Ppp Water Ind Bagus Banget

8/2/2019 Ppp Water Ind Bagus Banget

1/224


2/224

6QQN-KVHQT2WDNKE2TKXCVG

2CTVPGTUJKRUKP7TDCP9CVGT5WRRN[HQTVJG5VCVGQH/CJCTCUJVTC+PFKC

'FKVGFD[

#PQWL/GJVC


3/224

3ULQWHGRQUHF\FOHGSDSHU

$VLDQ'HYHORSPHQW%DQN

$OOULJKWVUHVHUYHG3XEOLVKHG3ULQWHGLQWKH3KLOLSSLQHV

,6%13XEOLFDWLRQ6WRFN1R537

&DWDORJLQJ,Q3XEOLFDWLRQ'DWD

0HKWD$QRXM

7RRONLWIRUSXEOLFSULYDWHSDUWQHUVKLSVLQXUEDQZDWHUVXSSO\IRUWKH6WDWHRI0DKDUDVKWUD,QGLD0DQGDOX\RQJ&LW\3KLOLSSLQHV$VLDQ'HYHORSPHQW%DQN

3XEOLFSULYDWHSDUWQHUVKLS 8UEDQZDWHUVXSSO\ ,QGLD ,$VLDQ'HYHORSPHQW%DQN

7KHYLHZVH[SUHVVHGLQWKLVSXEOLFDWLRQDUHWKRVHRIWKHDXWKRUVDQGGRQRWQHFHVVDULO\UHIOHFWWKHYLHZVDQGSROLFLHVRIWKH$VLDQ'HYHORSPHQW%DQN$'%RULWV%RDUGRI*RYHUQRUVRUWKHJRYHUQPHQWVWKH\UHSUHVHQW

$'%GRHVQRWJXDUDQWHHWKHDFFXUDF\RIWKHGDWDLQFOXGHGLQWKLVSXEOLFDWLRQDQGDFFHSWVQRUHVSRQVLELOLW\IRUDQ\FRQVHTXHQFHRIWKHLUXVH

%\PDNLQJDQ\GHVLJQDWLRQRIRUUHIHUHQFHWRDSDUWLFXODUWHUULWRU\RUJHRJUDSKLFDUHDRUE\XVLQJWKHWHUPFRXQWU\LQWKLVGRFXPHQW$'%GRHVQRWLQWHQGWRPDNHDQ\MXGJPHQWVDVWRWKHOHJDORURWKHUVWDWXVRIDQ\

WHUULWRU\RUDUHD

$'%HQFRXUDJHVSULQWLQJRUFRS\LQJLQIRUPDWLRQH[FOXVLYHO\IRUSHUVRQDODQGQRQFRPPHUFLDOXVHZLWKSURSHUDFNQRZOHGJPHQWRI$'%8VHUVDUHUHVWULFWHGIURPUHVHOOLQJUHGLVWULEXWLQJRUFUHDWLQJGHULYDWLYHZRUNVIRUFRPPHUFLDOSXUSRVHVZLWKRXWWKHH[SUHVVZULWWHQFRQVHQWRI$'%

1RWH,QWKLVUHSRUWUHIHUVWR86GROODUV

$VLDQ'HYHORSPHQW%DQN$'%$YHQXH0DQGDOX\RQJ&LW\0HWUR0DQLOD3KLOLSSLQHV

7HO)D[ZZZDGERUJ

)RURUGHUVSOHDVHFRQWDFW'HSDUWPHQWRI([WHUQDO5HODWLRQV)D[DGESXE#DGERUJ

7KH$VLDQ'HYHORSPHQW%DQN$'%HQJDJHG&5,6,/DOHDGLQJFRQVXOWDQF\ILUPDWWKHUHTXHVWRIWKH*RYHUQPHQWRI0DKDUDVKWUDXQGHUWKH*RYHUQPHQWRI,QGLD$'%

,QLWLDWLYHIRU0DLQVWUHDPLQJ3XEOLF3ULYDWH3DUWQHUVKLSV333VWRGHYHORSSRVVLEOH333VROXWLRQVIRUWKHXUEDQZDWHUVXSSO\VHFWRULQWKHVWDWH7KH'HSDUWPHQWRI(FRQRPLF$IIDLUV333&HOO0DKDUDVKWUDDQG$'%KDYHZRUNHGFORVHO\LQWKHGHYHORSPHQWRIWKLVUHSRUW1RSDUWRIWKLVGRFXPHQWPD\EHUHSOLFDWHGTXRWHGRUSULQWHGZLWKRXWZULWWHQFRQILUPDWLRQIURP'HSDUWPHQWRI(FRQRPLF$IIDLUVDQG$'%,QGLD333IRFDOSRLQWV


4/224

LLL

&RQWHQWV

/LVWRI7DEOHVDQG)LJXUHV YLL

)RUHZRUG [

$FNQRZOHGJPHQWV [L

$EEUHYLDWLRQV [LLL

3$57,3337RRO.LWIRUWKH:DWHU6XSSO\DQG6DQLWDWLRQ6HFWRU , ,QWURGXFWLRQ

%DFNJURXQGDQG6FRSHRI:RUN 3URFHVV)ROORZHGIRUWKH7RRO.LW 6WUXFWXUHRIWKH7RRO.LW &RQWH[WRIWKH7RRO.LW 8VHUVRIWKH7RRO.LW *XLGHOLQHVWRWKH7RRO.LW

,, 333LQWKH:DWHU6HFWRU *HQHUDO'HILQLWLRQDQG2YHUYLHZRI333 5DWLRQDOHIRU333 7KH:DWHU6XSSO\DQG6DQLWDWLRQ6HFWRULQ,QGLD 7UHQGVLQ333LQWKH:DWHU6XSSO\DQG6DQLWDWLRQ6HFWRULQ,QGLD 3333URMHFWVLQWKH:DWHUDQG6DQLWDWLRQ6HFWRULQ,QGLD

,,, ,PSOHPHQWLQJ333$Q2YHUYLHZ 6WHS,GHQWLILFDWLRQRIWKH3UREOHP$UHDV 6WHS&KRLFHEHWZHHQ3XEOLF)XQGLQJDQG333 6WHS&KRLFHRI3336WUXFWXUH 6WHS3URFXUHPHQW

,9 6WHS,GHQWLILFDWLRQRIWKH3UREOHP$UHDV $VVHVVPHQWRIWKH&XUUHQW:DWHU6XSSO\DQG6DQLWDWLRQ6\VWHP 5HYLHZRI3URMHFWVZLWK$SSURYHG'HWDLOHG3URMHFW5HSRUWV 3ULRULWL]DWLRQRI.H\$UHDVRI,QYHVWPHQW

9 )LQDQFLDO)HDVLELOLW\ 'HWHUPLQDWLRQDQG'XH'LOLJHQFHRI3URMHFW&RVW ,GHQWLILFDWLRQRI3URMHFW5HYHQXHV

3UHSDUDWLRQRIWKH)LQDQFLDO0RGHO $VVHVVLQJWKH9LDELOLW\RIWKH3ULYDWH,QYHVWPHQW 9LDELOLW\*DS)XQG $VVHVVPHQWRI:DWHU333V1RW5HTXLULQJ3ULYDWH,QYHVWPHQW

9, 6WHS&KRLFHEHWZHHQ3XEOLF)XQGLQJDQG333 5DWLRQDOHIRU333 3UHUHTXLVLWHVIRU333 0DNLQJWKH&KRLFH


5/224

LY

&RQWHQWV

9,, 6WHS&KRLFHRI3336WUXFWXUH ,GHQWLILFDWLRQRI5LVNV $OORFDWLRQRI5LVNV 6HOHFWLRQRI3RVVLEOH3336WUXFWXUHV

3UHSDUDWRU\'RFXPHQWVDQG$FWLYLWLHV5HTXLUHGWREH8QGHUWDNHQ 0DWFKLQJRI3336WUXFWXUHVZLWKWKH9DOXH&KDLQDQG3ULRULWL]HG3URMHFWV

9,,, 6WHS3URFXUHPHQW 7UDQVDFWLRQ6WUXFWXUH 'UDIWLQJWKH333&RQWUDFW 6HOHFWLRQRIWKH3URFXUHPHQW6WUDWHJ\ 'HVLJQRIWKH3URFXUHPHQW3URFHVV 0DQDJLQJWKH3URFXUHPHQW3URFHVV

3$57,,'HWDLOVRI3XEOLF3ULYDWH3DUWQHUVKLS6WUXFWXUHV , %DFNJURXQG

,, 3HUIRUPDQFH0DQDJHPHQW&RQWUDFWIRU2SHUDWLRQDQG0DLQWHQDQFH RI:DWHU6XSSO\6\VWHP $ERXWWKH3336WUXFWXUH $SSOLFDELOLW\RIWKH3336WUXFWXUH

,,, &RQFHVVLRQ$JUHHPHQWIRU:DWHU6XSSO\DQG6HZHUDJH6HUYLFHV $ERXWWKH3336WUXFWXUH $SSOLFDELOLW\RIWKH3336WUXFWXUH

,9 &RQFHVVLRQ$JUHHPHQWIRU&RQVWUXFWLRQ2SHUDWLRQDQG0DLQWHQDQFH RI%XON:DWHU6XSSO\6\VWHP $ERXWWKH3336WUXFWXUH $SSOLFDELOLW\RIWKH3336WUXFWXUH

9 &RQFHVVLRQ$JUHHPHQWIRU&RQVWUXFWLRQ2SHUDWLRQDQG0DQDJHPHQW RIWKH'LVWULEXWLRQ6\VWHP $ERXWWKH3336WUXFWXUH $SSOLFDELOLW\RIWKH3336WUXFWXUH

9, &RQFHVVLRQ$JUHHPHQWIRU'HYHORSPHQWRIWKH%XON:DWHU6XSSO\6\VWHP DQG2SHUDWLRQDQG0DLQWHQDQFHRIWKH(QWLUH6\VWHP $ERXWWKH3336WUXFWXUH $SSOLFDELOLW\RIWKH3336WUXFWXUH

3$57,,,&DVH6WXGLHVRI3XEOLF3ULYDWH3DUWQHUVKLSVLQ0DKDUDVKWUD , ,QWURGXFWLRQ

,, 6XPPDU\RI&LW\$QDO\VLV

,,, -DOQD %ULHI,QWURGXFWLRQWR-DOQD :DWHU6XSSO\6\VWHPDW-DOQD 6WHS,GHQWLILFDWLRQRIWKH3UREOHP$UHD 6WHS&KRLFHEHWZHHQ3XEOLF)XQGLQJDQGWKH3332SWLRQ 6WHS&KRLFHRI3336WUXFWXUH 6WHS3URFXUHPHQW


6/224

Y

&RQWHQWV

,9 6DQJOL0LUDM.XSZDG %ULHI,QWURGXFWLRQWR6DQJOL0LUDM.XSZDG :DWHU6XSSO\6\VWHPDW6DQJOL0LUDM.XSZDG 6WHS,GHQWLILFDWLRQRIWKH3UREOHP$UHD

6WHS&KRLFHEHWZHHQ3XEOLF)XQGLQJDQGWKH3332SWLRQ 6WHS&KRLFHRI3336WUXFWXUH 6WHS3URFXUHPHQW

9 .ROKDSXU %ULHI,QWURGXFWLRQWR.ROKDSXU :DWHU6XSSO\6\VWHPDW.ROKDSXU 6HZHUDJH6\VWHPDW.ROKDSXU 6WHS,GHQWLILFDWLRQRIWKH3UREOHP$UHD 6WHS&KRLFHEHWZHHQ3XEOLF)XQGLQJDQGWKH3332SWLRQ 6WHS&KRLFHRI3336WUXFWXUH 6WHS3URFXUHPHQW

9, 9LUDU

%ULHI,QWURGXFWLRQWR9LUDU :DWHU6XSSO\6\VWHPDW9LUDU 6WHS,GHQWLILFDWLRQRIWKH3UREOHP$UHD 6WHS&KRLFHEHWZHHQ3XEOLF)XQGLQJDQGWKH3332SWLRQ 6WHS&KRLFHRI3336WUXFWXUH 6WHS3URFXUHPHQW

9,, 1DYJKDU0DQLNSXU %ULHI,QWURGXFWLRQWR1DYJKDU0DQLNSXU ([LVWLQJ:DWHU6XSSO\6\VWHP 6WHS,GHQWLILFDWLRQRIWKH3UREOHP$UHD 6WHS&KRLFHEHWZHHQ3XEOLF)XQGLQJDQGWKH3332SWLRQ 6WHS&KRLFHRI3336WUXFWXUH

6WHS3URFXUHPHQW 9,,, 6KLUSXU

%ULHI,QWURGXFWLRQWR6KLUSXU ([LVWLQJ:DWHU6XSSO\6\VWHPDW6KLUSXU 6WHS,GHQWLILFDWLRQRIWKH3UREOHP$UHD 6WHS&KRLFHEHWZHHQ3XEOLF)XQGLQJDQGWKH3332SWLRQ

,; $NRW %ULHI,QWURGXFWLRQWR$NRW ([LVWLQJ:DWHU6XSSO\6\VWHP 6WHS,GHQWLILFDWLRQRIWKH3UREOHP$UHD 6WHS&KRLFHEHWZHHQ3XEOLF)XQGLQJDQGWKH3332SWLRQ 6WHS&KRLFHRI3336WUXFWXUH

6WHS3URFXUHPHQW ; 6DRQHU

%ULHI,QWURGXFWLRQWR6DRQHU ([LVWLQJ:DWHU6XSSO\6\VWHP 6WHS,GHQWLILFDWLRQRIWKH3UREOHP$UHD 6WHS&KRLFHEHWZHHQ3XEOLF)XQGLQJDQGWKH3332SWLRQ

;, &KLSOXQ %ULHI,QWURGXFWLRQWR&KLSOXQ ([LVWLQJ:DWHU6XSSO\6\VWHP


7/224

YL

&RQWHQWV

6WHS,GHQWLILFDWLRQRIWKH3UREOHP$UHD 6WHS&KRLFHEHWZHHQ3XEOLF)XQGLQJDQGWKH3332SWLRQ 6WHS&KRLFHRI3336WUXFWXUH 6WHS3URFXUHPHQW

;,, .XOJDRQ%DGODSXU %ULHI,QWURGXFWLRQWR.XOJDRQ%DGODSXU :DWHU6XSSO\6\VWHPDW.XOJDRQ%DGODSXU 6WHS,GHQWLILFDWLRQRIWKH3UREOHP$UHD 6WHS&KRLFHEHWZHHQ3XEOLF)XQGLQJDQGWKH3332SWLRQ

;,,, $PEHUQDWK %ULHI,QWURGXFWLRQWR$PEHUQDWK ([LVWLQJ:DWHU6XSSO\6\VWHP 6WHS,GHQWLILFDWLRQRIWKH3UREOHP$UHD 6WHS&KRLFHEHWZHHQ3XEOLF)XQGLQJDQGWKH3332SWLRQ

;,91DYL0XPEDL %ULHI,QWURGXFWLRQWR1DYL0XPEDL ([LVWLQJ:DWHU6XSSO\6\VWHP $VVHVVPHQWRIWKH:DWHU6XSSO\6\VWHP 3URSRVHG:DWHU6XSSO\3URMHFW $ERXWWKH3336WUXFWXUH .H\5ROHVDQG5HVSRQVLELOLWLHVRIWKH1DYL0XPEDL0XQLFLSDO&RUSRUDWLRQ DQGWKH3ULYDWH2SHUDWRU .H\)HDWXUHVRI1DYL0XPEDL0XQLFLSDO&RUSRUDWLRQV 3HUIRUPDQFH0DQDJHPHQW&RQWUDFW 5LVN6KDULQJEHWZHHQ1DYL0XPEDL0XQLFLSDO&RUSRUDWLRQDQGWKH3ULYDWH'HYHORSHU

3$57,97HUP6KHHWV

, ,QWURGXFWLRQ 2EMHFWLYHRIWKH7HUP6KHHW &RQWHQWVRIWKH7HUP6KHHW

,, 7HUP6KHHWV 3HUIRUPDQFH0DQDJHPHQW&RQWUDFWIRUWKH(QWLUH:DWHU6XSSO\6\VWHP ,QWHJUDWHG&RQFHVVLRQDQG0DQDJHPHQWRIWKH(QWLUH:DWHU6XSSO\DQG6HZHUDJH6\VWHP 0DQDJHPHQW&RQWUDFWIRU0HWHULQJ%LOOLQJDQG&ROOHFWLRQ &RQFHVVLRQ$JUHHPHQWIRUWKH'HYHORSPHQW2SHUDWLRQDQG0DLQWHQDQFH RIWKH%XON:DWHU6XSSO\6\VWHP &RQFHVVLRQ$JUHHPHQWIRU'HYHORSPHQWRIWKH%XON:DWHU6XSSO\6\VWHPDQG2SHUDWLRQ DQG0DLQWHQDQFHRIWKH(QWLUH:DWHU6XSSO\6\VWHP


8/224

YLL

7DEOHVDQG)LJXUHV

7DEOHV 6WDJHVLQWKH'HYHORSPHQWRI8UEDQ:DWHU6XSSO\DQG6DQLWDWLRQ3URMHFWV 5HSUHVHQWDWLYH6DPSOHRIDQ$VVHW,QYHQWRU\/LVW .H\3DUDPHWHUVIRU$VVHVVLQJWKH3HUIRUPDQFHRI:DWHU6XSSO\6HUYLFHV .H\3DUDPHWHUVIRU$VVHVVLQJWKH3HUIRUPDQFHRI6DQLWDWLRQ6HUYLFHV %URDG&RPSRQHQWVRIWKH&DSLWDO&RVWV %URDG&RPSRQHQWVRIWKH2SHUDWLRQ&RVWV 5HSUHVHQWDWLYH9ROXPHWULF7DULII6WUXFWXUH 5HSUHVHQWDWLYH7HOHVFRSLF7DULII6WUXFWXUH *HQHULF5LVN&DWHJRULHV

/LVWRI'RFXPHQWVDQG$FWLYLWLHVWREH$UUDQJHGE\WKH8UEDQ/RFDO%RG\ RU6WDWH$JHQF\

3330DWUL[LQWKH&RQWH[WRIWKH9DOXH&KDLQ .H\5ROHVDQG5HVSRQVLELOLWLHVRIWKH3ULYDWH'HYHORSHUDQGWKH8UEDQ/RFDO%RG\ .H\5LVNV5ROHVDQG5HVSRQVLELOLWLHVRIWKH3ULYDWH'HYHORSHU

DQGWKH8UEDQ/RFDO%RG\ .H\5ROHVDQG5HVSRQVLELOLWLHVRIWKH3ULYDWH'HYHORSHU

DQGWKH8UEDQ/RFDO%RG\ .H\5LVNV5ROHVDQG5HVSRQVLELOLWLHVRIWKH3ULYDWH'HYHORSHU

DQGWKH8UEDQ/RFDO%RG\ .H\5ROHVDQG5HVSRQVLELOLWLHVRIWKH3ULYDWH'HYHORSHU

DQGWKH8UEDQ/RFDO%RG\ .H\5LVNV5ROHVDQG5HVSRQVLELOLWLHVRIWKH3ULYDWH'HYHORSHU

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


9/224

YLLL

7DEOHVDQG)LJXUHV

,QYHVWPHQW5HTXLUHPHQWZLWKD333 %DVLF3URILOHRI:DWHU6XSSO\6HUYLFHVLQ9LUDU .H\:DWHU6XSSO\,QGLFDWRUVIRU9LUDU 3URSRVHG:DWHU6XSSO\3URMHFWV

.H\$VVXPSWLRQV %DVLF3URILOHRI:DWHU6XSSO\6HUYLFHVLQ1DYJKDU0DQLNSXU .H\:DWHU6XSSO\,QGLFDWRUVIRU1DYJKDU0DQLNSXU .H\:DWHU6XSSO\3URMHFWV3ODQQHGDQG3URSRVHG .H\$VVXPSWLRQV %DVLF3URILOHRI:DWHU6XSSO\6HUYLFHVLQ6KLUSXU .H\:DWHU6XSSO\,QGLFDWRUVIRU6KLUSXU .H\$VVXPSWLRQV %DVLF3URILOHRI:DWHU6XSSO\6HUYLFHVLQ$NRW .H\:DWHU6XSSO\,QGLFDWRUVIRU$NRW 3URSRVHG:DWHU6XSSO\3URMHFWVIRU$NRW $VVXPSWLRQVRI3UHOLPLQDU\)LQDQFLDO$QDO\VLV ,QYHVWPHQW5HTXLUHPHQWZLWKD333

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

3URSRVHG:DWHU6XSSO\3URMHFWV %DVLF3URILOHRI:DWHU6XSSO\6HUYLFHVLQ1DYL0XPEDL :DWHU6XSSO\,QGLFDWRUVDQG,QIHUHQFHV 3URSRVHG:DWHU6XSSO\3URMHFWV .H\5ROHVDQG5HVSRQVLELOLWLHVRIWKH3ULYDWH'HYHORSHUDQGWKH8UEDQ/RFDO%RG\ .H\5LVN6KDULQJ

)LJXUHV 9DOXH&KDLQRIWKH:DWHU6XSSO\DQG6DQLWDWLRQ6HFWRU ,QVWLWXWLRQDO6HWXSIRUWKH:DWHU6XSSO\DQG6DQLWDWLRQ6HFWRU 3337LPHOLQHVLQWKH:DWHUDQG6DQLWDWLRQ6HFWRULQ,QGLD

