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Clean Water Initiative – Linking water to Self-Sustaining Investment

Clean Water Initiative – Linking water to Self-Sustaining Investment. Overview. Content Summary. Linking Clean Water to Banking & Regional Development Operational Costs & Revenue Opportunities Purification System – Capabilities Pilot Project – Katosi Fish Landing, Uganda

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Clean Water Initiative – Linking water to Self-Sustaining Investment

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  1. Clean Water Initiative – Linking water to Self-Sustaining Investment Overview

  2. Content Summary • Linking Clean Water to Banking & Regional Development • Operational Costs & Revenue Opportunities • Purification System – Capabilities • Pilot Project – Katosi Fish Landing, Uganda • Harrison Global Site Design • Harrison Global overview & contact info

  3. Linking Clean Water with Banking and Regional Development

  4. Single Investment – Multiple Returns

  5. Investment Objective • Combining affordable but “For Profit” Clean Water Distribution with localized Micro-lending • Approach combines two key building blocks of local infrastructure development into one deliverable • Annual Operating revenues are self-generating • Revenues pay for both operations and lending activities • Project is self-sustaining with no additional assistance required after the initial implementation cost • Multiple Benefit Returns – that feed each other over time • Health / Quality of life / Ongoing Local Capital Investment / Employment / Financial Service implementation / Community Center development / Sustainability created over the long term

  6. Development Benefits • Clean Water Infrastructure is “Off-Grid” and self-sustaining • Technology does not require existing infrastructure to operate • Operating costs are paid out of water sales – so the site does not require further or ongoing Government or NGO investment • Micro-Lending activities are continually “Re-investing” at the localized level • New Capital supplied annually via water profits • Over a 25 year period this could be in excess of $1,000,000 per purification site • Lending activities further capitalize local growth and employment – Creates New Markets! • Lending profits supply additional working capital (beyond water profits) • Can be re-lent to other borrowers and eventually used to develop first stage commercial development over time

  7. Development Benefits (cont.) • New Market Creation attracts additional new capital • Positive Publicity of a success story and a new model for growth - makes the project and local/national government look good • which further drives investment opportunities • Success increases investment partnership options for other local development projects (lowers risk & increases odds of success) • Government / NGO / Private Industry / World Bank • “Clustering” sites whenever possible drives a regional transformation strategy • Increases inter-site trade possibilities • Attracts “established business” investment into area • Makes large scale infrastructure more cost efficient to develop

  8. Target Investment Sites • Rural Urban Centers of 3,000 to 10,000 people which: • Lack sufficient access to clean purified water • Lack access to the “infrastructure grid” of country • Lack local access to Financial Lenders • Local economy exists but is under-developed • Have a source of water available (but is untreated)

  9. Target Investment Sites 1. MTN Uganda rural pay per use mobile phone service. Estimated 5 mins use per day for 30 days to another MTN customer + monthly subscription fee. • Rural Urban Centers are unique investment points in that some disposable income exists • Charging for water is affordable for most of the community • One year’s worth of clean water ($20 – aprox. 5₵ daily) is less than cost of one month’s typical cell phone bill 1 ($26) • Could be supplemented via NGO or Gov’t aid sources for the poorest of community • The Community Structure already exists • But lacks fully developed access to improved Infrastructures • Financial markets, Clean Water, Power, Paved Roads, Medical, Improved Schools • Development funds are scarce

  10. The Harrison Global Big Bang! On-going Personal and Community Economic Development via loans

  11. Financial Flows • Lender Re-invests profits via new loans • and/or manages funding of local community • development projects • Obtains a fee on each loan • Has min. cost lease on office area within site • Could have labour costs subsidized • Provides local savings accts Initial Site Funding Local Gov’t NGO USAID Investors Corp Sponsors Purified Water Sales Private Micro- Lender All operational costs are covered by annual water sales NGO Sourced Contributions To fund some water sales for the poorest individuals/families Serves as New Money into Local economy Localized investment into the community

