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Integrated Southern Africa Business Advisory (INSABA)

Assessment of Business ideas for the productive use of RE in South Africa Report for Deliverable 3.2 and 3.3 Prepared by OneWorld Sustainable Investments Disclaimer: The sole responsibility for the content of this report lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that may be made of the information contained therein.

The authors endeavour to supply reliable analysis and believe that the material it presents is accurate, however, they will not be liable for any claim by any party acting on such information.

Business ideas for productive use of RE in South Africa

INSABA Business Ideas 1

Table of Contents Table of Contents ........................................................................................................1

1. Identifying Business ideas for productive use of RE in South Africa.................2

1.1 Process of identifying project ideas: ...............................................................2

1.2 Preliminary list of projects for consideration ...................................................2

1.3 Short listed projects........................................................................................4

2. Description of Business ideas...........................................................................4

2.1 Kazuko Game Lodge Project, Solar Water Heaters, Eastern Cape ...............4

2.2 Cut Flowers Farm: Solar pumps for irrigation, Eastern Cape .........................7

2.3 Dried Fruit Project, Solar Drying, Western Cape............................................9

2.4 Green Energy Plant, Biomass, KwaZulu-Natal.............................................23

2.5 Laundromat, Solar Water Heater, Western Cape.........................................24

2.6 Austin Evans Abattoir, Biogas, Eastern Cape ..............................................48

2.7 Solar Cinema ...............................................................................................52



1. Identifying Business ideas for productive use of RE in South Africa

1.1 Process of identifying project ideas: A number of projects were considered and evaluated at the preliminary stages of INSABA and some of these were short listed for in depth evaluation. A few projects developed much later in the lifecycle of INSABA as other market drivers emerged. Of note is the waste to energy conversion proposal for the Eastern Cape, which will require significant technology investment. The business case for this project has only started to make sense once the impacts of South Africa’s energy crisis were realised and this project is now set to go ahead. OneWorld spent some time in the initial stages of INSABA on developing and evaluating the biofuels project proposed for the Eastern Cape. Much work has been done on this project, including Jatropha curcas trials in different parts of the district, market up take analysis for biodiesel, technical evaluation through meetings with the Automobile Manufacturers association and with manufacturers in terms of their technical specifications for biodiesel inclusion in fuel blends in their vehicles (Volkswagen SA and Daimler Chrysler SA, both based in the Eastern Cape). OneWorld, through the INSABA project also made inputs to the development of South Africa’s Biofuel Strategy (now under consideration by the South African Cabinet). The strategy in its present form focuses on the demand side of the biofuels industry and almost ignores supply side issues, which are significant. The Eastern Cape is believed to be the primary supply province in a South African industry and the province is evaluating its position, food security and food price issues, its agricultural practices, its related natural resource base and a policy for responding to foreign interest (at the moment particularly Europe and China) and investment in securing scale of supply of biofuels. Europe is set to introduce a law that provides for the inclusion of 17% biofuel fuel blend by 2014, an undoubted key market driver for Africa, should the law be promulgated. Food security and food prices and the relationship with biofuels development in Africa needs to be carefully explored and considered and the industry has a way to go in terms of reaching a level of coordinated implementation and maturity. Whilst this development continues, it was decided relatively early on in the project to exclude the biofuels project as the timelines do not fit with INSABA timeframes and because the direct link to productive use is not easily made. This report presents projects considered at the various stages of the selection process in both regions. Section 5.1 is a preliminary list outlining those projects considered (not all chosen as projects that were viable from a productive use point of view). Section 5.2 lists projects that went ahead and Section 5.3 outlines the project mentioned above which has recently come on stream. The renewable energy resources considered were solar energy, biofuels and biogas.

1.2 Preliminary list of projects for consideration 1. Internet Cafes – Transkei (Eastern Cape)- Solar power for computers and

lighting.



2. Television centres (rural areas – Malawi example) – Eastern Cape and Transkei powered by solar panels.

3. Aquaculture – (Somerset East, Eastern Cape) A local farmer wished to establish an aquaculture business on their farm in partnership with farm labourers. SWH and solar pumps are the identified technologies for energy supply. WP 3&4 – as described in projects above. The technology economic evaluation was completed, the market analysis (for the fish production and market take up thereof) is not. This is a lengthier exercise and previous SC experience in the aquaculture market is that rural markets can be difficult to establish. WP6 Solardome (system provider) has met with IAT and technology discussions been held.) A Nigerian based well-established aquaculture company (Durante Fish) met with the IAT and the entrepreneur and SC in the first week of December 2006. The objective was to share knowledge and expertise on tried and tested aquaculture systems as well as on market considerations.

4. Guest Lodge in Paternoster (West Coast, Western Cape) using SWH. This is a 10 bed roomed guest lodge and SWH is proposed for all bathrooms. The Entrepreneur and the System Provider (Solardome) have met (WP6) and the market analysis is underway. In this case, the IAT and the RET provider are the same entity and are receiving training in terms of WP 3&4.

5. OneWorld is working with Restio Energy on developing a Videocine project. The pre feasibility is complete and Restio and OneWorld will invest in the pilot. Feasibility study indicates that the project is viable in the peri-urban areas of Cape Town where there are no cinemas and where people have to travel distances in dangerous circumstances for this form of entertainment. The use of RETs will only become viable with subsidisation and in rural areas (replication opportunity) where grid access does not exist. The objective of the pilot will be to test the assumptions made and to learn the answers to some of the questions we have about the proposed business model before seeking investment in expensive renewable energy technology. The financials for this project can be found in Appendix 1, 10.1.1.)

6. Waste to energy conversion (Somerset East, Eastern Cape) - A waste management solution is urgently required for the district and OneWorld has identified a waste to energy conversion opportunity for the area. Municipal waste management practices do not comply with legislation and the district’s waste sites are a health hazard. In addition, the municipality has an energy deficit and thus cannot facilitate local economic growth. Significant investment opportunities have not materialised in the area as a result, for example the establishment of a substantial dairy facility in Somerset East. The waste management solution identified by OneWorld is to use both Municipal Solid Waste (MSW) and the local abattoir waste (blood and intestinal) – the latter could feed into an anaerobic digester along with livestock manure from the local pig farm and livestock farms. The proposed project combines productive use and a waste to energy solution and would secure an energy resource for the local municipality. The productive use component is in enabling a secure and reliable energy supply for the abattoir. WP 3&4: The market analysis (i.e. assessment of the demand for energy in the district has been completed by OneWorld with the BCDA. As already indicated, energy for further economic



development is urgently required. The technology options are currently being evaluated (at the time of releasing this draft report) and include technology economic evaluation. WP 7: Funding for the waste management solution (municipal side) is available as a direct result of policy roundtable meetings with the stated local and provincial authorities.

7. Biofuels Project, Eastern Cape – as discussed in the overview to this section (section 5).

1.3 Short listed projects The projects listed below were selected for further consideration and are described in detail in section 2.

1. Kazuko Game Lodge Project using renewable energy, Eastern Cape 2. Cut Flowers Project using solar pumps and irrigation, Eastern Cape 3. Dusseldorf Dried Fruit, using solar drying, Western Cape 4. Green Energy Plant, converting biomass (wood waste and forest residue) to

electricity, KwaZulu-Natal. 5. Laundromat using solar water heaters, Western Cape 6. Austin-Evans Abattoir and livestock waste to methane conversion, Eastern

Cape.

2. Description of Business ideas Three of the six INSABA supported projects are located in the Eastern Cape, two are based in the Western Cape and one is in KwaZulu-Natal. The projects under discussion harnessed solar energy for heating water, drying fruits, pumping water and irrigating farmland. The biomass energy plant will convert wood waste and forest residues, using a steam turbine, into “green” electricity. The biogas project will harness methane and convert this to an energy supply for both the abattoir producing waste feedstock as well as for the local municipality. This project has been a late developer in the INSABA ‘suite’. It was not viable when evaluated in 2005, but the South African energy crisis has since established the business case for the project. The projects below have been ranked in terms of their success in relation to the INSABA project. The existence of the project, its closeness to completion and ability to complete were the key criteria used for ranking the projects.

2.1 Kazuko Game Lodge Project, Solar Water Heaters, Eastern Cape A UK investor, Mr Kim Tan who, along with a group of Transformational Leaders and Investors in Europe has interests in sustainable development projects in sub-Saharan Africa and Southeast Asia. Mr Tan decided to develop a ‘high-end market’ game farm in the Eastern Cape and sought co-finance from the Development Bank of South Africa (DBSA). The DBSA financing was for the game farm development and was contingent on a black empowerment (BEE) partner being secured. Disabled Peoples Concern (DEC) is the BEE partner and the DBSA have, after much bureaucracy and delays, invested their portion of the money. Kim Tan and his investor group have become disillusioned with investing in South Africa as a result of



their dealings with the DBSA and are unlikely to consider other investments in the country anytime soon. The IAT for this project is Ron Begbie who is the Project Developer, through his organisation, Ingo Properties. Kazuko is an upmarket game farm situated approximately 160km from Somerset East and bordering on the Addo Elephant Park, a large game reserve that is State owned in the Eastern Cape. It has an area of 15 000 hectares. The World Bank Board approved a grant of US$ 5,5 million from the Global Environment Facility to assist with the expansion and conservation of the Addo Elephant National Park. Part of this initiative is the proposed removal of the boundary fence between the Addo Elephant Park and Kazuko. This entire area is a dedicated tourism development area, focusing on local beneficiation. The development of small- medium- and micro-enterprises (SMMEs) in local communities around the Addo Elephant National Park is beginning to benefit both the local economy and the conservation of biodiversity. Figure 1: Kazuko Game Lodge, Solar Water Heaters, Eastern Cape

The Kazuko Lodge comprises a main building including a restaurant, conference centre and 24 brick and thatch luxury chalets (some of which are equipped for handicapped visitors) situated on a hillside offering views of the mountains, indigenous bush and birdlife. Also located on this reserve is the original farmhouse (occupied by the manager) and labourers residences.



