CAPITAL.MY

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Brazil Gold Mine Project

We have a Gold Mine Project in Brazil that has 5 Billion Dollars of In Ground Assets ( Gold )
We are offering a JV with the BG provider :
The provider issue the BG for 3years and as soon as we get the financing from the Bank using the BG we will pay for all the expenses and leasing fees
At the end of 3years we will pay back the Bank and Release the BG
The Provider will have the In Ground Assets as Collateral for 3years plus 30% equity on the Gold Mining Project

Executive Summary

xxx Mining Resources, Inc (The Company) is seeking an investment of US$300m to fully develop the Cavala Greek Gold Mine project site. The site comprises 8,800 acres (3,562.5 ha) which is located in the right edge of the Iririacu River, in the municipal of Luis Domingues, northwest Maranhao State, Brazil. Its geographic coordinates are 01 30.00’ S, 46 00.00’ W. The city of Sao Luis Domingues is 20 km away, while the nearest international airport and shipping port is 350 km by sealed road, from the mine site.

Brazil is an industrialized country of ~180 million people. A top 10 economy with exceptional infrastructure. The transport economy in the major centers such as Sao Paulo (or other major center) is not dissimilar to North America – paved two-lane, four-lane, and six-lane roadways with overpasses. It has a diversified economy / industry with abundant cheap power; 95% of it hydroelectric. It has an established mining culture. The Brazilian economy largely tailors itself to mining which accounts for about 5% of GDP. The value added (mining related) collateral businesses pushed the figure to ~18% of GDP.

The cost basis for much of the equipment (locally manufactured), power and labour is inexpensive relative to other mining economies like Australia. Brazil is an exceptional platform from a mining industry and business viewpoint. Their mining industry / culture has been active for hundreds of years. There are a number of American Gold Mining companies operating in Brazil including Amex listed minnow Yamana; the worlds’ largest producers are Barrack (South Africa) and Newmont Mining (Australia).

Mine Potential: Cavala Creek mine was searched by our Team in the period of July/2006 through December/2006, the drill was the principal method of investigation, and was used the Banka Drill
The studies of corrections of the Banka Drill nominal values, in the 81 executed holes had disclosed maximum values of up to 8.18g/m3 of gold; on the other hand, the maximum content inside the gravel was 14.21g/m3. Although the average depth of the 81 holes is 2.82 meter and the average of the 6 holes, random in 8,800 acres, done manually has reached value of 2.62 meter of depth; we will use only one value below of these, for consideration of the reserve.

The gold met in the alluvium, elluvium and colluvium is secondary, that with the continuation studies and the gold extract act, there is a big opportunity of finding the primary gold location that will increase the gold reserve hundred times. We know that the particles of elluvium and colluvium are in the same place or nearness of the rock source. The feasibility operating plan assumes a large alluvial gold mine containing proven and probable reserves of approximately 3.5 million ounces of gold. Complying with the rules of the Brazil’s Code of Mining, the Company, intends to continue its research to fully determine the extent of known reserves and to properly allow the Company to choose the correct methodology for the extraction of the auriferous deposits in the area. The company has obtained the necessary permits to undertake this project ..see Final Research Report.

Management: The site General manager will be xxx. The company plans to hire an experienced Mining Engineer with at least ten years experience plus Geologists (3) and Lab Technicians (4). Employment will peak at more than 600 operating personnel. On-Site accommodation is planned for staff and employees.

Use of Funds: The initial cost is estimated to be US$ 300 million; the estimated time to start up the project is 6 Months. The Funds will be used for the following:
1. Projects: Environmental Project, and Mine Site Project
2. Equipment: Excavator, Loader, Truck, Pumps, Generator, Tolls, Drill
3. Installations: Warehouses, Lab, Trailers, Office
4. Management: Geologists, Lab Technicians, General Manager, Accountant
5. Employees: Drivers, Machine Operators, Mechanics, Labor, Security

FINANCIAL PROJECTIONS
2011 2012 2013 2014 2015
Revenues $251,250,000 $282,500,000 $303,750,000 $425,000,000 $ 446,250,000
Costs $93,750,000 $120,500,000 $134,000,000 $187,500,000 $202,000,000
Gross Profit $121,500,000 $162,000,000 $169,750,000 $237,500,000 $244,250,000

Investment: The company is seeking a $300MM loan with the collateral backed by the mineral value of the mine. Term is one year with rollover option

Exit Strategy: The company expects to seek a US public listing of the mine within three years