3333URMHFWV,PSOHPHQWHGLQ,QGLD 2YHUYLHZRI6WDJHVLQ'HWHUPLQLQJ6XLWDEOH3336WUXFWXUHV 2YHUYLHZRI6WDJHVLQ$VVHVVPHQWRI:DWHU6XSSO\DQG6DQLWDWLRQ6HUYLFHV ,QGLFDWLYH/LVWRI,VVXHVLQWKH:DWHU6XSSO\DQG6DQLWDWLRQ6HUYLFHV $VVHVVPHQWRI3URMHFW'HWDLOHG3URMHFW5HSRUWV 3URFHVV)ORZIRU9LDELOLW\$VVHVVPHQW

5LVN0LWLJDWLRQ0HDVXUHVIRUWKH8UEDQ/RFDO%RG\RU6WDWH$JHQF\DQGWKH3ULYDWH'HYHORSHU


10/224

L[

7DEOHVDQG)LJXUHV

$OWHUQDWLYH3URFXUHPHQW3URFHVV6WUDWHJLHV,PSOHPHQWDWLRQ $OWHUQDWLYH3URFXUHPHQW3URFHVV6WUDWHJLHV6HOHFWLRQ&ULWHULD 3HUIRUPDQFH0DQDJHPHQW&RQWUDFWIRU2SHUDWLRQ

DQG0DLQWHQDQFHRI:DWHU6XSSO\6HUYLFHV

6WUXFWXUHRI&RQFHVVLRQ$JUHHPHQWIRU:DWHU6XSSO\DQG6HZHUDJH6HUYLFHV &RQFHVVLRQ$JUHHPHQWIRU&RQVWUXFWLRQ2SHUDWLRQDQG0DLQWHQDQFHRI%XON:DWHU6XSSO\6\VWHP

&RQFHVVLRQ$JUHHPHQWIRU&RQVWUXFWLRQ2SHUDWLRQDQG0DLQWHQDQFHRIWKH'LVWULEXWLRQ6\VWHP

&RQFHVVLRQ$JUHHPHQWIRU'HYHORSPHQWRIWKH%XON:DWHU6XSSO\6\VWHPDQG2SHUDWLRQDQG0DLQWHQDQFHRIWKH(QWLUH6\VWHP

6WUXFWXUHRI:DWHU6XSSO\3HUIRUPDQFH0DQDJHPHQW&RQWUDFWIRU2SHUDWLRQDQG0DLQWHQDQFH


11/224

[

)RUHZRUG

6XVWDLQHGJURZWKRIWKH,QGLDQHFRQRP\LVHVVHQWLDOIRUDOOURXQGGHYHORSPHQWRIWKHFRXQWU\:LWKLQWKLVUHTXLUHPHQWVXVWDLQDEOHLQIUDVWUXFWXUHGHYHORSPHQWLVFULWLFDOIRUSURYLGLQJWKHEDFNERQHIRUHFRQRPLFDFWLYLWLHVDQGIRUHQVXULQJWKDWUHVRXUFHVDUHFRQVHUYHGDQGXVHGPRVWHIILFLHQWO\JLYHQWKHOLPLWHGDQGWKHIDVWGHSOHWLQJQDWXUHRIWKHVHUHVRXUFHV

3XEOLFSULYDWHSDUWQHUVKLSV333VDUHVHHQDVDNH\LQJUHGLHQWLQWKLVIRUEULQJLQJLQPXFKQHHGHGLQYHVWPHQWVDVZHOODVHIILFLHQFLHVLQXWLOL]DWLRQDQGPDQDJHPHQWRIUHVRXUFHVZKHWKHUZDWHUSRZHURULQGHHGPRQH\9DULRXVHVWLPDWHVLQGLFDWHWKDWLIWKHHFRQRP\LVWRJURZDWSHUDQQXPPRUHWKDQELOOLRQRILQYHVWPHQWLQLQIUDVWUXFWXUHLVQHHGHGEHWZHHQDQGDERXWRIWKLVUHTXLUHPHQWPXVWFRPHIURPWKHSULYDWHVHFWRU

7KH*RYHUQPHQWRI,QGLDLVWKHUHIRUHWDNLQJDVWUXFWXUHGDSSURDFKWRFUHDWLQJDQHQDEOLQJHQYLURQPHQWIRUSULYDWHLQYHVWPHQWDQGRSHUDWLRQVLQLQIUDVWUXFWXUH:LWK$VLDQ'HYHORSPHQW%DQN$'%DVVLVWDQFHDJUDGXDOO\HQGLQJVHWRIWDVNVLQFOXGLQJFDSDFLW\EXLOGLQJDQGLQVWLWXWLRQDOL]DWLRQRI333VDFURVVWKHFRXQWU\LVEHLQJFDUULHGRXWXQGHUWKH*RYHUQPHQWRI,QGLD$'%,QLWLDWLYHIRU0DLQVWUHDPLQJ333V6WDWH333FHOOVDQGGHSDUWPHQWVVXFKDVWKH8UEDQ'HYHORSPHQW'HSDUWPHQWLQ0DKDUDVKWUDDUHEHLQJVXSSRUWHGLQYDULRXVVWDWHVSHFLILFDFWLYLWLHV

7RJHWKHUZLWKWKH'HSDUWPHQWRI(FRQRPLF$IIDLUVVWDWH333FHOODQGUHOHYDQWGHSDUWPHQWVWKHLQLWLDWLYHIRFXVHGRQLGHQWLI\LQJDQGGHYHORSLQJ333VWUXFWXUHVZKLFKFDQEHLPSOHPHQWHGLQZDWHUVXSSO\DQGVDQLWDWLRQIRUWKHFLWLHVRI0DKDUDVKWUD+HQFHYDULRXVSRVVLEOH333VWUXFWXUHVIRUWKHVHFWRUZHUHVWXGLHGDQGWKHDSSOLFDELOLW\RIWKHVHVWUXFWXUHVDVVHVVHGLQWKHFRQWH[WRIWKHVHOHFWHGVDPSOHFLWLHV&RQVXOWDWLRQVOHGWRGHYHORSPHQWRIWHUPVKHHWVIRUWKHVH333VWUXFWXUHVZKLFKDUHLGHQWLILHGDVPRVWVXLWDEOHDQGIHDVLEOHIRULPSOHPHQWDWLRQ

7KHDERYHH[HUFLVHKDVOHGWRWKHGHYHORSPHQWRIWKLVUHSRUWZKLFKPD\EHFRQVLGHUHGDVDWRRONLWWRDVVLVWWKHUHOHYDQWSXEOLFHQWLWLHVLQ0DKDUDVKWUDVWDWHIRUGHYHORSLQJ333EDVHGSURMHFWVLQZDWHUVXSSO\DQGVDQLWDWLRQ7KHWRRONLWLVDOVRGHVLJQHGWRKHOSGHFLVLRQPDNHUVGHFLGHZKHWKHUDSDUWLFXODUSURMHFWPLJKWEHVXLWDEOHIRUWKH333URXWHRUQRW7KHWRRONLWFDQWKHUHIRUHEHWKHEDVLVIRUDSSURYLQJDSURMHFWLPSOHPHQWDWLRQVWUXFWXUHDVSDUWRIWKHRYHUDOOSURMHFWDSSURYDOPHWKRGRORJ\

:HDUHFRQILGHQWWKDWWKHVHWRRONLWVZLOOEHXVHGE\WKHPXQLFLSDOFRPPLVVLRQHUVDQGWKHFKLHIH[HFXWLYHRIILFHUVRIWKHXUEDQORFDOERGLHVDQGRWKHUUHOHYDQWVWDWHJRYHUQPHQWRIILFLDOVDQGGHFLVLRQPDNHUVZKLOHFRQVLGHULQJ333EDVHGLPSOHPHQWDWLRQRIXUEDQZDWHUVXSSO\DQGVDQLWDWLRQSURMHFWV

*RYLQG0RKDQ-RLQW6HFUHWDU\

'HSDUWPHQWRI(FRQRPLF$IIDLUV0LQLVWU\RI)LQDQFH*RYHUQPHQWRI,QGLD

$SDUQD%KDWLD'LUHFWRU333&HOO'HSDUWPHQWRI(FRQRPLF$IIDLUV0LQLVWU\RI)LQDQFH*RYHUQPHQWRI,QGLD

0DQX.XPDU6ULYDVWDYD6HFUHWDU\8UEDQ'HYHORSPHQW'HSDUWPHQW,,

*RYHUQPHQWRI0DKDUDVKWUD

$VKRN6KDUPD'LUHFWRU)LQDQFLDO6HFWRU3XEOLF0DQDJHPHQWDQG7UDGH'LYLVLRQ6RXWK$VLD'HSDUWPHQW$VLDQ'HYHORSPHQW%DQN


12/224

[L

$FNQRZOHGJPHQWV

8QGHUWKH$VLDQ'HYHORSPHQW%DQN$'%VXSSRUWIRU0DLQVWUHDPLQJ333VLQ,QGLDWKHSXEOLFSULYDWHSDUWQHUVKLS333WHDPXQGHUWKHMRLQWJXLGDQFHRI$'%DQGWKH'HSDUWPHQWRI(FRQRPLF$IIDLUV>'($@*RYHUQPHQWRI,QGLDDQG333IRFDOSRLQWVKDYHGHYHORSHGDQXPEHURIVHFWRULQLWLDWLYHVOHDGLQJWRNQRZOHGJHEXLOGLQJDQGGLVVHPLQDWLRQ7KLVUHSRUWLVDQRXWFRPHRIWKLVDFWLYLW\DQGFRQVWLWXWHVDSDUWRIWKH333NQRZOHGJHVHULHVHPDQDWLQJIURPWKH333,QLWLDWLYHLQ,QGLD

7KLVWRRONLWZRXOGQRWKDYHEHHQSRVVLEOHZLWKRXWWKHFRQWLQXRXVDQGULJRURXVLQSXWVE\'($UHSUHVHQWHGE\0V$SDUQD%KDWLD7KHUHYLHZVDQGFRQVXOWDWLRQVIDFLOLWDWHGE\WKHVHQLRUPHPEHUVRIWKH*RYHUQPHQWRI0DKDUDVKWUDKHOSHGLQFRUSRUDWHWKHJURXQGUHDOLWLHV7KH$'%WHDPOHGE\0U$QRXM0HKWDKDVEHHQSDUWRIHYHU\VWHSRIWRRONLWSUHSDUDWLRQSURYLGLQJWKHLULQVLJKWVWR

GHYHORSLWLQDXVHUIULHQGO\PDQQHU

*RYHUQPHQW $SDUQD%KDWLD'LUHFWRU333&HOO'HSDUWPHQWRI(FRQRPLF$IIDLUV*RYHUQPHQWRI,QGLD$MLW.XPDU-DLQ,QGLDQ$GPLQLVWUDWLYH6HUYLFH3ULQFLSDO6HFUHWDU\WR&KLHI0LQLVWHU*RYHUQPHQWRI0DKDUDVKWUD0DQX.XPDU6ULYDVWDYD,QGLDQ$GPLQLVWUDWLYH6HUYLFH6HFUHWDU\8UEDQ'HYHORSPHQW'HSDUWPHQW*RYHUQPHQWRI0DKDUDVKWUD

$'%,QGLD $QRXM0HKWD6HQLRU,QIUDVWUXFWXUH)LQDQFH6SHFLDOLVWDQG)RFDO3RLQWIRU333V,QGLD$MD\6D[HQD$'%&RQVXOWDQW.3XUXVKRWDPD$'%&RQVXOWDQW333WHDP

'HYHQGHU5DZDW$GPLQLVWUDWLYH$VVLVWDQW$'%

&5,6,/5LVNDQG 655DPDQXMDP&KLHI([HFXWLYH2IILFHU,QIUDVWUXFWXUH 6DQMD\6DK+HDG6ROXWLRQV/LPLWHG 6DORQHH-DLQ7HDP/HDGHU

5XKL/DO0DQDJHU3DGPD3UL\D+HDG


13/224

[LL

$FNQRZOHGJPHQWV

.H\&RQWDFWV

*RYHUQPHQWRI,QGLD $'%

*RYLQG0RKDQ

-RLQW6HFUHWDU\'HSDUWPHQWRI(FRQRPLF$IIDLUV0LQLVWU\RI)LQDQFH*RYHUQPHQWRI,QGLD7HOJRYLQGPRKDQ#QLFLQ

$VKRN6KDUPD

'LUHFWRU)LQDQFLDO6HFWRU3XEOLF0DQDJHPHQWDQG7UDGH'LYLVLRQ6RXWK$VLD'HSDUWPHQW$'%7HODVKDUPD#DGERUJ

$SDUQD%KDWLD'LUHFWRU333&HOO'HSDUWPHQWRI(FRQRPLF$IIDLUV0LQLVWU\RI)LQDQFH*RYHUQPHQWRI,QGLD7HODSDUQDEKDWLD#QLFLQ

$QRXM0HKWD6HQLRU,QIUDVWUXFWXUH)LQDQFH6SHFLDOLVWDQG)RFDO3RLQWIRU333V,QGLD6DQ0DUWLQ0DUJ&KDQDN\DSXUL1HZ'HOKL7HODQRXMPHKWD#DGERUJ

:HEOLQNVZZZSSSLQLQGLDFRPZZZDGERUJ


14/224

[LLL

$EEUHYLDWLRQV

$'% $VLDQ'HYHORSPHQW%DQN $0& $NRW0XQLFLSDO&RXQFLO&0& &KLSOXQ0XQLFLSDO&RXQFLO&0:66% &KHQQDL0HWURSROLWDQ:DWHU6XSSO\DQG6HZHUDJH%RDUG&3+((2 &HQWUDO3XEOLF+HDOWKDQG(QYLURQPHQWDO(QJLQHHULQJ2UJDQLVDWLRQ&5,6,/ &5,6,/5LVNDQG,QIUDVWUXFWXUH6ROXWLRQV/LPLWHG'35 GHWDLOHGSURMHFWUHSRUW(65 HOHYDWHGVWRUDJHUHVHUYRLU)


15/224


16/224

3$57,

3337RRO.LWIRUWKH:DWHU6XSSO\

DQG6DQLWDWLRQ6HFWRU


17/224


18/224

, ,QWURGXFWLRQ

$CEMITQWPFCPF5EQRGQH9QTM

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

3KDVH,5HYLHZRI333VWUXFWXUHVLPSOHPHQWHG

LQ,QGLDSUHOLPLQDU\DVVHVVPHQWRIZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHVLQWKHVDPSOHFLWLHVRI0DKDUDVKWUDLGHQWLILFDWLRQRISUREDEOH333VWUXFWXUHIRUDSSURYHGSURMHFWVDQGSUHSDUDWLRQRIWHUPVKHHWV

3KDVH,,'HWDLOHGILQDQFLDODQDO\VLVIHDVLELOLW\VWXGLHVDQGSURMHFWVWUXFWXULQJIRUVHOHFWHGFLWLHV

3KDVH,,,%LGSURFHVVPDQDJHPHQW

7KLVWRRONLWLVDQRXWSXWRI3KDVH,RIWKH7$SURMHFW

$'%LQGLVFXVVLRQZLWKWKH333QRGDORIILFHUFXPVHFUHWDU\8UEDQ'HYHORSPHQW'HSDUWPHQWDQGSULQFLSDOVHFUHWDU\:DWHU6XSSO\DQG6DQLWDWLRQ'HSDUWPHQW*RYHUQPHQWRI

0DKDUDVKWUDLGHQWLILHGDVDPSOHRIFLWLHVIRUWKHLGHQWLILFDWLRQRI333VWUXFWXUHV7RHQVXUHWKDWDUHSUHVHQWDWLYHFDWHJRU\RIVDPSOHFLWLHVLVUHSUHVHQWHGLQWKHVWXG\FLWLHVZLWKYDU\LQJSRSXODWLRQVL]HVDQGJHRJUDSKLFDOVHWWLQJVZHUHVHOHFWHG:KLOHDIHZFLWLHVIDOOLQWKHFDWHJRU\RISRSXODWLRQVL]HDIHZDUHLQWKHVL]HDQGWKHUHVWKDYHDSRSXODWLRQRIPRUHWKDQ7KHVHOHFWHGFLWLHVDUHODUJHO\FRYHUHGXQGHUWKH

8UEDQ,QIUDVWUXFWXUHDQG'HYHORSPHQW6FKHPHIRU6PDOODQG0HGLXP7RZQV8,'6607RIWKH*RYHUQPHQWRI,QGLDDQGRUDUHXQGHUWDNLQJDSURMHFWXQGHUWKH0DKDUDVKWUD6XMDO1LUPDO$EKL\DDQVFKHPH:LWKHLWKHURIWKHVHVFKHPHVLQSODFHPRVWRIWKHVDPSOHWRZQVDOUHDG\KDYHLGHQWLILHGVRPHLQYHVWPHQWVWKDWQHHGWREHXQGHUWDNHQWRLPSURYHWKHLUZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHV,QVRPHRIWKHVDPSOHFLWLHVWKHZDWHUVXSSO\LVPDQDJHGE\WKHXUEDQORFDOERG\8/%ZKHUHDVLQVRPHRWKHUWRZQVWKHLQVWLWXWLRQRYHUVHHLQJWKHZDWHUVXSSO\VFKHPHLV0DKDUDVKWUD-HHYDQ3UDGKLNDUDQ0-37KH

VDPSOHGFLWLHVLQFOXGH-DOQD6DQJOL0LUDM.XSZDG9LUDU1DYJKDU0DQLNSXU.XOJDRQ%DGODSXU&KLSOXQ.ROKDSXU$NRW6DRQHU6KLUSXU$PEDUQDWKDQG1DYL0XPEDL )RULGHQWLI\LQJ333RSWLRQVWKDWDUHEHVWVXLWHGIRULPSOHPHQWDWLRQ3KDVH,ZDVVWUXFWXUHGLQWRWKHIROORZLQJFRPSRQHQWV

L 'HWDLOHGVWXG\RI333VWUXFWXUHVSRVVLEOHLQWKHHQWLUHFKDLQRIZDWHUVXSSO\VHUYLFHV

LL &RPSUHKHQVLYHUHYLHZRIWKHZDWHUVXSSO\VLWXDWLRQLQVDPSOHFLWLHVDQGLGHQWLILFDWLRQRIDUHDVIRU333EDVHGLQWHUYHQWLRQ

LLL 3UHSDUDWLRQRIWHUPVKHHWVIRUWKH333VWUXFWXUHVWKDWKDYHEHHQLGHQWLILHGDVPRVWVXLWDEOHIRUWKHVDPSOHFLWLHV

2QO\WKHFLW\RI.ROKDSXULVVWXGLHGIRUWKHDSSOLFDELOLW\RI333LQWKHVDQLWDWLRQVHFWRU 6LQFH1DYL0XPEDLKDVDOUHDG\XQGHUWDNHQ333LQZDWHUVXSSO\OHVVRQVDUHGUDZQIURPWKHH[LVWLQJVWUXFWXUH


19/224

7RRO.LWIRU3XEOLF3ULYDWH3DUWQHUVKLSVLQ8UEDQ:DWHU6XSSO\IRUWKH6WDWHRI0DKDUDVKWUD,QGLD

2TQEGUU(QNNQYGFHQTVJG6QQN-KV

7KHWRRONLWZDVLQLWLDOO\FRQFHLYHGE\$'%LQFRQMXQFWLRQZLWKWKH*RYHUQPHQWRI

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

6XEVHTXHQWO\XVLQJWKHVHNH\OHVVRQVWKHWHDP

LGHQWLILHGWKHYDULRXVSURMHFWVWUXFWXULQJRSWLRQVWKDWFRXOGEHXVHGIRULPSOHPHQWLQJ333LQWKHXUEDQZDWHUVXSSO\7KHVHRSWLRQVZHUHGUDZQXSRQWKHEDVLVRIWKHFXUUHQWLPSOHPHQWDWLRQVRI333LQWKHVHFWRUHJWKHRSWLRQRIXVLQJWKH9LDELOLW\*DS)XQGDVDVRXUFHRISURMHFWIXQGLQJIRUDZDWHUVXSSO\VFKHPH$SURMHFWVWUXFWXULQJRSWLRQIRUWKHGHYHORSPHQWRIEXVGHSRWVZDVDOVRFRQVLGHUHG7KHWHDPDOVRXQGHUWRRNDVWXG\RI333FRQFHVVLRQDJUHHPHQWVIRUWKHXUEDQZDWHUVXSSO\VHFWRU7KHWHDPVWXGLHGWKHFRQFHVVLRQFRQWUDFWVRI/DWXU+DOGLD6DOW/DNH&LW\1DYL0XPEDLDQG.8:$6,37KH\

IRUPXODWHGWHUPVKHHWVIRUHDFK333VWUXFWXUHEDVHGRQWKHOHVVRQVRIWKHGRFXPHQWDWLRQUHYLHZDQGVWXG\RIFRQFHVVLRQFRQWUDFWV(DFKWHUPVKHHWFRQWDLQVDEULHIUHIHUHQFHJXLGHIRUXQGHUVWDQGLQJWKHNH\FODXVHVDSSOLFDEOHXQGHUWKHVSHFLILF333VWUXFWXUH7KHFODXVHVSUHVHQWHGLQWKHWHUPVKHHWZRXOGKHOSWKHZDWHUVXSSO\VHUYLFHSURYLGHULQGUDIWLQJDFRQWUDFWIRU