The farm was not linked to the National grid due to it being in a fairly remote rural area. The process for bringing electricity to the farm buildings involved 2 stages – firstly Eskom would have to bring the KVA line to the entrance gate of the farm and then secondly the developers would have to pay for the KVA connection to the reserve facilities. Three alternatives were evaluated:

1. Renewable energy as the only energy supply: This option was rejected on the basis that the reserve financiers and developers insisted on security and reliability of constant energy supply 24 hours per day, 365 days per annum.

2. Electricity supply from the grid: Eskom would run a KVA line to the reserve gate and the Developer to then install the on site connection line and points at their own cost. The lodge is situated a fair distance from the entrance gate. The cost to connect it to the main Eskom supply was estimated at the considerable cost of R8,000,000, subsequently deemed to be economically unviable.

3. A hybrid solution: Renewable energy used for specific purposes such as water heating and lighting, with gas for cooking and diesel generators as backup supply. Solar photovoltaic panels have been installed for lighting and solar water heaters in each chalet for water heating. Air conditioners run on diesel generation capacity.

Figure 2: View over the Kazuko Game Farm

OneWorld conducted market and economic analyses on these alternatives resulting in the selection of the hybrid model. The following has been implemented and also therefore completes the planned INSABA aspects of the project:

1. 24 chalets have each been fitted with solar water heaters and solar PV panels. 2. Gas has been installed for cooking. 3. Diesel generators have been installed for air-conditioning and back up supply

for lights and water heating.



Further work entailed training of the IAT as well as the farm manager in both technical and economic aspects of utilising solar energy on the reserve1.

2.2 Cut Flowers Farm: Solar pumps for irrigation, Eastern Cape OneWorld Sustainable Investments established collaboration with an IAT in the area, the Blue Crane Development Agency (BCDA). The Blue Crane Development Agency, located in Somerset East enables entrepreneurial development and emerging businesses in the district. The Cut Flower project, an already established business is situated approximately six kilometres outside Somerset East. Flowers grown in polytunnels in covered structures are primarily roses, michaelmas daisies and crysanthemums. Supply is to the local markets of East London and Port Elizabeth. The increasing demand for the flowers necessitated expansion and the INSABA project considered renewable energy for expanded productive use on this flower farm. Figure 3: Cut Flowers Farm, Solar Pumps for Irrigation, Eastern Cape

1 WP 4 & WP6: Business and Technical Advisory / Training and Coaching of SME-SP and IATs and

matchmaking



Research and economic evaluation demonstrated that solar pumps were an efficient alternative option for irrigation in the polytunnels. The first phase was established in 2004 and the second in 2005/2006. The pre-feasibility study was completed and a brief market analysis conducted. This focused on technology economics as the flower market was well established. The analysis was done with the BCDA who received training2 on the application of the pre-feasibility toolkit and were trained on the market analysis and technology economics evaluation3. Figure 4: Rows of flowers inside the polytunnels

Training on the pre-feasibility study tool also included an additional IAT identified by the BCDA. This was a team of 3 consultants that comprise an ex-municipal manager and 2 ex Eskom engineers interested in doing further energy development work in the region.

2 WP 3: BCDA (Nico Lombard and Zola Skiwiya attended the workshop in Gobabeb, Namibia, October 2005 (pre-

feasibility toolkit). Nico Lombard received further training in Cape Town in July 2006. OneWorld visited the district

and the project to finalise the market study the week commencing 6 November 2006 where further market

analysis training and actual market analysis on the project took place.

3 WP4: IATs received coaching and interaction on project developments. IATS (BCDA) have started

disseminating training to their SMEs – particularly on pre feasibility assessments and RET knowledge and

awareness.



Figure 5: Polytunnels

The following has been implemented:

1. The World Bank provided funding for all the flower farm expansion infrastructure costs including the solar pumps and irrigation equipment

2. Eastern Cape Development Corporation (ECDC) provided funding for the operational costs.

3. The INSABA / OneWorld project financed the renewable technology and economic viability analysis and the training for the IATs.

2.3 Dried Fruit Project, Solar Drying, Western Cape

Dusseldorf Dried Fruit (DDF) is a dried fruit producing operation in Oudsthoorn in the Western Cape. The operation produces dried pears and apples for the export market. DDF purchases fruit from local growers and sun dry and prepare dried fruit for the export market. Sun drying is done in wooden trays with plastic covers for five months of the year. DDF is therefore a seasonal business, operating between May and September and closing for the remaining seven months of the year. DDF identified the need to improve the quality of their dried fruit and to increase the quantity of the fruit they export. The fruit produced by sun drying is of a lower quality limiting the selling price of the fruit. In order to increase the selling price, the quality would have to be improved and hence alternate fruit drying technologies are being evaluated. Drying, using solar technology can improve the quality of dried fruit. An economic analysis was therefore completed in order to evaluate the viability of using solar dryers as the preferred technology. Below is the technology economic analysis, demonstrating solar drying as a viable option, provided that the technology can be procured and supported locally.



Figure 6: Dried Fruit Project, Solar Drying, Western Cape

It is expected that solar dryers, currently being built by a technology provider in the Western Cape, will be installed for the May – September 2008 season.



Dried Fruit Project, Solar Drying, Western Cape

INSABA Pre-assessment of Project Proposals This tool is designed to help in the basic assessment of a proj It is very simple as it does not consider interest, depreciation yCountry: RSA Fill in the white fields, the rest will be computed Pilot Region: Western Cape RE Technology: Solar Drier Business Idea: produce apple chips at higher value

Proponent name, contact Rob de Clerk, Somerset In this tool, we determine the profile of the proponent entrepreYears of experience as owner of business 5 and the characteristics of the proposed business Number of employees w/contract 4 The figures in this examples are assumption based on intervieProponent uses bank account (yes=5, No=0) 5 They need to verified during the market assessment Tool 2 Experience with formal loan (received=5, applied=3, no=0) 5 Experience in cost calculations, business plans (no=0, several=5) 5 Practice in maintaining/operating equipment (RET) (none yet=0, regularly=5) 3 The influence of these data on the ROI can be seen in the sen

Total 27 Optimization can be done e.g. With the goal-function like "wha

Calculation of ROI Apple Drier Determination of parameters Definitions Investment Capital 9,957 Estimated, then computed for ROI0,3 Total cost of technology investment

Investment Lifespan 5 Estimated for solar dryer Life of the technology - i.e. period before it must be replaced

Production 520 Daily 2 kg dried apple-chips sold 5 days per week 52 weeks/year= 520 kg p/a Units produced per year

Price/unit 19.50 The current market price Sales price per unit produced and sold

Revenue 10,140 Euro Sales price multiplied by number of units sold



Variable cost/unit 8.00

Costs for fresh apples: 10 * 0,55 €/kg = 5,5 €/kg (sales price of 0,55 €/kg is relevant as this is the opportunity cost of the farmer);Costs for packaging: 0,5 €/kg;Costs for preparation: 10 kg fresh apples can be prepared in 15 minutes and hourly wage is 8 €: 2 €/kg

Cost per unit produced e.g. material, processing packaging

Cost of energy/unit no other energy costs of power, fuel added to variable cost

Total fixed costs 1,000 Cost for display, handling Annual indirect costs such as rent, telephones, salaries

Amortization/unit: 3.83 1,991 Amount needed per unit to cover investment in lifetime

Direct costs per unit: 11.83 6,151 Variable costs plus amortization plus cost of energy

Gross Margin/unit 7.67 Sales price per unit less the direct costs per unit

Fixed costs/unit 1.92 Total fixed costs divided by the number of units produced

Total costs 13.75 7,151 Direct costs plus fixed costs

Net Margin 5.75 2,989 Revenue less total costs

ROI 30% Return on Investment = net margin divided by capital investment

Payback period years 2.00

capital investment divided by cash flow until initial expenses are compensated by the net margin



Sensitivity Analysis

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

-20% -10% 0% 10% 20%

percentage change of parameter

Capital Investment

Investment Lifespan

Units/annum

Price/unit

Variable cost of sale/unit

Cost of energy/unit

total fixed costs



Sensivity Analysis

ROI Capital

InvestmentInvestment

Lifespan Units/annum Price/unit

Variable cost of

sale/unitCost of

energy/unit

total fixed costs

-20% 42.52% 25.02% 18.00% 9.65% 38.37% 30.02% 32.02%

-10% 35.57% 27.79% 24.01% 19.83% 34.19% 30.02% 31.02%

0% 30.02% 30.02% 30.02% 30.02% 30.02% 30.02% 30.02%10% 25.47% 31.83% 36.02% 40.20% 25.84% 30.02% 29.01%20% 21.68% 33.35% 42.03% 50.38% 21.66% 30.02% 28.01%

-20% 41.66% -16.66% -40.02% -67.86% 27.84% 0.00% 6.69%

-10% 18.51% -7.40% -20.01% -33.93% 13.92% 0.00% 3.35%

0% 0 0 0 0 0 0 010% -15.15% 6.06% 20.01% 33.93% -13.92% 0.00% -3.35%20% -27.77% 11.11% 40.02% 67.86% -27.84% 0.00% -6.69%



INSABA Verification & Market-Assessment of Project Proposals This tool is designed to verify the assumptions of the basic a The economic comparison considers cost of energy, in case ofCountry: RSA Fill in the white fields, the rest will be computed Pilot Region: Western Cape RE Technology: Solar Drier Business Idea: produce apple chips at higher value

