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Dreampipe II – Phase 1 GUIDANCE DOCUMENT FOR APPLICANTS

1. Overview of the three phases of Dreampipe II

1.1 Building on the experience gained from Dreampipe I (formerly known as Dreampipe

Stage 1), a second Dreampipe prize competition will now take place: Dreampipe II. This

prize competition will consist of three distinct phases. Prizes will be awarded to the winners

of each phase.

1.2 The objective of Dreampipe II is to encourage the development of workable and

replicable ideas for how to expand the financing available for non-revenue-water (NRW)

reduction activities in developing countries – beyond the conventional sources (mainly the

development banks and agencies and governments). The key will be to find ways to reduce

perceived risk for the new sources, especially (but not only) for commercial lenders. One way

to help convince financiers of the viability of larger efforts is by first carrying out successful

smaller demonstration projects. Another way is to put together deal structures that make the

best use of concessional financing to mobilise additional financing from more commercially

oriented sources.

1.3 The focus of Dreampipe II is on NRW-reduction activities and investments with high

benefit-cost ratios and rapid payback periods – rather than on massive programmes of mains

replacement that may be justified only over the longer term. In many utilities, the financial

gains generated from the top-priority set of NRW reduction activities (in decreased costs and

increased revenue – while holding user tariffs constant in real terms) should be able to pay

back the up-front investments and financing costs in 5–10 years. This aspect is what drives

the key financing condition indicated in paragraph 1.5(c)(iii)(C) below.

1.4 For more on the context and objectives of Dreampipe II, please see the Dreampipe II

Overview document on the Dreampipe webpage (www.dreampipe.org). In case of any

inconsistency between the Overview document and the present Guidance Document, the

Guidance Document prevails.

1.5 An overview of the main features of the three phases is as follows:

(a) Phase 1 – Business Plan

(i) Applicants will prepare and submit Business Plans through the Dreampipe

online platform showing how they will carry out the requirements of

Phase 2. (The requirements for the Business Plan are set out in section 5,

below.)

(ii) Each Applicant must select a water utility company to work with. The

selected water utility must be located in one of the 28 DFID focus

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countries.1 The selected water utility must actively serve at least 150,000

persons (from domestic/residential connections of any type).2

(iii) There will be a maximum of 10 winners. Each winner will receive a prize

of £30,000, subject to paragraph 9.1 (the prize money must be used to help

defray the costs of the demonstration project implemented in Phase 2).

(iv) This is the only phase at which new applicants can enter Dreampipe II.

(b) Phase 2 – Demonstration Project

(i) Only the winners from Phase 1 will be permitted to compete in Phase 2.

(ii) Each Candidate will carry out (and fully document) a demonstration

project to reduce NRW in the previously selected water utility.

(iii) Each Candidate will also submit through the online platform an updated

business plan focusing on financing and contracting for a major expansion

project in the same utility, building upon the experience of the

demonstration project and including a performance-based contract with an

independent entity. (See paragraph (c)(iii) for more on the expansion

project.)

(iv) The scope and requirements for the demonstration project are set out in

paragraph 5.2(a).

(v) There will be a maximum of five winners. The top prize will be £70,000

and no prize will be less than £30,000.

(vi) It is currently expected that Dreampipe will pay for the five shortlisted

contestants (not all of whom might be declared winners) to travel to a face-

to-face meeting with a panel of judges and then an award event where the

results will be announced and Phase 3 will be officially launched.

(c) Phase 3 – Fully Structured Deal

(i) Only the winners from Phase 2 will be permitted to compete in Phase 3.

(ii) Each Candidate will submit term sheets (agreed by all parties) for all major

project and financing agreements needed for the expansion project in the

selected water utility, including for the performance-based contract. (The

term sheets will not be expected to be legally binding and can include the

conventional disclaimers.)

1 The following will be deemed to be the 28 DFID focus countries for purposes of Dreampipe II, regardless of

any changes that DFID might make to this list: Afghanistan, Bangladesh, Burma, Democratic Republic of

Congo, Ethiopia, Ghana, India, Kenya, Kyrgyzstan, Liberia, Malawi, Mozambique, Nepal, Nigeria, Occupied

Palestinian Territories, Pakistan, Rwanda, Sierra Leone, Somalia, South Africa, Sudan, South Sudan, Tajikistan,

Tanzania, Uganda, Yemen, Zambia, Zimbabwe. 2 For purposes of clarification: This is the total number of people actively served by the entire utility, not just the

number of people included in the demonstration project. Also, these are people actually served – not just the

number of people in the geographical service area.