WKH333VWUXFWXUHWKDWKDVEHHQVHOHFWHGIRULPSOHPHQWDWLRQRIWKHLGHQWLILHGSURMHFWVLQWKHXUEDQZDWHUVXSSO\VHFWRU

1H[WDFXUUHQWDVVHVVPHQWRIWKHVDPSOHFLWLHVFKRVHQE\$'%ZDVXQGHUWDNHQXVLQJGRFXPHQWVVXFKDVFLW\GHYHORSPHQWSODQVDQGGHWDLOHGSURMHFWUHSRUWV7KHWHDPDOVRKHOGGLVFXVVLRQVZLWKXUEDQZDWHUVXSSO\RIILFLDOVRIWKHVDPSOHFLWLHVWRREWDLQWKHPRVWXSWRGDWHLQIRUPDWLRQRQWKHXUEDQZDWHUVXSSO\VLWXDWLRQ'LVFXVVLRQVLQFOXGHGWKHFXUUHQWVWDWHRIWKHXUEDQZDWHUVXSSO\VHFWRUSUREOHPVEHVHWWLQJWKHXUEDQZDWHUVXSSO\GHSDUWPHQWDQGIXWXUHSODQVDQGVFRSHIRU333LQXUEDQZDWHUVXSSO\LQWKHFLW\7KHWHDPVDOVRREWDLQHGYLHZVDQGVXJJHVWLRQVRQWKHYDULRXV333VWUXFWXUHV

GHYLVHG7KHVHVXJJHVWLRQVZHUHLQFRUSRUDWHGLQWRWKHWHUPVKHHWV7KHWHDPDOVRPHWSULYDWHGHYHORSHUVZKRDUHLQYROYHGLQWKHSURYLVLRQRIXUEDQZDWHUVXSSO\VHUYLFHVLQYDULRXVFLWLHV

$OOWKHLQVLJKWVREWDLQHGIURPWKHVWXG\RI333LQXUEDQZDWHUVXSSO\ZDVXVHGLQWKHIRUPXODWLRQRIDVWHSE\VWHSSURFHVVIRULPSOHPHQWDWLRQRID333OLIHF\FOH6XJJHVWLRQVZHUHWDNHQIURPLQWHUQDO333DQGXUEDQZDWHUVXSSO\H[SHUWV7KHSURFHVVZDVDOVRGLVFXVVHGZLWK$'%DQGWKHVXJJHVWLRQVUHFHLYHGZHUHLQFRUSRUDWHGLQWKHWRRONLW7KHHQWLUHWRRONLWZDVVXEVHTXHQWO\

SUHVHQWHGWRWKH*RYHUQPHQWRI0DKDUDVKWUD$'%DQGWKH'HSDUWPHQWRI(FRQRPLF$IIDLUV7KHFRPPHQWVDQGVXJJHVWLRQVUHFHLYHGZHUHWKHQLQFRUSRUDWHGLQWRWKHILQDOUHSRUW

5VTWEVWTGQHVJG6QQN-KV

7KHWRRONLWFRPSULVHVIRXUYROXPHV

9ROXPH3337RRO.LWIRUWKH:DWHU6XSSO\DQG6DQLWDWLRQ6HFWRU

9ROXPH'HWDLOVRI3336WUXFWXUHV 9ROXPH&DVH6WXGLHVRI6DPSOH&LWLHVLQ

0DKDUDVKWUD 9ROXPH7HUP6KHHWV

9ROXPHLVDFRPSUHKHQVLYHWRRONLWZKLOHWKHRWKHUYROXPHVSURYLGHIXUWKHUGHWDLORQVSHFLILFVHFWLRQVRI9ROXPH


20/224

,QWURGXFWLRQ

%QPVGZVQHVJG6QQN-KV

7KHSXUSRVHRIWKHWRRONLWLVWRDVVLVWWKHUHOHYDQWSXEOLFHQWLWLHVLQWKHVWDWHRI

0DKDUDVKWUDLQGHYHORSLQJ333EDVHGZDWHUVXSSO\DQGVDQLWDWLRQSURMHFWV7KHSURMHFWGHYHORSPHQWSURFHVVLQWKHXUEDQZDWHUVXSSO\DQGVDQLWDWLRQVHFWRULQYROYHVPXOWLSOHVWDJHVSULRUWRLPSOHPHQWDWLRQDVVKRZQLQ7DEOH

7KHWRRONLWGHWDLOHGLQ9ROXPH,RIWKHUHSRUWGLVFXVVHVWKHDVVHVVPHQWRIZDWHUVXSSO\VHUYLFHVDQGGHWDLOVWKHIRUPXODWLRQRISURMHFWVWUXFWXUHIRULPSOHPHQWDWLRQLIWKH333URXWHLVWREH

7DEOH 6WDJHVLQWKH'HYHORSPHQWRI8UEDQ:DWHU6XSSO\DQG6DQLWDWLRQ3URMHFWV

6O1R 6WDJH 'HVFULSWLRQ /HYHO

'HWDLOHGDVVHVVPHQWVWXG\

$GHWDLOHGDVVHVVPHQWRIWKHH[LVWLQJVHUYLFHGHOLYHU\LVWKHSURFHVVRIUHYLHZLQJWKHH[LVWLQJVWDWXVRIZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHVLQWKHFLW\FRPSDUHGZLWKWKHFXUUHQWGHPDQGEDVHGRQVWDQGDUGL]HGGHOLYHU\QRUPV6XFKVWXGLHVLQFOXGHZDWHUDXGLWOHDNGHWHFWLRQVWXG\HQHUJ\DXGLWDQGFRQVXPHUVXUYH\7KHDVVHVVPHQWLVWREHFDUULHGRXWDFURVVWKHHQWLUHYDOXHFKDLQRIZDWHUVXSSO\VHUYLFHV7KHRXWSXWRIWKLVVWXG\LVLGHQWLILFDWLRQRIDOOWKHDUHDVRIVHUYLFHGHOLYHU\WKDWQHHGLPSURYHPHQWLQWHUPVRIDXJPHQWDWLRQRIVHUYLFHVUHKDELOLWDWLRQUHSDLUVHWF

&LW\

$OWHUQDWLYHDQDO\VLV

$OWHUQDWLYHDQDO\VLVLVWKHSURFHVVRILGHQWLI\LQJWKHSRVVLEOHDOWHUQDWLYHVIRUUHVROYLQJWKHSUREOHPVLGHQWLILHGLQHDFKFRPSRQHQWRIWKHYDOXHFKDLQHYDOXDWLQJWKHLGHQWLILHGDOWHUQDWLYHVDQGVHOHFWLQJWKHRSWLPXPDOWHUQDWLYHVEDVHGRQPXOWLSOHSDUDPHWHUV7KHRXWSXWLVDVHWRIGHILQHGSURMHFWVIRUHDFKFRPSRQHQWLQWKHYDOXHFKDLQ

9DOXHFKDLQFRPSRQHQW

7HFKQRHFRQRPLFIHDVLELOLW\IRUSURMHFWDSSURYDO

7HFKQRHFRQRPLFIHDVLELOLW\LVWKHSURFHVVRIDVVHVVLQJZKHWKHUWKHLGHQWLILHGSURMHFWLVWHFKQLFDOO\DQGILQDQFLDOO\LPSOHPHQWDEOH

3URMHFW

'HWDLOHGSURMHFWUHSRUW

7KHGHWDLOHGSURMHFWUHSRUW'35LVDVSHFLILFSURMHFWEOXHSULQWRQWKHEDVLVRIZKLFKWKHSURMHFWZLOOEHLPSOHPHQWHG,WLQFOXGHVGHWDLOHGWHFKQLFDOGHVLJQVFRVWLQJ7KH'35IRUXUEDQZDWHUVXSSO\SURMHFWVLQ,QGLDQHHGVWREHSUHSDUHGDVSHUWKH0DQXDORQ:DWHU6XSSO\DQG7UHDWPHQWSXEOLVKHGE\&3+((20LQLVWU\RI8UEDQ'HYHORSPHQW,QWKHFDVHRIVDQLWDWLRQSURMHFWVWKHPDQXDOSUHSDUHGE\&3+((2IRUVDQLWDWLRQVHUYLFHVQHHGVWREHFRQVXOWHG

3URMHFW

&3+((2&HQWUDO3XEOLF+HDOWKDQG(QYLURQPHQWDO(QJLQHHULQJ2UJDQLVDWLRQ6,VHULDO

DGRSWHG7KHWRRONLWSURYLGHVLQIRUPDWLRQRQKRZWRGHYHORSDSURMHFWLID333EDVHGRSWLRQLVIRXQGQHFHVVDU\DQGSRVVLEOHIRULPSOHPHQWDWLRQ

8QGHU3KDVH,RIWKH7$SURMHFWDEURDGDQDO\VLVKDVEHHQXQGHUWDNHQIRUWKHVDPSOHFLWLHVRI0DKDUDVKWUDWRDVVHVVDQGGHWHUPLQHWKHSRVVLELOLW\DQGVXLWDELOLW\RI333EDVHGLQWHUYHQWLRQIRUZDWHUVXSSO\DQGVDQLWDWLRQSURMHFWVIRUWKHVHFLWLHV7KHGHWDLOHGDQDO\VLVQHHGHGWRILQDOL]HWKH333RSWLRQZRXOGKDYHWREHXQGHUWDNHQDVDFRPSRQHQWRI3KDVH,,RIWKH7$SURMHFW


21/224


7UGTUQHVJG6QQN-KV

6LQFHWKLVWRRONLWFRYHUVDSDUWRIWKHSURMHFWGHYHORSPHQWSURFHVVLWPD\EHXVHGE\

DQ\HQWLW\GHYHORSLQJXUEDQZDWHUVXSSO\RUVDQLWDWLRQSURMHFWVDQGZLVKLQJWRH[SORUHWKHSRVVLELOLW\RILPSOHPHQWLQJWKHSURMHFWWKURXJKWKH333URXWH,Q,QGLDRUJDQL]DWLRQVOLNHO\WREHLQYROYHGLQWKHSURMHFWGHYHORSPHQWSURFHVVDUHLXUEDQORFDOERGLHV8/%VLLZDWHUVXSSO\DQGVHZHUDJHERDUGVDQGLLLSXEOLFKHDOWKDQGHQJLQHHULQJGHSDUWPHQWV

7KXVLQGLYLGXDOVPRVWOLNHO\WRXVHWKHWRRONLWZRXOGEHWKHGHSDUWPHQWDOVWDIIRIWKHDERYHHQWLWLHVZLWKSURMHFWGHYHORSPHQWUHVSRQVLELOLWLHV

,QDGGLWLRQWKHWRRONLWZLOOKHOSGHWHUPLQHZKHWKHUDSDUWLFXODUSURMHFWPLJKWEHVXLWDEOHIRUWKH333URXWH7KHWRRONLWFDQWKHUHIRUHEHWKHEDVLVRIDSSURYLQJDSURMHFWLPSOHPHQWDWLRQVWUXFWXUHDVSDUWRIWKHRYHUDOOSURMHFWDSSURYDOPHWKRGRORJ\8VXDOO\WKHUHVSRQVLELOLW\IRUDSSURYDORISURMHFWVLVYHVWHGLQWKHWRSGHFLVLRQPDNLQJDXWKRULW\RIWKHHQWLW\ZKLFKKDVWKHSULPDU\UHVSRQVLELOLW\IRULPSOHPHQWLQJDQGRUILQDQFLQJWKHSURMHFW7KXVLWFDQEHXVHIXOIRUWKHPXQLFLSDOFRPPLVVLRQHUDQGWKHVWDQGLQJ

FRPPLWWHHEHLQJWKHWRSGHFLVLRQPDNLQJDXWKRULWLHVLQD8/%LQXUEDQORFDOERGLHVWKHPDQDJLQJGLUHFWRUDQGWKHIXQFWLRQDOGLUHFWRUVRIWKHZDWHUVXSSO\DQGVDQLWDWLRQERDUGDQGWKHVWDWHJRYHUQPHQWLQFDVHRIWKHSXEOLFKHDOWKDQGHQJLQHHULQJGHSDUWPHQW

7KHWRRONLWZRXOGEHXWLOL]HGIRULDSSURYDORISURMHFWLPSOHPHQWDWLRQVWUXFWXUHIRU333VSHFLILFXUEDQZDWHUVXSSO\DQGVDQLWDWLRQSURMHFWVLLRYHUDOOSURMHFWDSSURYDODQGLLLFRQVLGHUDWLRQRI9LDELOLW\*DS)XQGVXSSRUWIRULQGLYLGXDOSURMHFWV

)WKFGNKPGUVQVJG6QQN-KV

%URDGJXLGHOLQHVIRUXVHRIWKLVWRRONLWDUHDVIROORZV

L 7RXQGHUVWDQGWKHFRQFHSWSXUSRVHQHHGDQGUDWLRQDOHIRUGHYHORSLQJWKHSURMHFWVRQD333EDVLVUHIHUWR6HFWLRQ,,

RIWKLVWRRONLWIRUDQLQWURGXFWLRQWRWKHFRQFHSWRI333LQZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHVDQGLQVLJKWVLQWRWKHRYHUDOOWUHQGRI333LQZDWHUVXSSO\DQG

VDQLWDWLRQLQWKHFRXQWU\LL 6HFWLRQ,,,RIWKHWRRONLWSURYLGHVWKHXVHUZLWKLQIRUPDWLRQRQWKHRYHUDOOSURFHVVLQYROYHGLQGHYHORSLQJDQGLPSOHPHQWLQJDSURMHFWRQD333EDVLV

LLL )RULQIRUPDWLRQRQWKHILUVWVWHSVWREHXQGHUWDNHQLQGHYHORSLQJDSURMHFWRQD333EDVLVWKHXVHUVKRXOGUHIHUWR6HFWLRQ,97KLVIDPLOLDUL]HVWKHUHDGHUZLWKWKHPHWKRGVRILGHQWLILFDWLRQRIWKHDUHDVLQWKHZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHVZKHUHWKHUHDUHVHUYLFHGHOLYHU\DQGLQIUDVWUXFWXUHJDSVUHTXLULQJ

LQWHUYHQWLRQIRULPSURYHPHQW7KLVVHFWLRQSURYLGHVLQVLJKWVLQWRWKHYDULRXVPHWKRGVRIVHUYLFHGHOLYHU\DVVHVVPHQWDQGWKHSHUIRUPDQFHVWDQGDUGVWKDWQHHGWREHPHW

LY ,IWKHXVHUKDVDOUHDG\LGHQWLILHGWKHSURMHFWVUHTXLUHGIRULPSURYHPHQWVLQWKHZDWHUVXSSO\DQGVDQLWDWLRQVHFWRUDQGZDQWVWRGHWHUPLQHZKHWKHUD333URXWHFDQEHWULHGIRUGHYHORSLQJDQGLPSOHPHQWLQJWKHSURMHFWWKHXVHUPXVWILUVWXQGHUWDNHDILQDQFLDODVVHVVPHQW6HFWLRQ9SURYLGHVWKHGHWDLOVDQGNH\

FRPSRQHQWVRIWKHILQDQFLDODVVHVVPHQWSURFHVV7KHVHFWLRQDOVRH[SODLQVWKHSURFHVVE\ZKLFKDFKRLFHLVPDGHEHWZHHQWKHSXEOLFIXQGHGPRGHRISURMHFWGHYHORSPHQWDQGWKH333URXWHEDVHGRQWKHILQDQFLDODVVHVVPHQW6HFWLRQ9,EXLOGVRQWKHILQDQFLDOYLDELOLW\DVVHVVPHQWFDUULHGRXWDQGSURYLGHVLQVLJKWVLQWRDGGLWLRQDOSRLQWVRIDVVHVVPHQWZKLFKDUHTXDOLWDWLYHLQQDWXUH

Y )RUXVHUVZKRQHHGWRNQRZVRPHRIWKHSUHUHTXLVLWHVIRUGHYHORSLQJDSURMHFWRQD333EDVLVWKLVLQIRUPDWLRQLVOLVWHGLQ6HFWLRQ9,

YL ,IWKHDVVHVVPHQWVFDUULHGRXWVRIDUKDYHVWURQJO\HVWDEOLVKHGWKHFDVHIRUGHYHORSLQJDSURSRVHGSURMHFWRQD333EDVLVWKHXVHUFDQUHIHUWR6HFWLRQ9,,WRGHWHUPLQHZKDWW\SHRI333VWUXFWXUHLVEHVWVXLWHGWRLPSOHPHQWLQJWKHSURMHFW7KHXVHUZLOOEHIDPLOLDUL]HGZLWKWKHYDULRXVNH\IDFWRUVVXFKDVULVNVLQYROYHG


22/224

,QWURGXFWLRQ

DQGWKHLUDOORFDWLRQWRGHWHUPLQHDQGKHOSVHOHFWWKHPRVWVXLWDEOHRSWLRQIURPWKHYDULRXV333VWUXFWXUHV

YLL)RUXVHUVVHHNLQJLQIRUPDWLRQRQWKH

SURFXUHPHQWSURFHVVDQGSURFHGXUHVWR

EHIROORZHGRQFHWKH333VWUXFWXUHIRUDSURMHFWKDVEHHQILQDOL]HGGHWDLOVRIWKHELGGLQJSURFHVVNH\IDFWRUVWKDWQHHGWREHFRQVLGHUHGDQGWKHPHWKRGIRU

LQYLWLQJELGVWKLVLVJLYHQLQ6HFWLRQ9,,,


23/224

,, 333LQWKH:DWHU6HFWRU

)GPGTCN&GPKVKQPCPF1XGTXKGY

QH222

3URYLVLRQRISXEOLFVHUYLFHVDQGLQIUDVWUXFWXUHKDVWUDGLWLRQDOO\EHHQWKHH[FOXVLYHGRPDLQRIWKHJRYHUQPHQW+RZHYHUZLWKLQFUHDVLQJSRSXODWLRQSUHVVXUHXUEDQL]DWLRQDQGRWKHUGHYHORSPHQWDOWUHQGVWKHJRYHUQPHQWVDELOLW\WRDGHTXDWHO\DGGUHVVSXEOLFQHHGVWKURXJK

WUDGLWLRQDOPHDQVKDVEHHQVHYHUHO\VWUHWFKHG7KLVKDVOHGJRYHUQPHQWVDFURVVWKHZRUOGWRLQFUHDVLQJO\ORRNWRWKHSULYDWHVHFWRUWRSURYLGHVXSSOHPHQWDU\LQIUDVWUXFWXUHLQYHVWPHQWVDQGSXEOLFVHUYLFHVWKURXJKSXEOLFSULYDWHSDUWQHUVKLSV333V

$333WUDQVDFWLRQKDVEHHQFOHDUO\GHILQHGE\WKH'HSDUWPHQWRI(FRQRPLF$IIDLUV,QIUDVWUXFWXUH6HFWLRQ0LQLVWU\RI)LQDQFHLQLWVJXLGHOLQHGRFXPHQW6FKHPHIRU6XSSRUWWR3XEOLF3ULYDWH3DUWQHUVKLSVLQ,QIUDVWUXFWXUH7KLVGHILQLWLRQVWDWHVWKDW333LVDFRQWUDFWXDODUUDQJHPHQW

PDGHE\DJRYHUQPHQWRUVWDWXWRU\HQWLW\DQGDSULYDWHVHFWRUFRPSDQ\WRSURYLGHDQLQIUDVWUXFWXUHVHUYLFH

7KXVD333SURMHFWLVDSURMHFWEDVHGRQDFRQWUDFWRUFRQFHVVLRQDJUHHPHQWEHWZHHQDJRYHUQPHQWRUVWDWXWRU\HQWLW\DQGDSULYDWHVHFWRUFRPSDQ\IRUGHOLYHULQJDQLQIUDVWUXFWXUHVHUYLFHRQSD\PHQWRIXVHUFKDUJHV

4CVKQPCNGHQT222

333RIIHUVDZLQZLQVROXWLRQIRUDOOVWDNHKROGHUVWKHSXEOLFVHFWRUWKHSULYDWHVHFWRUDQGWKHJHQHUDOSXEOLF

333VDOORZWKHSXEOLFVHFWRUWRGHULYHEHQHILWVWKURXJKLPSURYHGHIILFLHQF\DQGHIIHFWLYHQHVV7KLVLVSRVVLEOHEHFDXVHRIWKHIROORZLQJIDFWRUV

L ,QQRYDWLRQ333DOORZVWKHJRYHUQPHQWWRWDSWKHSULYDWHVHFWRUVFDSDFLW\WRLQQRYDWH7KHJRYHUQPHQWVSHOOVRXWWKHVHUYLFHVLWQHHGVDQGWKHGHVLUHGRXWFRPHVDQGRURXWSXWV7KHSULYDWHVHFWRUFDQWKHQLQWURGXFHLQQRYDWLYHVROXWLRQVWRPHHWWKHJRYHUQPHQWVREMHFWLYHV

LL 6KDULQJRIUHVSRQVLELOLWLHV,QD333SURMHFWWKHJRYHUQPHQWDQGWKHSULYDWH

VHFWRUVKDUHWKHUHVSRQVLELOLWLHVRIGHOLYHULQJDVHUYLFHGHSHQGLQJRQWKHH[SHUWLVHRIHDFKSDUW\

LLL )LQDQFH,QD333SURMHFWDFFHVVWRSULYDWHFDSLWDOIUHHVJRYHUQPHQWFDSLWDOWREHXVHGLQSURMHFWVZLWKKLJKHUSXEOLFSROLF\REMHFWLYHV

7KHSULYDWHVHFWRUGHULYHVWKHIROORZLQJEHQHILWV

L %XVLQHVVRSSRUWXQLWLHV7KURXJK333WKHSULYDWHVHFWRUFDQJDLQDFFHVVWREXVLQHVVRSSRUWXQLWLHVZKLFKZHUHWUDGLWLRQDOO\

DFFHVVLEOHRQO\WRWKHSXEOLFVHFWRULL 'HVLJQLQJDQGGHOLYHULQJLQQRYDWLYH

VROXWLRQV333DOVRDOORZVWKHSULYDWHVHFWRUWRPRYHIURPPHUHO\FRQVWUXFWLQJDVVHWVDFFRUGLQJWRFOHDUO\VSHFLILHGGHVLJQVWRGHVLJQLQJDQGGHOLYHULQJLQQRYDWLYHVROXWLRQV7KHSULYDWHVHFWRUKDVPRUHURRPWRLQQRYDWHDQGRIIHUHIILFLHQWVROXWLRQVIRUWKHSURYLVLRQRISXEOLFVHUYLFHV