Market Context : describe In this field, we determine the market context of the business id

Market Size & Potential

naturally dried fruit are increasingly popular, domestic demand justifies the investment, international market survey might justify further expansion State whether the market allows a scaleable, replicable use. S

Market Need, Risk

market does not need dried fruit and may reject if contamination happens. For producer important for surplus harvest, which else will rot or go to juice. Risk is cheap import from Eastern countries, extended bad weather who really needs the product and which assumptions, barriers

Competitor Du Plessis with sun-drier is much cheaper, with electric stove still can produce cheaper Describe direct, indirect competition

Competing Technology Electricity (subsidized) What is current technology, which technology might take over

Appropriateness of RET natural production and natural processing go together. "Sun-dried" gives better aroma, sells higher Why would RET be preferred, by whom

Market Segment competition goes for bakery market, drier targets small package consumer market Where is the strategic focus of competition, vs. Ours

Main Differentiator solar dries faster than open air, less risk, environmentally superior to electric What is the striking difference in strategy

Sustainable Production increased production might require chemical/radiative stabilization Are there environmental influences in enhanced production sta

Calculation of Competitiveness Apple Drier Alternative Description of Alternative Definitions

Investment Capital 6,215 500 Dry apples in electric stove Total cost of technology investmen

Investment Lifespan 5 5 stove lifetime Life of the technology - i.e. period b



Production 520 520 20 kg fresh apples per day can also go in stove Units produced per year

Price/unit 19.50 19.50 The current market price Sales price per unit produced and s

Revenue 10,140 10,140 Euro Sales price multiplied by number of

Variable cost/unit 8.00 8.00 see tool 1 Cost per unit produced e.g. materia

Cost of energy/unit 2.20 drying of 10 kg lasts 10 h, stove needs 1 kW, price of power is 0,22 €/kWh, therefore costs for power are 2,2 €/kg

costs of power, fuel added to varia

Total fixed costs 1,000 1,000 Cost for display, handling Annual indirect costs such as rent,

Amortization/unit: 2.39 1,243 0.19 100 Amount needed per unit to cover in

Direct costs per unit: 10.39 5,403 10.39 5,404 Variable costs plus amortization plu

Gross Margin/unit 9.11 9.11 Sales price per unit less the direct c

Fixed costs/unit 1.92 1.92 Total fixed costs divided by the num

Total costs 12.31 6,403 12.32 6,404 Direct costs plus fixed costs

Net Margin 7.19 3,737 7.18 3,736 Revenue less total costs

ROI 60% 747% Return on Investment = net margininvestment

Payback period years 1.25 0.13

Although the ROI for solar drier is good, the competition with electric stove can produce cheaper. If we are satisfied with the same margin, the solar drier may not cost above 6.215 Euro, if we want to achieve the same ROI, the goal-seek function tells us the drier may not cost above € 649. Production considerations are: The solar drier may be able to produce more than the stove, but it may fall back during bad weather.

capital investment divided by cash are compensated by the net margin



Month-1 Month-2

Month-3

Month-4

Month-5

Month-6

Month-7 Month-8 Month-9

Month-10

Month-11

Month-12 Total TCash Flow

Analysis Year 1 Year 1 Year 1 Year 1

Year 1

Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Ye

Products Sales Applechips kg 20 60 60 60 70 80 90 80 50 40 60 60 730 Bananachips kg 20 20 20 20 20 20 20 20 20 20 20 20 240 Product 3 0 0 0 0 0 0 0 0 0 0 0 0 0 Cash Inflow Turnover Price

Applechips 19.50 390 1,17

0 1,170 1,170 1,365 1,560 1,755 1,560 975 780 1,170 1,170 14,235 9Bananachips 22.00 440 440 440 440 440 440 440 440 440 440 440 440 5,280 4Product 3 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL Turnover 830 1,61

0 1,610 1,610 1,805 2,000 2,195 2,000 1,415 1,220 1,610 1,610 19,515 14TOTAL Cash Inflow 830

1,610 1,610 1,610 1,805 2,000 2,195 2,000 1,415 1,220 1,610 1,610 19,515 14

Cash Outflow Material Cost Applechips 8.00 160 480 480 480 560 640 720 640 400 320 480 480 5,840 4Bananachips 10.00 200 200 200 200 200 200 200 200 200 200 200 200 2,400 2Product 3 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL Material 360 680 680 680 760 840 920 840 600 520 680 680 8,240 6Overhead Cost



Staff A share 70 70 70 100 100 100 100 100 100 100 100 100 1,110 1Staff B 0 Office share 10 10 10 10 10 10 10 10 10 10 10 10 120 Communication 0 0 0 0 0 0 0 0 0 0 0 0 0 Vehicle 0 0 0 0 0 0 0 0 0 0 0 0 0 Marketing 5 5 5 5 5 5 5 5 5 5 5 5 60 Investment 6,215 0 0 6,215 Investment Lifespan 8 6 TOTAL Overhead 6,300 85 85 115 115 115 115 115 115 115 115 115 7,505 1Capital cost interest, redemption 16% 208 208 208 208 208 208 208 208 208 208 208 208 2498 2TOTAL capital 208 208 208 208 208 208 208 208 208 208 208 208 2498 2TOTAL Cash Ouflow 6,868 973 973 1,003 1,083 1,163 1,243 1,163 923 843 1,003 1,003 18,243 9 Operating Result -6,038 637 637 607 722 837 952 837 492 377 607 607 1,272 4

/accumulated -6,038

-5,40

1 -4,764 -4,158-

3,436-

2,599 -1,647 -810 -318 58 665 1,272 1,272 5Capital input 6,000 6,000

Cash Flow -38 599 1,236 1,8422,56

43,40

1 4,353 5,190 5,682 6,058 6,665 7,272 7,272 1

Investments in the 2nd year Investments in the 3rd year Amount Amount Investment Lifespan (≥3) Investment Lifespan (≥3) Month (between 1-12) Month (between 1-12)



Depreciation 64.7 64.7 64.7 64.7 64.7 64.7 64.7 64.7 64.7 64.7 64.7 64.7 776.9 Tool 3a TOTAL Cash Inflow, acc 830 2440 4050 5660 7465 9465 11660 13660 15075 16295 17905 19515 TOTAL Cash Outflow, acc 6868 7841 8814 9818 10901 12064 13307 14470 15393 16237 17240 18243 Operating Result, acc -6,038 -5,401 -4,764 -4,158 -3,436 -2,599 -1,647 -810 -318 58 665 1,272 Cash Flow -38 599 1,236 1,842 2,564 3,401 4,353 5,190 5,682 6,058 6,665 7,272 Operating Result -6,038 637 637 607 722 837 952 837 492 377 607 607 Tool 3b Year 1 Year 2 Year 3 TOTAL Cash Inflow 19515 14,150 16,540 TOTAL Cash Outflow 18243 9,978 11,198 Operating Result, acc 1,272 5,444 10,786 Cash Flow 7,272 11,444 16,786 Operating Result 1,272 4,172 5,342



Cash Flow Analysis: First Year

0

5,000

10,000

15,000

20,000

25,000

Month-1 Month-2 Month-3 Month-4 Month-5 Month-6 Month-7 Month-8 Month-9 Month-10 Month-11 Month-12-8,000

-6,000

-4,000

-2,000

0

2,000

4,000

6,000

8,000

TOTAL Cash Inflow, acc TOTAL Cash Outflow, acc Operating Result Operating Result, acc Cash Flow



Cash Flow Analysis: 1st - 3rd Year

0

5,000

10,000

15,000

20,000

25,000

Year 1 Year 2 Year 30

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

TOTAL Cash Inflow TOTAL Cash Outflow Operating Result Operating Result, acc Cash Flow



Profitability Preview Balance Year 1 Year 2 Year 3 Year 1 Sales 19,515 14,150 16,540 Assets Liabilities Cost of Sales 8,240 6,000 7,000 fixed assets 5,438 shareholders equity 8,710 Gross profit 11,275 8,150 9,540 current assets 7,272 liabilities 4,000 other operating income 0 0 0 Σ 12,710 Σ 12,710 personnel costs 1,110 1,200 1,400 hire charges 0 0 0 Year 2 communication 0 0 0 Assets Liabilities vehicle 0 0 0 fixed assets 4,661 shareholders equity 14,105 marketing 60 80 100 current assets 11,444 liabilities 2,000 office 120 200 200 Σ 16,105 Σ 16,105 interest 498 498 498 depreciation 777 777 777 Year 3 other expenses 0 0 0 Assets Liabilities TOTAL Expenses 2,565 2,755 2,975 fixed assets 3,884 shareholders equity 20,670 annual surplus/deficit 8,710 5,395 6,565 current assets 16,786 liabilities 0 /accumulated 8710.125284 14105.25057 20670.37585 Σ 20,670 Σ 20,670



2.4 Green Energy Plant, Biomass, KwaZulu-Natal

Biotech Energy (BE) is a company specialising in the development of biomass pellet fuel using sawmill residue and agricultural waste and was formed to pursue projects involving converting biomass into fuel for energy. The company is currently finalising the construction of a pellet manufacturing facility in Howick (near Pietermaritzburg), KwaZulu Natal. Howick is a small town in the uMgungundlovu District of KwaZulu-Natal Province and is situated on a key tourist route, the Midlands Meander. The facility is for producing biomass pellets for the export market. The environmental Impact Assessment (EIA) is complete, with a Record of Decision (RoD) received from the KwaZulu Natal Department of Environmental Affairs and Tourism, dated 31 January 2008. Figure 7: Green Energy Plant, Biomass, KwaZulu-Natal

This pellet plant is critical within the context of this project as it is expected to require approximately 1.8MWe per year from the national grid. A business plan for a 6MWe power plant (consisting of a combination of a wood pellet manufacturing plant and a green energy plant component) was developed in



August 2007 and was presented to potential investors. Variations to the size of the power plant were considered and the decision was taken to optimise the opportunity presented, at 6MWe. Figure 8: Sawdust feedstock for the pellet plant

Financing for the pellet plant has been agreed with Standard Bank plc, London in two tranches. The first amount of ZAR90 million was for the pellet plant. The second amount of ZAR176 million was agreed last year in November. This tranche included an amount of ZAR33 million for the green energy plant, which will supply energy to the pellet plant on site. The project objective is to deliver 6 MWe of electricity obtained from a renewable resource of biomass material consisting of mainly wood waste and forest residue sourced from local timber operations. The biomass will be processed through high pressure superheated steam and a steam turbine driven generator to generate 6 MWe of power. The steam will be condensed using cooling water from a cooling water system and will be re-circulated to the steam generation cycle for reuse. The 6 MWe will exceed the entire site’s electrical demand (approximately 1.8 MWe including the biomass pellet manufacturing plant on site) and the remainder of the electricity will be supplied via appropriate switchgear and equipment onto the local grid.