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(iii) The expansion project is expected to have the following features. (At

present, these are indicative only. More details about the requirements for

Phase 3 will be provided in the guidance documents issued for Phase 2 and

Phase 3.)

(A) It must involve at least 10% to 30% of the total connections or

population in the utility service system. (This requirement will be

made precise in the guidance material for Phase 2 or Phase 3.)

(B) It must involve a package of investments with an average payback

period of no greater than 10 years, based on the cash flow expected to

be generated from cost savings and additional revenue.

(C) At least 40% to 60% of the total funding/financing for the expansion

project must be Category B Funding (see definitions, section 2).3 (A

single threshold value will be specified in the guidance document

issued for Phase 2 or Phase 3.)

(D) The expansion project must involve a NRW-reduction performance-

based contract with an entity that is independent from the water

utility.

(iv) There will be a maximum of three winners. The top prize will be £190,000

and no prize will be less than £90,000.

1.6 Indicative timeline for the entire Dreampipe II

Activity Indicative Date

Launch of Phase 1 21 Oct 2016

Submission Deadline Phase 1 15 March 2017

Award Phase 1, Launch Phase 2 May 2017

Close Phase 2 Early 2018

Award Phase 2, Launch Phase 3 Early Summer 2018

Close Phase 3 Late Summer 2018

Grand Award End 2018

1.7 The remainder of the present guidance document applies only to Phase 1 (unless

stated otherwise). New guidance documents will be issued in due time relating to Phases 2

and 3.

2. Definitions

(a) “£” – pounds sterling.

(b) “Applicant” – an individual, organisation, or consortium that submits an

application for Phase 1.

3 For purposes of clarification: Financing from different sources could be applied directly to the expansion

project, or financing could be made through the intermediary of a fund or some other arrangement.

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(c) “Business Plan” – the main document to be submitted by Applicants in Phase 1

of the competition. The requirements are set out in section 5.

(d) “Category A Funding” – funding of any kind (debt, equity, grants, guarantees,

etc.) that comes directly or indirectly from: international financial institutions

(IFIs); regional, bilateral or national development finance institutions or

agencies; national or local governments; or shareholders of the company that is

the service provider in the NRW-reduction performance-based contract. (The

definition of Category A Funding is merely indicative at present. It will be

specified definitively and in more detail in the guidance documents for Phase 2

and Phase 3.)

(e) “Category B Funding” – funding of any kind (debt, equity, grants, guarantees,

etc.) that is not Category A Funding. For example, if it so qualifies, Category B

Funding could include (but would not be limited to) funding from commercial

banks, certain infrastructure funds, private foundations, internally generated

funds from the utility company, etc. (The definition of Category A Funding is

merely indicative at present. It will be specified definitively and in more detail in

the guidance documents for Phase 2 and Phase 3.)

(f) “Candidate” – a legally recognized organisation that participates in Phase 2 or

Phase 3 (or both). If a winning Applicant in Phase 1 was an individual, that

individual must form or otherwise take a leading role in a legally recognized

organization, which would become the Candidate for Phases 2 and 3.

(g) “Non-revenue water” (“NRW”) – refers to the way the term is used in the

terminology adopted by the International Water Association (IWA). (See

paragraph 5.2(e).) In short, NRW is the difference between the quantity of water

entering the distribution system of the water company and the quantity of water

billed to customers.

(h) “submission” – all the information submitted by an Applicant for Phase 1 of

Dreampipe II.

(i) “water utility company” (or “water company” or “water utility” or “utility”) –

an entity with responsibility under law (or under a contract with a public

authority) to provide potable water to the public in a given service area. It can be

of any organisational form: government department (state, regional, or

municipal), corporatized public-sector entity, investor-owned company,

concessionaire, etc. If the target entity is a branch of the utility company and the

branch has a separate distribution system (i.e. no interconnections) and is

managed separately, then it is the branch (and not the entire company) that

would be deemed to be the water utility company for purposes of Dreampipe II,

including for purposes of minimum size.