  12. Potential Markets

  13. Operational CostsRevenue Opportunities

  14. Operational Costs • The following pages break out assumed operating expenses, sales revenues and profit points (using Uganda as the case example) • Each project site will have varying operating costs dependant upon location, staffing costs, size of purification unit, etcetera • Using a base assumption an estimated monthly and annual operation cost is established (see following page) • Table in page 24 breaks down revenues based upon amount charged and at differing amounts sold in order to identify profit points • For a community of 7500 annual operational costs are covered when as little as 25% of the population purchases water daily • (at 100 UGX per 20 litres – i.e. 5₵ in USD)

  15. 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”

  16. Highlighted Points • Operational costs are completely paid - provided 25% of the community purchases water daily (at 100 UGX each) • Sales in excess of the 25% threshold ensure profitability that can fund seed money for Micro-Lending operations to occur • Significant profit opportunities exist at as little as 50% daily sales of total production capability • $41,379 using examples given in this presentation • This could be used to make 165 Micro-Loans of $250 each – every year • Over a 25 year lifespan over One Million dollars of “new” money is created that could be “re-invested” into this one community • The total benefit is much greater as most of this amount is continually “re-cycled” via the extension and repayment of loans thereby creating a significant multiplier effect

  17. Sales / Revenue – Profitability Point

  18. Purification System & Pilot ProjectKatosi, Uganda

  19. The HG Water Treatment System • Harrison Global has distribution rights to a new purification system technology • Daily processing of 25.000 to 150.000 litres(per day) • Capable of processing sewer grade waste-water into clean drinking water • Purifies water to a World Health Organization standard or better for drinking water • Multiple units can be “linked” together to increase output capability • 20 to 30 year lifespan • Minimal operational costs and power usage

  20. Pilot Project – Uganda • Katosi fishing village project • Implemented water treatment unit in July 2008 • Is a partnership between • Ugandan Ministry of Water and Environment • East Africa Water and Sewage Ltd. • Partner of Harrison Global LLC • Project success -- on a daily basis the village now has local access of up to 75.000 litres of clean water due to installation of the water purification unit • Project short-coming is that the overall final site-plan (outside of the water purification system which was the scope of Harrison Global’s participation) has not yet been completed to originally envisioned specifications

  21. Katosi Success

  22. Harrison Global Site Design

  23. Harrison Global Site Design • Provide a complete Local Water Solution • Deliver a “Turn-key” or “Off the Shelf” treatment site • Water purification unit installation – 25.000 to 150.000 litres per day • Construction of an enclosed and secure building • Includes space for Financial Lender to operate • Multiple additional project-site design options • 75.000 litre on-site storage & distribution of treated water 1 • 24 hour access to treated water • 24 hour continuous operation • Solar Powered site operation (in development) • Service option for Supply Chain Management 1 current design, but could adapt this to hold up to 150.000 litres – site dependant

  24. Purification Site - Floor Plan

  25. Harrison GlobalCompany Information and Contacts

  26. Simple Ideas – World Class Results! • Harrison Global is a for profit company committed to making localized positive differences worldwide via innovative business solutions and partnerships • Governmental • Financial Markets • NGO’s • Private Sector • Consulting partners

  27. Background Headquartered in Birmingham Alabama, USA Second office & Consulting Partners located in Washington DC, USA – 4th / 1st qtr. 2009/2010 Ugandan office located in Kampala Partnerships in Chennai, India; Barcelona, Spain; Jinja, Uganda

  28. Contact Information • Jeffery Dummier – Director and CEO • Ph: 001 205 410 99 50 • jdummier@harrisonglobal.com • David Wolf – Director and COO • Ph: 001 248 688 84 15 • dwolf@harrisonglobal.com • U.S. Office address Harrison Global LLC 1400 21st Way South Birmingham AL, 35205 Ph: 001 205 939 1425

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