2.5 Laundromat, Solar Water Heater, Western Cape

The Laundromat is now located in a densely populated peri-urban area, Khayelitsha, in Cape Town. Almost all homes in Khayelitsha have access to electricity but this is mainly used for lighting. Few homes and facilities have access to hot water.



Figure 9: Laundromat, Solar Water Heater, Western Cape

The business case for the laundromat was based on the fact that most of the local laundry in the area concerned is done by hand using cold water, mostly at communal taps located on ‘street’ corners resulting in substantial water wastage. The activity is time consuming and is mostly done by the women of the house who are also often the breadwinners. The more affluent homes utilise Laundromats that are situated close to their place of work (primarily outside of Khayelitsha) and this constitutes competition to the local laundromat. Pricing is therefore cognisant of this issue and the pricing model developed aims to offer a cheaper and accessible local service that can save time and money for the customer. The laundromat business model includes tailor services to the local community. Energy is required for the running of the washing machine and for heating the water, as well as for lights, ironing and sewing machine(s). Grid based electricity is available, but water heating was considered to be a significant cost component and thus solar energy was proposed as an alternative to an electric geyser. A pre feasibility study, market analysis and technology economic analysis were conducted on this business proposal, through the INSABA project. These are available below.



The local entrepreneur was assisted by the IAT, the Development Action Group (DAG). Business Status: The following are the outcomes of the INSABA evaluation on this project:

• The economic evaluation demonstrated marginal viability. Grid electricity continues to be a cheap option in South Africa and the capital cost of the SWH equipment required is considerably higher than electric geyser equipment. Solar water heater ready washing machines are however available at insignificant additional cost.

• The Entrepreneur (Lulama Mqikela) who had identified this business opportunity had ZAR 10,000 to invest in starting this business. This is money she had saved over years of domestic employment. Her objective is to have a business that can earn her and her family a living income as well as provide the basis for future retirement funding. Her business goal is to open a chain of these laundromats in Khayelitsha should the model prove successful.

• The evaluation demonstrated a significantly higher rate of return (44% as opposed to 21%) with a significantly lower initial capital outlay on the grid based option. This coupled with the entrepreneur’s life and business objectives, the limited amount of capital at her disposal and the cheap electricity alternative, resulted in her decision to utilise her investment in a conventional electricity based operation for the initial phase of her business. She will consider SWH for expansion and the rising electricity prices and the fact that her business has suffered in the recent energy crisis engulfing South African businesses will add to the argument for such a decision.

• Eskom are in the process of launching their Solar Water Heating subsidy scheme and subsidised SWHs are slowly starting to enter the market4.

• OneWorld is making an application with the Entrepreneur to try and secure one of these pilot SWHs for her business. This decision has been delayed as the pilot has seen significant delays.

Further work entailed training of the IATs and whilst the work was largely conducted directly with the entrepreneur concerned, the Development Action Group (DAG) has participated in the IAT training on economic analysis tools (WP 3&4).

4 WP7: OneWorld continued to work with Cape Town City Council and the Western Cape Department of

Environmental Affairs and Development Planning as well as local Counsellors (Saliem Muaser) on the Solar

Water Heater by-law, which is now in its 10th draft. Four meetings and presentations have been attended

and given. The by-law cannot be passed until an amendment is made to the building regulations by the

Department of Trade and Industry (DTI). It is now anticipated that the by-law will be passed in December

2009.



DAG is a Cape Town based NGO that works primarily in peri-urban areas to support SME development to achieve poverty alleviation objectives. The skills base in DAG comprises SME support, community development and participation and public awareness. DAG has been interested in RETs for some time and has developed substantial knowledge as a result. A further IAT has been identified, RAPS, a Cape Town based organisation that seeks finance solutions for rural energy applications. Training (WP4) commenced with this IAT in July 2006. Figure 10: Pellet Plant

The proposed biomass energy plant site is to be situated adjacent to the pellet plant (see photograph above). The area is home to significant forestry plantations and timber industry and the site is therefore in close proximity (less than 50km) to the biomass material, namely sawmill residue (for the pellet manufacturing plant component) and forestry residue for the power plant, which will be used as the consistent and sustainable fuel source. An added benefit is that the fuel feedstock would normally be left in forest or sent to landfill where it would generate greenhouse gases (mainly Methane) through decay and not provide any added value to local communities whilst also contributing to greenhouse gas emissions. Biotech Energy is expected to conclude supply contracts with all three entities by the end of May 2008. The energy plant requirement is between 11 000 and 12



000 tonnes per month to power the 6MW plant. Contracts for 12 000 tonnes are being negotiated. Figure 1 below shows the location of the proposed site and surrounding land uses. Figure 11: Map showing the surrounding land-uses of the proposed Green Energy Plant, and alternative sites of the proposed plant The green energy plant will comprise the following:

• Biomass receiving and storage areas • 1 Biomass sizing plant (hammer mill, screening equipment etc.) • Biomass transfer equipment (conveyors, mechanical handling plant) • 1 Surge storage for biomass storage before steam generator • 1 biomass fuelled steam generators to generate steam at 20 bar and 360-

oC superheat temperature • 1 Steam Turbine Alternator to generate 6MWe of electricity at 11kV • Ash handling plant • Water treatment plant • High efficiency grit arrestors on steam generator • Electrical switching and protection equipment

Once the fuel is delivered to site, it will be prepared in terms of ensuring it is appropriately sized and then stored. When required it will be combusted in the steam generator to generate steam. The steam generator will also require feed

PETRONET PIPELINE

INFORMAL SETTLEMENT

PROPERTY

BOUNDARIES

STEEL COMPANY

WOOD PROCESSING

FACILITY

TIMBER 24

LUMBER JACKS

ACCESS ROAD

N3 SERVITUDE

WOOD DUMP

APPROVED PELLET PLANT

DEVELOPMENT SITE

ALTERNATIVE SITINGS OF THE GREEN ENERGY

PLANT



water, which will require conditioning in terms of hardness and pH. This will be undertaken using an ion exchange filter with a resin system. This project will displace CO2 emissions associated with the electricity from fossil fuels used by the pellet plant as well as the running of this propose plant. Furthermore, renewable energy from the Biomass plant will be used by the local communities (i.e. direct sales; PPA with municipality, Eskom etc) and will replace the current and increasing use of fossil fuel derived electricity in the area. The pellet plant (see photograph below) would otherwise continue to use fossil fuel based electricity for its operation. The local grid would also continue to receive its energy from coal-fired power stations using some of the worst low-grade coal in the world. Figure 12: Pellet Plant – inside

The project will reduce approximately 139 184 tonnes of CO2e per year (32 712 CO2 and 5070 NH4 [@ 25 times GWP]) from entering the atmosphere. Therefore, the combined emissions from these will be approximately 139 184 CO2e each year over the 21-year period resulting in an estimated saving of 2 922 864 tonnes of CO2e. The crediting period is seven years (with the expectation that an additional two periods of seven years each will be allocated) This project is expected to deliver a clean source of energy (through reducing dependence on the coal based grid) to an area that is energy ‘short’ and thus has an environmental and economic development benefit. It is also expected to create 50 jobs, which can be filled from the local community during the construction phase, and 152 jobs, 80% of which can be filled by the local community, during operational phase. Decommission is expected to create



a further 18 jobs, bringing the total number of jobs to 220 during the life cycle of this project. This contributes toward local job creation although the full socio-economic benefit is anticipated from downstream project impacts. An additional, secure, local energy supply is expected to support and stimulate local economic development with further jobs and income generation opportunities emerging. Associated Energy Services (Pty) Ltd (AES) were contracted to undertake all technical and engineering related activities prior to the operation of the plant and thereafter to be the operations and maintenance (O&M) contractor to Biotech Energy for the plant. OneWorld Sustainable Investments was contracted to develop the Clean Development Mechanism (CDM) project for the plant and to manage the validation and registration processes. The planned green energy plant at Howick will be carbon neutral and will thus make a significant contribution to reducing South Africa’s carbon footprint by utilising a renewable energy fuel feedstock. It also presents an opportunity for South Africa to increase its renewable energy generation capacity and contribute to the country’s urgent generation capacity requirements. This project requires Carbon Credit finance to be viable. South Africa’s low electricity prices make competitive pricing of alternate electricity streams difficult. Furthermore, Eskom have demonstrated little interest in paying any sort of premium for green electricity. The CDM finance stream is expected to reduce the price of the electricity produced from the plant to the consumer. This project presents a number of environmentally beneficial opportunities. Firstly, and the most obvious, is that it will displace 139 184 tonnes of CO2e emissions of coal-based electricity. Secondly, it will significantly reduce the risk of fires in the forestry areas by removing the wood residue, which is a fire hazard. Reducing this risk has social and health benefits for the local population. Thirdly, the biodiversity is likely to be improved in the surrounding area as removing the gleanings from forests will improve the soil quality, which forms a critical basis for the forest ecosystems. The following issues have been identified as potentially problematic and will, amongst other issues, be investigated during the Basic Assessment Process:

• Noise impacts for neighbouring landowners; • Potential impacts on air quality; and • Impacts on traffic;

The need for public input and involvement is of critical importance. All I&APs (neighbours, authorities, organisations etc.) are invited to comment on the proposed development. As mentioned earlier, there was a public participation event on the 14th of April in Howick. This was part of the EIA process and event made it possible for interested parties to meet and discuss any issues with



Biotech Energy, AES and OneWorld. Comments have also been be solicited by post, telephone and email. This pellet plant is expected to begin production at the time of writing this report (mid-April 2008). The biomass green energy plant has the funding to go ahead and Biotech Energy are in discussions with Eskom, local companies and consultants to begin its construction. The project is expected to be completed by June 2009. Pre Feasibility and Market Study for a SWH Laundromat in the peri-urban area of Khayelitsha, Cape Town, South Africa

Executive Summary

Background

The proposed business is to establish a Laundromat in the peri-urban area of

Khayelitsha, which is situated on the Cape Flats in Cape Town. There is currently

no Laundromat in the area concerned. The area is densely populated with

shacks and some houses and is home to a range of income levels. Almost all the

homes have direct electricity access, although this is largely used for lighting only

– except in the more affluent households that can afford and have the space for

appliances. Water is provided although this is mostly via a street corner tap and

then carried to the home concerned.

The Entrepreneur knows Khayelitsha, is local and has ZAR 10,000 to invest in a

business. This she sees as an investment in a business that will generate more

wealth than she currently earns, will allow her to educate her children and which

should provide for her retirement.

Business offering

The proposed Laundromat will offer a range of services to include:

Self service washing

Ironing service

Full washing and ironing service provided for the consumer

Tailor

Currently, local clothes washing is done by hand using cold water. Frequently

this happens under a running street corner tap and a substantial amount of water



is wasted. The activity is time consuming and is often done by the women of the

house – who are also often the breadwinners. The more affluent homes utilize

Laundromats that are situated close to their place of work and this will provide

competition. Pricing will therefore need to be cognizant of this issue and the

pricing model developed aims to offer a significantly cheaper AND local service

that can save time and money for the customer at the same time as being

convenient.

The market potential is significant and growth of the business is anticipated

through expanding the proposed model and through replicating it in other parts of

Khayelitsha and further a field. The need for the service is established but

sensitive to price and to competing uses of disposable income – in particular food

and transport. Almost all employment opportunities are at some distance and

food prices have seen a sharp increase over the past 6 months.

Energy Source

Energy is required for the running of the washing machine and for heating the

water, as well as for lights, ironing and sewing machine(s). Electricity is available

to the Laundromat and therefore to the running of the washing machine(s) and

other equipment described. Water heating is a significant cost component and

solar energy can be used through a Solar Water Heater as an alternative to an

electric geyser. Assuming that there can be no extra charge can for “solar

laundering”, the value of solar energy is in the saving of electricity for the water

heating part. This is assumed to 4 kWh per load at 2,5 R/kWh=10 R

A SWH for 150 l/d can be computed to 2 m² costing ZAR 16,700 and at 1728

loads per year, this can save ZAR 17,280 and give an ROI of 30%

Investment analysis

An investment cost comparison has been done using a combined grid based

electricity and renewable energy model where a solar water heater (SWH) is

installed for water heating as against a model that solely uses grid based

electricity and the SWH is replaced by electric geysers. The Return on



Investment (ROI) is significantly higher in the electricity only model and this is

directly contributable to the cost of the technology coupled with cheap electricity.

The impact of the significantly higher cost of technology is mitigated by the

lifespan of the SWH, which is more than 3 times longer than the electric only

model.

Business model

The business will be driven by a single entrepreneur who has 40% of the capital

investment required to invest in the business. Her objective is to make this

investment based on the expectation of a higher monthly income and a

retirement annuity for her older age. She is interested in replicating the business

in other parts of Khayelitsha and is confident of the market need. She plans to

employ her daughter on a part time basis whilst she completes her education and

unemployed women in the area on a needs based contract basis so as to keep

overheads as relevant to turnover as possible.

Conclusions

The business case has merit but the case for the use of renewable energy

technology is not robust. The entrepreneur is however interested in the longer-

term lifespan of the SWH option and would like to see stronger data on the

savings in electricity costs in using a SWH. She is also cognisant of rising

electricity prices (Eskom have applied for a tariff increase of between 8 and 9%)

in South Africa and is aware of the energy issues in the country – in particular of

the costs an energy crisis such as the one experienced in May 2006 would have

on her business. She will install a SWH adaptable geyser and would prefer to

reconsider SWH is the growth phase of her business as more capacity is

required. At this stage she will have better knowledge of her monthly electricity

costs and the extent of hot water that will be heated.



Business model analysis: Feasibility Study

Getting it right – Screening the SWH Laundromat business

The Business Concept and Case

Business Idea Description A Laundromat in a peri-urban area using SWH technology for heating

water in a washing machine (and a cold water machine) plus ironing

and tailor and repair services on clothing.

List Key Business Factors The business relies on clothes washing and ironing technology and hot

water to differentiate the service from existing hand and cold water

washing that takes place in the area considered. It is believed that the

business model may be replicated and possibly franchised

Identify Renewable Energy

Resource / Technology &

Capital Cost

Solar Water Heating to displace some of the alternate electricity (grid

based) costs. Note, this technology could provide hot water in

situations (rural) where there is no existing means of heating water in

quantities

Justify RET Selection and

Identify the energy

alternative and the cost of

that alternative

SWH have demonstrated an up to 40% saving on electricity in South

African markets. The technology is significantly more expensive than

electric geysers, but with a substantially longer lifespan.

Identify and state the key

objectives / goals of the

business and the

Entrepreneur. I.e. what

does the entrepreneur

expect from the business

and what does the business

want to achieve?

What does the entrepreneur

expect from the business?

The entrepreneur concerned is a domestic worker who seeks to earn a

higher income plus invest her savings into a business that will provide

in the longer term for her retirement. She expects to obtain as high as

possible rate of return on her investment plus a steady income that

exceeds her present income by at least 100%.



Evaluating Business Indicators

Business Indicator Status Statement Next Steps

The

entrepreneur/ management is qualified

The entrepreneur is committed

There is a clear market

The product/ service is competitive

The cost of making sales is known

#1

#2

#4

#5

#3

The entrepreneur has 8 years experience working in debtors and creditors for a medical insurance company and then for an IT group. She manages a bank account and owns property in Cape Town (thus familiar with debt and has access to credit)

The costs are for salaries / wages; washing powder and water. These amount to approximately R 12 per load

She is prepared to commit her savings (90% thereof)

The market is expected to yield at least 5 loads per day, plus extra services contributing to more than 70% of the business turnover

R15 per load of washing; R 7 per item ironing; R 25 per item tailored. Compares favorably (cheaper than) similar services in the City

Secure balance of finance required –loan/another equity partner

Conclude market survey

Run costing model



Business Indicator Status Statement Next Steps

The margins are attractive #6

The business demonstrates ability to support an overhead

Capital can be sourced on realistic terms

#8

#7

Rental, salaries, interest repayments and operational costs

These are estimated at R3 per load (gross)

Positive environmental & social impact

The business model is scalable and replicable

The environmental impact is positive if the SWH technology is utilized. People will have access to a service that will mean less water consumption & wastage.

#9

#10

The laundromat itself van grow in capacity (more washing machines and staff for greater market yield); the model is easily replicated in other peri-urban areas and rural environs

This is realistically achieved as the entrepreneur has a significant investment in the capital costs. This would not be the case without that deposit



Preliminary financial / economic analysis

Definitions used

Item Definition

Capital Investment Total cost of technology investment

Investment Lifespan Life of the technology - I.e. period before it must be replaced

Units/annum Units produced per year - e.g. 1000 loads of washing or 12000 loaves of bread

Price/unit Sales price per unit produced and sold

Revenue /annum Sales price multiplied by number of units sold

Variable cost ofsale/unit

For example, in a laundromat, water, soap and labour

Amortization per unit: Capital cost of the technology over the number of units estimated to be produced over the life of the technology

Direct costs per unit: Variable costs plus amortization

Total direct costs

Gross Margin/unit Sales price per unit less the direct costs per unit

Total fixed costs Annual indirect costs such as rent, telephones, salaries

Fixed costs/unit Annual fixed costs divided by the number of unitsproduced

Total costs/unit (Variable costs plus fixed costs)/number of unitsproduced per year

Total costs Total direct costs plus total fixed costs

Net Margin Revenue less total costs

ROI / t Return on Investment = net margin divided by capitalinvestment



Cost of Technology and Investment Analysis

The attached spreadsheet analysis compares the cost of the SWH technology

with electricity – using an electric geyser as an alternative. Electricity is required

in both scenarios – as a back-up to the SWH as well as for running washing

machines, lights and irons. A more labour intensive model could be considered

using hand washing instead of washing machines, but whilst this will reduce the

capital investment required, the labour costs increase the variable costs per unit

significantly with a negative impact on the ROI.