3. Registration on the prize platform

3.1 Applicants must register on the Dreampipe website (www.dreampipe.org) and must

do so before the deadline specified on the website.

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3.2 Applicants can register either with their social media accounts (Facebook, Google,

Yahoo, LinkedIn) or with their business or personal email addresses.

4. Eligibility criteria

4.1 The Applicant may be any one of the following:

(a) an individual;

(b) a legally recognized organization of any kind (incorporated or registered in any

country), in which case the application must be submitted by an official

representative of the organisation; or

(c) a consortium of legally recognized organizations (and individuals if so desired),

in which case: (i) the application must be submitted by the designated lead

member (which must be an organization), and (ii) all members of the consortium

must submit letters expressing their willingness to participate. (If the consortium

wins a prize, all members will be listed as the winner, with the lead member

indicated as such.)

4.2 For purposes of clarification:

(a) The Applicant may be the target water utility company itself, if located in one of

the 28 DFID focus countries and if serving at least 150,000 persons.

(b) If the Applicant is not the target water utility: even though an entity independent

from the water utility company must carry out the expansion project by means of

a performance-based contract (see paragraphs 1.5(c)(ii) and 1.5(c)(iii)(D)), the

Applicant does not need to be or include that entity.

4.3 Every application must include a letter from the CEO (or equivalent) of the target

water utility company substantially conforming to one of the two variants of the form letter in

Schedule A.

4.4 Applicants must not be on the UK Home Office list of proscribed organizations

(https://www.gov.uk/government/publications/proscribed-terror-groups-or-organisations--2)

or the World Bank Listing of Ineligible Firms & Individuals

(http://web.worldbank.org/external/default/main?theSitePK=84266&contentMDK=64069844

&menuPK=116730&pagePK=64148989&piPK=64148984).

4.5 Each Applicant is entitled to make only one submission. Each water utility company

can be the target company in only one submission.

4.6 An Applicant may add new members to its consortium, or form a consortium, if and

when it submits for another phase, but the lead member cannot change. If a consortium

member is dropped when the consortium submits for another phase, the lead member must

adequately demonstrate to the Dreampipe team that the consortium in its new composition

possesses the same or a greater capacity to implement the relevant phase than it was judged to

possess when its submission for the immediately preceding phase was evaluated (i.e. before

the member left).

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4.7 All submissions must be in English.

4.8 The submission must comply with applicable law in all respects.

4.9 Applicants must declare (by use of a tick box in the online application form) that they

agree with the Terms and Conditions (to be found on the Dreampipe website).

5. Requirements for the Phase 1 Business Plan

5.1 Sections of the Phase 1 Business Plan. The submitted Business Plan must contain the

following sections, except where marked “optional” below. The maximum length of the

document (excluding cover page, executive summary, and annexes) is 15 pages.

APPLICANTS MUST ORGANIZE THEIR BUSINESS PLANS USING THE FOLLOWING MAIN

HEADINGS IN THE FOLLOWING ORDER. The prize team reserves the right to reject a

submission if this requirement is not strictly adhered to.

Executive Summary

1. The Water Company

2. The Team

3. The Demonstration Project

4. Funding of the Demonstration Project

5. Risks of the Demonstration Project

6. Preliminary Ideas about the Expansion Project

7. Other Considerations (optional)

Annex 1

Other annexes (optional)

Applicants are free to create and name subsections as they wish. For all matters that do not fit

well into the first six main headings above, the Applicant should create subheadings under

main heading no. 7.

Bullet points below (●, ○) do not necessarily indicate specific subsections of the Business

Plan; rather they indicate some of the things that should be included somewhere in that

section of the Business Plan, or they give specific instructions or tips. The order of the bullet

points below within each section does not need to be followed in the Business Plan (the

Applicant should reorganize as they see fit). The bullet points are not meant to be an

exhaustive list of all issues that should be addressed.