7KHJHQHUDOSXEOLFDOVRGHULYHVEHQHILWV

L 7KHFRPELQLQJRIWKHH[SHUWLVHRISXEOLFDQGSULYDWHHQWLWLHV:KHQVWUXFWXUHGDSSURSULDWHO\333VZLOOGHOLYHUSXEOLFVHUYLFHVWKDWFDQEHWWHUPHHWWKHQHHGVRIWKHSXEOLFZLWKRXWFRPSURPLVLQJSXEOLFSROLF\JRDOVDQGQHHGV

LL 3URWHFWLRQRISXEOLFLQWHUHVW7KHJRYHUQPHQWZLOOHQVXUHWKDWSXEOLF


24/224

333LQWKH:DWHU6HFWRU

LQWHUHVWLVSURWHFWHGLQDOO333SURMHFWVDQGWKDWVHUYLFHGHOLYHU\ZLOOPHHWSXEOLFQHHGVDWWKHEHVWYDOXHIRUPRQH\ZKHQWKHSULYDWHVHFWRULVEURXJKWLQWRSURYLGH

JRYHUQPHQWVHUYLFHV

:KLOHVHUYLFHGHOLYHU\WKURXJK333FKDQJHVWKHPHDQVRIGHOLYHULQJVHUYLFHVLWGRHVQRWFKDQJHWKHJRYHUQPHQWVDFFRXQWDELOLW\IRUHQVXULQJWKDWWKHVHUYLFHVDUHGHOLYHUHG7KHGHSDUWPHQWVIRFXVVKLIWVIURPSURYLGLQJWKHVHUYLFHWRPDQDJLQJWKHVHUYLFHSURYLGHU

6JG9CVGT5WRRN[CPF5CPKVCVKQP

5GEVQTKP+PFKC

6JG8CNWG%JCKP

,Q,QGLDXUEDQZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHVDUHSURYLGHGE\WKHVWDWH7KHHQWLUHVHUYLFHIURPVRXUFHWRFRQVXPHULVPDQDJHGE\VWDWHOHYHOSXEOLFKHDOWKDQGHQJLQHHULQJGHSDUWPHQWVE\XUEDQORFDOERGLHV8/%VRUFLW\ZDWHUVXSSO\DQGVDQLWDWLRQERDUGV:DWHUDQGVDQLWDWLRQVHUYLFHVFDQEHXQEXQGOHGLQWRVHYHUDOFRPSRQHQWVLQFOXGLQJUDZZDWHUSURGXFWLRQDQGWUHDWPHQWEXONZDWHUVXSSO\UHWDLOGLVWULEXWLRQDQGVDQLWDWLRQFROOHFWLRQ

WUHDWPHQWDQGGLVSRVDO)LJXUH

7KHHQWLUHSURFHVVVKRZQLQ)LJXUHLVUHIHUUHGWRDVWKHYDOXHFKDLQIRUZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHV7KHXQEXQGOLQJRIZDWHUVXSSO\VHUYLFHVLVEHLQJLQFUHDVLQJO\H[SHULPHQWHGZLWKHJVHSDUDWLQJZDVWHZDWHU

UHVSRQVLELOLWLHVIURPZDWHUVXSSO\VHSDUDWLQJEXONZDWHUSURGXFWLRQDQGWUHDWPHQWIURPZDWHUGLVWULEXWLRQVHSDUDWLQJZDVWHZDWHUWUHDWPHQWDQGGLVFKDUJHIURPFROOHFWLRQDQGVHSDUDWLQJ

ZDWHUWUDQVPLVVLRQIURPGLVWULEXWLRQ

+PUVKVWVKQPCN5GVWRHQT9CVGT5WRRN[CPF5CPKVCVKQP5GTXKEG

7KHUROHSOD\HGE\WKHFHQWUDOJRYHUQPHQWLQXUEDQZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHVLVOLPLWHGWRGHILQLQJQRUPVIRUWKHVHFWRU DQGSURYLGLQJJXLGHOLQHVDQGWHFKQLFDODVVLVWDQFHWRWKHVWDWHV7KHFHQWUDOJRYHUQPHQWDOVRLQWHUYHQHVWKURXJKVRPHFHQWUDOO\IXQGHGVSHFLDOSURJUDPVRIWKH0LQLVWU\RI8UEDQ'HYHORSPHQW6LPLODUO\WKH3ODQQLQJ&RPPLVVLRQSOD\VDUROH

LQHYDOXDWLQJILQDQFLDOUHTXLUHPHQWVIRULWV\HDUSODQVDQGSOD\VDQDGYLVRU\UROHLQSROLF\PDNLQJ+RZHYHUWKHVWDWHVDUHUHVSRQVLEOHIRUXUEDQZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHVZKLOHWKH8/%VRSHUDWHDQGPDLQWDLQWKHZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHV7KHUROHRI8/%VLQRSHUDWLRQDQGPDLQWHQDQFH20KDVEHHQUHLQIRUFHGZLWKWKHWK&RQVWLWXWLRQDO$PHQGPHQW

&DSLWDOLQYHVWPHQWIRUGHYHORSPHQWIRUWKHVHZDWHUVXSSO\SURMHFWVKDVEHHQW\SLFDOO\IXQGHGHLWKHUWKURXJKWKHLQWHUQDOIXQGVRIWKH8/%VRUERDUGVRUE\ZD\RIWKHUHJLRQDOJRYHUQPHQWV

EXGJHWDU\VXSSRUWDQGGRQRUVXSSRUWIURPPXOWLODWHUDODJHQFLHV

)LJXUHVKRZVWKHWKUHHSULPDU\LQVWLWXWLRQDOVHWXSVHQJDJHGLQWKHSURYLVLRQDQGGHOLYHU\RIZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHVLQWKHFRXQWU\

7KHVHDUHGHILQHGE\WKH&HQWUDO3XEOLF+HDOWKDQG(QYLURQPHQWDO(QJLQHHULQJ2UJDQLVDWLRQ&3+((20LQLVWU\RI8UEDQ'HYHORSPHQW*RYHUQPHQWRI,QGLD

)LJXUH 9DOXH&KDLQRIWKH:DWHU6XSSO\DQG6DQLWDWLRQ6HFWRU

6RXUFHDXJPHQWDWLRQ

5DZZDWHUWUDQVPLVVLRQ

:DWHUWUHDWPHQW

6WRUDJHUHVHUYRLUV

'LVWULEXWLRQ 6HZDJHFROOHFWLRQ

6HZDJHWUHDWPHQWDQG

GLVSRVDO


25/224


,QWKHILUVWVHWXSWKHHQWLUHYDOXHFKDLQRIVHUYLFHVRIWKHZDWHUVXSSO\DQGVDQLWDWLRQVHFWRULVXQGHUWDNHQIXOO\E\RQHRIWKHDJHQFLHVLHWKHPXQLFLSDOJRYHUQPHQWDSDUDVWDWDO

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

PDQDJHPHQWRIGLVWULEXWLRQQHWZRUN20DQGUHYHQXHFROOHFWLRQDUHRYHUVHHQE\WKHPXQLFLSDOJRYHUQPHQW

6TGPFUKP222KPVJG9CVGT5WRRN[

CPF5CPKVCVKQP5GEVQTKP+PFKC

7KHRYHUDOOVHUYLFHGHOLYHU\OHYHOVLQWKHFRXQWU\IRUWKHZDWHUVXSSO\DQGVDQLWDWLRQVHFWRUKDYHEHHQDVVHVVHGWREHODUJHO\LQDGHTXDWH7KHUHDUHODUJHLQIUDVWUXFWXUDOJDSVDQGZDWHUVXSSO\DQGVDQLWDWLRQRSHUDWLRQVDUHSODJXHGZLWKKLJKOHYHOVRILQHIILFLHQFLHV7KHSHUFDSLWDDYDLODELOLW\RIZDWHULQPRVWXUEDQFHQWHUVRIWKHFRXQWU\

LVVLJQLILFDQWO\OHVVWKDQZKDWLVQHHGHG2QO\PLOOLRQRIWKHXUEDQSRSXODWLRQLVGLUHFWO\FRQQHFWHGWRWKHGLVWULEXWLRQQHWZRUNV7KHH[LVWLQJLQIUDVWUXFWXUHVXIIHUVIURPKLJKGHJUHHRIRSHUDWLRQDOLQHIILFLHQFLHV)RULQVWDQFHDSSUR[LPDWHO\RIWKHZDWHUSXPSHGLQWRWKHV\VWHPLVORVWLQWUDQVPLVVLRQHJGXH

:RUOG%DQN,QGLD:DWHU6XSSO\DQG6DQLWDWLRQ%ULGJLQJWKH*DSEHWZHHQ,QIUDVWUXFWXUHDQG6HUYLFH

)LJXUH ,QVWLWXWLRQDO6HWXSIRUWKH:DWHU6XSSO\DQG6DQLWDWLRQ6HFWRU

20RSHUDWLRQDQGPDLQWHQDQFH

2SWLRQ,,,

2SWLRQ,,

2SWLRQ,

6RXUFHGHYHORSPHQW

5DZZDWHUWUDQVPLVVLRQ

6WRUDJHWUHDWPHQW

'LVWULEXWLRQQHWZRUN

7UHDWPHQW20

:DWHUVXSSO\

0XQLFLSDOJRYHUQPHQW6WDWHGHSDUWPHQW0HWURSROLWDQDJHQF\

0XQLFLSDOJRYHUQPHQW

6WDWHJRYHUQPHQW

3DUDVWDWDODJHQF\DWWKHVWDWHRUFLW\OHYHO

6HZHUDJH


26/224

333LQWKH:DWHU6HFWRU

WRWKHIW2QDYHUDJHRQO\RIDOOFRQQHFWLRQVLQWKHFRXQWU\DUHPHWHUHG ,QDGGLWLRQSRRUFROOHFWLRQSUDFWLFHVE\WKHXWLOLWLHVKDYHUHVXOWHGLQORZFRVWUHFRYHU\UDWHVDWRI20

FRVWV7KHFRVWRISURGXFWLRQRIWKHVHVHUYLFHVKDVEHHQDVVHVVHGWREHYHU\KLJKDJDLQVWWKHORZOHYHORIUHFRYHULHVUHVXOWLQJLQOLPLWHGIXQGVIRUURXWLQHPDLQWHQDQFHE\WKHVHUYLFHSURYLGHUV7KLVHYHQWXDOO\FDXVHVSRRULQIUDVWUXFWXUHFRYHUDJHSRRUDFFHVVDQGORZVHUYLFHTXDOLW\)XUWKHUPRUHVHUYLFHSURYLGHUVKDYHEHHQLQFXUULQJKXJHORVVHVRQWKHLUVHUYLFHV

,PSURYHPHQWLQVHUYLFHGHOLYHU\OHYHOVUHTXLUHVKXJHLQYHVWPHQWVIRUDXJPHQWDWLRQDQGLPSURYHPHQWVRISK\VLFDOLQIUDVWUXFWXUHDQGVLJQLILFDQWVFDOLQJXSRIRSHUDWLRQDOHIILFLHQFLHV

7RPHHWERWKWKHVHUHTXLUHPHQWVYDULRXV8/%VDQGSDUDVWDWDODJHQFLHVKDYHH[SORUHGWKHRSWLRQRI333IRULQIUDVWUXFWXUHGHYHORSPHQWDQG20333HIIRUWVLQWKHFRXQWU\KDYHPHWZLWKYDU\LQJVXFFHVV:KLOHVRPHLQLWLDWLYHVKDYHFRPSOHWHO\IDLOHGWKHUHKDYHEHHQUHFHQWLQVWDQFHVRIVXFFHVVIXOLPSOHPHQWDWLRQ)LJXUHWUDFHVWKHHYROXWLRQRI333LQWKHZDWHUVHFWRULQ,QGLD

0LGWRODWHV333LQLWLDWLYHVZHUHDWWHPSWHGLQ*RD3XQH+\GHUDEDGDQG%DQJDORUHKRZHYHUWKH\PHWZLWKIDLOXUHIRUPXOWLSOHUHDVRQV)RULQVWDQFHLQ*RDD333

$'%%HQFKPDUNLQJDQG'DWD%RRNRI:DWHU8WLOLWLHVLQ,QGLD

LQLWLDWLYHZDVDWWHPSWHGIRUWKHGHYHORSPHQWRIDEXONZDWHUVXSSO\V\VWHP333ZDVVRXJKWIRULQYHVWPHQWGHVLJQFRQVWUXFWLRQDQG20+RZHYHUWKRXJKWKHSURMHFWZDVELGRXWLW

ZDVDEDQGRQHGGXHWRLVVXHVRIKLJKEXONWDULIISURSRVHGE\WKHSULYDWHSDUW\DQGORZSROLWLFDOZLOO$VLPLODUSURMHFWIRUEXONVXSSO\ZDVSURSRVHGLQ%DQJDORUHZKHUHDJDLQRQDFFRXQWRIXQDIIRUGDEOHWDULIIOHYHOVDQGRWKHUFRQWURYHUVLHVWKHSURMHFWZDVDEDQGRQHG7KLVSKDVHRI333LQLWLDWLYHVLQWKHFRXQWU\ZDVWKHUHE\ODUJHO\XQVXFFHVVIXOGXHWRLVVXHVRIWDULIIVHWWLQJDQGODFNRISROLWLFDOVXSSRUW

)HZHUSURMHFWVLQYROYLQJ333ZHUHDWWHPSWHGDURXQGWKLVWLPH1RWHZRUWK\SURMHFWVLQFOXGHGWKHGHYHORSPHQWRIDZDWHU

WUHDWPHQWSODQW:73LQ6RQLD9LKDU'HOKLDQGWZRRWKHUSURMHFWVLQ6DQJOL0LUDMFLW\0DKDUDVKWUDDQG%DQJDORUH7KH6RQLD9LKDUSURMHFWVRXJKW333IRUGHVLJQFRQVWUXFWLRQDQG20RID:737KHSURMHFWKDVEHHQLPSOHPHQWHGVXFFHVVIXOO\ODUJHO\GXHWREDODQFHGDOORFDWLRQRIULVNVEHWZHHQWKHZDWHUVXSSO\ERDUG'HOKL-DO%RDUGDQGWKHSULYDWHGHYHORSHU,Q6DQJOLKRZHYHUWKH333ZDVFDOOHGIRUWKH20RIEXONZDWHUVXSSO\DQGWUHDWPHQWDQGGLVWULEXWLRQRSHUDWLRQVRQO\EXWODFNRISROLWLFDOVXSSRUWOHGWRWKHSURMHFWEHLQJDEDQGRQHG7KH%DQJDORUHLQLWLDWLYHIROORZHG

)LJXUH 3337LPHOLQHVLQWKH:DWHUDQG6DQLWDWLRQ6HFWRULQ,QGLD

1*2QRQJRYHUQPHQWRUJDQL]DWLRQ333SXEOLFSULYDWHSDUWQHUVKLS

SURMHFWV

+LJK1*2RSSRVLWLRQ

+LJKSURILOHSURMHFWVUXQ

6HYHUDORQJRLQJ

LQLWLDWLYHV

(IIRUWVWRSUHSDUH

333SURMHFWV

+LJK1*2RSSRVLWLRQ

+LJKSURILOHSURMHFWVUXQ

DEDQGRQHG

)LUVWLQLWLDWLYHV

+LJKLQWHUQDWLRQDO

LQWHUHVW

3RRUUHVXOWV

6XFFHVVIXOSURMHFWV

LPSOHPHQWHG

)HZSURMHFWVJURXQGHG

0LGWRODWHV $URXQG 0LG &XUUHQW :D\$KHDG

0RPHQWXPVXEVLGHV


27/224


DVLPLODUSDWK7KLVSKDVHWKHUHIRUHVDZIHZLQLWLDWLYHVEHLQJSURSRVHG

$URXQG7KLVSHULRGZDVPDUNHGE\WKH

DEDQGRQPHQWRIVHYHUDOODUJHVFDOH333LQLWLDWLYHVVXFKDVDSLORWSURMHFWSURSRVHGE\'HOKL-DO%RDUGLQ'HOKLDQGSURMHFWVSURSRVHGE\WKH:DWHU6XSSO\%RDUGLQ%DQJDORUH7KHVHSURMHFWVPHWZLWKVWURQJSROLWLFDODQGSXEOLFRSSRVLWLRQ

RQZDUGV7KLVSHULRGKDVVHHQVHYHUDO333LQLWLDWLYHVEHLQJLPSOHPHQWHGVXFFHVVIXOO\7KHVHLQFOXGH333EDVHGSURMHFWVLQWKHFLWLHVRI/DWXU&KDQGUDSXU&KHQQDL.RONDWD0\VRUH0DGXUDL+DOGLDDQG1DJSXU7KHYDULRXV333RSWLRQVDQGYDOXHFKDLQVLQZKLFKWKHVHKDYHEHHQLPSOHPHQWHGDUHVKRZQLQ)LJXUH

6HYHUDO333LQLWLDWLYHVDUHEHLQJSODQQHGDQGSURSRVHGLQWKHZDWHUVXSSO\DQGVDQLWDWLRQVHFWRUIROORZLQJWKHVXFFHVVIXOLPSOHPHQWDWLRQRIRQJRLQJSURMHFWVLQWKHUHFHQWSDVW7KLVWUHQGLVDOVRREVHUYHGLQWKHVHYHUDOXUEDQVHFWRUGHYHORSPHQWSURJUDPVRIWKHFHQWUDODQGWKHVWDWHJRYHUQPHQWVZKLFKDUHHQFRXUDJLQJDQGSURPRWLQJGHYHORSPHQWRIZDWHUVXSSO\DQGVDQLWDWLRQSURMHFWVLQD333PRGH7KHRYHUDOOSROLF\IUDPHZRUNIRU333SURMHFWVLQWKHFRXQWU\KDVVHHQVLJQLILFDQWPHDVXUHVLQWURGXFHGWRIDFLOLWDWHLQFUHDVHG333LQSURMHFWGHYHORSPHQWDQG

20)RUH[DPSOHVSHFLILFXUEDQLQIUDVWUXFWXUHIXQGVVXFKDVWKH9LDELOLW\*DS)XQG9*)VFKHPHKDYHEHHQGHYHORSHGE\WKHFHQWUDO

JRYHUQPHQWWRSURYLGHILQDQFLDOVXSSRUWWRLQIUDVWUXFWXUHSURMHFWVWKDWDUHWREHXQGHUWDNHQWKURXJKWKH333PRGH$VSHFLDOSXUSRVHYHKLFOHWKH,QGLD,QIUDVWUXFWXUH)LQDQFH&RPSDQ\

KDVEHHQFRQVWLWXWHGE\WKH*RYHUQPHQWRI,QGLDDVDGHGLFDWHGLQVWLWXWLRQWRDVVXPHDQDSH[UROHLQWKHILQDQFLQJDQGGHYHORSPHQWRILQIUDVWUXFWXUHSURMHFWVLQWKHFRXQWU\7KHFHQWUDOJRYHUQPHQWVXUEDQGHYHORSPHQWDOVFKHPHWKH-DZDKDUODO1HKUX1DWLRQDO8UEDQ5HQHZDO0LVVLRQ-11850LQLWLDWHGLQDOVRHQFRXUDJHVXUEDQLQIUDVWUXFWXUHSURMHFWVWREHGHYHORSHGRQD333EDVLV

2222TQLGEVUKPVJG9CVGTCPF

5CPKVCVKQP5GEVQTKP+PFKC

7KLVVHFWLRQSURYLGHVDVXPPDU\RIWKH333VWUXFWXUHVLPSOHPHQWHGLQWKHFLWLHVRI/DWXU&KDQGUDSXU6DOW/DNH&LW\&KHQQDLDQGFOXVWHUVLQ.DUQDWDNDDQG+DOGLD

&KUVTKDWVKQPEWO4GXGPWG%QNNGEVKQP%QPVTCEVCV.CVWTCPF%JCPFTCRWT

7KHGLVWULEXWLRQFXPUHYHQXHFROOHFWLRQFRQWUDFWLPSOHPHQWHGLQ/DWXUDQG&KDQGUDSXUKDVEHHQFODVVLILHGDVDSHUIRUPDQFHPDQDJHPHQW

FRQWUDFW7KHVHFLWLHVIDFHGDQDFXWHVKRUWDJHRIZDWHUDQGUHTXLUHGDXJPHQWDWLRQRIWKHVRXUFH,QDGGLWLRQWKHZDWHUVXSSO\RSHUDWLRQVZKLFK

)LJXUH 3333URMHFWV,PSOHPHQWHGLQ,QGLD

.8:$6,3.DUQDWDND8UEDQ:DWHU6HFWRU,PSURYHPHQW3URMHFW20RSHUDWLRQDQGPDLQWHQDQFH

5HKDELOLWDWLRQ

%XONZDWHU

7UHDWPHQW

'LVWULEXWLRQ

,QYHVWPHQW 'HVLJQ &RQVWUXFWLRQ 20 &ROOHFWLRQ 7DULII

&KHQQDLGHVDOLQDWLRQ

SODQW

.8:$6,3/DWXU&KDQGUDSXU

0\VRUH0DGXUDL6DOW/DNH

.RONDWD

1DJSXUSLORW

+DOGLD


28/224

333LQWKH:DWHU6HFWRU

ZHUHXQGHU8/%PDQDJHPHQWVXIIHUHGIURPKLJKRSHUDWLRQDOLQHIILFLHQFLHVDQGUHVXOWLQJSRRUFRVWUHFRYHULHV7RLPSURYHZDWHUVXSSO\WRWKHVHFLWLHV0DKDUDVKWUD-HHYDQ3UDGKLNDUDQ0-3XQGHUWRRN