The ROI on the electricity only option is much more attractive at 44% versus 30%

for SWH. A significant cost in this business model is labour, followed by materials

and resources (water and energy). Sensitivities lie in the variable costs (wages)

and price per unit (which needs to be kept at a competitive rate).



Screening analysis

The entrepreneur/ management is qualified

The entrepreneur is committed

There is a clear market

The product/ service is competitive

The cost of making sales is known

The margins are attractive

The business demonstrates ability to support an overhead

Positive environmental & social impact

The business model is scalable and replicable

Capital can be sourced on realistic terms #10

#9

#8

#7

#6

#5

#4

#3

#2

#1

5 4 3 2 1 0

TOTALS

38



Getting it right – Market Assessment Tools Goods or service market aspects analysis

Tool 6 Product / Service Analysis & Market Context Definition of product / service offering: What is it? Who will buy it?

Clothes washing, ironing and repairs sold to local residents

List all competitors / competitive products / services. If none state if this is an advantage / disadvantage and why

There are no laundromats in the area. Competition is through city based services where city based employees have easy access and / or through home based hand washing either by the resident and / or their domestic employees (latter is rare)

Identify the key differentiators of your product / service & Why

The key differentiator is for hot water based clothes washing. Whilst the local community has access to water, few houses have direct access and none have equipment o heat water other than by boiling over a fire or paraffin stove. This means that in most cases clothing is washed by hand and using cold water. A secondary factor is that washing is time consuming and if a service can be provided cost effectively, there is a demand.

If this is a new product / service, describe why you think the market wants / needs it

As above

State the relevant aspects of the economic environment into which you will sell your product / service

The community on the whole, is poor although 90% of the households have at least one member that brings home a steady income. Key monthly costs are food and transport. Almost all the employment is at least 15km away and people travel mostly by taxi. There is no alternative. Increased food and transport costs (often related) can affect this business as laundry is much lower down on the priority list.

Make a clear statement

as to the market need for

your product / service:

The market need is clear but there are sensitivities, The poorer end of community is likely to be more sporadic in their use of the Laundromat as this will depend entirely on volatility of disposable income. The higher end of the community is more likely to use the service – and in these cases will want the full service of washing and ironing. Need for dry-cleaning is not as clear.



Market Analysis Evaluation

Rank each item on a scale of 5 – 0, where 5 is attractive and 0 means you have

no answer to / knowledge on that item in relation to your business.

Use the information and analysis obtained from completed market assessment tools.

35

#10

#9

#8

#7

#6

#5

#4

#3

#2

#1 The product/ service is competitive (differentiators)

There is a clear gap in the market

My offering is price competitive

Market linkages are in place (value chain)

Buyers have accessible finance / the offering is affordable

There is sufficient volume of potential users

Barriers can be overcome

Growth potential in the market is positive

Market share is sustainable

Market risks and sensitivities can be mitigated

TOTALS

5 4 3 2 1



Laundromat, Solar Water Heater, Western Cape

INSABA Pre-assessment of Project Proposals This tool is designed to help in the basic assessme It is very simple as it does not consider interest, deCountry: RSA Fill in the white fields, the rest will be computed Pilot Region: Cape Town - Khayelitsha RE Technology: Solar Water Heating Business Idea: Heat laundry water with SWH, save electricity

Proponent name, contact Lulu Mqikela In this tool, we determine the profile of the proponYears of experience as owner of business 0 and the characteristics of the proposed business Number of employees w/contract 2 The figures in this examples are assumption baseProponent uses bank account (yes=5, No=0) 5 They need to verified during the market assessmeExperience with formal loan (received=5, applied=3, no=0) 3 Experience in cost calculations, business plans (no=0, several=5) 2 Practice in maintaining/operating equipment (RET) (none yet=0, regularly=5) 0 The influence of these data on the ROI can be see

Total 12 Optimization can be done e.g. With the goal-functi

Calculation of ROI - SWH options plus electricity Laundry Determination of parameters Definitions Investment Capital 22700 computed for 150 ltr/day plus washing machines, irons and miscellaneous

equipment Total cost of technology investment

Investment Lifespan 10 Life of collector and washing machines

Life of the technology - i.e. period before it must be replaced

Production 6900 Based on 8 washes per day, 6 days per week for 48 weeks plus periphery services Units produced per year

Price/unit 15 Average price per unit - basic services (where 80% of the market is basic) Sales price per unit produced and sold



Revenue 1 103,500 Revenue directly generated from using the SWH for hot water to wash, plus peripheral services - ironing and tailor

Sales price multiplied by number of units sold

Variable cost/unit 11.50 Cost per unit produced - washing powder, water, electricity, salaries

Saves energy costs of power, fuel added to variable cost

Total fixed costs 15000 Interest, rental Annual indirect costs such as rent, telephones, salaries


Direct costs per unit: 11.83 81,620

Variable costs plus amortization plus cost of energy

Gross Margin/unit 3.17 Sales price per unit less the

direct costs per unit

Fixed costs/unit 2.17 Total fixed costs divided by the number of units produced





Laundry services: Assuming that no extra charge can be had for “solar laundering”, and that electricity is available for running the washing machine, the value of solar is in the saving of electricity for the heating part. This is assumed to 4 kWh per load at 2,5 R/kWh=10 R A SWH for 150 l/d can be computed to 2 m² costing ZAR 16,700 and at 6900 loads per year, this can save ZAR 69,000 and give an ROI of 30%




Calculation of ROI - electric geyser & washing machine option Laundry Determination of parameters Definitions

Investment Capital 8000

computed for 150 ltr/day electric geyser plus washing machines, irons and miscellaneous equipment

Total cost of technology investment

Investment Lifespan 4 Life of electric geyser Life of the technology - i.e. period before it must

be replaced

Production 7200 Higher guaranteed production on electricity option Units produced per year

Price/unit 15 Average price per unit - basic services (where 80% of the market is basic) Sales price per unit produced and sold

Revenue 1 108,000 Revenue directly generated from using the electric geyser for hot water to wash, plus peripheral services - ironing and tailor

Sales price multiplied by number of units sold

Variable cost/unit 12.50 Cost per unit produced - washing powder, water, electricity, salaries

Cost of energy/unit included in variable costs costs of power, fuel added to variable cost

Total fixed costs 12500 Interest, rental Annual indirect costs such as rent and interest


Direct costs per unit: 12.78 92,000 Variable costs plus amortization plus cost of

energy

Gross Margin/unit 2.22 Sales price per unit less the direct costs per unit

Fixed costs/unit 1.74

Laundry services: The ROI is significantly higher given the comparatively low cost of the technology and relatively cheap electricity

Total fixed costs divided by the number of units produced



Sensitivity Analysis

-400%

-300%

-200%

-100%

0%

100%

200%

300%

400%

-20% -10% 0% 10% 20%

percentage change of parameter

Capital Investment

Investment Lifespan

Units/annum

Price/unit

Variable cost of sale/unit

Cost of energy/unit

total fixed costs



Sensivity Analysis

ROI Capital

Investment Investment

Lifespan Units/annum Price/unit

Variable cost of

sale/unitCost of

energy/unit

total fixed costs

-20% 40.39% 27.81% 9.03% -60.88% 100.22% 30.31% 43.52%-10% 34.79% 29.20% 19.67% -15.29% 65.26% 30.31% 36.92%

0% 30.31% 30.31% 30.31% 30.31% 30.31% 30.31% 30.31%10% 26.64% 31.22% 40.95% 75.90% -4.65% 30.31% 23.70%20% 23.59% 31.98% 51.59% 121.50% -39.60% 30.31% 17.09%

-20% 33.25% -8.25% -70.20% -300.87% 230.67% 0.00% 43.60%-10% 14.78% -3.67% -35.10% -150.44% 115.33% 0.00% 21.80%

0% 0 0 0 0 0 0 0

10% -12.09% 3.00% 35.10% 150.44%-

115.33% 0.00% -21.80%

20% -22.17% 5.50% 70.20% 300.87%-

230.67% 0.00% -43.60%



2.6 Austin Evans Abattoir, Biogas, Eastern Cape

An INSABA project was proposed to and discussed with Mr. Roger Austin, owner of Austin Evans Abattoir in the Somerset East district of the Eastern Cape in 2005. The meeting was facilitated by the INSABA IAT, the BCDA. The proposal at the time was to combine municipal waste and energy problems (as descried in section 5 hereto) with the abattoir waste issues through the installation of an anaerobic digester that would convert methane to energy, with the feedstock being blood and intestinal abattoir waste and municipal organic waste, along with surrounding livestock farm waste. The abattoir declined involvement with this project at an early stage, as discussed in Section 4.5, point 7, as the business case did not make sense. At the time, the company was enjoying reliable, cheap electricity supply from the national grid and there was no immediate benefit in replacing grid electricity with biogas as direct supply to their operations. However, the recent energy crisis in South Africa has affected their operations, plus they are seeing the effects of rising electricity prices. Mr Austin contacted OneWorld in January 2008 with a view to reconsidering this project. A brief description of a potential biogas technology is given below. The abattoir is the third largest in the country and is located on the outskirts of Somerset East in the Eastern Cape. There are a number of animal farms in close proximity (maximum 6km radius). The waste from the abattoir currently is being dumped in an open waste disposal site, which is right next to the impoverished local community. Members of this community, often-young children, collect animal offal from the site and take it home to cook for food, at significant health risk.