Humanitarian Aspects Of The Project: The Gold Mine site is located 20miles from the City of Sao Dominges, It is a small city with 8,000 residentes, and the city Mayor will donate an area for us to build 200 house for the employes, and also a school (first and second grade) and a small hospital with 70 beds,and We are going to employe 600 people direct, and more 400 indirect ,totaling 1,000 people, All this will bring a lot prosperity to the city, and also for all small Districts around the mine site

Company Expansion: We have more mines to be explored ,like a 4,000 acres Diamond Mine ,and 3,500 acres Copper Mine , ans 2,000acres Emerald Mine, The Research Work on thoses mines will start as soon as we start the Gold Mine Project.

enquiry@capital.com.my

Hong Kong Retail Shops Investment Project

Funds needed within 1 yr. – HKD20,000,000 (by the end of 2012)
Funds needed from 2 – 5 yrs. HKD40,000,000

Funds will be used to finance, together with mortgage loans, the purchase of prime retail shops mainly in HK, and secondly shops in Mainland China.

Required yields between 6 – 8 % per annum, excluding asset appreciation (currently only 2.5% !!)
We are looking for 80-90% injection, i.e. with other investors taking up 80-90% ownership

Our task is to perform site visit, identify opportunities, negotiate with owners and obtain bank loans. Target purchases will be presented for approval before placing deposits. A HK Co. is to be incorporated by a recognised audit firm, which would deal with secretarial, accounting, auditing and taxation of the company each year.

A mutually approved firm of solicitors to be appointed to handle all S&Ps.
Bank accounts be controlled by joint signatories and monitored by internet banking.
A board of directors to be consisted of 3-5 directors.

Why retail shops?

Retail shops investing are quite different from that of residential and offices in several ways

Each is unique and are in limited supply
Their prices vary tremendously with the state of economy and government’s policies. i.e. a shop in Causeway bay which was asking for HKD70M in 1997 was asking for HKD9.2M in 1999, and was recently sold for HKD94M.
one needs an in-depth knowledge of the area of search, often right down to the part of the street the shop is located

The risk is the market is not always 100% transparent; this gives rise to rumours, questionable lease agreements, the reliability of the agents. Opportunities, hence, exist for exactly the same reasons.
The retail shop market is dominated by a number of the richest groups in HK.
Retail shops market in the Mainland is still a young market, but which is a more complicated one, with ownership being an important issue. As always, it is not advised to venture this market with a large investment outlay initially. But one cannot ignore this market completely.

Why us?

We have done some transactions in our name during the past 15 years. Below are some examples.
– Shop in Wanchai bought for HK$5M in 2003 sold for HK$13M in 2008
– Shop in Wanchai Hennessy Rd bought for HK$7M in 1995 sold for HK$16M in 2008
– Shop in Kowloon City bought for HK$5M in 1992 and sold for HK$19M in 2008
– Shop in Hong Kong East bought for HK$5M in 1989 valued at HK$50M now
– Shop in Kowloon City bought for HK$5M in 1991 valued at HK$26M now

And these are not the most prime located retail shops. We need extra capital injection for acquiring more prime retail shops. We are bringing in new investors now as the game has changed somehow.

Why not buy now?

– Too risky to buy now.
– Yield at prime areas down to a petty 2%
– Rents in absolute terms seem to have hit ceilings, as some tenants (even brand tenants) are struggling to make ends meet, partly due to inflation and minimum wages.
– Therefore, we are using this period of time to gather our buying power and wait for opportunities in the next 2 to 3 years.

Dominican Republic Golf, Marina & Resort Project

EXECUTIVE SUMMARY:

PUNTA ASIA will be a resort community aimed at attracting a very select clientele seen in world-renowned locations. Featuring stunning architecture, pedestrian villages created by the most talented designers, and offering unique commercial and residential features, Punta Asia is designed to become the ultimate Caribbean destination resort. It will be a true multiuse resort destination.

The development will cover an area of approximately 60,000 acres that includes 12.5 miles (21.8 kilometers) of coast line, approximately 2.8 kilometer of which is an exquisite natural beach. From the Asian-style Harbor Village to the colorful Fishermen’s Village, a network of pedestrian promenades around the Bay and a small funicular, will afford access to the Vista Village that will rise above the harbor. The uniqueness of PUNTA ASIA lies in part in its marvelous Bay Peninsulas and mangroves with their luxurious marina residences. Punta Asia will have over 10,000 real estate units ranging from condominiums to estates. Additionally, two magnificent ocean beaches will host attractive beach clubs, restaurants and four larger hotels with their luxury boutiques. Three major Signature golf courses will offer an attractive diversity to players.