DVRXUFHDXJPHQWDWLRQSURMHFW+RZHYHUWKH8/%VUHFRJQL]HGWKHLULQDELOLW\WRHIILFLHQWO\PDQDJHWKHZDWHUVXSSO\VHUYLFHVDQGVRXJKWSULYDWHVHFWRULQWHUYHQWLRQLQ20RIWKHZDWHUVXSSO\V\VWHP

,Q/DWXUWKHFDSLWDOLQYHVWPHQWIRUDXJPHQWDWLRQRIWKHEXONZDWHUVXSSO\V\VWHPKDVEHHQERUQHE\0-33RVWDXJPHQWDWLRQWKHHQWLUHZDWHUVXSSO\V\VWHPIURPVRXUFHWRGLVWULEXWLRQKDVEHHQKDQGHGRYHUWRWKHSULYDWHGHYHORSHUIRU20,QWKHFDVHRI/DWXUWKHFRQWUDFWLVEHLQJH[HFXWHGE\DVSHFLDOSXUSRVHYHKLFOHWKH/DWXU:DWHU0DQDJHPHQW&RPSDQ\IRUPHGE\D

FRQVRUWLXPRI6XEKDVK3URMHFWVDQG0DUNHWLQJ83/(QYLURQPHQWDO(QJLQHHUV/WG83/((/DQG+\GUR&RPS(QWHUSULVHV7KHFRQWUDFWZDVDZDUGHGIRUDSHULRGRI\HDUV)RU&KDQGUDSXUWKHFRQWUDFWZDVKDQGHGRYHUWRDSULYDWHRSHUDWRUIRUDSHULRGRI\HDUV

7KHSULPDU\SXUSRVHRIWKHFRQWUDFWKDVEHHQWREULQJLQRSHUDWLRQDOHIILFLHQFLHVLQWKHHQWLUHZDWHUPDQDJHPHQWV\VWHPDQGWKHUHE\UHGXFHWKHDVVRFLDWHG20FRVW,QDGGLWLRQWKHSULYDWHGHYHORSHULVUHTXLUHGWRLQFUHDVHFRYHUDJHRIWKHZDWHUVXSSO\VHUYLFHVLQFUHDVH

WKHQXPEHURIGLUHFWFRQQHFWLRQVUHGXFHLOOHJDOFRQQHFWLRQVLQVWDOOPHWHUVJHQHUDWHELOOVDQGXQGHUWDNHFROOHFWLRQ7KHFRQWUDFWGHILQHVVSHFLILFSHUIRUPDQFHWDUJHWVIRUHDFKDFWLYLW\XQGHUWDNHQE\WKHSULYDWHGHYHORSHU7KHSULYDWHGHYHORSHUKDVEHHQJLYHQWKHULJKWWROHY\WKHWDULIIVHWE\0-3WRFROOHFWDQGUHWDLQUHYHQXHVIURPWKHFRQVXPHUV,QUHWXUQWKHSULYDWHGHYHORSHULVUHTXLUHGWRSD\DIL[HGELPRQWKO\ELDQQXDORUDQQXDOSD\PHQWWR0-3DVDOLFHQVHIHH7KHILQDQFLDOELGFULWHULRQZDVWKHKLJKHVWOLFHQVHHIHHSD\PHQWTXRWHG

9CVGT5WRRN[CPF5CPKVCVKQP%QPEGUUKQP#ITGGOGPVHQTC5GTXKEG#TGC5CNV.CMG%KV[

$ZDWHUVXSSO\DQGVDQLWDWLRQFRQFHVVLRQDJUHHPHQWKDVEHHQLPSOHPHQWHGLQ6HFWRU9RI6DOW/DNH&LW\.RONDWD7KLVDJUHHPHQWLVLQWKHIRUPRIDEXLOGRSHUDWHWUDQVIHUW\SHRI333VWUXFWXUH7KHFRQWUDFWLPSOHPHQWHG

E\WKH.RONDWD0HWURSROLWDQ'HYHORSPHQW$XWKRULW\UHTXLUHVSULYDWHVHFWRUSDUWLFLSDWLRQIRUWKHGHYHORSPHQWRIDQXQGHUJURXQGQHWZRUNIRUZDWHUVXSSO\DQGVHZDJHVHUYLFHV

IRUWKHWRZQVKLSRI6HFWRU9PDQDJHGE\WKH1DEDGLJDQWD,QGXVWULDO7RZQVKLS$XWKRULW\7KHNH\ELGGLQJFULWHULRQZDVWKHORZHVWZDWHUFXPVHZDJHFKDUJHZKLFKWKHSULYDWHGHYHORSHUZRXOGOHY\7KHFRQWUDFWLVIRU\HDUV

7KHFRQWUDFWZDVKDQGHGRYHUWR-DPVKHGSXU8WLOLWLHVDQG6HUYLFHV&RPSDQ\-86&2DQG9ROWDVD7DWDHQWHUSULVHZKRIRUPHGDMRLQWYHQWXUHIRUXQGHUWDNLQJWKHFRQWUDFW$VSHUWKHFRQWUDFWWKHSULYDWHGHYHORSHULVUHTXLUHGWRXQGHUWDNHFRQVWUXFWLRQRILQIUDVWUXFWXUH

IRUZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHVDQGWRRSHUDWHDQGPDQDJHERWKWKHV\VWHPVIRUWKHFRQFHVVLRQSHULRG7KHSULYDWHGHYHORSHUOHYLHVDZDWHUFXPVDQLWDWLRQFKDUJHIRUWKHVHUYLFHVPDQDJHG$WWKHHQGRIWKHFRQFHVVLRQSHULRGWKHDVVHWVDUHWREHWUDQVIHUUHGWRWKH1DEDGLJDQWD,QGXVWULDO7RZQVKLS$XWKRULW\$SSUR[LPDWHO\RIWKHFDSLWDOFRVWVIRUWKHSURMHFWZRXOGEHSDVVHGRQDVDVXEVLG\IURPWKH*RYHUQPHQWRI,QGLDWKURXJKWKH-11850WRWKHSULYDWHGHYHORSHU

$OOWKHRSHUDWLRQDOH[SHQVHVIRUPDQDJLQJWKH

ZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHVIURPVRXUFHWRHQGFRQVXPHUZRXOGKDYHWREHERUQHE\WKHSULYDWHGHYHORSHUGXULQJWKHFRQFHVVLRQSHULRG,QDGGLWLRQWRWKHZDWHUFXPVHZDJHFKDUJHZKLFKWKHSULYDWHGHYHORSHUFDQOHY\WKHGHYHORSHUKDVEHHQJLYHQWKHULJKWWROHY\DQGFROOHFWDRQHWLPHFRQQHFWLRQFKDUJHIURPWKHFRQVXPHUV7KHWDULIIWREHFKDUJHGDQGWKHH[WHQWDQGWLPHOLQHIRULWVHVFDODWLRQZRXOGDOVREHGHFLGHGE\WKHSULYDWHGHYHORSHUVXEMHFWWRDSSURYDOIURPWKH.RONDWD0HWURSROLWDQ'HYHORSPHQW$XWKRULW\DQGWKH1DEDGLJDQWD,QGXVWULDO7RZQVKLS$XWKRULW\

7KHVSHFLDOSXUSRVHYHKLFOHIRUPHGE\WKH-86&29ROWDVFRQVRUWLXPKDVDOUHDG\VWDUWHGZDWHUVXSSO\UHODWHGZRUNIROORZLQJDSSURYDORIWKHZRUNLQJVFKHPHVE\WKH.RONDWD0HWURSROLWDQ'HYHORSPHQW$XWKRULW\DQG1DEDGLJDQWD,QGXVWULDO7RZQVKLS$XWKRULW\$ERXWRIWKHZRUNKDVEHHQDFKLHYHGWRZDUGWKHVDQFWLRQHGZDWHUVXSSO\FRPSRQHQWRIWKHSURMHFW


29/224


$WNM5WRRN[EWO1RGTCVKQPCPF/CKPVGPCPEG%QPVTCEV%JGPPCK

7KHEXONVXSSO\DQG20FRQWUDFWLVD333

DJUHHPHQWWKDWKDVEHHQLPSOHPHQWHGIRUWKHGHYHORSPHQWRIDPLOOLRQOLWHUVSHUGD\0/'VHDZDWHUGHVDOLQDWLRQSODQWLQ&KHQQDL7KH333VWUXFWXUHKDVEHHQFDWHJRUL]HGDVDGHVLJQEXLOGRZQRSHUDWHWUDQVIHUPRGHO7KHSURMHFWKDVEHHQDZDUGHGWR&KHQQDL:DWHU'HVDOLQDWLRQDVSHFLDOSXUSRVHYHKLFOHIORDWHGE\,95&/,QIUDVWUXFWXUHVDQG3URMHFWV7KHFRQWUDFWZDVDZDUGHGWRWKH&KHQQDL0HWURSROLWDQ:DWHU6XSSO\DQG6HZHUDJH%RDUG&0:66%IRUDWHQXUHSHULRGRI\HDUV

$VVWLSXODWHGE\WKHFRQWUDFWWKHSULYDWH

GHYHORSHULVUHTXLUHGWRGHVLJQHQJLQHHUILQDQFHDQGSURFXUHWKHHQWLUHLQIUDVWUXFWXUHIRURIIWDNHRIZDWHUDQGWKHWUDQVPLVVLRQWUHDWPHQWDQGVXSSO\RIWUHDWHGZDWHUWRWKHVWRUDJHUHVHUYRLU,QDGGLWLRQWKHSULYDWHGHYHORSHULVUHTXLUHGWRRSHUDWHDQGPDQDJHWKHIDFLOLW\IRUWKHFRQFHVVLRQSHULRG7KHSULYDWHGHYHORSHULVWKHUHIRUHUHTXLUHGWRVXSSO\WUHDWHGEXONZDWHUWRWKH&0:66%7KHSULYDWHGHYHORSHULVSDLGDZDWHUFKDUJHE\WKH&0:66%IRUWKHWUHDWHGZDWHUSURGXFHG

7KHXQLTXHIHDWXUHRIWKLVFRQWUDFWLVWKHSULYDWH

HQWLW\LVDVVXUHGRIDPLQLPXPIL[HGSD\PHQWE\WKHXWLOLW\IRUDOOWKHDFWLYLWLHVLWLVUHTXLUHGWRXQGHUWDNH7KLVDUUDQJHPHQWLVDOVRUHIHUUHGWRDVDWDNHRUSD\V\VWHP7KHNH\ELGGLQJFULWHULRQZDVWKHSHUXQLWFKDUJHIRUWUHDWHGZDWHUZKLFKWKHSULYDWHGHYHORSHUZRXOGFROOHFWIURPWKH&0:66%

#WIOGPVCVKQPEWO1RGTCVKQPCPF/CKPVGPCPEG%QPVTCEVHQT&KUVTKDWVKQP5[UVGOHQTC%NWUVGTQH7TDCP.QECN$QFKGU-CTPCVCMC

7KHDXJPHQWDWLRQFXP20FRQWUDFWIRUWKHGLVWULEXWLRQV\VWHPLVDSHUIRUPDQFHEDVHGIHHPRGHOLPSOHPHQWHGXQGHUWKH.DUQDWDND8UEDQ:DWHU6HFWRU,PSURYHPHQW3URMHFWIRUWKHWRZQVRI%HOJDXP+XEOL'KDUZDGDQG*XOEDUJD7KLVSHUIRUPDQFHFRQWUDFWLVD333PRGHOZLWKDFDSLWDOVXEVLG\IURPWKHJRYHUQPHQWDJHQF\WKH.DUQDWDND8UEDQ,QIUDVWUXFWXUH'HYHORSPHQWDQG)LQDQFH&RUSRUDWLRQ

7KHVHVHOHFWFLWLHVRI.DUQDWDNDIDFHGSUREOHPVZLWKWKHLUGLVWULEXWLRQQHWZRUNVWKHUHZDVQRDFFXUDWHHVWLPDWLRQRIWKHORVVRIZDWHULQFXUUHGLQWUDQVPLVVLRQDQGGLVWULEXWLRQWKHVXSSO\

KRXUVZHUHUHSRUWHGWREHLUUHJXODUDQGQRFOHDULQIRUPDWLRQZDVDYDLODEOHZLWKWKH8/%VRQWKHVWDWXVRIZDWHUVXSSO\LQIUDVWUXFWXUHDVVHWV3ULYDWHDVVLVWDQFHZDVVRXJKWWRLPSURYHWKHZDWHUVXSSO\VHUYLFHV

8QGHUWKH333VWUXFWXUHWKHSULYDWHGHYHORSHUZDVUHTXLUHGWRXQGHUWDNHUHKDELOLWDWLRQZRUNVRQWKHGLVWULEXWLRQQHWZRUNRIDFOXVWHURIWRZQVDQGRYHUVHHWKH20RIWKHGLVWULEXWLRQQHWZRUN7KHSULYDWHGHYHORSHULVWKHUHIRUHILUVWUHTXLUHGWRXQGHUWDNHFRQVWUXFWLRQZRUNVIRUWKHGLVWULEXWLRQQHWZRUNDQGZLOOEHIXOO\UHLPEXUVHG

E\WKHVWDWHDJHQF\IRUWKHUHKDELOLWDWLRQDFWLYLW\LWXQGHUWDNHV7KHSULYDWHGHYHORSHULVWKHUHIRUHUHVSRQVLEOHRQO\IRUZDWHUVXSSO\DFWLYLWLHVDWWKHGLVWULEXWLRQHQGLQFOXGLQJVXSSO\LQJWUHDWHGZDWHUWRDOOWKHFRQQHFWLRQVLQVWDOOLQJPHWHUVJHQHUDWLQJELOOVFROOHFWLQJUHYHQXHVDQGXQGHUWDNLQJUHSDLUZRUNV

7KHFRQWUDFWZDVDZDUGHGWRDQLQWHUQDWLRQDOELGGHU9HROLD(DX&RPSDJQLH*pQpUDOHGHV(DX[EDVHGLQ3DULV)UDQFH7KHRSHUDWRULVFRQWUDFWHGWRRSHUDWHDQGPDQDJHWKHGLVWULEXWLRQQHWZRUNLQWKHFLWLHVIRU\HDUV

IROORZLQJPRQWKVRIGLVWULEXWLRQQHWZRUNUHKDELOLWDWLRQ

7KHSULYDWHGHYHORSHUJHWVIL[HGRSHUDWRUIHHVIURPWKH8/%VIRUH[HFXWLQJ207KLVIHHZKLFKLVWREHSDLGE\WKH8/%VWRWKHSULYDWHGHYHORSHULVWKHFULWLFDOELGSDUDPHWHU

#WIOGPVCVKQPQH9CVGT6TGCVOGPV5[UVGOEWO1RGTCVKQPCPF/CKPVGPCPEG%QPVTCEVQHVJG9CVGT5WRRN[5[UVGO*CNFKC

$333DUUDQJHPHQWZDVGHVLJQHGIRUWKHDXJPHQWDWLRQRIWKH:73DQGIRURSHUDWLRQDQGPDQDJHPHQWRIWKHZDWHUVXSSO\V\VWHPDWWKH+DOGLD,QGXVWULDOUHJLRQ$FRQFHVVLRQEDVHG333DJUHHPHQWKDVEHHQLPSOHPHQWHGLQ+DOGLDIRUWKHGHYHORSPHQWRIWKH:73V\VWHPDQGIRUWKH20ZRUNVRIWKHZDWHUVXSSO\V\VWHP7KHDJUHHPHQWZDVLPSOHPHQWHGE\WKHDXWKRULW\WRPHHWWKHORQJWHUPGHPDQGRI


30/224

333LQWKH:DWHU6HFWRU

LQGXVWULDOFRQVXPHUVRIWKHUHJLRQ'HYHORSHGDVDJUHHQILHOGZDWHUVXSSO\SURMHFWLWHQYLVDJHVWKHGHYHORSPHQWRID0/':73DORQJZLWK20RIWKHZDWHUVXSSO\V\VWHP

7KHZDWHUVXSSO\V\VWHPIRUWKHUHJLRQZDVHDUOLHUPDQDJHGE\WKH:HVW%HQJDO3XEOLF+HDOWKDQG(QJLQHHULQJ'HSDUWPHQWRQEHKDOIRIDXWKRULW\7KHZDWHUVXSSO\V\VWHPZDVSODJXHGZLWKVHYHUDOSUREOHPVLQFOXGLQJKLJKSURGXFWLRQDQGGLVWULEXWLRQORVVHVSRRUVHUYLFHTXDOLW\SRRU20RIWKH:73DQGYHU\KLJKRSHUDWLRQFRVWV3ULYDWHVHFWRUSDUWLFLSDWLRQZDVWKHUHIRUHVRXJKWIRUWKHGHYHORSPHQWRIWKH:73DQGIRU20RIWKHGLVWULEXWLRQV\VWHP

7KHFRQWUDFWKDVEHHQKDQGHGRYHUWRDFRQVRUWLXP

FRQVLVWLQJRI-86&25DQKLOO8WLOLWLHV%HUKDUGRI0DOD\VLDDQG,QIUDVWUXFWXUH'HYHORSPHQW)LQDQFH&RPSDQ\7KHWRWDOWHQXUHRIWKHSURMHFWLV\HDUV

7KHSURMHFWIRUUDZZDWHURIIWDNHWUDQVPLVVLRQDQGWUHDWPHQWSODQWKDVEHHQGHYHORSHGRQDEXLOGRSHUDWHWUDQVIHUEDVLV

7KHFRQFHVVLRQDJUHHPHQWUHTXLUHVWKHSULYDWHGHYHORSHUWRXQGHUWDNHWKHFRQVWUXFWLRQRIWKHUDZZDWHURIIWDNHV\VWHPDQGUDZZDWHUWUDQVPLVVLRQOLQHVDXJPHQWDWLRQWRWKHH[LVWLQJWUHDWPHQWSODQWDQGRSHUDWLRQDQGPDQDJHPHQWRIWKHZDWHUVXSSO\V\VWHPIURPVRXUFHWRHQGFRQVXPHU$Q\H[SDQVLRQDQGUHKDELOLWDWLRQZRUNIRUWKHGLVWULEXWLRQQHWZRUNZRXOGEHPDQDJHGE\WKHDXWKRULW\EHIRUHLQYLWLQJWKHSULYDWHGHYHORSHUWRRSHUDWHDQGPDQDJHWKHZDWHUVXSSO\V\VWHP7KHSULYDWHGHYHORSHULVUHTXLUHGWRPDNHDIL[HGPRQWKO\SD\PHQWDVDOLFHQVHIHHWRWKHDXWKRULW\IRUWKHULJKWWRRSHUDWH

WKHH[LVWLQJZDWHUVXSSO\DVVHWVDQGWKHHQWLUHV\VWHP7KLVKLJKHVWIL[HGPRQWKO\SD\PHQWZDVVHWDVWKHFULWLFDOILQDQFLDOELGSDUDPHWHU


31/224

,,, ,PSOHPHQWLQJ333

$Q2YHUYLHZ

7KLVVHFWLRQSURYLGHVDQRYHUYLHZRIWKHVWHSVWREHIROORZHGLQGHWHUPLQLQJDVXLWDEOHSXEOLFSULYDWHSDUWQHUVKLS333VWUXFWXUHIRUDQLGHQWLILHGSURMHFWLQWKHZDWHUVXSSO\DQGVDQLWDWLRQVHFWRUDQGRXWOLQHVWKHUHPDLQLQJDFWLYLWLHVWKDWQHHGWREHXQGHUWDNHQWRIDFLOLWDWH

WKHLPSOHPHQWDWLRQRIWKHVHOHFWHG333VWUXFWXUH)LJXUH

&RPSLOHNH\SDUDPHWHUV

5HYLHZRISURMHFWVZLWKDYDLODEOH'35V

9LDELOLW\DVVHVVPHQW

&KRLFHEHWZHHQSXEOLFIXQGLQJDQG333

,GHQWLI\DQGDOORFDWHULVNV

6HOHFWWKHFRQWUDFWW\SH

'HILQHLPSOHPHQWDWLRQ

VWUXFWXUH

3ODQDQGPDQDJHSURFXUHPHQW

$VVHVVSULRULWL]HDQGLGHQWLI\NH\DUHDRI

LQWHUYHQWLRQ

6WHS,

,GHQWLILFDWLRQRIWKHSUREOHPDUHDV

6WHS,,

&KRLFHEHWZHHQSXEOLFIXQGLQJDQG333

6WHS,,,

&KRLFHRI3336WUXFWXUH

6WHS,9

3URFXUHPHQW

)LJXUH 2YHUYLHZRI6WDJHVLQ'HWHUPLQLQJ6XLWDEOH3336WUXFWXUHV

333SXEOLFSULYDWHSDUWQHUVKLS

5VGR+FGPVKECVKQPQHVJG

2TQDNGO#TGCU

7KHGHWHUPLQDWLRQRIWKHVHWRISURMHFWVUHTXLUHGWRLPSURYHWKHH[LVWLQJZDWHUVXSSO\DQG

VDQLWDWLRQVHUYLFHVLVEDVHGRQLGHQWLILFDWLRQRIDOOWKHDUHDVRIVHUYLFHGHOLYHU\ZKHUHVRPHIRUP


32/224

,PSOHPHQWLQJ333$Q2YHUYLHZ

RISURMHFWEDVHGLQWHUYHQWLRQLVUHTXLUHG,QWKLVFRQWH[WWKHILUVWVWHSLVWROLVWDOOWKHLVVXHVLQWKHFXUUHQWV\VWHPEDVHGRQDGHWDLOHGDVVHVVPHQW7KLVGHWDLOHGDVVHVVPHQWLVWREHFDUULHGRXWE\