(a) Executive Summary (maximum three pages)

(b) 1. The Water Company

General

o Describe briefly the main features of the selected water utility company,

focusing on those features that are most relevant for the prize competition.

o Describe aspects concerning NRW, including past and present efforts to reduce

NRW.

o Discuss intermittency (or not) of water supply.

o Be sure to confirm explicitly that the utility serves at least 150,000 people. (See

paragraph 4.2(a).)

Specific areas to be addressed (in whatever way the Applicant sees fit)

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o Governance and management.

o Brief description of master plans, feasibility studies, etc., that set the scene for

long-term asset planning.

o Operations (overall scheme of the system – to enable a good understanding of

how the NRW-reduction demonstration project will fit into the overall

operations of the company).

o Short description of the asset base with emphasis on key assets.

o Commercial (billed volumes, different types of customers, different geographic

areas, etc.).

o Financial (cost structure and revenue structure).

o Other (information systems, asset management and asset condition assessment).

(c) 2. The Team

Who (specifically named individuals and/or organisations) will be responsible for

doing what – and when? Who is managing the overall effort?

Qualifications (e.g. past experience) relevant to the activities. Have these

people/organizations carried out any similar projects before?

How did the team come into contact with the target water company? Relation of the

team to the target water company (e.g. past or present experience).

(d) 3. The Demonstration Project

Describe the envisaged demonstration project. (N.B. See paragraph 5.2(a) for

minimal specifications.)

What are the objectives to be achieved? In addition to NRW reduction, indicate any

other associated benefits to be achieved.

Show convincingly that you will be able to implement the demonstration project.

Bear in mind that overarching goal is to use the demonstration project to help

convince financiers to fund a larger expansion project (see paragraph 1.2 and

paragraph 1.5(c)(iii)).

o How can the demonstration project and the way it is documented best achieve

that goal?

o How can it serve as convincing evidence to financiers that the team and utility

are capable of successfully carrying out the expansion project?

What are the expected outputs?

What is the technical approach? Why did you choose this technical approach over

other possible approaches?

What cooperation will be expected from actors outside the implementing team,

including from the utility company? Are any higher-level approvals needed?

Interface issues: How will the demonstration project fit in with the daily life of the

water company?

How will performance be measured? What are all the variables that will be

measured and recorded?

What is the timeline of activities? Major milestones?

What are all the inputs needed (equipment, personnel, etc.)?

(e) 4. Funding of the Demonstration Project

What is the estimated cost of all the inputs and activities for the demonstration

project?

What are the planned sources of funding to carry out the demonstration project?

(You should include the £30,000 prize as one of the sources of funding.) Include in

Annex 1 letters of interest, intent, or commitment from all funding sources. The

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stronger the degree of intent or commitment, the more weight this will carry in the

evaluation.

Give a table of sources and uses of funds to summarize this section.

(f) 5. Risks of the Demonstration Project

Identify and assess the main risks in planning and implementing the demonstration

project and indicate what you intend to do to mitigate and manage these risks.

(g) 6. Preliminary Ideas about the Expansion Project

This is meant to be a high-level view of the scope and nature of the envisaged

expansion project (see paragraph 1.5(c)(iii)). At this stage, there is no need to go

into detail.

What is the rough estimated size and cost of the expansion project? (Bear in mind

transaction costs, which may make a small project infeasible.)

The expansion project must involve the use of a performance-based contract with an

entity independent from the water utility. What are your initial thoughts about what

this entity might be, how it will be selected, and the main principles of the contract?

Does the water utility have the infrastructure and management capacity to deal well

with the expansion project?

What are the envisaged funding sources for the expansion project? Does the

envisaged financing correspond well with the size of the expansion project

(including in relation to transaction costs)?

In particular, what are the envisaged sources of Category B Funding? (see definition

in para. 2(e)). How can risks be mitigated sufficiently to encourage these sources to

participate to the required extent?

Phases 2 and 3 will require financial experts to be part of (or associated with) the

Applicant’s team. How will you address this in your team? (See paragraph 5.2(d).)

(h) 7. Other Considerations (optional)

Use this section for important information that does not fit well with any of the

other sections.

(i) Annex 1 – Required Supporting Documents

The following documents must be included in Annex 1. The Dreampipe team

reserves the right to consider the submission incomplete (and therefore to be

rejected) if any of the following is not included.

