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Clean Water Initiative – Linking water to Self-Sustaining Investment. Overview. Content Summary. Linking Clean Water to Banking & Regional Development Operational Costs & Revenue Opportunities Purification System – Capabilities Pilot Project – Katosi Fish Landing, Uganda
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Clean Water Initiative – Linking water to Self-Sustaining 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
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
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
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
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)
Target Investment Sites 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. • 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
The Harrison Global Big Bang! On-going Personal and Community Economic Development via loans
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 Private Micro- Lender 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 Localized investment into the community
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)
Operational Cost Assumptions • 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 (17 Nov, 2009 exchange rate) • 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 “re-cycled” via the extension and repayment of loans thereby creating a significant multiplier effect
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
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
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 1 • 24 hour access to treated water • 24 hour continuous operation • Solar Powered site operation (in development) • Service option for Supply Chain Management 1 current design, but could adapt this to hold up to 150.000 litres – site dependant
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 • 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
Contact Information • Jeffery Dummier – Director and CEO • Ph: 001 205 410 99 50 • jdummier@harrisonglobal.com • David Wolf – Director and COO • Ph: 001 248 688 84 15 • dwolf@harrisonglobal.com • U.S. Office address Harrison Global LLC 1400 21st Way South Birmingham AL, 35205 Ph: 001 205 939 1425