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An invitation to participate
The Water Access™ Joint Venture>> Provides safe drinking water and micro-business
opportunities to rural communities in developing countries worldwide.
>> Delivers financial returns, environmental sustainability and social transformation with limited reliance on Municipal/Government infrastructure or grid power.
>> Investment opportunities from $2 million - $40 million with 5-10X returns over 5 years
© 2011 Access BoP, LLC. February 2011
Safe drinking water for the rural poorIntroduction884 million people worldwide live without access to safe drinking water and 170 million people die each year as a result of contaminated water 1.
Rural consumers pay as much as 1,000 times urban tap water prices for bottled municipal water that is unsafe, and no part of revenues generated ever reaches the rural community.
With no access to piped water, rural consumers are often forced to resort to bottled water, which is unaffordable and unsafe, with the millions of discarded bottles creating further health hazards.
The solution of drilling individual wells in each village is not financially sustainable as a private enterprise and is entirely dependent upon the quality and quantity of the water table. The recent arsenic crisis in Bangladesh points to the shortcomings of this strategy.
The traditional water treatment modelTraditional (Reverse Osmosis) filtration and PET bottling is wrong for rural BoP2 markets:>> High power consumption: The very high pressure required to force untreated water through RO
membranes consumes enormous amounts of power.>> High waste factor: RO systems waste up to 70% of source water by relying on filtration, which
separates contaminants rather than breaking them down.>> Not sustainable: This process also produces up to 5 kg of concentrated toxic sludge for every liter
of clean water, and this waste is typically discharged straight back into the source water. >> Ineffective treatment: RO filtration inadequately addresses pharmaceutical, hydrocarbon and
metalloid (arsenic, mercury) contamination.>> High operating costs: RO requires expert maintenance and regular replacement of filters.
An innovative approachThe Water Access™ plan addresses these shortfalls, delivering safer, more affordable water while creating significant economic opportunities for local enterprise and the rural poor: Pioneering green technology breakthroughs and inclusive micro franchising strategies ensure:>> Sustainable delivery of safe, affordable water to the rural poor: Green water purification plants
will be established within the rural communities themselves, and no PET bottles will be sold. >> Inclusion of local enterprises: Local enterprises will be enrolled as capital partners in profitable,
inclusive and environmentally sustainable joint ventures.>> Stimulation of rural economies: The plan leverages the strengths of, and rewards to the rural
poor, including them as microfranchise holders, resellers and distributors, recyclers and biofuel producers as well as consumers and employees.
1 Source: UNICEF / WHO Joint Monitoring Programme (JMP) report, 20092 BoP = the 4 billion people at the base of the economic pyramid, who earn between $360 and $3,000 per year, and who collectively represent a $5 trillion market. The global BoP market for drinking water may exceed $75 Billion
© 2011 Access BoP, LLC. All rights reserved February 2011
The Water Access™ Joint Venture
Page 2
An innovative solution and an invitation to participateWater Access™ is a joint venture between Access BoP, a consulting firm specializing in developing country ventures and rural micro franchising and Water Safe Solutions Delaware, Inc., a pioneer in low-power, high-efficiency nanotech water purification. Water Safe has patent pending, water production efficient, sustainable, low-pressure purification solution, using multi-filtration, sterilization and nano technology, in contrast to traditional reverse osmosis (RO) or chlorination solutions.
Water Access™ features: sustainable, affordable water purification and a hub for micro-industry >> Low energy consumption: Low-pressure system can be self-powered, via hybrid solar / biogas.>> Low waste factor: Non-toxic sludge can be recycled into low cost construction bricks.>> Sustainable: minimal waste is rendered inert and safe; 5-gallon containers are refillable and
biodegradable sachets may be used in place of recyclable PPT sachets.>> Effective: Renders metals (including arsenic) hydrocarbons, pharmaceuticals, parasitic, bacterial
and viral contaminants inert.>> Low operating costs: User-friendly system requires minimal technical skills, and, unlike filters,
which clog or membranes, which are subject to biofilm buildup, purification media requires minimal replacement.
