Clean Water Clean Water Initiative – Initiative – Linking water to Linking water to Self-Sustaining Self-Sustaining InvestmentInvestment

Overview

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Content SummaryContent Summary

• Linking Clean Water to Banking & Regional Linking Clean Water to Banking & Regional DevelopmentDevelopment

• Operational Costs & Revenue OpportunitiesOperational Costs & Revenue Opportunities

• Purification System – CapabilitiesPurification System – Capabilities

• Pilot Project – Katosi Fish Landing, UgandaPilot Project – Katosi Fish Landing, Uganda

• Harrison Global Site DesignHarrison Global Site Design

• Harrison Global overview & contact infoHarrison Global overview & contact info

Linking Clean Water Linking Clean Water with Banking and with Banking and Regional Regional DevelopmentDevelopment

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Single Investment – Multiple ReturnsSingle Investment – Multiple Returns

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Investment ObjectiveInvestment Objective

• Combining affordable but “For Profit” Clean Water Distribution Combining affordable but “For Profit” Clean Water Distribution with localized Micro-lendingwith localized Micro-lending

– Approach combines two key building blocks of local infrastructure development into one deliverable

– Annual Operating revenues are self-generating• Revenues pay for both operations and lending activities• Project is self-sustaining with no additional assistance required after the

initial implementation cost

– Multiple Benefit Returns – that feed each other over time• Health / Quality of life / Ongoing Local Capital Investment / Employment /

Financial Service implementation / Community Center development / Sustainability created over the long term

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Development BenefitsDevelopment Benefits

• Clean Water Infrastructure is “Off-Grid” and self-sustainingClean 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 Micro-Lending activities are continually “Re-investing” at the localized levellocalized level– New Capital supplied annually via water profits

• Over a 25 year period this could be in excess of $1,000,000 per purification site

– Lending activities further capitalize local growth and employment – Creates New Markets!

– Lending profits supply additional working capital (beyond water profits)

• Can be re-lent to other borrowers and eventually used to develop first stage commercial development over time

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Development Benefits Development Benefits (cont.)(cont.)

• New Market Creation attracts additional new capitalNew Market Creation attracts additional new capital

– Positive Publicity of a success story and a new model for growth - makes the project and local/national government look good

• which further drives investment opportunities

– Success increases investment partnership options for other local development projects (lowers risk & increases odds of success)

• Government / NGO / Private Industry / World Bank

– “Clustering” sites whenever possible drives a regional transformation strategy

• Increases inter-site trade possibilities• Attracts “established business” investment into area• Makes large scale infrastructure more cost efficient to develop

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Target Investment Sites Target Investment Sites

• Rural Urban Centers of 3,000 to 10,000 people Rural Urban Centers of 3,000 to 10,000 people which:which:

– Lack sufficient access to clean purified water

– Lack access to the “infrastructure grid” of country

– Lack local access to Financial Lenders

– Local economy exists but is under-developed

– Have a source of water available (but is untreated)

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Target Investment Sites Target Investment Sites

• Rural Urban Centers are unique investment points in Rural Urban Centers are unique investment points in that some disposable income existsthat 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

9 1. MTN Uganda rural pay per use mobile phone service. Estimated 5 mins use per day for 30 days to another MTN customer + monthly subscription fee.

The Harrison Global The Harrison Global Big Bang!Big Bang!

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On-goingPersonal and Community Economic

Development via loans

Financial FlowsFinancial Flows

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Purified Water Sales

PrivateMicro-Lender

Initial Site FundingLocal Gov’t

NGOUSAID

InvestorsCorp Sponsors

Serves as NewMoney into

Local economy

Lender Re-invests profits via new loansand/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

All operational costs are coveredby annual water

salesNGO Sourced ContributionsTo fund some water sales

for the poorest individuals/families

Localized investment into the community

Potential MarketsPotential Markets

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Operational CostsOperational CostsRevenue Revenue OpportunitiesOpportunities

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Operational CostsOperational Costs

• The following pages break out assumed operating The following pages break out assumed operating expenses, sales revenues and profit points expenses, sales revenues and profit points ((using Uganda as the case example)using Uganda as the case example)

– Each project site will have varying operating costs dependant upon location, staffing costs, size of purification unit, etcetera

• Using a base assumption an estimated monthly and annual operation cost is established (see following page)

• Table in page 24 breaks down revenues based upon amount charged and at differing amounts sold in order to identify profit points

– For a community of 7500 annual operational costs are covered when as little as 25% of the population purchases water daily

• (at 100 UGX per 20 litres – i.e. 5₵ in USD)

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Operational Cost Assumptions

• 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”

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Overhead 150K LPD Cost per Month Qty Total

Labour 1 180 1 180Labour 2 140 4 560 Security Personel 200 2 400 Chemicals 1250 1250 Gen Maint. 100 100 Transportation 150 150 Taxes/Fees 0 0 Mgmt Fee 0 0 Other 150 150

Monthly Total

2,790

Annual Total

33,480

Highlighted PointsHighlighted Points

• Operational costs are completely paid - provided 25% of the Operational costs are completely paid - provided 25% of the community purchases water daily community purchases water daily (at 100 UGX each)(at 100 UGX each)