WKHXUEDQORFDOERG\8/%RUVWDWHDJHQF\IRUWKHZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHVDFURVVLWVHQWLUHYDOXHFKDLQE\XQGHUWDNLQJVWXGLHVVXFKDVFRQVXPHUVXUYH\VZDWHUDXGLWOHDNGHWHFWLRQDQGHQHUJ\DXGLWV7KHUHVXOWVRIWKHVHDVVHVVPHQWVVKRXOGEHFRPSDUHGZLWKWKHNH\SHUIRUPDQFHLQGLFDWRUVDQGVWDQGDUGVDSSOLFDEOHIRUHDFKOHYHORIRSHUDWLRQV7KHH[LVWLQJGHWDLOHGSURMHFWUHSRUWV'35VVKRXOGEHUHYLHZHGWRFKHFNLIWKHSURSRVHGSURMHFWFRPSRQHQWVZRXOGDGHTXDWHO\DGGUHVVWKHLVVXHVLGHQWLILHGDQGLIQRWZKHWKHUWKHVHZRXOGQHHGWREHUHFWLILHG,WLVLPSRUWDQWWRHQVXUHWKDWHYHQ

WKH'35VZKLFKKDYHEHHQVDQFWLRQHGDUHDVVHVVHGWRHQVXUHWKDWLIWKHDVVHVVPHQWLQGLFDWHVWKDWIXUWKHUPRGLILFDWLRQVDUHUHTXLUHGWKH\DUHSXUVXHG7KH8/%VPD\WKHQH[SORUHWKHSRVVLELOLW\RIPRGLI\LQJWKH'35WRHQVXUHWKDWWKHUHOHYDQWDUHDVRIVHUYLFHGHOLYHU\DUHDGHTXDWHO\DGGUHVVHG,IRQDFFRXQWRIFKDQJHLQVFRSHWKHFRVWVRIWKHSURMHFWLQFUHDVHWKH8/%FDQFRQVLGHUDSSURDFKLQJWKHVWDWHRUFHQWUDOJRYHUQPHQWIRUDGGLWLRQDOIXQGLQJRUPD\H[SORUHWKH333RSWLRQ7KHRXWSXWRIWKHDVVHVVPHQWZRXOGLQGLFDWHWKHDFFXUDWHVWDWXVRIWKHVHUYLFHVWKHLVVXHVEHLQJIDFHGLQWKHFXUUHQW

V\VWHPDQGWKHLQWHUYHQWLRQVUHTXLUHG

5VGR%JQKEGDGVYGGP2WDNKE

(WPFKPICPF222

+DYLQJLGHQWLILHGWKHDUHDVZKHUHLQWHUYHQWLRQLQWKHIRUPRIVSHFLILFSURMHFWVLVUHTXLUHGWKHQH[WVWDJHLVWRGHWHUPLQHZKHWKHUWKHSURSRVHGSURMHFWVVKRXOGEHWDNHQXSHQWLUHO\WKURXJKWKH8/%RUVWDWHDJHQF\RUZKHWKHUWKH\VKRXOGEHGHYHORSHGRQWKHEDVLVRID333URXWH7KLVFKRLFHLVODUJHO\JXLGHGE\DGHWDLOHGSURMHFWYLDELOLW\DVVHVVPHQW7KLVDVVHVVPHQWZRXOGWKHQKDYHWREHIROORZHGXSZLWKDTXDOLWDWLYHDVVHVVPHQWWRGHWHUPLQHZKLFKRIWKHWZRSDUWLHVWKHSULYDWHGHYHORSHURUWKHSXEOLFDJHQF\LVUHDOLVWLFDOO\EHVWVXLWHGWRXQGHUWDNHWKHSURMHFW

5VGR%JQKEGQH2225VTWEVWTG

,IWKHDQDO\VLVXQGHUWDNHQLQWKHSUHYLRXVVWDJHLQGLFDWHVWKDWWKH333RSWLRQLVWREHSXUVXHG

IRUGHYHORSLQJWKHSURSRVHGSURMHFWWKHQH[WORJLFDODFWLYLW\LVWRGHWHUPLQHDQDSSURSULDWH333VWUXFWXUH$KRVWRI333VWUXFWXUHVFDQEHGHYHORSHGDQGLPSOHPHQWHGKRZHYHUWKHFKRLFHRIDSDUWLFXODUVWUXFWXUHIURPDPRQJWKHYDULRXVRSWLRQVLVPDGHEDVHGRQWKHSURMHFWFKDUDFWHULVWLFVDQGWKHXQLTXHQHVVRIWKHFRQWH[W2QHRIWKHNH\SDUDPHWHUVGHWHUPLQLQJWKHFKRLFHLVWKHH[WHQWDQGW\SHRIULVNVWKDWDUHDVVRFLDWHGZLWKWKHSURMHFWDQGWKHDOORFDWLRQRIWKHVHULVNVEHWZHHQWKHSULYDWHGHYHORSHUDQGWKH8/%RUVWDWHDJHQF\7KHUHIRUHDQH[KDXVWLYH

OLVWRIULVNVDVVRFLDWHGZLWKWKHSURMHFWQHHGVWREHSUHSDUHGDQGGHOLEHUDWHGXSRQDQGLWVDOORFDWLRQGXO\FRQVLGHUHGWRGHWHUPLQHWKHVXLWDELOLW\RIWKHYDULRXV333VWUXFWXUHV)URPWKHDFWLYLWLHVXQGHUWDNHQLQVWDJHVWZRDQGWKUHHWKHPRVWVXLWDEOH333VWUXFWXUHZRXOGEHLGHQWLILHG

5VGR2TQEWTGOGPV

+DYLQJLGHQWLILHGDQGILQDOL]HGWKH333VWUXFWXUHWREHDGRSWHGWRGHYHORSRSHUDWH

DQGPDLQWDLQWKHSURSRVHGSURMHFWWKHQH[WVWDJHLVWRSODQWKHSURFXUHPHQWSURFHVV7KHFRQWUDFWXDOVWUXFWXUHLGHQWLILHGQHHGVWREHWUDQVODWHGLQWRDZRUNDEOHDFWLRQSODQZLWKFOHDUDQGSUHFLVHGHILQLWLRQVRIWKHUHVSRQVLELOLWLHVIRUWKHWZRFRQWUDFWLQJSDUWLHVWKH8/%RUVWDWHDJHQF\DQGWKHSULYDWHGHYHORSHUWREHLGHQWLILHG7KHILQDQFLDOPRGHOSUHSDUHGIRUWKHSURMHFWZRXOGWKHQEHIXUWKHUUHILQHGDFFRUGLQJWRWKHUHTXLUHPHQWVRIWKHWUDQVDFWLRQVWUXFWXUH%DVHGRQWKHWUDQVDFWLRQVWUXFWXUHWKHFRQWUDFWIRUWKH333DUUDQJHPHQWZRXOGQHHGWREHGUDZQXS)LQDOO\WKHSURFXUHPHQWSODQZRXOGQHHGWREHILQDOL]HGDQGSXWLQWRRSHUDWLRQ

7KHUHPDLQLQJVHFWLRQVRI9ROXPH,GLVFXVVWKHVHIRXUPDLQVWHSVLQJUHDWHUGHWDLO


33/224

,9 6WHS,GHQWLILFDWLRQ

RIWKH3UREOHP$UHDV

#UUGUUOGPVQHVJG%WTTGPV9CVGT

5WRRN[CPF5CPKVCVKQP5[UVGO

$GHWDLOHGDVVHVVPHQWRIWKHH[LVWLQJVWDWXVRILQIUDVWUXFWXUHDQGVHUYLFHGHOLYHU\DFURVVWKH

YDOXHFKDLQRIWKHZDWHUVXSSO\DQGVDQLWDWLRQV\VWHPIRUPVWKHEDVLVIRULGHQWLILFDWLRQRIDUHDVRILPSURYHPHQW)LJXUH7KHRXWSXWRIWKHDVVHVVPHQWZRXOGLQGLFDWHWKHDFFXUDWHVWDWXVRIWKHVHUYLFHVDQGWKHLVVXHVEHLQJIDFHGLQWKHFXUUHQWV\VWHP)RUVXFFHVVIXOLPSOHPHQWDWLRQRIDQ\IRUPRISXEOLFSULYDWHSDUWQHUVKLS333LQWKLVVHFWRUWKHUHQHHGVWREHDZHOOPDLQWDLQHGDFFXUDWHGDWDEDVHRIH[LVWLQJVHUYLFHV

$FRPELQDWLRQRISK\VLFDODVVHVVPHQWVDQGVHUYLFHOHYHOUHYLHZQHHGVWREHFDUULHGRXWVLPXOWDQHRXVO\WRDVFHUWDLQWKHLVVXHVDQGJDSVLQWKHH[LVWLQJZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHV7KHVHDVVHVVPHQWVDUHHTXDOO\FULWLFDOIRULVVXHLGHQWLILFDWLRQ7KHFRPSUHKHQVLYHOLVW

RIDVVHVVPHQWVWKDWPXVWEHXQGHUWDNHQLVQRZGHVFULEHGLQGHWDLO

#UUGV4GXKGY

$UHYLHZRIWKHH[LVWLQJZDWHUVXSSO\DQGVDQLWDWLRQDVVHWVRIWKHXUEDQORFDOERG\8/%IRUPVDQLQWHJUDOFRPSRQHQWRIWKHSK\VLFDOLQIUDVWUXFWXUHDVVHVVPHQWWREHXQGHUWDNHQ

)LJXUH 2YHUYLHZRI6WDJHVLQ$VVHVVPHQWRI:DWHU6XSSO\DQG6DQLWDWLRQ6HUYLFHV

$VVHWUHYLHZ

$VVHWLQYHQWRU\OLVWLQJZLWK

GHWDLOVRQWKHH[LVWLQJVWDWXV

'HWDLOHGFRQVXPHUVXUYH\

:DWHUDXGLW

/HDNGHWHFWLRQVWXG\

(QHUJ\DXGLW

&RPSLODWLRQRINH\SHUIRUPDQFHSDUDPHWHUV

,GHQWLILFDWLRQRILVVXHVLQWKHH[LVWLQJLQIUDVWUXFWXUHDQGJDSVLQVHUYLFHGHOLYHU\

$VVHVVPHQWVWREHXQGHUWDNHQ


34/224

6WHS,GHQWLILFDWLRQRIWKH3UREOHP$UHDV

E\WKH8/%RUVWDWHDJHQF\7KHDVVHVVPHQWRIH[LVWLQJSK\VLFDOLQIUDVWUXFWXUHQHHGVWREHFDUULHGRXWWRGHWHUPLQHWKHH[LVWLQJFRQGLWLRQRIZDWHUVXSSO\DQGVDQLWDWLRQDVVHWVLQWKH

VHUYLFHDUHDDQGWRLGHQWLI\WKRVHZKLFKQHHGWREHUHSODFHGRUUHKDELOLWDWHGRQDFFRXQWRIWKHLUSRRUFRQGLWLRQRULQDGHTXDF\,QDGGLWLRQWHFKQLFDOLVVXHVRIRSHUDWLRQDVVRFLDWHGZLWKWKHDVVHWVFDQDOVREHLGHQWLILHGDVSDUWRIWKHSK\VLFDODVVHVVPHQW

7KHDVVHVVPHQWLVH[SHFWHGWRLGHQWLI\

L WKHVWDWXVRIDYDLODELOLW\DQGDGHTXDF\RISK\VLFDOLQIUDVWUXFWXUHVXFKDVWRLOHWVVDQLWDWLRQVHSWLFWDQNV9DULDEOH*UDGH6HZHUV9*6DQGWKHZDWHUGLVWULEXWLRQ

QHWZRUNLQVOXPVLL WKHRSHUDWLRQDOFRQGLWLRQRIWKH

LQIUDVWUXFWXUHLQWKHZDWHUVXSSO\DQGVDQLWDWLRQV\VWHPDQG

LLL WKHLQIUDVWUXFWXUHFRPSRQHQWVWKDWUHTXLUHDXJPHQWDWLRQDQGRUUHSODFHPHQW

7KH8/%RUVWDWHDJHQF\PD\XQGHUWDNHWKHDVVHWUHYLHZRQLWVRZQRULWPD\REWDLQWHFKQLFDODVVLVWDQFHIRUWKHUHYLHZ7KHVWDWXVRIWKHFXUUHQWLQIUDVWUXFWXUHGLUHFWO\GHWHUPLQHVWKHOHYHORIVHUYLFHVSURYLGHGE\WKH8/%RUVWDWHDJHQF\)RULQVWDQFHLIWKHUDZDQGRUSXUH

ZDWHUWUDQVPLVVLRQOLQHVDUHFRUURGHGWKHUHZLOOEHVXEVWDQWLDOZDWHUORVVGXULQJFRQYH\DQFHUHVXOWLQJLQUHGXFHGDYDLODELOLW\RISRWDEOHZDWHUIRUFRQVXPHUV6LPLODUO\LIWKHVHZDJHWUHDWPHQWSODQWLVRSHUDWLQJEHORZVWDQGDUGRUKDVRXWGDWHGWHFKQRORJ\WKLVZRXOGUHVXOWLQLPSURSHUWUHDWPHQWRIWKHVHZDJHDQGSROOXWLRQRIQDWXUDOZDWHUERGLHV

7KH8/%VDQGVWDWHDJHQFLHVPD\QRWKDYHDGHWDLOHGXSGDWHGUHFRUGRIWKHZDWHUVXSSO\

DQGVDQLWDWLRQLQIUDVWUXFWXUH3RRURUXQUHOLDEOHLQIRUPDWLRQRQWKHVWDWXVRIDVVHWVPHDQVWKDWDQDFFXUDWHSLFWXUHRIWKHH[LVWLQJVWDWXVRIWKHLQIUDVWUXFWXUHZRXOGQRWHPHUJHDQGWKHUHIRUH

WKHLQWHUYHQWLRQVUHTXLUHGFRXOGQRWEHLGHQWLILHG)XUWKHUPRUHLIWKH333EDVHGSURMHFWLVLGHQWLILHGWKHDPELJXRXVLQIRUPDWLRQDERXWFXUUHQWLQIUDVWUXFWXUHZRXOGPDNHLWGLIILFXOWWRFRUUHFWO\IUDPHSHUIRUPDQFHVWDQGDUGVWRPHDVXUHWKHHIIHFWLYHQHVVRIDSULYDWHGHYHORSHULQRSHUDWLQJDQGPDLQWDLQLQJWKHV\VWHP

7DEOHVKRZVDUHSUHVHQWDWLYHIRUPIURPWKHDVVHWLQYHQWRU\OLVWWKDWWKHVHUYLFHSURYLGHUVKRXOGPDLQWDLQ,WLVDEDVLFIRUPLQGLFDWLQJWKHPLQLPXPFRPSRQHQWVRIWKHLQYHQWRU\OLVWDQGFDQEHPRGLILHGIRUDFRPSUHKHQVLYH

FRPSLODWLRQDQGSUHVHQWDWLRQRILQIRUPDWLRQ$VVHWLQYHQWRU\OLVWLQJPD\DOVREHXQGHUWDNHQIRUHDFKYDOXHFKDLQ

3DUDOOHOWRWKHLQIUDVWUXFWXUHDVVHVVPHQWXQGHUWDNHQE\WKH8/%RUVWDWHDJHQF\DUHYLHZRIWKHVHUYLFHGHOLYHU\OHYHOVWRGHWHUPLQHWKHFXUUHQWVWDWXVRIWKHHQWLUHV\VWHPLVDOVRFULWLFDO$VDSDUWRIWKHVHUYLFHGHOLYHU\DVVHVVPHQWLWLVLPSRUWDQWWRXQGHUWDNHLDGHWDLOHGFRQVXPHUVXUYH\LLDZDWHUDXGLWDQGOHDNGHWHFWLRQVWXG\LLLDQHQHUJ\HIILFLHQF\DXGLWDQGLYDZDWHUTXDOLW\DXGLW

&GVCKNGF%QPUWOGT5WTXG[

7KH8/%RUVWDWHDJHQF\LQPRVWFDVHVKDVEHHQIRXQGWRKDYHLQDGHTXDWHRUXQUHOLDEOHLQIRUPDWLRQLQDUHDVVXFKDVWKHH[WHQWRIFRYHUDJHRILWVVHUYLFHVWKHQXPEHUDQGW\SHRIZDWHUVXSSO\FRQQHFWLRQVDQGWKHH[DFWFRQVXPSWLRQOHYHOV:LWKRXWVXFKLQIRUPDWLRQLWLVGLIILFXOWWRFRUUHFWO\SODQDQLPSURYHPHQWRULQWHUYHQWLRQRUKDQGRYHUWKHV\VWHPWRDSULYDWH

7DEOH 5HSUHVHQWDWLYH6DPSOHRIDQ$VVHW,QYHQWRU\/LVW

$VVHW6SHFLILFDWLRQRIWKH$VVHW $JH 9DOXH &RQGLWLRQ 5HPDUNV

6$

03/(


35/224


GHYHORSHUIRUGHYHORSPHQWDQGRURSHUDWLRQDQGPDQDJHPHQWRIWKHV\VWHP,WZRXOGLQYDULDEO\UHVXOWLQLPEDODQFHGDOORFDWLRQRIUHVSRQVLELOLWLHVDQGULVNVEHWZHHQWKHVWDNHKROGHUV$EDVLF

SUHPLVHRQZKLFKD333RSWLRQLVEXLOWLVWKHSURYLVLRQRIJRRGUHOLDEOHLQIRUPDWLRQDERXWWKHH[LVWLQJV\VWHPE\WKH8/%RUVWDWHDJHQF\WRWKHSULYDWHGHYHORSHU7KHUHIRUHLWLVFULWLFDOWKDWWKH8/%RUVWDWHDJHQF\H[SORULQJWKH333RSWLRQIRUGHYHORSPHQWDQGLPSURYHPHQWRIZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHVXQGHUWDNHVDGHWDLOHGFRQVXPHUVXUYH\RQWKHH[LVWLQJVWDWXVRIVHUYLFHVLWSURYLGHV

7KHWLPHUHTXLUHGWRFDUU\RXWDFRQVXPHUVXUYH\YDULHVGHSHQGLQJRQWKHSRSXODWLRQDQGDUHDVHUYLFHG7KHFRQVXPHUVXUYH\QHHGVWRLQFOXGHD

JRRGUHSUHVHQWDWLYHVDPSOHLQWHUPVRIWKHVL]HRISRSXODWLRQRUWKH]RQHVVRDVWR\LHOGDFFXUDWHLQIRUPDWLRQ7KHGHWDLOHGFRQVXPHUVXUYH\ZRXOGDGGUHVVWKHIROORZLQJLQIRUPDWLRQJDSV

L :KDWLVWKHW\SHRIFRQQHFWLRQ"LL :KDWLVWKHIUHTXHQF\RIZDWHUVXSSO\"LLL +RZUHOLDEOHDUHWKHZDWHUVXSSO\VHUYLFHV"LY ,VWKHWDULIIOHYHODIIRUGDEOH"Y +RZRIWHQDUHWKHVHSWLFWDQNVFOHDQHG"

$GHWDLOHGFRQVXPHUVXUYH\ZRXOGSURYLGHDQDFFXUDWHSLFWXUHRIWKHVWDWXVRIZDWHUVXSSO\

DQGVDQLWDWLRQVHUYLFHVWRKHOSLGHQWLI\DUHDVRILQWHUYHQWLRQUHTXLUHG

9CVGT#WFKVCPF.GCM&GVGEVKQP5VWF[

$ZDWHUDXGLWLVDWKRURXJKH[DPLQDWLRQRIWKHDFFXUDF\RIZDWHUDJHQF\UHFRUGVDQGV\VWHPFRQWUROHTXLSPHQW/HDNGHWHFWLRQLVWKHV\VWHPDWLFPHWKRGRIVXUYH\LQJWKHHQWLUHV\VWHPWRLGHQWLI\OHDNVDQGSUHFLVHO\LGHQWLI\WKHSRLQWVRIOHDNDJHLQWKHZDWHUVXSSO\V\VWHP7KHSULPDU\REMHFWLYHRIWKLVVXUYH\LVWRDVVHVVWKHHQWLUHZDWHUVXSSO\V\VWHPWRGHWHFWWKHH[WHQWRIWHFKQLFDODQGFRPPHUFLDOORVVHV7KHDXGLWZRXOGKHOSWKHVHUYLFHSURYLGHUWRGHWHUPLQHWKHHIILFLHQF\RIWKHGLVWULEXWLRQV\VWHPDQGWRVHOHFWDQGLPSOHPHQWSURJUDPVWKDWZRXOGUHGXFHZDWHUDQGUHYHQXHORVVHV

:DWHUORVVHVZKHWKHUGXHWROHDNDJHVWKHIWXQGHUELOOLQJRIFXVWRPHUVRUIDXOW\V\VWHP

FRQWUROVUHSUHVHQWPRQHWDU\ORVVHVWRWKHZDWHUDJHQF\7KLVLVZDWHUWKDWWKHDJHQF\KDVDOUHDG\SDLGWRREWDLQWUHDWDQGSUHVVXUL]H$ZDWHUDXGLWZRXOGSURYLGHDQVZHUVWRWKHIROORZLQJ

TXHVWLRQV

L :KHUHDUHORVVHVRFFXUULQJZLWKLQWKHV\VWHP"