In the middle of the Bay, the Boca de Yuma River will allow cruise ships to access the PUNTA ASIA Harbor. This 1.7 mile long River will also provide access to the International Gateway, next to a private airstrip with adjacent jet hangars. Here, state-of-the-art shipyards, dry docking facilities and several dozen super-yacht hangars will be situated, constituting the largest integrated facility on any Caribbean island between Fort Lauderdale and Caracas.

The project is to be developed over seven phases, each of which will include all of the necessary ingredients to reflect the nature of what the project will be:

. . A leading international yachting destination.
. . A Caribbean golf resort
. . A pedestrian oriented resort, featuring seven villages.
. . An international community for semi-permanent and permanent residents.

Market efforts, directed primarily to the upper-middle and upper classes, will be designed to maintain a steady demand throughout its lifetime. In order to ensure success, the overall concept and individual products are conceived to represent a one-of-a-kind opportunity, provoking a sense of urgency to the investor-purchaser

A key ingredient of the project’s success is the quality of its development team. Composed of an excellent mix of local and international professionals with proven success in their respective fields, they are led by Mr. Kharlos Paredes and the engineer Jim Orlando President of Dooley Mack Contractors as Project Developers.

enquiry@capital.com.my

China Finance Company Investment Project

Funds needed within 1 yr. – RMB10,000,000 (equil.HK$12,000,000 by the start of 2012)
Funds needed from 2 – 5 yrs. RMB20,000,000 (or depending on performance )
Funds will be used to provide small unsecured personal or corporate loans to individuals and private Chinese enterprises in Shanghai for start. Average loan sizes range from RMB50,000 to 100,000.
Required returns between 20 – 30 % per annum. (being the borrowing rates)
We are looking for 80-90% injection, with other investors taking up 80-90% ownership.
Our task is to appoint sales/marketing, credit approval, compliance, collection staff.
A China enterprise is to be incorporated by a recognized big audit firm or an entrusted law firm in Shanghai, obtain license, opening of bank accounts in Shanghai, would also deal with annual secretarial, accounting, auditing and taxation of the company each year.
A mutually approved firm of solicitors to be appointed to handle disputes
Bank accounts be controlled by joint signatories and monitored by internet banking.
A board of directors to be consisted of 3-5 directors.

Why start now?

China’s middle class size is set to increase steadily for the next 20 years. They are just like HK 20 years ago, and HK finance companies now have become so big and successful.
This is still a relatively young market.
We foresee, with the squeezing of credit in China by slowly withdrawing the massive QE back in 2008/09 in order to curb inflation, people / companies are going to need short-term finances in the coming years.
A co-founder (an ibanker) of a famous HK money lender sold his business a few years ago to a very large global bank, has secretly started the same formula in China half a year ago.
Why us?

We are well connected in Shanghai, most of our relatives and friends are in Shanghai and the surrounding areas, and are in friendly terms with the government officials. This also makes the collection process much easier.
We are currently partly involved in a money lending business in HK
The application of the license requires some of the shares to be held by people who reside in Shanghai, and it does help having trustworthy partners.
enquiry@capital.com.my

China Amusement Park IT Outsourcing, seek pre-IPO funding

xxx is the top solution provider in China & Malaysia for Amusement-park Information Management, providing Ticketing & Admission Control solutions

Funding Proposal – RM3MIL

Investment in:

– IPO activities
– Park IT Outsourcing Investments

TERM:

Selling 10% of xxx Technologies Sdn Bhd (“the Company”) for RM 3,000,000. Investor has a Director seat. The discounted valuation of the Company is MYR 30,000,000 as the IPO (April/May 2012) projected valuation is MYR 60,000,000.

• The IPO market is London Stock Exchange, AIM, giving London Olympic is held in 2012.

Agenda

• Group of Companies
• Board of Directors & Management Team
• Management Profile
• FY2009 and FY2010 Sales
• Financial Projections
• Business Directions Pre-IPO
• Business Directions After IPO
• Profit Projections After IPO
• Products and Services
• Customers References

Business Directions (Pre IPO)

• Sell & Implement Total Ticketing Solutions

– Offline / Onsite Ticketing
– POS, Logistics, Inventory, Finance Analysis, etc
– Online Ticketing, Online Mall, etc
– Admission Control and Crowd Management
– ONE-CARD Solutions • Barcode cards or RFID wristbands
– Business Intelligence Tools
– Online Ticketing Portal

Business Directions (On-going)

• Park IT Outsourcing Investments: (started from year 2009/2010)
– Babyboss Beijing, Tianjin, Shanghai, etc
– Only World Projects