>> Microfranchise networks: Reseller networks and microfranchises for distribution, biomass collection and recycling replace traditional supply chain, sales and distribution channels. This expands rural reach virally and slashes overheads.
© 2011 Access BoP, LLC. All rights reserved February 2011
The Water Access™ Joint Venture
Water Access™ rural water purification plant with supporting
microfranchise networks
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Pioneering sustainable purification technologiesThe Water Safe Purification Process
1. Physical Filtration>> Stratified media pre-filtering
removes turbidity - suspended solids and TDS (Totally Dissolved Solids).
>> Back washing with ozone renders sludge inert.
5. UV Sterilization>> Redundant, post-ozonation process.>> Insures destruction of biological
contaminants. Also eliminates any excess ozone in the output water.
2. Ozonation >> Ozone chemically disrupts biological
contaminants faster and more efficiently than chlorine.
>> Oxidation of metallic particles at this stage eases removal by the next filter.
6. Nanotech Purification>> Nano media forms a covalent bond with
contaminants of large molecules, rendering them inert.
>> Ultra-high surface area = efficiency.>> Effective against hydrocarbons, metals,
metalloids (arsenic) and all biologicals.
3. Post-Ozone Filtration>> Removal of dead bacterial cells.>> Removal of oxidized metals.
7. Carbon Block>> Per US EPA regulations, will reduce
any remaining particles to 1 micron.
© 2011 Access BoP, LLC. All rights reserved February 2011
The Water Access™ Joint Venture
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4. Granular Activated Carbon Filtration
>> Volatile Organic Compounds (VOC’s), metals (including mercury) removed.
>> Odor removed, taste improved.
8. Nanotech Plug-in (Specialized) Purification
>> Specific contaminants can be targeted.>> Examples are, arsenic,
pharmaceuticals, radioactive particles.
Water Safe™ CS-150 and CS-120 purification units: the core of the Water Access™ solution
© 2011 Access BoP, LLC. All rights reserved February 2011
The Water Access™ Joint Venture
Page 5
Microfranchising: leveraging the strengths of the poorIntroductionFranchising is far and away the most successful business network strategy in the world. Microfranchising is a tool that attempts to bring the benefits of franchising to developing country markets, in such a way that the very poor can participate. In countries as diverse as Bangladesh and Brazil, in China and in Columbia, case studies have shown the remarkable success of the “business in a box” approach to microfranchising, where start up costs are supported by vendor, MFI or aid-based financing and little or no expertise is required to get up and running. To review microfranchising and inclusive business models, go to www.accessbop.com
Benefits to investorsThe benefits of introducing economic opportunity to rural BoP markets are obvious, but for the investor the benefits to the bottom line are also compelling:>>: Rapid penetration of rural territories by tapping into the boundless energy of poor entrepreneurs and their deep connections to local consumers, new markets can be expanded into virally, very, very rapidly. >> Reduced costs and risks: franchisees bear the costs of one-on-one marketing, credit management and micro-transaction processing. Thousands of sales, distribution, customer service and management jobs can be outsourced profitably, with dramatically reduced management overhead.>> Increased consumerism: Micro franchise holders and their employees spend their incomes locally, driving up local spending power and creating generations of empowered and loyal customer advocates.
The Water Access™ franchisesDistribution franchise: biodiesel trucks, independently owned (with support from patient capital loans via MFI partners) can replace enterprise owned fleets. Individual villages can maintain their own truck, picking up daily supplies direct from the plant. Village stores, markets and local agribusiness can be serviced without infrastructure.
Reseller networks: innovative, low-cost systems can be deployed, such water carts (several 5 gallon jugs with hand pumps, in bicycle wheeled wagons), communal bladders with multiple spigot tap stands, market water kiosks and roving water vendors selling 500 ml sachets and market water stalls.
Recycling franchises: competitors’ discarded PET bottles and empty sachets (where biodegradable sachets are not used) can be collected to feed the inexpensive resin-flake recycling plant that feeds 5 gallon blow molding and sachet extrusion systems.
