InfraV-AK KhanWH

completed

The AK Khan Group intends to install community water systems (CWS) in The Republic of Bangladesh (“Bangladesh”) as a pilot by constructing and operating up to 50 CWS units (the “Pilot” or the “Project”). Success of the Pilot will lead to scaling up of the business model to several hundred units over the next 4-5 years. A new company called AK Khan WaterHealth Bangladesh Limited (the “Company”) will be incorporated in Bangladesh to offer the proposed services. The Company will be co-founded by AKK and WHI (both together referred to as the “Co-founders”), who will enter into a Shareholders Agreement and other appropriate agreements/arrangements, which will define their respective roles and responsibilities. IFC has been approached for a corporate investment in the Company to part finance the Pilot.The modular CWS will tap raw water from nearby river, ponds or underground resources. The water will be pumped from the pond/well to the CWS through buried HDPE pipes. The water treatment and disinfection will involve filtration through pressure sand filter, activated carbon filter, cartridge filters of 5 and 1 micron size, activated carbon cartridge filter, Ultra Violet (UV) irradiation (for disinfection) and reverse osmosis (RO) purification. Treated water will be stored in stainless steel tanks and dispensed through a tap manifold. Each CWS will consist of equipment assets supplied by the Company, which it will procure from WHIIN. For the Pilot, UV irradiation will be combined with Reverse Osmosis (RO) solution depending on site specific requirements and raw water properties at different locations in Bangladesh. The Company will, depending on the projected demand for a CWS, typically install either 65 kiloliters per day capacity (treated water) or 21 kiloliters per day capacity equipments. These assets will be Company owned, operated and maintained (O&M) to provide potable water to the community. The Company also proposes to deploy light commercial vehicles/vans for delivery of potable water to villages within a radius of 5 to 7 km from each CWS. Typically, the land (typically either about 900 square feet or 1350 square feet) will be purchased or leased by the Company on a willing seller-willing buyer basis. The Company shall place orders for the supply of all materials and equipment required for the first fifty (50) CWS on WHIIN. Further, while the construction of each CWS will be undertaken by the Company, as per the proposed arrangements between the Co-founders (AKK and WHI), WHI will be responsible for ensuring appropriate O&M of each CWS including: deployment of senior WHIIN technical staff for supervision/oversight; for providing technical skills and training to operators; providing maintenance support for equipment; ensuring adherence to quality system; and assurance on product/water quality. While the Company will employ the operators, delivery vehicle/van drivers and other O&M staff, WHI will be actively involved in the selection process. These functions will eventually be transferred to local personnel in accordance with Board of Investment regulations, limiting the extended long term employment of expatriates.