Figure 13: Abattoir, Biogas, Eastern Cape

OneWorld is planning to conduct a feasibility analysis on the installation of an anaerobic digester to create biogas for electricity production. All residues, particularly blood and intestinal waste arising from the abattoir operations would used and fermented and even the sludge produced is neutral in respect to bacteria and fungi. The electricity produced would be used in the abattoir and any excess electricity production sold to the local municipality who have a prohibitive energy deficit. There is substantial demand for thermal energy in an abattoir. The value in local currency of the thermal energy may even exceed the profit for using or even selling electricity. This will be tested in the feasibility study. The sludge is a good fertilizer. As the abattoir has no need for the slurry, this would be sold to an identified local client. There are a number of farms in the area that would take up this supply, including the cut flower farm, located 3km from the abattoir.



Brief Biogas Technical Summary General remarks: Biogas-technology has a long history but in the last decade it has risen quickly up the renewable energy agenda. This has occurred mainly in Germany and Austria, but other countries are likely to follow, due to the EEG (Energie-einspeise-gesetz) which gives financial support and compensation to producers of biogas. Materials (Inputs): Principally, any type of organic material that contains celluloses or related components is suitable for anaerobic fermentation. Not all plants or other organic mixtures have the same yield however. Green maize, specifically grown for a fermentation process, is currently the most frequent used material. Output: Biogas which contains roughly 50% CH4 (Methane) and 50% CO2 as well as some traces of other partially noxious gases. Sludge is formed as a result of the fermentation process. The sludge contains all elements which were in the input-material which are not volatile. Retention time: The retention time depends greatly on the substrate and can vary from a week (if specified conditions are guarantied) up to three weeks if the input material and outside temperature varies. The retention time is a very important aspect because it affects the volume of the fermenters. The longer the fermentation takes, the bigger the fermenters required. In Germany 500 m3 are standard now a days although some industries are using 1000 m3 fermenters. Utilisation of Biogas: The energy content of Biogas is roughly 50% of natural gas e.g. Methane and could be:

- Burnt directly in adapted but available burners. - Used in adapted but available motors. - Burnt in lamps for lightening. - Used in adapted but available refrigerators. - Principally even in fuel cells. - Converted to other chemical components. - Feed in natural gas pipelines if the CO2 content was extracted - Other utilisations.

Utilisation in Motors: Motors run on biogas and produce electricity and heat. The heat comes from the cooling of the motors. Utilisation of electricity: Generally the utilisation of electricity does not cause problems. It could be fed into an existing grid or used at the location. Utilisation of thermal energy: Often this aspect causes problems because the energy may not be needed at all, only a small amount may be required or not required at the same time when it is being produced. Therefore all biogas-producers are eager to find a user for the thermal heat, either on the site or close by. It is even more preferable if the users pay for the thermal energy too. Utilisation of the sludge: The sludge is generally a highly welcome fertilizer which has laws governing its distribution and use. The components are generally not immediately available because natural degradation in the soil has to take place first. Due to the chosen type of fermentation the sludge contains up to 90% water which may cause transport problems or extra (unforeseen) costs.



Biogas and abattoir: The utilisation of practical, abandoned residues of a slaughterhouse can be fermented (beside bones, horns, coat etc). The sludge itself is neutral in respect to bacteria and fungi. Electricity: It is likely that an abattoir would use all the electricity generated although any excess electricity could be fed into the grid. Thermal Energy: There is a tremendous demand for thermal energy of any temperature in an abattoir. The value in local currency of the thermal energy may even exceed the profit for using or even selling electricity. Sludge: The sludge is, as mentioned above, a very good fertilizer. As the abattoir has no need for the slurry, which contains much water, a client should be found in a decent distance. The slurry could be filtered and compacted. Principally the sludge could be put into algae-ponds (a common technique for example in Taiwan) but that would put an extra operation on the slaughterhouse management which has already a wide range of tasks. Forecast: Technical advice and good consultancy is available in Europe, but likely locally (in South Africa) too or a combination of both.



2.7 Solar Cinema

Solar Cinema Financial Plan This spreadsheet contains financial, operational, and energy consumption plans for the Solar Cinema.

NOTE: Updating hi-lighted variables will update the entire spreadsheet SUMMARY OF WORKBOOK

Please read before using or updating Solar Cinema Financial Plan Worksheet Function Notes 1. Summary financials Includes revenue, operating expense, capital cost, and loan terms

2. Operations variables Relevant variables and assumptions governing operations Hi-lighted variables on this sheet will update entire spreadsheet

3. Revenue Itemized list of revenue and assumptions

4. Operating expense Itemized list of operating expenses and assumptions

5. Capital expenditure Itemized list of capital expenditures and assumptions

6. Loan terms Builds loan terms for start-up capital costs Changing hi-lighted interest rate, loan term, and principal will update monthly payments

7. Energy system design Load calculations and sizing and cost of PV systems, also including the weekly showing schedule

Changing hi-lighted variables will update the entire spreadsheet

A. Loan calculator MS template for calculating loan terms

B. Energy testing data Results of load-testing on projector, DVD player, and amplifier with speakers.

To be completed…

Author Date Restio Energy 26 January 2007 14 Clifton Rd., Mowbray [email protected]



1. Summary financials, monthly Note: Updating hi-lighted variables on this page

will update the entire spreadsheet NOTES Revenue R 63,900

Ticket sales 51,300 Rental fee 2,250 Refreshments 10,350

Operating expense R 45,151 Building rent 17,550 Licensing fees 9,000 Security 500 Refreshments labour 3,510 Refreshments 6,210 Ticketing labour 1,755 Janitorial labour 1,890 Solar maintenance 600 Electricity - Electronics system repair 300 Business expenses 3,070 UIF 766

Operating profit R 18,750 Operating margin 29% Require 30-40% operating margin for business case Capital investment R 83,600 Loan payment per month with competitive loan R 2,095 Net operating profit R 16,655 Net operating margin 26% Market statistics

Tickets sold per month 4,140 Tickets sold per year 49,680 Average movies per year per viewer 2 Could be higher? Total viewers per year 24,840 Total addressable market within 2km radius 200,000 Need to fact check this number Market saturation necessary 12% Very reasonable. Would allow for capacity expansion.



2. Operations variables Note: Updating hi-lighted variables on this page

will update the entire spreadsheet Variable Value NOTES Premium showings per week 8 Two on Friday, three on Saturday, and three on Sunday Non-current showings per week 3 One on Tuesday, Wednesday, and Thursday Educational viewings per week 2 Monday or during the day during the week Total showings per week 13 Weeks per month 4.5 Total showings per month 58.5 Premium ticket price R 15 Non-current ticket price R 10 Educational rental fee per showing R 250 Theatre capacity 100 The projector and speaker system will allow scaling of capacity to 200 (check) Premium attendance 80% Premium attendance weekly 640 Non-current attendance 60% Premium attendance weekly 180 Educational attendance 50% Premium attendance weekly 100 Viewers per week 920 Viewers per month 4,140 Refreshments price per item R 5 Share of viewers who purchase refreshments 50%



3. Theatre revenue Cumulative theatre revenue per month R 63,900 Premium film ticket sales

Premium ticket price R 15Premium showings per week 8Weeks per month 4.5Capacity 100Attendance (% of capacity) 80%Premium film revenue per month R 43,200

Non-current film ticket sales

Non-current ticket price R 10Non-current showings per week 3Weeks per month 4.5Capacity 100Attendance (% of capacity) 60%Non-current film revenue per month R 8,100

Public service / educational viewing ticket sales

Educational rental fee R 250Educational showings per week 2Weeks per month 4.5Public service / educational viewing revenue per month R 2,250

Refreshments

Average price of item R 5Share of viewers who purchase refreshments 50%Viewers per month 4140Refreshments revenue per month R 10,350



4. Operating expense Supplies expense per month R 3,070

Electronics system repair

Unexpected repair R 300 Electronics system repair per month R 300

Labour health benefits - UIF This is a community development-related idea. Percent of labour wage 10% Benefit value R 766

5. Theatre capital expenditure Note: Updating hi-lighted variables on this page

will update the entire spreadsheet NOTES 5. Cumulative theatre capital expense R 83,600 Projector and viewing

Projector R 7,000 Screen and mounting R 1,000 DVD player R 600 Speakers and amplifier R 3,500 Electronics stand R 1,000 Projector and viewing expense R 13,100

Solar system

Photovoltaics cost (500 W) R 25,000 Battery cost (750 amp-hours) R 15,000 Inverter cost R 3,000 Electronics cost R 3,000 Installation cost R 5,000 Solar system cost R 51,000

Security Some of this may be existing in the community centre



Lockbox for projector, DVD player, DVDs, receiver, and speakers R 3,000 Lockbox for solar electronics R 300 Perimeter and connection to ADT R 1,000 Secure management office R 500 Security capital expense R 4,800

Training of entrepreneur This amount is not included in cumulative capital expense.