• Ripley’s, Haunted House, Jungle Gym Genting
– The Beaches, Thailand

• Supply Ticketing and POS solutions

• Supply Networking Infrastructure
– Menara Kuala Lumpur, Malaysia
– Desa Waterpark, Malaysia

• Invest to build up new attractions

– Operate China Parks & Attractions (2013)
– Operate Amazon Falls, Thailand (2014)

• Owner focuses on Hotel & real-estate investment
• Kids Education Parks Solution – Games System, Ticketing systems, POS / Inventory Management systems, etc

Business Directions (After IPO)

• Vertical Market Development

Enhance focus in 4 traditional industries:

• Attractions: Amusement-parks & Zoo (45)
• Theater & Performing Arts Center (5)
• Stadium & Events (1)
• Science Center & Museum (1)

Invest into upcoming industries:

• Kids Career Parks (2)
• Shopping Malls with Indoor & Outdoor Parks (2)
• Horizontal Market Development

Invest and penetrate into new industries

• Events Ticketing – Concerts, Sports matches, Expo / Exhibitions, etc

• Transportation Ticketing – Train, bus, MRT, etc

Invest and expand into new markets • Into Europe and the US markets

– Via merger-and-acquisitions
– Participate in Global Expo. I.e. IAAPA Orlando
– Acquire new complementary business

Enhanced Total Ticketing System (TTS) – Currently xxx provides Ticketing & Admission Control System. We will enhance our business as a Total Solution Provider

• Integrated POS, with settlement center, costing, e-Procurement and inventory management modules
• Integrated Online Ticketing, with online booking, eCommerce and 2D-barcode delivery modules
• One Card Solutions for members with eCash top-up, discount-vouchers, point collection modules, etc
• Integrated Shopping Mall Solutions with rental, contract, parking & mall management modules
• Link to Hotel Management System, allow hotel-room cards to act as eWallet for in-park spending.

enquiry@capital.com.my

Vietnam Hotel, Office cum Apartments Project

PROJECT INTRODUCTION

The project of offices, hotel and apartments is located at 287 and 301 Doi Can Street, Lieu Giai Ward, Ba Dinh District, Hanoi.
– Total land area: 2,249.08 m2 in which project area is 1,130.3 m2.
– Built-up area: 896.5 m2.
– Floor area: 12,866.5 m2 excluding the basement area of 1,868m2.
– Construction density: 79.3%
– Plot ratio: 11.38

It borders:
– Doi Can Street on the southwest.
– 285 Lane, Doi Can Street on the northeast.
– Residential area of Lieu Giai ward on the sides.

The project is located on the area with a lot of luxury hotel such as Daewoo hotel, La Thanh hotel which create a good architectural complex for Doi Can route and the area, establish a modern urban space. At present, the foundation of the project “supermarket, hotel and office for lease” owned by Xxxxx Trade and General Service JSC (301 Doi Can Street) are completed.

GENERAL INFORMATION

Name of project: Offices, hotel and high-ranking apartments for lease
Location: No. 287 and No. 301 Doi Can Street, Lieu Giai Ward, Ba Dinh District, Hanoi
Owner: Xxxxx Trade and General Services JSC

Market Overview

In the process of international economic integration, Hanoi is becoming a destination for travel conferences, events, and a distribution tourist center for the whole northern of Vietnam. Therefore, the lack of luxury hotels is quite urgent problems of the city.

In 2006, Hanoi is ranked third among cities with the highest hotel occupancy rates in the world. On the city has more than 516 tourist accommodation establishments, including 12,894 rooms, among which there are 181 hotels ranked with 8562 rooms including 08 five-star hotels, 06 four-star hotels, 20 three-star hotels.

However, the scale of the hotels in Hanoi is not big, the number of hotels with over 100 rooms and 50 rooms accounts for only 3.63% and 8.87% of total accommodation establishments. At the moment, the capacity of room use in hotels in Hanoi reaches the average level from 85% to 95%. Seasonal factor is reduced, almost no low season, as May and June every year is off-peak time of the hotels, but capacity of room use in many hotels still reaches over 70%.

According to calculations of Hanoi tourism industry, in 2010, the city can accommodate two million international visitor turns and from six to seven million domestic visitor turns each year. However, major challenge for tourism development in Hanoi is lack of facilities to serve tourists. One of them is the system of tourist accommodation establishments in Hanoi. To be able to accommodate for two million tourist turns, the city lacks about 13 thousand hotel rooms, especially the luxury hotels of three to five star scale. It means that each year Hanoi will lack 2,000 to 3,000 hotel rooms each year, mainly hotels with three-stars and above, which are scale hotel welcoming large delegations, with the extensive support services to serve customers and being able to organize major international conferences and seminars.