LL +RZPXFKZDWHULVORVWLQHDFKSUREOHPDUHDLGHQWLILHG"

LLL :KDWFRUUHFWLYHPHDVXUHVDUHQHHGHGWRUHGXFHWKHZDWHUORVV"

LY :KDWZLOOEHWKHFRVWRIUHGXFLQJWKHZDWHUORVV"

Y :KDWVDYLQJVDQGEHQHILWFRVWUDWLRVZLOOUHVXOWIURPUHGXFLQJWKHZDWHUORVV"

YL :KHQFDQWKHFRUUHFWLYHPHDVXUHVEHLPSOHPHQWHG"

,WLVLPSRUWDQWWKDWWKH8/%RUVWDWHDJHQF\VKDUHVWKHODWHVWXSGDWHGYHUVLRQRIWKHZDWHUDQGOHDNGHWHFWLRQVWXG\ZLWKWKHSULYDWHGHYHORSHU

'PGTI[#WFKV5VWF[

7KH8/%RUVWDWHDJHQF\PXVWDOVRXQGHUWDNHDQHQHUJ\DXGLWRIWKHHQWLUHZDWHUVXSSO\DQGVDQLWDWLRQRSHUDWLRQVWRGHWHUPLQHWKHFXUUHQWOHYHORIHQHUJ\FRQVXPSWLRQDWYDULRXVVWDJHV

RIWKHYDOXHFKDLQDQGWRFRPSDUHWKLVZLWKWKHVWDQGDUGEHQFKPDUNV7KHDXGLWPHDVXUHVWKHHQHUJ\FRQVXPSWLRQDWSRLQWVZKHUHZDWHULVSXPSHGDQGUHYLHZVWKHHIILFLHQF\RIWKHHTXLSPHQWEHLQJXVHG7KHHQHUJ\DXGLWXQGHUWDNHQJHQHUDOO\FRYHUV

L DVWXG\RIWKHH[LVWLQJV\VWHPDQGSDVWUHFRUGV

LL WKHVHWWLQJRIH[LVWLQJHQHUJ\FRQVXPSWLRQEHQFKPDUNV

LLL DVWXG\RIV\VWHPHQHUJ\HIILFLHQF\IURPVRXUFHWRFRQVXPHU

LY FKHFNLQJRIHTXLSPHQWHIILFLHQF\LQFOXGLQJSXPSVDQG

Y FKHFNLQJWKHSURFHVVORVVHVIRUHQHUJ\HIILFLHQF\

7KLVLQIRUPDWLRQZRXOGKHOSWRDFFXUDWHO\LGHQWLI\WKHFRVWUHGXFWLRQHIILFLHQF\EHQFKPDUNWKDWFDQEHVHW


36/224


9CVGT3WCNKV[#WFKV5VWF[

:KHQXQGHUWDNLQJWKHZDWHUTXDOLW\DXGLWLWLVFULWLFDOO\LPSRUWDQWWRDVVHVVZDWHUTXDOLW\OHYHOVWRDVFHUWDLQZKHWKHUWKHZDWHUEHLQJVXSSOLHGLQWKH8/%LVILWIRUSRWDEOHFRQVXPSWLRQ7KHSURFHVVUHTXLUHVVDPSOHVRIZDWHUWREHFROOHFWHGDQGWHVWHGDWODERUDWRULHVWRDVFHUWDLQZDWHUTXDOLW\

#UUGUUOGPVQH(WVWTG&GOCPF

7KHDVVHVVPHQWVGHVFULEHGZRXOGKLJKOLJKWLQIUDVWUXFWXUHJDSVLQWKHH[LVWLQJVFHQDULR:DWHUDYDLODELOLW\XQGHUWKHH[LVWLQJVFHQDULRPD\PHHWWKHGHPDQGVRIWKHFXUUHQWSRSXODWLRQEXWPD\EHLQDGHTXDWHIRUWKH

H[SHFWHGULVHLQSRSXODWLRQ7KHUHIRUHWKHGHWDLOHGDVVHVVPHQWPXVWFRQVLGHUERWKWKHQHHGVRIWKHFXUUHQWSRSXODWLRQDQGWKRVHRIDKRUL]RQSODQSHULRG

%QORKNKPI-G[2CTCOGVGTU

.H\SHUIRUPDQFHLQGLFDWRUVDUHXVHGWRDVVHVVWKHOHYHORIVHUYLFHVDQGWRGHWHUPLQH

LQIUDVWUXFWXUHJDSV7KRVHPRVWFRPPRQO\XVHGDUHGLVFXVVHGRQSDJH)RUHDFKFRPSRQHQWRIWKHYDOXHFKDLQSDUDPHWHUVKDYHEHHQLGHQWLILHGIRUHYDOXDWLQJSHUIRUPDQFHOHYHOV7KHVHSDUDPHWHUVLQFOXGHWHFKQLFDODQGTXDOLW\LQGLFDWRUV7KHSHUIRUPDQFHVWDQGDUGVIRUHDFKRIWKHLQGLFDWRUVDUHLQDFFRUGDQFHZLWKWKHJXLGHOLQHVPHQWLRQHGLQWKHPDQXDORIWKH&HQWUDO3XEOLF+HDOWKDQG(QYLURQPHQWDO(QJLQHHULQJ2UJDQLVDWLRQ&3+((2RIWKH0LQLVWU\RI8UEDQ'HYHORSPHQW6RPHRIWKHNH\LQGLFDWRUVIRUWKHZDWHUVXSSO\VHFWRUZKLFKQHHGWREHDVVHVVHGDUHVKRZQLQ7DEOH

WRJHWKHUZLWKWKHLUIRUPXODVDQGUDWLRQDOH


37/224


7DEOH

.H\3DUDPHWHUVIRU$VVHVVLQJWKH3HUIRUPDQFHRI:DWHU6XSSO\6HUYLFHV

,QGLFDWRU

8QLW

1RUP

)RUPXOD

'HILQLWLRQ

5DWLRQDOH

5HPDUNV

6HUYLFH

/HYHO3HUIRUPDQFH3DUDPHWHUV

3HUFDSLWDTXDQWXP

RIZDWHUVXSSOLHG

IRUFLWLHVZLWKRXW

DGHYHORSHG

XQGHUJURXQGV\VWHP

OS

FG

OSFG

>4XDQWLW\RIZDWHU

VXSSOLHGWRWKH

GLVWULEXWLRQV\VWHP

3RSXODWLRQVHUYHG@

7RWDOZDWHUVXSSOLHG

LQWRWKHGLVWULEXWLRQ

V\VWHPH[WUHDWPHQW

SODQWDQGLQFOXGLQJ

SXUFKDVHGZDWHULI

DQ\H[SUHVVHGE\

SRSXODWLRQVHUYHG

SHUGD\

,QGLFDWHVW

KHDGHTXDF\

RIWKHZDWHUVXSSOLHG

IRUFRQVXP

SWLRQDWWKH

GLVWULEXWLRQHQG

)RUFLWLHVZLWKRXWDQXQG

HUJURXQG

VDQLWDWLRQV\VWHPDSHUFDSLWDZDWHU

DYDLODELOLW\VKRXOGLGHDOO\

EHOSFG

2QO\WUHDWHGZDWHULQSXW

LQWRWKH

GLVWULEXWLRQV\VWHPVKRXOGEH

PHDVXUHG

2QO\SRSXODWLRQVHUYHGE

\WKH8/%WR

EHFRQVLGHUHG

3HUFDSLWDTXDQWXP

RIZDWHUVXSSOLHG

ZLWKDGHYHORSHG

XQGHUJURXQGV\VWHP

OS

FG

OSFG

)RUFLWLHVZLWKDIXOO\GHYHORSHG

VDQLWDWLRQV\VWHPWKH&3

+((2QRUP

RIOSFGLVWREHDGKH

UHGWR

4XDOLW\RIZDWHU

VXSSOLHG

$VSHU

%XUHDX

RI,QGLDQ

6WDQGDUGV

QRUPV

>1XPEHURI

VDPSOHVWKDWPHHW

WKHVSHFLILHGSRWDEOH

ZDWHUVWDQGDUGVLQD

PRQWK7RWDOQXPEHU

RIZDWHUVDPSOHVLQD

PRQWK@

3HUFHQWDJHRIZDWHU

VDPSOHVWKDWPHHWRU

H[FHHGWKHVSHFLILHG

SRWDEOHZDWHU

VWDQGDUGVDVGHILQHG

E\&3+((26DPSOLQJ

UHJLPHQVKRXOGEH

DVSHUVWDQGDUGVDQG

QRUPVODLGGRZQIRU

WKHVDPH

3RRUZDWHUTXDOLW\FDQ

SRVHVHULRXVSXEOLF

KHDOWKKD]

DUGV

,WLVKLJKO\

FULWLFDOWR

PRQLWRUWK

HTXDOLW\RI

WKHZDWHU

VXSSOLHG

6DPSOHVVKRXOGEHGUDZQDWERWK

SRLQWVRXWOHWRIWUHDWPHQWSODQW

DQGDWFRQVXPHUHQG

$OOSDUDPHWHUVRIWKHTXDOLW\

VWDQGDUGVVKRXOGEHPHW

)UHTXHQF\RIZDWHU

VXSSO\

+R

XUV

SHU

GD\

KRXUV

>$YHUDJHQXPEHURI

KRXUVRISUHVVXUL]HG

ZDWHUVXSSO\SHUGD\@

7KHQXPEHURIKRXUV

LQDGD\GXULQJZKLFK

SUHVVXUL]HGZDWHULV

DYDLODEOH

,QWHUPLWWHQWVXSSO\

UHVXOWVLQWKHQHHG

IRULQGLYLGXDO

KRXVHKROG

VWRFUHDWH

DGGLWLRQDO

VWRUDJH

UHTXLUHPHQWVDQG

RWKHULQFR

QYHQLHQFHV

7KHQXPEHURIKRXUVRIVXSSO\LQ

HDFKRIWKHRSHUDWLRQDO]