Selection process R 5,000 Maybe the entrepreneur pays. Training in management, accounting, and operations R 10,000 Training of entrepreneur expense R 15,000

Building upgrade Number of folding chairs 100 Cost per folding chair R 100 Curtains R 500 Room must be black for optimal projection quality Restrooms R 0 Should be already present Advertising banner ("Now Playing") R 2,000 Building upgrade capital expense R 12,500

Refreshment booth Imagine cold drinks, chips, and candy. Wooden counter R 500 Ice boxes R 200 For cold drinks Snack display R 200 Refreshment booth capital expense R 900

Employees Hiring R 500 Training R 500 Uniforms R 300 Employee capital expense R 1,300



6. Loan terms Note: Updating hi-lighted variables on this page

will update the entire spreadsheet NOTES Capital expenditure R 98,600

Projector and viewing R 13,100 Solar system R 51,000 Security R 4,800 Training of entrepreneur R 15,000 Building upgrade R 12,500 Refreshment booth R 900 Employees R 1,300

Loan size R 98,600

Loan terms: Development loan Requires E+co or GroFin competitive loan Bank interest rate 10% Loan term (years) 5 Annual payment R 25,140 Monthly payment R 2,095

Sensitivity to interest rate: 20% rate If borrowing from traditional bank

Bank interest rate 20% Loan term (years) 5 Annual payment R 30,871 Monthly payment R 2,573



7. Energy system design Note: Updating hi-lighted variables on this page

will update the entire spreadsheet

System load Projection and viewing electronics Watt rating

Projector 200 Speaker and receiver 300 DVD 20 Projector load (watts) 520

Viewing load

Viewing length (hours) 2.0 Energy load per viewing (watt-hours) 1,040

System specifications

PV size (watts) 500 Suns per day 4 Battery size (amp-hours) 750 Battery voltage 24 Battery watt-hours 18,000 Inverter losses 15% Remaining 15,300 Depth of discharge maximum (15%) 2,295

PV system costs Total solar system cost R 51,000

Price per watt R 50 PV size (watts) 500 PV cost R 25,000 Price per amp-hour R 20 Battery size (amp-hours) 750 Battery cost R 15,000 Inverter cost R 3,000 Electronics cost R 3,000 Installation cost R 5,000



Weekly viewing schedule Type of film Showings Solar input Daily load Daily deficit (watt-hours) (watt-hours) Monday Educational 2 2,000 2,080 -80 Tuesday Non-current 1 2,000 1,040 0 Wednesday Non-current 1 2,000 1,040 0 Thursday Non-current 1 2,000 1,040 0 Friday Premium 2 2,000 2,080 -80 Saturday Premium 3 2,000 3,120 -1,120 Sunday Premium 3 2,000 3,120 -1,120

A. Loan Calculator Loan Amortisation Schedule for a competitive loan. Enter values Loan summary Loan amount R 98,600 Scheduled payment R 2,094.96 Annual interest rate 10.00 % Scheduled number of payments 60 Loan period in years 5 Actual number of payments 60 Number of payments per year 12 Total early payments R - Start date of loan 9/1/07 Total interest R 27,097.52 Optional extra payments $- Lender name:



PmtNo. Payment Date Beginning

Balance Scheduled

Payment Extra

Payment Total

Payment Principal Interest Ending

Balance Cumulative Interest

1 10/1/07 R 98,600.00 R 2,094.96 R - R 2,094.96 R 1,273.29 R 821.67 R 97,326.71 R 821.67 2 11/1/07 97,326.71 2,094.96 - 2,094.96 1,283.90 811.06 96,042.81 1,632.72 3 12/1/07 96,042.81 2,094.96 - 2,094.96 1,294.60 800.36 94,748.20 2,433.08 4 1/1/08 94,748.20 2,094.96 - 2,094.96 1,305.39 789.57 93,442.81 3,222.65 5 2/1/08 93,442.81 2,094.96 - 2,094.96 1,316.27 778.69 92,126.54 4,001.34 6 3/1/08 92,126.54 2,094.96 - 2,094.96 1,327.24 767.72 90,799.31 4,769.06 7 4/1/08 90,799.31 2,094.96 - 2,094.96 1,338.30 756.66 89,461.01 5,525.72 8 5/1/08 89,461.01 2,094.96 - 2,094.96 1,349.45 745.51 88,111.56 6,271.23 9 6/1/08 88,111.56 2,094.96 - 2,094.96 1,360.70 734.26 86,750.86 7,005.49 10 7/1/08 86,750.86 2,094.96 - 2,094.96 1,372.03 722.92 85,378.83 7,728.42 11 8/1/08 85,378.83 2,094.96 - 2,094.96 1,383.47 711.49 83,995.36 8,439.91 12 9/1/08 83,995.36 2,094.96 - 2,094.96 1,395.00 699.96 82,600.36 9,139.87 13 10/1/08 82,600.36 2,094.96 - 2,094.96 1,406.62 688.34 81,193.74 9,828.20 14 11/1/08 81,193.74 2,094.96 - 2,094.96 1,418.34 676.61 79,775.40 10,504.82 15 12/1/08 79,775.40 2,094.96 - 2,094.96 1,430.16 664.79 78,345.23 11,169.61 16 1/1/09 78,345.23 2,094.96 - 2,094.96 1,442.08 652.88 76,903.15 11,822.49 17 2/1/09 76,903.15 2,094.96 - 2,094.96 1,454.10 640.86 75,449.05 12,463.35 18 3/1/09 75,449.05 2,094.96 - 2,094.96 1,466.22 628.74 73,982.84 13,092.09 19 4/1/09 73,982.84 2,094.96 - 2,094.96 1,478.43 616.52 72,504.40 13,708.61 20 5/1/09 72,504.40 2,094.96 - 2,094.96 1,490.76 604.20 71,013.65 14,312.82 21 6/1/09 71,013.65 2,094.96 - 2,094.96 1,503.18 591.78 69,510.47 14,904.60 22 7/1/09 69,510.47 2,094.96 - 2,094.96 1,515.70 579.25 67,994.76 15,483.85 23 8/1/09 67,994.76 2,094.96 - 2,094.96 1,528.34 566.62 66,466.43 16,050.48 24 9/1/09 66,466.43 2,094.96 - 2,094.96 1,541.07 553.89 64,925.36 16,604.36 25 10/1/09 64,925.36 2,094.96 - 2,094.96 1,553.91 541.04 63,371.44 17,145.41 26 11/1/09 63,371.44 2,094.96 - 2,094.96 1,566.86 528.10 61,804.58 17,673.50 27 12/1/09 61,804.58 2,094.96 - 2,094.96 1,579.92 515.04 60,224.66 18,188.54 28 1/1/10 60,224.66 2,094.96 - 2,094.96 1,593.09 501.87 58,631.57 18,690.41 29 2/1/10 58,631.57 2,094.96 - 2,094.96 1,606.36 488.60 57,025.21 19,179.01 30 3/1/10 57,025.21 2,094.96 - 2,094.96 1,619.75 475.21 55,405.46 19,654.22 31 4/1/10 55,405.46 2,094.96 - 2,094.96 1,633.25 461.71 53,772.21 20,115.93 32 5/1/10 53,772.21 2,094.96 - 2,094.96 1,646.86 448.10 52,125.36 20,564.03 33 6/1/10 52,125.36 2,094.96 - 2,094.96 1,660.58 434.38 50,464.78 20,998.41 34 7/1/10 50,464.78 2,094.96 - 2,094.96 1,674.42 420.54 48,790.36 21,418.95



35 8/1/10 48,790.36 2,094.96 - 2,094.96 1,688.37 406.59 47,101.99 21,825.54 36 9/1/10 47,101.99 2,094.96 - 2,094.96 1,702.44 392.52 45,399.54 22,218.05 37 10/1/10 45,399.54 2,094.96 - 2,094.96 1,716.63 378.33 43,682.91 22,596.38 38 11/1/10 43,682.91 2,094.96 - 2,094.96 1,730.93 364.02 41,951.98 22,960.41 39 12/1/10 41,951.98 2,094.96 - 2,094.96 1,745.36 349.60 40,206.62 23,310.01 40 1/1/11 40,206.62 2,094.96 - 2,094.96 1,759.90 335.06 38,446.72 23,645.06 41 2/1/11 38,446.72 2,094.96 - 2,094.96 1,774.57 320.39 36,672.15 23,965.45 42 3/1/11 36,672.15 2,094.96 - 2,094.96 1,789.36 305.60 34,882.79 24,271.05 43 4/1/11 34,882.79 2,094.96 - 2,094.96 1,804.27 290.69 33,078.52 24,561.74 44 5/1/11 33,078.52 2,094.96 - 2,094.96 1,819.30 275.65 31,259.22 24,837.40 45 6/1/11 31,259.22 2,094.96 - 2,094.96 1,834.47 260.49 29,424.75 25,097.89 46 7/1/11 29,424.75 2,094.96 - 2,094.96 1,849.75 245.21 27,575.00 25,343.10 47 8/1/11 27,575.00 2,094.96 - 2,094.96 1,865.17 229.79 25,709.83 25,572.89 48 9/1/11 25,709.83 2,094.96 - 2,094.96 1,880.71 214.25 23,829.12 25,787.14 49 10/1/11 23,829.12 2,094.96 - 2,094.96 1,896.38 198.58 21,932.74 25,985.71 50 11/1/11 21,932.74 2,094.96 - 2,094.96 1,912.19 182.77 20,020.56 26,168.49 51 12/1/11 20,020.56 2,094.96 - 2,094.96 1,928.12 166.84 18,092.44 26,335.32 52 1/1/12 18,092.44 2,094.96 - 2,094.96 1,944.19 150.77 16,148.25 26,486.09 53 2/1/12 16,148.25 2,094.96 - 2,094.96 1,960.39 134.57 14,187.86 26,620.66 54 3/1/12 14,187.86 2,094.96 - 2,094.96 1,976.73 118.23 12,211.13 26,738.90 55 4/1/12 12,211.13 2,094.96 - 2,094.96 1,993.20 101.76 10,217.93 26,840.65 56 5/1/12 10,217.93 2,094.96 - 2,094.96 2,009.81 85.15 8,208.12 26,925.80 57 6/1/12 8,208.12 2,094.96 - 2,094.96 2,026.56 68.40 6,181.56 26,994.21 58 7/1/12 6,181.56 2,094.96 - 2,094.96 2,043.45 51.51 4,138.12 27,045.72 59 8/1/12 4,138.12 2,094.96 - 2,094.96 2,060.47 34.48 2,077.64 27,080.20 60 9/1/12 2,077.64 2,094.96 - 2,077.64 2,060.33 17.31 0.00 27,097.52

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