• Sales in excess of the 25% threshold ensure profitability Sales in excess of the 25% threshold ensure profitability that can fund seed money for Micro-Lending operations to that can fund seed money for Micro-Lending operations to occur occur

• Significant profit opportunities exist at as little as 50% daily Significant profit opportunities exist at as little as 50% daily sales of total production capabilitysales 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

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Sales / Revenue Sales / Revenue – Profitability Point– Profitability Point

Population Est. 7500Ugandan Shillings 50 100 200 500 1000

USD 0.027 0.055 0.109 0.273 0.547

Total # of Jerry Cans per day % of Population

150K LPD Unit 7500 100% Annual Revenues 50 100 200 500 1000

15% Daily Sales 1125 15% Ugandan Schillings 20,531,250 41,062,500 82,125,000 205,312,500 410,625,000

USD 11,229 22,458 44,915 112,288 224,576

20% Daily Sales 1500 20% Ugandan Schillings 27,375,000 54,750,000 109,500,000 273,750,000 547,500,000

USD 14,972 29,943 59,887 149,717 299,435

25% Daily Sales 1875 25% Ugandan Schillings 34,218,750 68,437,500 136,875,000 342,187,500 684,375,000

USD 18,715 37,429 74,859 187,147 374,294

35% Daily Sales 2625 35% Ugandan Schillings 47,906,250 95,812,500 191,625,000 479,062,500 958,125,000

USD 26,201 52,401 104,802 262,006 524,011

45% Daily Sales 3375 45% Ugandan Schillings 61,593,750 123,187,500 246,375,000 615,937,500 1,231,875,000

USD 33,686 67,373 134,746 336,864 673,728

50% Daily Sales 3750 50% Ugandan Schillings 68,437,500 136,875,000 273,750,000 684,375,000 1,368,750,000

USD 37,429 74,859 149,717 374,294 748,587

75% Daily Sales 5625 75% Ugandan Schillings 102,656,250 205,312,500 410,625,000 1,026,562,500 2,053,125,000

USD 56,144 112,288 224,576 561,440 1,122,881

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Purification System Purification System & Pilot Project& Pilot Project

Katosi, UgandaKatosi, Uganda

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The HG Water Treatment SystemThe HG Water Treatment System

• Harrison Global has distribution rights to a new Harrison Global has distribution rights to a new purification system technologypurification system technology– Daily processing of 25.000 to 150.000 litres (per day)

– Capable of processing sewer grade waste-water into clean drinking water

– Purifies water to a World Health Organization standard or better for drinking water

– Multiple units can be “linked” together to increase output capability

– 20 to 30 year lifespan– Minimal operational costs and power usage

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Pilot Project – UgandaPilot Project – Uganda

• Katosi fishing village projectKatosi fishing village project– Implemented water treatment unit in July 2008– Is a partnership between

• Ugandan Ministry of Water and Environment• East Africa Water and Sewage Ltd.

• Partner of Harrison Global LLC

– Project success -- on a daily basis the village now has local access of up to 75.000 litres of clean water due to installation of the water purification unit

– Project short-coming is that the overall final site-plan (outside of the water purification system which was the scope of Harrison Global’s participation) has not yet been completed to originally envisioned specifications

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Katosi SuccessKatosi Success

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Harrison Harrison Global Site Global Site DesignDesign

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Harrison Global Site DesignHarrison Global Site Design

• Provide a complete Local Water SolutionProvide 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

23 1 current design, but could adapt this to hold up to 150.000 litres – site dependant

Purification Site - Floor PlanPurification Site - Floor Plan

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Harrison GlobalHarrison GlobalCompany Company Information and Information and ContactsContacts

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Simple Ideas – World Class Results!Simple Ideas – World Class Results!

• Harrison Global is a for profit company Harrison Global is a for profit company committed to making localized positive committed to making localized positive differences worldwide via innovative differences worldwide via innovative business solutions and partnershipsbusiness solutions and partnerships– Governmental– Financial Markets– NGO’s– Private Sector– Consulting partners

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BackgroundBackground

• Headquartered in Birmingham Alabama, USAHeadquartered in Birmingham Alabama, USA

• Second office & Consulting Partners located in Second office & Consulting Partners located in Washington DC, USA – 4Washington DC, USA – 4thth / 1 / 1stst qtr. 2009/2010 qtr. 2009/2010

• Ugandan office located in KampalaUgandan office located in Kampala

• Partnerships in Chennai, India; Barcelona, Spain; Partnerships in Chennai, India; Barcelona, Spain; Jinja, Uganda Jinja, Uganda

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Contact InformationContact Information

• Jeffery Dummier – Director and CEOJeffery Dummier – Director and CEO

– Ph: 001 205 410 99 50

– jdummier@harrisonglobal.com

• David Wolf – Director and COODavid Wolf – Director and COO– Ph: 001 248 688 84 15

– dwolf@harrisonglobal.com

– U.S. Office addressHarrison Global LLC

1400 21st Way South

Birmingham AL, 35205

Ph: 001 205 939 1425

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