WaterHealth International, Inc. (WaterHealth Ghana) Presentation at the AQUAYA Workshop in Nairobi Kenya 26 th June 2009
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1 WaterHealth International, Inc. (WaterHealth Ghana) Presentation at the AQUAYA Workshop in Nairobi Kenya 26 th June
2 GLOBAL CRISIS Access to clean, safe water is one of the world s most urgent crisis. About a billion people lack access to potable water globally Half of the world s hospital beds are occupied by patients suffering from waterborne diseases Millions of children annually are mentally and physically stunted due to waterborne diseases 1.8 million people die every year from diarrhoeal,90% are children The billions of dollars spent annually on water projects have not gained much ground against the size of the global population without access to potable water 7/1/09 2
3 Leading the Blue Revolution Established to provide water to the most remote, low income, rural and peri urban communities worldwide. US based private/commercial org founded by Dr Tralance Addy (Ghanaian) Subsidiaries in India/Philipines/Ghana Installed over 700 products globally UV waterworks proprietary product to WHI 7/1/09 3
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8 Benefits of safe water Improving the health of the community Generating economic benefits Improving life at all ages 7/1/09 8
9 Scope of Opportunity/Need $400 billion global water industry, yet billions of people remain without access to potable water 1. The underserved / unserved rural opportunity: India: 800 million rural pop: ~650K villages China: 740 million rural pop: ~600K villages Africa: 600 million rural pop: ~500K villages ROW (Excl. NA / Europe): 1 billion rural pop: >750K villages estimated 2. Urban and peri-urban market opportunities WHI is uniquely positioned to address a critical human/market need
10 The Problem Approx. 2 million deaths per year due to waterborne diarrheal diseases Stunted development of 60 million children annually Large infrastructure central systems not economically viable in low-density (rural) areas Conventional decentralized technologies unsustainable in most underserved environments Philanthropic/NGO efforts helpful but limited in scale and sustainability Limited private sector innovation targeting underserved
11 Population Distribution of Drinking Water Source in Ghana Population Distribution of drinking water source Percentages Pipe borne Water Bore holes Protected Wells Sachet Water Bottled Water Type of Water 7/1/09 11
12 Improved Water Supply Protected Dug well Protected spring Borehole Small town pipe system Rain water harvesting 7/1/09 12
13 The WaterHealth Solution Breakthrough technology platform: UVWaterworks TM Enables lowest cost water disinfection at scale Sustainable in challenging environments Innovative business models Decentralized approach End-to-end: total systems offering Purchase financing: access to private capital User fees Focus on health and affordability Partnerships with NGOs and government Scale
14 WATERHEALTH CENTRE 7/1/09 14
15 The WHI End-to-End Engagement Source water selection and management Construction of aesthetic facility-community gathering centre Construction and installation of water purification equipment Management and maintenance of WaterHealth Centre operations Community mobilization and health and hygiene education Purchase financing through commercial institutions Technical and customer services Outcomes assessment and monitoring
16 Targeted Impact Unprecedented reach to people with greatest needs Major reduction of waterborne diseases Superior financial, social and environmental returns
17 Amasaman WHC 7/1/09 17
18 Back of the WHC 7/1/09 18
19 Media/Micron & UV units 7/1/09 19
20 Overhead tanks with treated water 7/1/09 20
21 WHC Containers 7/1/09 21
22 UV Waterworks - The Breakthrough Platform High efficacy 3x WHO UV dose requirements High throughput >5,500 gal/day Germicidal UV lamp Polished reflector Biologically contaminated water enters Low operating costs - < $2 per person/yr Low energy needs 60 watt bulb Disinfected water out Contoured flow channels Low maintenance Clean process no toxic waste or by-products; no water waste Robust and versatile indefinite life
23 Typical System Configuration
24 Current Product Offering WaterHealth Centres Community-owned micro-utility User fees pay for operations, maintenance, financing Collected or delivered water Aesthetic facility for community gatherings/programs Two models currently deployed, differentiated by volume Water Stores (urban/peri-urban packaged water) Retail water sales Franchise model Over 600 UV Waterworks installations worldwide
25 Investment Cost Advantage WHO-quality potable water at lower investment per capita than even borewells Source: WHO/UNICEF Global Water Supply and Sanitation Assessment 2000 Report, average international per capita investment costs Based on $ 55 serving 3,000 people with Liters/person/day
26 POTABLE WATER COMPARISON IN GHANA Cost in Ghana Cedis Bottled Water Packaged Water(Satchet water) Water Health Water Bore Hole Water Raw Water Source Type of Water 7/1/09 26
27 WaterHealth Revenue Model 1. Direct WHC sales (assessment/equipment / facility/support) Community provides land and access to water Community makes cash down payment of 10% and above Bank finances remainder-arranged through WHI 2. Maintenance service contracts Mandatory service contract for 8-10 years (loan term) Service charges paid to WHI from user fees Sale of service contracts after loan term 3. Management fees Share of net user fee revenues if system financed Contracted services if system purchased outright Customers have only one-time payment obligation throughout facility life
28 Major Areas/Issues of Initial Concern Ability and willingness to pay Community acceptance/political issues Adoption and usage rate growth Project financing Impact of free offerings from NGOs
29 Learnings/Validation Enthusiastic response and willingness to pay Community ownership of attractive facility is a major plus and mitigates political concerns Price points have been received as lower than expected Reputable supply chain partnerships established Interest from institutions in supporting the facility through funding Many NGOs have indicated strong interest in partnering with WHIN
30 WHI - Summary of Achievements Rapid growth installations/people served 2 sites in 2005 >40 new sites in 2006 >140 new sites in 2007 >300 new sites in 2008 Currently reaching more than 1 million people Increasing availability of customer financing SafeWater Network have been the major funders of 5 out of 6 of the WaterHealth Centres in Ghana.
31 Market Recognition Business 2.0 : Saving the planet has suddenly become good business (January, 07) Toshiba Green Innovation Award (May, 07) One of ten to watch in Clean Tech Revolution (June, 07) Wall Street Journal Behind one Company s Effort to Tap into India s Water Market (August, 2007)
32 Competitive Position Only company (commercial) in space with primary focus on underserved / rural populations End-to-end systems approach is unique and demanding WHI is technology agnostic pursuit of innovation through technology partnerships / acquisition Establishment of rural channels for sales and service infrastructure will be major advantage Asset financing will enable unprecedented scale and market reach Strong and experienced leadership team
33 Summary: WATERHEALTH SOLUTION Provides Quality Water Affordable Financial/Economic gains Lowest Average per capita installation cost comparatively Scale Sustainable Community Ownership 7/1/09 33
34 THANKS END OF PRESENTATION 7/1/09 34
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