RQHVVKRXOG

EHPHDVXUHGFRQWLQXRXVO\IRUD

SHULRGRIGD\V

7KH]RQHZLVHILJXUHVVKRXOGEH

DYHUDJHGRXWWRJHWFLW\ZLVHGDWD

FRQWLQXHG

RQ

QH[WSDJH


38/224


,QGLFDWRU

8QLW

1RUP

)RUPXOD

'HILQLWLRQ

5DWLRQDOH

5HPDUNV

6HUYLFH


:DWHUWUHDWPHQW

SODQWFDSDFLW\

>4XDQWLW\RIEXON

ZDWHUVXSSO\,QVWDOOHG

FDSDFLW\RIWKH

:73@

,QVWDOOHGFDSDFLW\RI

WKHZDWHUWUHDWPHQW

SODQWLQ0/'WHUPV

WRWUHDWWKHEXONZDWHU

VXSSOLHGIRUWUHDWPHQW

,QGLFDWHVLIWKH

LQVWDOOHGFDSDFLW\LV

DGHTXDWHWRWUHDWWKH

EXONZDWHUVXSSOLHG

,IWKHLQVWDOOHGFDSDFLW\LV

OHVVWKDQ

WKHEXONVXSSO\DFKHFNRQWKHZDWHU

TXDOLW\VWDQGDUGVLVHVVHQ

WLDOWR

GHWHUPLQHLIWKHUHLVDQ\

GHWHULRUDWLRQ

LQWKHTXDOLW\RIWUHDWHGZDWHU

6WRUDJHOHYHOV

>,QVWDOOHGFDSDFLW\

TXDQWLW\RIZDWHU

GLVFKDUJHGIURP

:73@

7KHVWRUDJHFDSDFLW\

DYDLODEOHLQWKH

IRUPRIHOHYDWHG

VWRUDJHUHVHUYRLUVRU

JURXQGZDWHUVWRUDJH

UHVHUYRLUV

,QGLFDWHVW

KHH[WHQW

RIVWRUDJH

FDSDFLW\

DYDLODEOHWRVWRUH

WUHDWHGZDWHUDWDQ\

SRLQWLQWLPHEHIRUH

DFWXDOVXS

SO\WRWKH

GLVWULEXWLRQV\VWHPLV

XQGHUWDNHQ

JURXQGZDWHU

&RYHUDJHRI

GLVWULEXWLRQV\VWHP

>7RWDOQXPEHU

RIKRXVHKROGVZLWK

GLUHFWZDWHUVXSSO\

FRQQHFWLRQ7RWDO

QXPEHURIKRXVHKROGV

LQWKHVHUYLFH

DUHD@

7RWDOQXPEHURI

KRXVHKROGVLQWKH

VHUYLFHDUHDWKDW

DUHFRQQHFWHGWR

WKHZDWHUVXSSO\

QHWZRUNZLWKDGLUHFW

VHUYLFHFRQQHFWLRQDV

SHUFHQWDJHRIWRWDO

QXPEHURIKRXVHKROGV

LQWKDWVHUYLFHDUHD

,QGLFDWHVW

KHH[WHQW

RIKRXVHKROGVLQWKH

VHUYLFHDUH

DZKLFK

KDYHDGLUHFWDFFHVVWR

GULQNLQJZ

DWHUVXSSO\

DQGWKHUH

IRUHWKH

H[WHQWQRW

FRYHUHGDQG

ZKHUHVHUYLFHVQHHGWR

EHSURYLGH

G

2QO\WKHQXPEHURIKRXVHKROGVQRW

SURSHUWLHVLQWKHVHUYLFH

DUHDVKRXOG

EHFRQVLGHUHG

:RXOGLQFOXGHKRXVHKROGVWKDW

UHFHLYHVXSSO\DWRQHFRP

PRQ

SRLQWIURPZKHUHLWLVVWRUHGDQG

GLVWULEXWHG

&RPPRQSXEOLFVWDQGSRVWVQRWWR

EHFRQVLGHUHG

5DZZDWHU

WUDQVPLVVLRQORVV

OHYHO

/HVVWKDQ

>TXDQWLW\RI

ZDWHUUHFHLYHGDW

:73TXDQWLW\RIZDWHU

SXPSHGDWLQWDNH

ZRUNV@

7RWDOUDZZDWHUORVW

LQFRQYH\DQFHIURP

WKHVRXUFHRUPDLQ

EDODQFLQJUHVHUYRLU

WRWKHWUHDWPHQW

SODQWH[SUHVVHGDVD

SHUFHQWDJHRIWRWDO

EXONZDWHURIIWDNHDW

VRXUFH

,QGLFDWHVW

KHHIILFLHQF\

RIWKHFRQ

YH\DQFH

V\VWHPWR

HQVXUHWKDW

RQO\WHFKQ

LFDOORVV

OHYHOVGXH

WRIULFWLRQ

DUHSHUPLV

VLEOH

,QFDVHRIFRQYH\DQFHWKURXJKRSHQ

FKDQQHOVWKHORVVOHYHOZ

RXOGEH

KLJKHUGXHWRHYDSRUDWLR

Q

/RVVOHYHOH[FHHGLQJSHUP

LVVLEOH

VWDQGDUGVLQGLFDWHHLWKHU

FRUURGHG

SLSHOLQHVRUWKHIWRIUDZ

ZDWHU

7DEOHFRQWLQXHG

FRQWLQXHG

RQ

QH[WSDJH


39/224


,QGLFDWRU

8QLW

1RUP

)RUPXOD

'HILQLWLRQ

5DWLRQDOH

5HPDUNV

6HUYLFH


:DWHUWUHDWPHQWORVV

>TXDQWLW\RI

ZDWHUGLVFKDUJHGIURP

:73TXDQWLW\RIZDWHU

UHFHLYHGDW:73

@

7KHTXDQWXPRIZDWHU

WKDWLVORVWDWWKH

WLPHRIWUHDWPHQWRQ

DFFRXQWRIWHFKQLFDO

LVVXHV

,QGLFDWHVLIWKH

WHFKQRORJ\DQGWKH

HTXLSPHQWXVHGIRU

WUHDWPHQW

SURFHGXUH

DUHRSHUDW

LQJ

HIILFLHQWO\

DQGUHVXOWLQ

RQO\DFFHS

WDEOHOHYHOV

RIORVV

/RVVOHYHOVEH\RQGDFFHSWDEOHOLPLWV

LQGLFDWHHLWKHUREVROHWHH

TXLSPHQW

EHLQJXVHGRURSHUDWLRQD

OLQHIILFLHQF\

3XUHZDWHU

WUDQVPLVVLRQORVV

/HVVWKDQ

>TXDQWLW\RI

ZDWHUGLVFKDUJHG

IURP(65TXDQWLW\RI

ZDWHUGLVFKDUJHGIURP

:73@

7KHTXDQWXPRIZDWHU

ORVWGXULQJFRQYH\DQFH

IURPWKH:73WRWKH

VWRUDJHUHVHUYRLUV

,QGLFDWHVLIWKHSXUH

ZDWHUWUDQ

VPLVVLRQ

SLSHOLQHLV

FRUURGHGRU

KDVSRLQWV

ZKHUHWKHUH

DUHOHDNV

/RVVOHYHOVEH\RQGDFFHSWDEOHOLPLWV

LQGLFDWHHLWKHUFRUURGHGSLSHOLQHV

WKHIWRISXUHZDWHU

([WHQWRIPHWHUHG

VHUYLFHFRQQHFWLRQV

>1XPEHURI

PHWHUHGGLUHFWVHUYLFH

FRQQHFWLRQV

1XPEHURIPHWHUHG

SXEOLFVWDQGSRVWV

7RWDOQXPEHURIGLUHFW

VHUYLFHFRQQHFWLRQV

7RWDOQXPEHURISXEOLF

VWDQGSRVWV@

7RWDOQXPEHURI

IXQFWLRQDOPHWHUHG

ZDWHUFRQQHFWLRQV

H[SUHVVHGDVD

SHUFHQWDJHRIWRWDO

QXPEHURIZDWHU

VXSSO\FRQQHFWLRQV

3XEOLFVWDQGSRVW

FRQQHFWLRQVVKRXOG

DOVREHLQFOXGHG

)DFLOLWDWHV

LQPHDVXULQJ

WKHH[DFWTXDQWXPRI

ZDWHUFRQVXPHGDQG

WKHUHE\WK

DWZKLFK

FDQEHELOOHGDVSHU

FRQVXPSWLRQOHYHOV

2IWKHPHWHUVLQVWDOOHGLWLV

LPSRUWDQWWRFKHFNWKHH[WHQWWKDW

DUHIXOO\IXQFWLRQDODQGR

SHUDWLRQDO

$OOWKHLQVWDOOHGPHWHUVQ

HHGWREH

IXQFWLRQDO

1RQUHYHQXHZDWHU

>7RWDOZDWHU

SURGXFHGDQGSXW

LQWRWKHWUDQVPLVVLRQ

DQGGLVWULEXWLRQ

V\VWHP7RWDOZDWHU

VROG7RWDOZDWHU

SURGXFHGDQGSXW

LQWRWKHWUDQVPLVVLRQ

DQGGLVWULEXWLRQ

V\VWHP@

([WHQWRIZDWHU

SURGXFHGZKLFKGRHV

QRWHDUQWKH8/%

RUVWDWHDJHQF\DQ\

UHYHQXH

5HGXFWLRQ

LQQRQ

UHYHQXHZ

DWHUOHYHOVLV

YLWDOIRUWK

HILQDQFLDO

VXVWDLQDELOLW\RIWKH

8/%RUVWD

WHDJHQF\

2QO\WUHDWHGZDWHULQSXW

LQWRWKH

GLVWULEXWLRQV\VWHPWREH

LQFOXGHG

:DWHUVROGLPSOLHVDFWXDOYROXPHRI

ZDWHUVXSSOLHGWRFXVWRP

HUV

,QWKHDEVHQFHRIDIXQFWLRQDOO\

HIIHFWLYHPHWHULQJDOWHUQDWHPHWKRGV

RIPHDVXUHPHQWQHHGHG

7DEOHFRQWLQXHG

FRQWLQXHG

RQ

QH[WSDJH


40/224


,QGLFDWRU

8QLW

1RUP

)RUPXOD

'HILQLWLRQ

5DWLRQDOH

5HPDUNV

6HUYLFH


&RVWUHFRYHU\LQ

ZDWHUVXSSO\VHUYLFHV

>7RWDODQQXDO

RSHUDWLQJUHYHQXHV

7RWDODQQXDORSHUDWLQ

J

H[SHQVHV@

7RWDORSHUDWLQJ

UHYHQXHVH[SUHVVHGDV

SHUFHQWDJHRIWRWDO

RSHUDWLQJH[SHQVHV

LQFXUUHGLQWKH

FRUUHVSRQGLQJWLPH

SHULRG

)LQDQFLDOV

XVWDLQDELOLW\

LVFULWLFDO

3URYLGHVD

EDVLVIRU

WDULIIIL[DWLRQHQDEOHV

VHWWLQJWDU

JHWVIRU

UHYHQXHP

RELOL]DWLRQ

DQGFRVWF

RQWUROLQ

GHOLYHU\RI

ZDWHU

VXSSO\VHUYLFHV

2SHUDWLQJH[SHQVHLQFOXG

HVFKDUJHV

RQHOHFWULFLW\FKHPLFDOVVWDIIEXON

ZDWHUSXUFKDVHFRVWVHWF

5HYHQXHVPD\EHLQWKHIRUPRIWD[HV

FHVVVXUFKDUJHVXVHUFKD

UJHV

FRQQHFWLRQFKDUJHVVDOH

RIEXON

ZDWHUHWF

&ROOHFWLRQHIILFLHQF\

>&XUUHQWUHYHQXHV

FROOHFWHGLQWKHJLYHQ

\HDU7RWDORSHUDWLQJ

UHYHQXHVELOOHGGXULQJ

WKHJLYHQ\HDU@

(IILFLHQF\LQFROOHFWLRQ

LVWKHFXUUHQW\HDU

UHYHQXHVFROOHFWHG

H[SUHVVHGDVD

SHUFHQWDJHRIWKHWRWDO

RSHUDWLQJUHYHQXHV

IRUWKHFRUUHVSRQGLQJ

WLPHSHULRG

,QGLFDWHVW

KHH[WHQWRI

RSHUDWLRQDOHIILFLHQF\

SUHVHQWLQ

WKHV\VWHP

DQGPDNHVQRWHRIWKH

H[WHQWRIDUUHDUV

&ROOHFWLRQRIDUUHDUVWRE

HH[FOXGHG

&3+((2&HQWUDO3XEOLF+HDOWK

DQG(QYLURQPHQWDO(QJLQHHULQJ2UJDQLVDWLRQ

(65HOHYDWHGVWRUDJHUHVHUYRLUOSFGOLWHUVSHUFDSLWDSHUGD\0/'PLOOLRQOLWHUVSH

UGD\

8/%XUEDQORFDOERG\:73

ZDWHUWUHDWPHQWSODQW

7KHLQGLFDWRUVGLVFXVVHGLQ

7DEOHDUHWKHPRVWFULWLFDOSDUDPHWHUVIRUDVVHVVLQJWKHVWDWXVRIZDWH

UVXSSO\VHUYLFHVLQDFLW\RUWRZQ,QDGGLWLRQ

WRWKHVHLQGLFDWRUVLWLVLP

SRUWDQWWKDWWKH8/%RUVWDWHDJHQF\DOVRFRQVLGHURWKHULPSRUWDQWIDFWRUVLQWKHYDOXHFKDLQVXFKDVWKHDJ

HRIWKH

LQVWDOOHGHTXLSPHQWDQGWKHHIILFLHQF\RIRSHUDWLRQV$OVRWKH

HIILFLHQF\RIFRQVXPHUJULHYDQFHUHGUHVVQHHGVWREHPRQLWRUHGDQGWKHDGHTXDF\

RIVWDIIWRPDQDJHWKHH[LVWLQJFRQQHFWLRQVDVVHVVHG

7KHVDQLWDWLRQVHUYLFHVRIW

KH8/%RUVWDWHDJHQF\DOVRQHHGWR

EHDVVHVVHG.H\SDUDPHWHUVDUHSUHVHQWHGLQ7DEOH

7DEOHFRQWLQXHG


41/224


7DEOH

.H\3DUDPHWHUVIRU$VVHVVLQJWKH3HUIRUPDQFHRI6D

QLWDWLRQ6HUYLFHV

,QGLFDWRU

8QLW

1RUP

)RUPXOD

'HILQLWLRQ

5DWLRQDOH

5HPDUNV

6HUYLFH


&RYHUDJHRI

VDQLWDWLRQQHWZRUN

>7RWDOQXPEHURI

SURSHUWLHVZLWKGLUHFW

FRQQHFWLRQWRWKH

VDQLWDWLRQQHWZRUN

7RWDOQXPEHURI

SURSHUWLHVLQWKH

VHUYLFHDUHD@

'HQRWHVWKH

H[WHQWWRZKLFK

WKHXQGHUJURXQG

VDQLWDWLRQRU

VDQLWDWLRQFROOHFWLRQ

QHWZRUNKDVUHDFKHG

RXWWRLQGLYLGXDO

SURSHUWLHVDFURVVWKH

VHUYLFHDUHD

/DVWPLOHD

FFHVVWR

VDQLWDWLRQ

QHWZRUNVLV

NH\WRLPS

URYHPHQW

LQVHUYLFHOHYHOV

RIVDQLWDWLRQ

PDQDJHPHQW

7KHWRWDOQXPEHURISURSHUWLHVDV

DJDLQVWKRXVHKROGVDVUHFRUGHG

LQWKHPXQLFLSDOUHFRUGV

VKRXOGEH

DVVHVVHG

2QO\SURSHUWLHVZLWKDFFHVV

FRQQHFWLRQWRXQGHUJURX

QG

VDQLWDWLRQQHWZRUNVKRXOGEH

LQFOXGHG7KRVHWKDWFRQQHFWWKHLU

VDQLWDWLRQRXWOHWWRVWRUP

ZDWHU

GUDLQVRURSHQGUDLQDJHV\VWHPV

VKRXOGQRWEHFRQVLGHUHG

$GHTXDF\RI

VDQLWDWLRQWUHDWPHQW

FDSDFLW\

>7UHDWPHQWSODQW

FDSDFLW\7RWDOZDWHU

FRQVXPHG(VWLPDW

HG

ZDWHUXVHIURPRWKHU

VRXUFHV@

$GHTXDF\LVH[SUHVVHG

DVVHFRQGDU\WUHDWPHQW

LHUHPRYLQJ

R[\JHQGHPDQG

DVZHOODVVROLGV

QRUPDOO\ELRORJLFDO

FDSDFLW\DYDLODEOH

DVDSHUFHQWDJHRI

QRUPDWLYHZDVWHZDWHU

JHQHUDWLRQIRUWKH

VDPHWLPHSHULRG

,WZLOOKLJK

OLJKWWKH

DGHTXDF\RIDYDLODEOH

DQGRSHUD

WLRQDO

VDQLWDWLRQ

WUHDWPHQW

FDSDFLW\

7RLQFOXGHZDWHUVXSSOLHGWRWKH

GLVWULEXWLRQV\VWHPH[WUH

DWPHQW

SODQWDQGLQFOXGLQJSXUFKDVHGZDWHU

LIDQ\DQGZDWHUVXSSOLHGWKURXJK

DQ\GHFHQWUDOL]HGV\VWHP

&ROOHFWLRQHIILFLHQF\

RIVDQLWDWLRQQHWZRUN

>:DVWHZDWHU

FROOHFWHG7RWDOZDWH

U

SURGXFHG(VWLPDWH

G

ZDWHUXVHIURPRWKHU

VRXUFHV@

7KHTXDQWXPRI

ZDVWHZDWHUFROOHFWHG

DVDSHUFHQWDJHRI

QRUPDWLYHVDQLWDWLRQ

JHQHUDWLRQLQWKH

XUEDQORFDOERG\8/%

6LJQLILHVWKH

HIIHFWLYHQHVVRIWKH

QHWZRUNLQ

FDSWXULQJ

ZDVWHZDWHUDQG

FRQYH\LQJ

LWWRWKH

WUHDWPHQW

SODQWV

7RLQFOXGHZDWHUVXSSOLHGWRWKH

GLVWULEXWLRQV\VWHPH[WUH

DWPHQW

SODQWDQGLQFOXGLQJSXUFKDVHGZDWHU

LIDQ\DQGZDWHUVXSSOLHGWKURXJK

DQ\GHFHQWUDOL]HGV\VWHP

FRQWLQXHG

RQ

QH[WSDJH


42/224


,QGLFDWRU

8QLW

1RUP

)RUPXOD

'HILQLWLRQ

5DWLRQDOH

5HPDUNV

6HUYLFH


([WHQWRIUHXVH

DQGUHF\FOLQJRI

VDQLWDWLRQ

0LQLPXP

RI

>:DVWHZDWHU

UHF\FOHGRUUHXVHGDIWHU

DSSURSULDWHWUHDWPHQ

W

:DVWHZDWHUUHFHLYHG

DWWKHWUHDWPHQW

SODQWV@

3HUFHQWDJHRI

ZDVWHZDWHUUHFHLYHG

DWWKHWUHDWPHQW

SODQWWKDWLVUHF\FOHG

RUUHXVHGDIWHU

DSSURSULDWHWUHDWPHQW

IRUYDULRXVSXUSRVHV

)RUVXVWDLQDEOH

ZDWHUPDQ

DJHPHQW

LWLVGHVLUDE

OHWKDW

ZDVWHZDWHUVDQLWDWLRQLV

UHF\FOHGRU

UHXVHGDIWHU

DSSURSULDWHWUHDWPHQW

7RPD[LPL]

HWKHVDPH

LWLVLPSRUWDQWWKDWWKLV

LQGLFDWRULV

PHDVXUHG

DQGPRQLWRUHG

,QGLFDWRUVKRXOGEHUHSRUWHGDWWKH

FLW\RU8/%OHYHODVDZKR

OH

7KLVVKRXOGRQO\FRQVLGHUZDWHUWKDW

LVGLUHFWO\FRQYH\HGIRUUHF\FOLQJRU

UHXVHVXFKDVXVHLQJDUGHQVDQG

SDUNVRUIRULUULJDWLRQ

4XDOLW\RIVDQLWDWLRQ

WUHDWPHQW

>1XPEHURI

VDPSOHVWKDWSDVVWKH

VSHFLILHGVHFRQGDU\

WUHDWPHQWVWDQGDUGV

7RWDOQXPEHU

RIZDVWHZDWHU

VDPSOHVWHVWHGLQD

PRQWK@

([WHQWRIZDVWHZDWHU

VDPSOHVWKDWSDVVWKH

VSHFLILHGVHFRQGDU\

WUHDWPHQWVWDQGDUGV

,WLVLPSRUWDQWWKDW

WKHWUHDWHGZDWHU

WKDWLVGLVFKDUJHG

EDFNLQWRZDWHU

ERGLHVRU

XVHGIRU

RWKHUSXUS

RVHVVXFK

DVLUULJDWLR

QPHHWV

WKHHQYLURQPHQWDO

VWDQGDUGV

ODLGGRZQ

6DPSOLQJVKRXOGEHWDNHQDVSHU

JRRGLQGXVWU\SUDFWLFHVD

QGODLG

GRZQQRUPVE\HQYLURQP

HQWDO

DJHQFLHVVXFKDVSROOXWLRQFRQWURO

ERDUGVRIUHVSHFWLYHVWDWH

([WHQWRIFRVW

UHFRYHU\LQVDQLWDWLRQ

PDQDJHPHQW

>7RWDODQQXDO

RSHUDWLQJUHYHQXHV

7RWDODQQXDORSHUDWLQ

J

H[SHQVHV@

([WHQWRIFRVWUHFRYHU\

LVH[SUHVVHGDV

ZDVWHZDWHUUHYHQXHV

DVDSHUFHQWDJHRI

ZDVWHZDWHUH[SHQVHV

IRUWKHFRUUHVSRQGLQJ

WLPHSHULRG

)RUHQVXULQJILQDQFLDO

VXVWDLQDELOLW\LWLV

QHFHVVDU\WRHQVXUH

WKDWFRVWV

LQFXUUHGDUH

IXOO\UHFRYHUHG

$OORSHUDWLQJH[SHQVHVDQGUHYHQXHV

RIWKHUHYHQXHDFFRXQWR

QO\WREH

LQFOXGHGDQGLQFRPHVDQ

GH[SHQVHV

RIFDSLWDODFFRXQWWREHH[FOXGHG

(IILFLHQF\LQ

FROOHFWLRQRI

VDQLWDWLRQFKDUJHV

>&XUUHQWUHYHQXHV

FROOHFWHGLQWKHJLYHQ

\HDU7RWDORSHUDWLQJ

UHYHQXHVELOOHGGXULQJ

WKHJLYHQ\HDU@

(IILFLHQF\LQFROOHFWLRQ

LVGHILQHGDVFXUUHQW

\HDUUHYHQXHV

FROOHFWHGH[SUHVVHG

DVDSHUFHQWRIDJH

RIWKHWRWDORSHUDWLQJ

UHYHQXHVELOOHG

(IILFLHQWFROOHFWLRQRI

UHYHQXHVG

XHLQWKH

FXUUHQW\HDULVFULWLFDO

IRURYHUDOO

ILQDQFLDO

KHDOWKRIWKHXWLOLW\

&ROOHFWLRQRIDUUHDUVWRE

HH[FOXGHG

7DEOHFRQWLQXHG


43/224


7KHLQGLFDWRUVGLVFXVVHGLQ7DEOHDUHWKHPRVWFULWLFDOSDUDPHWHUVIRUDVVHVVLQJWKHVWDWXVRIDFLW\VVDQLWDWLRQVHUYLFH,QDGGLWLRQLWLVLPSRUWDQWWKDWWKH8/%RUVWDWHDJHQF\

FRQVLGHUVRWKHULPSRUWDQWIDFWRUVLQWKHYDOXHFKDLQVXFKDVWKHDJHRIWKHLQVWDOOHGHTXLSPHQWDQGLWVRSHUDWLRQDOHIILFLHQF\DQGWKHHIILFLHQF\RIWKHFRQVXPHUJULHYDQFHUHGUHVVSURFHVVQHHGVWREHPRQLWRUHG,QGLFDWRUVWKDWFDQHIIHFWLYHO\FDSWXUHWKHLPSDFWRQKHDOWKRIWKHFRQVXPHUVLQWKHVHUYLFHDUHDVXFKDVWKHLQFLGHQFHRIZDWHUERUQHGLVHDVHVPD\DOVREHLQFOXGHG7KHVHLQGLFDWRUVZRXOGSURYLGHDEDVHOLQHDJDLQVWZKLFKWRMXGJHWKHLPSDFWRILPSURYHGVDQLWDWLRQVHUYLFHVRQWKHKHDOWKRIWKHFRQVXPHUVLQWKHVHUYLFHDUHD

7KHDERYHPHQWLRQHGLQGLFDWRUVZRXOGIDFLOLWDWHLQDVVHVVLQJWKHVHUYLFHOHYHOVWDWXVRIWKHDVVHW,QDGGLWLRQWRWKHVHWKHTXDOLW\DQGVWDWXVRIWKHZDWHUVXSSO\DQGVDQLWDWLRQDVVHWVZRXOGEHUHIOHFWHGLQWKHZDWHUDXGLWOHDNGHWHFWLRQDXGLWDQGHQHUJ\DXGLWZKLFKDUH

DOVRWREHFDUULHGRXWDVSDUWRIWKHWHFKQLFDODVVHVVPHQW

+FGPVKECVKQPQH-G[+UUWGU

7KHGHWDLOHGDVVHVVPHQWXQGHUWDNHQZRXOGKHOSLGHQWLI\WKHPDMRULVVXHVIDFHGLQWKHZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHVLQWKHFLW\7KHVHPD\EHFDWHJRUL]HGDVWKRVHUHODWLQJWRWKHRSHUDWLRQDOKDQGOLQJRIWKHV\VWHPDQGWKRVHUHODWLQJWRWKHSK\VLFDOLQIUDVWUXFWXUH)LJXUH

7KH8/%RUVWDWHDJHQF\ZRXOGQHHGWRSUHSDUHDVHWRIPLWLJDWLRQPHDVXUHVRUUHPHGLDODFWLRQVWRDGGUHVVHDFKLVVXHILUVWIRFXVLQJRQDGGUHVVLQJWKHRSHUDWLRQDOLVVXHVWKDWUHTXLUHPLQLPDOOHYHOVRIFDSLWDOLQYHVWPHQWVDQG

WKHQDGGUHVVLQJWKHSK\VLFDOLQIUDVWUXFWXUHWKDWW\SLFDOO\UHTXLUHVPXFKJUHDWHUFDSLWDOLQYHVWPHQW7KHVHPHDVXUHVPD\WDNHWKHIRUPRILQIUDVWUXFWXUHGHYHORSPHQWSURMHFWVZKHUHDJDSKDVEHHQLGHQWLILHGRUVWHSVIRUUHYLVLRQRIWDULIIVWRLPSURYHFRVWUHFRYHU\

)LJXUH ,QGLFDWLYH/LVWRI,VVXHVLQWKH:DWHU6XSSO\DQG6DQLWDWLRQ6HUYLFHV

20RSHUDWLRQDQGPDLQWHQDQFH673VHZDJHWUHDWPHQWSODQW:73ZDWHUWUHDWPHQWSODQW

2XWSXWRINH\SDUDPHWHUV

/RZFRYHUDJH

3RRUFROOHFWLRQHIILFLHQF\

+LJK20FRVWV

/RZ20UHFRYHU\

3RRUJULHYDQFHUHGUHVVDO

&RUURGHGSLSHOLQHV

UHVXOWLQJLQKLJKOHYHOV

RIWUDQVPLVVLRQORVVHV

/RZHUWKDQUHTXLUHG

FDSDFLW\RIWKH:73

,QDGHTXDWHVWRUDJH

FDSDFLW\

$EVHQFHRIPHWHUV

/DFNRI673

2SHQVHZDJHGUDLQV

3UHSDUDWLRQRIPLWLJDWLRQPHDVXUHVWRDGGUHVVWKHLGHQWLILHGLVVXHV

2SHUDWLRQDOLVVXHV

3K\VLFDOLQIUDVWUXFWXUHLVVXHV


44/224


4GXKGYQH2TQLGEVUYKVJ#RRTQXGF

&GVCKNGF2TQLGEV4GRQTVU

7KHRXWSXWRIWKHDVVHVVPHQWSURFHVVZRXOGEHWKHNH\LQSXWIRUDQ\SURMHFWWKH8/%RUVWDWHDJHQF\SURSRVHVWRGHYHORSWRLPSURYHZDWHUVXSSO\DQGVDQLWDWLRQVHUYLFHV$VDQH[WVWHSWKH8/%QHHGVWRGHYHORSVKRUWPHGLXPDQGORQJWHUPSURMHFWVWKDWZRXOGHIIHFWLYHO\DGGUHVVWKHLVVXHVLGHQWLILHG7KH8/%RUVWDWHDJHQF\PD\GHYHORSGHWDLOHGSURMHFWUHSRUWV'35VZKLFKZRXOGOLVWDOOWKHFRPSRQHQWVWKDWQHHGWREHDGGUHVVHGLQWHUPVRIDXJPHQWDWLRQUHSODFHPHQWDQGUHKDELOLWDWLRQDQGWKHFRUUHVSRQGLQJLQYHVWPHQWUHTXLUHPHQW

7KH8/%QHHGVWRDGRSWDGLIIHUHQWDSSURDFKGHSHQGLQJRQZKHWKHUWKH'35KDVEHHQDSSURYHGRUZKHWKHULWKDVEHHQSUHSDUHGEXWKDV\HWWREHDSSURYHGDQGVDQFWLRQHGE\WKHFRQFHUQHGDXWKRULW\

)RUSURMHFWVZLWKDSSURYHG'35VDIXUWKHUDVVHVVPHQWRIWKHV\VWHPVKRXOGEHXQGHUWDNHQWRLGHQWLI\DQ\RWKHULPSURYHPHQWVWKDWDUHQHHGHGLQDGGLWLRQWRWKRVHOLVWHGLQWKHDSSURYHG'357KXVWKHH[LVWLQJ'35PD\EH

PRGLILHGWRLQFRUSRUDWHLQLWLDWLYHVZKLFKWKH8/%PLJKWFRQVLGHULPSRUWDQWWRHQVXUHWKDWDOOLVVXHVLGHQWLILHGLQWKHDVVHVVPHQWDUHLQFOXGHG$OOVXFKPRGLILFDWLRQVWRWKH'35VKRXOGEH

XQGHUWDNHQRQO\EHIRUHWKHSHULRGRISURMHFWWHQGHULQJ$OVRWKH8/%VKRXOGGHWHUPLQHZKHWKHUWKHDGGLWLRQDOFDSLWDOLQYHVWPHQWUHTXLUHGIRUWKHQHZZRUNVLGHQWLILHGFDQEHPHWZLWKLQWKHH[LVWLQJDSSURYHGSURMHFWFRVWRUZKHWKHUIXUWKHUJRYHUQPHQWDVVLVWDQFHLVQHHGHG,IDGGLWLRQDODVVLVWDQFHLVQHHGHGWRSXUVXHQHZO\LGHQWLILHGLQLWLDWLYHVWKH8/%PD\UHYHUWWRWKHSURMHFWVDQFWLRQLQJDXWKRULW\RIWKHFHQWUDORUVWDWHJRYHUQPHQWIRUIXUWKHULQYHVWPHQWVXSSRUW

)RUSURMHFWVZKHUHWKH'35KDVEHHQSUHSDUHG

EXWDZDLWVDSSURYDOXQGHUDQH[LVWLQJVFKHPHVXFKDVWKH8UEDQ,QIUDVWUXFWXUH'HYHORSPHQW6FKHPHIRU6PDOODQG0HGLXP7RZQVXQGHUWKH-DZDKDUODO1HKUX1DWLRQDO8UEDQ5HQHZDO0LVVLRQVWDWHVFKHPHDWKRURXJKUHYLHZRIWKHFRPSRQHQWVRIWKH'35QHHGVWREHXQGHUWDNHQ7KHUHYLHZPXVWDVVHVVDQGHVWDEOLVKWKHQHHGIRUWKHYDULRXVSURSRVDOVPDGHLQWKH'35DQGVKRXOGFULWLFDOO\HYDOXDWHWKHFRVWVFRQVLGHUHGIRUWKHYDULRXVDFWLYLWLHV7KH8/%VZRXOGQHHGWRLQFOXGHDQ\DGGLWLRQDOSURMHFWZKLFKLVIHOW

)LJXUH $VVHVVPHQWRI3URMHFW'HWDLOHG3URMHFW5HSRUWV

'35GHWDLOHGSURMHFWUHSRUW8/%XUEDQORFDOERG\

'35VDSSURYHG

5HYLHZRISURMHFW'35V

5HYLHZWRYHULI\LIDQ\

DGGLWLRQDOVHWRISURMHFWV

QHHGWREHLQFOXGHG

%HIRUHSURMHFWWHQGHULQJ

LQFOXGHSURMHFWVPHDVXUHVDVVHVVHGWREHFULWLFDO

8/%PD\UHYHUWWRSURMHFW

Documents

Ppp Water Ind Bagus Banget