Biomass collection: compost, carboniferous material (rice & corn husks, etc.) and oily plants, such as jatropha and coconut can be collected to feed two plants; ultrasound transesterification for biodiesel and chemical bioreactors for biogas. Excess biofuel can be on-sold to local industry.
River brick franchise: inert waste sludge from purification process can be manually pressed, dried and baked (with fiber additives) into very low-cost, durable, waterproof construction bricks.
© 2011 Access BoP, LLC. All rights reserved February 2011
The Water Access™ Joint Venture
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The EconomicsRequirements 100,000 L/ day plant 3.5 million L/day plantFlat land near surface water, bore or other water source
1 acre 6 acres
Power supply 50 KW solar / biodiesel backup 3 MW solar / biogas / biodiesel
Capital investment Approximately $2 million Approximately $40 million
Cost of goods sold $2.2 million (max output) $45 million (at max output)
ReturnsTotal water purified 130,000 L / day (30% used in
rinsing and washing processes)5 million L / day (30% used in rinsing and washing processes)
Total water packaged 100,000 L/ day 3.5 million L / day
Cost per liter packaged Around 5 cents (depending upon packaging/delivery system)
Between 2 and 3 cents (depending upon packaging/delivery system)
Price per liter to consumer, packaged
Between 7 and 10 cents per liter (responsive to local market)
Between 5 and 7 cents per liter (responsive local to market)
Revenues (at max output) $3 million per year $63 - $88 million per year
EBITDA (at max output) $2 million per year $18 - $43 million per year
Break even (at max output) Year 5 (5X ROI) Year 3 (up to 10X ROI)
Social ImpactConsumers served 30,000 (at 3 liters drinking water
per person/day)1 million (at 3 liters drinking water per person/day)
Franchisees supported 1,500 (approximate number for distributions, energy production and general operations)
25,000 (approximate number for distributions, energy production and general operations)
Revenues distributed locally $300,000 per year (approximate, dependant upon local economic conditions)
$10 - $15 million per year (approximate, dependant upon local economic conditions)
Area of impact 50 villages or 15 square miles 1,500 villages or 500 square miles
© 2011 Access BoP, LLC. All rights reserved February 2011
The Water Access™ Joint Venture
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Seeking partners for pivotal rolesThe success of the Water Access™ JV hinges on identifying the correct local enterprise or development agency partners with strong ties to developing country rural markets and robust capital assets. Core JV partners and all vendors have been engaged. Our patent-pending technology is available for demonstration in Washington D.C. and further engagement is now being sought from:
Local Enterprise Partners:>> Capital Investment (either debt or equity)>> Management Pool (existing management teams and employees and new hires)>> Local knowledge and ties to rural communities and markets
Regional Development Banks:>> Debt or equity funding>> Product subsidy support >> Microfinance>> Networking support
Donor Country Aid Agencies:>> Debt or equity funding>> Direct Program sponsorship
UN Agencies, Programmes and Funds:>> Global Facilitation in identifying and approaching foreign aid agencies, global development
community partners and regional development banks.>> Local Facilitation among key actors in BoP communities, local industry and local government.
NGO’s and Private Philanthropic Organizations >> Microfinance and Microfranchising support>> Sponsorship of Branded Targeted Humanitarian Projects
Local Rural Bottom of the Pyramid (BoP) Communities:>> Community advocates>> Franchise holders and franchise employees
To pursue a conversation for opportunity and receive due diligence materials, contact:Doug Lockyer, Founder & CEOAccess BoP, LLC.
tel: +1 (917) 922–4309fax: +1 (212) 679–0058
email: [email protected]: http://www.accessbop.com
Karen Avakian, Founder & CEOWater Safe Solutions, Delaware, Inc.
tel: +1 (646) 435–5684fax: +1 (212) 808–3020
email: [email protected]: http://watersafesolutions.com
© 2011 Access BoP, LLC. All rights reserved February 2011
The Water Access™ Joint Venture
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