(i) Applicable only if the Applicant is a consortium (see paragraph 4.1(c)):

Letters from all consortium members (except for the lead member),

expressing their willingness to participate.

(ii) Letter from the CEO (or equivalent) of the selected water utility company

conforming to one of the two variants of the form letter found in

Schedule A of this Guidance Document.

(iii) Letters of interest, intent, or commitment from all sources of funding for

the demonstration project. Make sure these correspond with the sources

and amounts of funding indicated in the relevant section of the Business

Plan (see paragraph 5.1(e)).

(j) Other annexes, starting with Annex 2 (optional)

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These annexes (if any) are at the Applicant’s discretion.

Indicate clearly at the start of each annex (if any) to which section of the Business

Plan the annex refers and in what way.

5.2 Other requirements, qualifications, and clarifications

(a) The demonstration project must comply with the following requirements, and the

Business Plan should reflect this. Applicants have flexibility within these

minimal constraints.

(i) It must be designed to reduce NRW in a defined geographic area (or

areas). The area(s) must be separated from adjacent areas using meters or

boundary valves.

(ii) It must address both physical and commercial losses.

(iii) It must be sufficiently representative of the utility service area as a whole,

in the sense that the NRW-reduction activities in the demonstration area

will be broadly applicable on a utility-wide basis.

(iv) Unless strong justification is given in the Business Plan for a smaller

project (based on the characteristics of the specific utility company and

service area), the number of connections included in the entire

demonstration project must be no less than 500 for high-rise or high-

consumption users and 5,000 for small (rural/suburban) users (and if

mixed users, then a figure proportionally between 500 and 5,000).

(v) If a DMA (district metered area) approach is used, there must be more than

one DMA in the demonstration project, and there can be no more than

5,000 connections per DMA. (This is an absolute maximum. It is expected

that each DMA would normally include a lower number.)

(vi) It must involve careful measurement and recording (before and after) of

water flows and pressure, supply time (for areas with intermittent supply),

number of bursts, operating & maintenance costs, billed volumes,

revenues, and other relevant criteria – from the geographical area that is

the subject of the demonstration project. (If some of the “before project”

data are missing or unreliable, then reasonable assumptions should be

made for these data.)

(vii) Regardless of whether the incremental cash flow generated by the

demonstration project (cost savings and new revenue) is sequestered in a

separate bank account, the project must include a sound system to identify,

account for, and track such incremental cash flow in a reliable way. (This

will be important in the presentation of the results of the demonstration

project to financiers.)

(b) Even though, as already indicated, the minimum size of the target utility is one

that serves 150,000 people, Applicants should note that the expansion project

must be financed in the way indicated in paragraph 1.5(c)(iii)(C). Applicants

should bear in mind the likely transaction costs required to put together such a

financing package.

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(c) The Applicant’s team implementing the demonstration project can include

people or organisations who are not members of the Applicant. The difference is

that only the Applicant (and if the Applicant is a consortium, then only

consortium members) will be listed as winners if the Applicant wins.

(d) Phases 2 and 3 will require financial experts to be part of (or associated with) the

Applicant’s team. Applicants must describe in the relevant section of the

Business Plan (see para. 5.1(g)) how the Applicant intends to deal with this. If

the team does not already include financial experts capable of working with

financiers to structure a deal for the expansion project and for preparing and

negotiating term sheets, the Applicant must credibly describe how they will

bring such experts into the Applicant’s team for Phase 2 (in a preliminary way)

and Phase 3 (in an intensive way).

(e) If Applicants wish to refer to different types of NRW (or to other concepts

relating to NRW), they should use the water balance scheme and definitions

adopted by the International Water Association (IWA). The two main categories

should be referred to as “physical” losses and “commercial” losses (these are

sometimes alternatively referred to as “real” and “apparent”, respectively, in

IWA terminology).

A glossary of NRW-related terms, following the IWA scheme, is given in

Annex 1 of the following document:

http://www.farleywaterconsulting.co.uk/images/books-and-articles/Managers-

NRW-Handook-Asia.pdf.

For ease of reference, the annex alone may be found at

https://static1.squarespace.com/static/5667ff65a976afbcece645fb/t/56aa3c85111

5e0935b76e244/1453997190987/Glossary+of+Terms+Related+to+NRW.pdf .

