investment
Increased
Personal
Income
Local
Economic
Growth
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Financial Flows
Lender Re-invests profits via new loans
and/or manages funding of local community
development projects
• Obtains a fee on each loan
• Has min. cost lease on office area within site
• Could have labour costs subsidized
• Provides local savings accts
Initial Site Funding
Local Gov’t
NGO
USAID
Investors
Corp Sponsors
Purified
Water Sales
All operational
costs are covered
by annual water
sales
NGO Sourced Contributions
To fund some water sales
for the poorest individuals/families
Serves as New
Money into
Local economy
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Private
MicroLender
Localized investment into the community
Potential Markets
12
Operational Costs
Revenue Opportunities
13
Operational Costs
• The following pages break out assumed operating
expenses, sales revenues and profit points
(using Uganda as the case example)
– Each project site will have varying operating costs dependant
upon location, staffing costs, size of purification unit, etcetera
• Using a base assumption an estimated monthly and annual operation
cost is established (see following page)
• Table in page 24 breaks down revenues based upon amount charged
and at differing amounts sold in order to identify profit points
– For a community of 7500 annual operational costs are
covered when as little as 25% of the population purchases
water daily
• (at 100 UGX per 20 litres – i.e. 5₵ in USD)
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Operational Cost Assumptions
Overhead 150K LPD
Cost per Month
Qty
Total
Labour 1
Labour 2
180
140
1
4
180
560
Security Personel
200
2
400
Chemicals
1250
1250
Gen Maint.
100
100
Transportation
150
150
Taxes/Fees
0
0
Mgmt Fee
0
0
150
150
Other
•
•
•
(17 Nov, 2009 exchange rate)
•
•
•
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Monthly Total
2,790
Annual Total
33,480
Costs assumed here are for the
40,000 gallon per day water
purification site
Water sales are in 20 litre units
at 100 UGX each
Annual user cost = $19.55 USD
Taxes/Fees assumed to be nil
up until operational costs are
covered (rate afterwards TBD)
Any Mgmt Fee is not
considered in this example
Other category is estimated for
“unknowns”
Highlighted Points
•
•
•
Operational costs are completely paid - provided 25% of the
community purchases water daily (at 100 UGX each)
Sales in excess of the 25% threshold ensure profitability
that can fund seed money for Micro-Lending operations to
occur
Significant profit opportunities exist at as little as 50% daily
sales of total production capability
– $41,379 using examples given in this presentation
– This could be used to make 165 Micro-Loans of $250 each – every year
– Over a 25 year lifespan over One Million dollars of “new” money is
created that could be “re-invested” into this one community
– The total benefit is much greater as most of this amount is continually “recycled” via the extension and repayment of loans thereby creating a
significant multiplier effect
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Sales / Revenue – Profitability Point
Population Est.
7500
Ugandan Shillings
USD
150K LPD Unit
Total # of Jerry Cans per
day
7500
50
0.027
100
0.055
50
100
200
0.109
500
0.273
1000
0.547
% of Population
100%
Annual Revenues
15% Daily Sales
20% Daily Sales
25% Daily Sales
35% Daily Sales
45% Daily Sales
50% Daily Sales
75% Daily Sales
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1125
1500
1875
2625
3375
3750
5625
15%
20%
25%
35%
45%
50%
75%
500
1000
Ugandan Schillings
20,531,250
41,062,500
200
82,125,000
205,312,500
410,625,000
USD
11,229
22,458
44,915
112,288
224,576
Ugandan Schillings
27,375,000
54,750,000
109,500,000
273,750,000
547,500,000
USD
14,972
29,943
59,887
149,717
299,435
Ugandan Schillings
34,218,750
68,437,500
136,875,000
342,187,500
684,375,000
USD
18,715
37,429
74,859
187,147
374,294
Ugandan Schillings
47,906,250
95,812,500
191,625,000
479,062,500
958,125,000
USD
26,201
52,401
104,802
262,006
524,011
Ugandan Schillings
61,593,750
123,187,500
246,375,000
615,937,500
1,231,875,000
USD
33,686
67,373
134,746
336,864
673,728
Ugandan Schillings
68,437,500
136,875,000
273,750,000
684,375,000
1,368,750,000
USD
37,429
74,859
149,717
374,294
748,587
Ugandan Schillings
102,656,250
205,312,500
410,625,000
1,026,562,500
2,053,125,000
USD
56,144
112,288
224,576
561,440
1,122,881
Purification System &
Pilot Project
Katosi, Uganda
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The HG Water Treatment System
• Harrison Global has distribution rights to a new
purification system technology
– Daily processing of 25.000 to 150.000 litres (per day)
– Capable of processing sewer grade waste-water into clean
drinking water
– Purifies water to a World Health Organization standard or
better for drinking water
– Multiple units can be “linked” together to increase output
capability
– 20 to 30 year lifespan
– Minimal operational costs and power usage
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Pilot Project – Uganda
• Katosi fishing village project
– Implemented water treatment unit in July 2008
– Is a partnership between
• Ugandan Ministry of Water and Environment
• East Africa Water and Sewage Ltd.
• Partner of Harrison Global LLC
– Project success -- on a daily basis the village now has local access of up to
75.000 litres of clean water due to installation of the water purification unit
– Project short-coming is that the overall final site-plan (outside of the water
purification system which was the scope of Harrison Global’s participation)
has not yet been completed to originally envisioned specifications
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Katosi Success
21
Harrison Global
Site Design
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Harrison Global Site Design
• Provide a complete Local Water Solution
– Deliver a “Turn-key” or “Off the Shelf” treatment site
• Water purification unit installation – 25.000 to 150.000 litres per day
• Construction of an enclosed and secure building
• Includes space for Financial Lender to operate
• Multiple additional project-site design options
• 75.000 litre on-site storage & distribution of treated water
• 24 hour access to treated water
• 24 hour continuous operation
• Solar Powered site operation (in development)
• Service option for Supply Chain Management
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1
current design, but could adapt this to hold up to 150.000 litres – site dependant
1
Purification Site - Floor Plan
24
Harrison Global
Company Information
and Contacts
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Simple Ideas – World Class Results!
• Harrison Global is a for profit company
committed to making localized positive
differences worldwide via innovative
business solutions and partnerships
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–
–
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Governmental
Financial Markets
NGO’s
Private Sector
Consulting partners
Background
• Headquartered in Birmingham Alabama, USA
• Second office & Consulting Partners located in
Washington DC, USA – 4th / 1st qtr. 2009/2010
• Ugandan office located in Kampala
• Partnerships in Chennai, India; Barcelona, Spain;
Jinja, Uganda
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Contact Information
•
Jeffery Dummier – Director and CEO
– Ph: 001 205 410 99 50
– [email protected]
•
David Wolf – Director and COO
– Ph: 001 248 688 84 15
– [email protected]
– U.S. Office address
Harrison Global LLC
1400 21st Way South
Birmingham AL, 35205
Ph: 001 205 939 1425
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