(f) The evaluation of the Business Plans will be based on the main text of the

Business Plan (i.e. excluding annexes) and Annex 1, and so all important ideas

and facts should be presented there. Any annexes the Applicant includes (apart

from the required Annex 1) will serve only to help judges clarify their

understanding if they so wish, at their sole discretion. Judges are not obliged to

base their evaluations on any of the material presented in the annexes (apart from

Annex 1).

(g) Applicants should assume that the readers and judges will be specialists in

financing, water utility operation, and NRW reduction, and so Applicants do not

need to explain terms and concepts that would naturally be understood by such

specialists.

(h) Applicants should aim to make the document easily comprehensible for the

judges, who will have many Business Plans to read and evaluate. Make ample

use of bullet points to highlight ideas.

(i) The Business Plan (excluding cover page, table of contents, executive summary

and annexes) must not exceed 15 pages.

Font size must be 12 point or greater (except for any footnotes). Top, bottom,

left and right margins must be no less than 2.54 cm (1 inch).

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In evaluating the Business Plans, the prize management team and the judges

reserve the right not to read beyond the first 15 pages (excluding cover page,

table of contents, and executive summary).

(j) The main text of the Business Plan (including executive summary) must be in a

single PDF file. Annex 1 must be in a single separate PDF file. Any other

annexes must be grouped together and submitted as a single separate PDF file.

The Applicant must not upload any other files or file types.

(k) An Applicant can make any changes to the uploaded PDF files up to the final

submission deadline, after which no changes or amendments will be accepted

and the uploaded files will be recorded as the Applicant’s submission.

6. Evaluation criteria

6.1 If a submission has met the eligibility criteria, the Business Plan will first be reviewed

on the following two pass/fail criteria:

(a) Is there a sufficient degree of completeness and clarity in the Business Plan for

the judges to be able to meaningfully evaluate it? (screened by the prize

management team).

(b) Is it reasonably likely that the Applicant will obtain the full funding to carry out

the demonstration project? (assessed by the judges).

6.2 The criteria to be used in scoring by the judges (for those Business Plans that have

passed the two pass/fail tests above) are as follows:

Criterion Scoring weight (%)

Suitability of the selected water utility to serve as the target water utility for purposes of the demonstration project and later expansion project

20

Qualifications and capacity of the Applicant’s team to carry out the demonstration project

25

Appropriateness, feasibility, and soundness of the proposed demonstration project, and compliance with the requirements for the demonstration project set out in paragraph 5.2(a)

30

Adequacy of risk assessment and proposed ways of dealing with the risks

10

Feasibility and soundness of the Applicant’s initial ideas about the expansion project

15

100

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7. Evaluation procedure

7.1 First, all applications will be checked to see if the eligibility requirements and

pass/fail criterion 6.1(a) have been met. For those applications that are not rejected on this

basis, the Business Plan will go to the panel of judges.

7.2 Judges will consider each Business Plan, first applying pass/fail criterion 6.1(b) and

then assessing and scoring the Business Plan on the basis of the indicated criteria (see section

6.2).

7.3 The evaluation may be conducted in several rounds, progressively narrowing down

the list of Applicants still in the running. Applicants in the final list may be contacted and

asked to provide clarification of their Business Plans, or they may be asked to respond to

questions in a conference call with judges.

7.4 The judging panels will consist of recognized industry leaders, financing specialists

(both conventional and unconventional financing of various kinds), specialists in water

company operation, specialists in NRW reduction, and experts in performance contracting.

8. Requests for clarification

8.1 Applicants and prospective Applicants may request clarification of the requirements

for Phase 1 by sending a message to Dreampipe through the webpage (see

http://www.dreampipe.org/contact/), so long as the message is sent before the date indicated

on the website. Please state “Phase 1 Clarification Request” in the subject heading of your

message.

8.2 The Dreampipe team will respond by email to every request for clarification,

normally within 72 hours. In addition, the Dreampipe team will post all significant responses

to requests for clarification on the Dreampipe website (www.dreampipe.org) and will notify

all (and only) registered applicants via email when additional clarifications responses have

been posted.

9. Disbursement of the prize for Phase 1

9.1 Disbursement of the £30,000 (thirty thousand pounds sterling) to each winner in

Phase 1 will be made to the winning Applicant only upon submission of pro forma invoices

(from providers that are not members of the Applicant) totalling at least £20,000 (twenty

thousand pounds sterling) for equipment, material, or works needed for the demonstration

project, and may be subject to a due diligence review by the Dreampipe team to verify that

the demonstration project is ready to move forward and that the providers of the inputs are

ready to participate.

9.2 For purposes of paragraph 9.1, “works” means site preparation, excavation,

construction, installation, and similar.

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10. Indicative timeline for Phase 1

Activity Indicative Date

Launch 21 October 2016

Registration Deadline 15 February 2017

Submission Deadline 15 March 2017

Award May 2017

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Schedule A

Form of Letter of Commitment from Head of Water Utility Company

(N.B. Every submission must include either Variant 1 or Variant 2 of this letter)

Variant 1: To be used if the Water Utility Company is not the Applicant

and not a member of the Applicant’s consortium

Note: This letter is to be printed with the official letterhead of the water utility company. The Dreampipe team reserve the right not to accept a letter containing a material modification to the wording given below.

Dear [name of Applicant or representative of Applicant],

We have carefully read the Business Plan that you have told us you are going to submit for

Phase 1 of Dreampipe II.

Our commitment: The [give name of utility company] fully supports the concepts, plans, and timeline

set out in the Business Plan, and (if the Applicant wins) we will cooperate in good faith to

help achieve the objectives of the demonstration project and the subsequent expansion

project. Moreover, we will provide any specific support that is stated in the Business Plan as

being the responsibility of the utility company.

We know of no legal or administrative issue that might constitute an obstacle to

implementing the Business Plan (excluding any such issues that the Applicant has adequately

described in the Business Plan).

To the best of our knowledge, the information presented in the Business Plan about [give name

of utility company] is accurate.

[Include either (1) or (2) below.]

[(1) If the head of the water company already has the power to make such a commitment without any special authorization:—]

I confirm that I am authorized to give the commitment described above.

[(2) If the head of the water company does not have the power to make such a commitment without a special authorization:—]

I attach a letter from [name of relevant entity that has the requisite power – e.g. company board or municipality or

ministry, as appropriate] authorizing me to give the commitment described above.

[Add any other statements that the head of the water utility wishes to make, so long as they do not contradict or detract from the statements made above.]

Sincerely yours,

[Signature]

[Name of head of water utility company] [Exact title of the head of the water company – for example, “CEO” or “Managing Director” or something equivalent] [Official name of water utility company] [City or town and country.]

Page 15 of 15

Variant 2: To be used if the Water Utility Company is the Applicant

or a member of the Applicant’s consortium

Note: This letter is to be printed with the official letterhead of the water utility company. The Dreampipe team reserve the right not to accept a letter containing a material modification to the wording given below.

Dear Dreampipe team,

Our commitment: The [give name of utility company] fully supports the concepts, plans, and timeline

set out in the Business Plan, and (if we win) we will work in good faith to achieve the

objectives of the demonstration project and the subsequent expansion project. Moreover, we

will provide any specific support that is stated in the Business Plan as being the responsibility

of the utility company.

We know of no legal or administrative issue that might constitute an obstacle to

implementing the Business Plan (excluding any such issues that are adequately described in

the Business Plan).

To the best of our knowledge, the information presented in the Business Plan about [give name

of utility company] is accurate.

[Include either (1) or (2) below.]

[(1) If the head of the water company already has the power to make such a commitment without any special authorization:—]

I confirm that I am authorized to give the commitment described above.

[(2) If the head of the water company does not have the power to make such a commitment without a special authorization:—]

I attach a letter from [name of relevant entity that has the requisite power – e.g. company board or municipality or

ministry, as appropriate] authorizing me to give the commitment described above.

[Add any other statements that the head of the water utility wishes to make, so long as they do not contradict or detract from the statements made above.]

Sincerely yours,

[Signature]

[Name of head of water utility company] [Exact title of the head of the water company – for example, “CEO” or “Managing Director” or something equivalent] [Official name of water utility company] [City or town and country.]