In four years from now to 2010, each year, the city will need more 1,700 hotel rooms from four to five stars, equivalent to construction of six to seven four-five star hotels a year, if calculated according to the average room scale of current the four – five star hotels.

Acknowledging the increasing need for hotels and apartments for lease, and impacts of the shortage, especially of high quality hotels and apartments on the growth of tourism, construction hotels and apartments for rent at the current time is perfectly reasonable.

The “Offices, hotels and apartments for rent” project is one of the key projects of the Company, the construction investment is fully consistent with the ideological direction of Hanoi People’s Committees and Department of Tourism in formulating and developing the types of luxury hotels and apartments for lease in urban areas today, contributing to solve the lack of quantity and quality of the hotel types serving for important events of the city, quickly complete the master plan approved by Hanoi People’s Committee.

An office is defined as a location in which operation tasks are carried out, the basic purposes of an office building are to provide work places, the basic working environment for management and administration staff. In Vietnam in general and Hanoi capital in particular, the office leasing market has developed very blooming in recent years especially after the time when Vietnam joined the WTO. As the country’s economic, cultural, political center and trading, diplomatic hub with other countries in the world, Hanoi capital is becoming an attractive place to many investors, a reliable destination of Corporations, Groups and non-governmental organizations in the world.

Commercial office market, in which Grade A office is defined as modern building with good access and presence in the market with high quality standards and facilities, modern systems, flexible layouts, including efficient central air conditioning system, good management, convenient parking, etc. The classification of office buildings is based on the combination of buildings’ location, quality and credibility on the market. Grade B and Grade C buildings are always defined as the quality reference of Grade A building. In Hanoi, the A class office buildings are normally the buildings invested by investors from Hong Kong, Singapore, Korea, Japan and France while about 50% of B class office buildings is invested by investors from Hong Kong Singapore, Korea, Thailand, Indonesia and the remaining 50% is belong to domestic investors. C class office buildings are developed by domestic enterprises and state corporations to serve their demand rather than for leasing.

A class office market in Hanoi is completely dominated by foreign investors thanks to their financial capability; B and C class offices with lower quality are suitable to domestic investors.

The need of office for lease

Demand for office leasing in Hanoi mainly comes from multinational companies, diplomatic corps, and non-governmental organizations; short-term demand for A class and B class offices is expectedly comes from newly established companies or relocated companies in Hanoi or from other companies in the country.

Office market in Hanoi achieves significant development. A class and B class office space in Hanoi are almost used up in the first thee quarters of 2006 as the result of limited supply and big demand. Despite the addition of new B class office, the reservation in the 4th quarter in 2006 remains high. Specifically, the reservation of A class, B class offices has reached 98% at the end of the 4th quarter of 2006.

Some factors including strong economic growth, the growth of foreign direct investment in Hanoi and the expansion of transnational corporations, diplomatic corps and non-governmental organizations promote demand of offices driven to A class and B class office market in Hanoi. It is expected that a moderate investment and Asian economic environment in general will increase demand of office within 2 to 3 years.

Supply capability of market

Supply of A class commercial offices in Hanoi primarily consists of office space, according to some old-style villas were refurbished, some high-rise buildings and some rooms of local hotels were converted. Most A class buildings was constructed before 2000 except the Vietcombank building was built in 2001. The total area of A class office for rent is 84,172m2.

While companies want to promote its image through the choice of locating office in a good position, the difficulty of Grade A and Grade B office space supply which is currently happening in Hanoi is making to emerging needs for office for rent. With the leasing price of Grade A office ranging around 100%, leasing price will increase by 10% by the time when a group of Grade A office buildings will put into operation in 2007.

Price of lease and customers’ information

The third quarter of 2006 was the time the market witnessed a growth of office leasing price, Grade A office buildings reach the increase of about 10%. In the fourth quarter continued to increase but the increase rate is lower. At the moment, the leasing price of Grade A office averages 30.79USD/m2/month (including service charges from 5-8USD/m2/month). The leasing price of Grade B office averages 23.81USD/m2/month (including service charges from 5USD/m2/month). Rental rates much depend on economic issues and increase of FDI from overseas into Vietnam.

A good sign is that the customers with demand of Grade A office is not mainly foreign customers but also leading companies of Vietnam. Currently, domestic customers renting Grade A office accounts for about 9%. Rental period often last from 12 to 24 months.

INVESTMENT TARGETS

Strategic goals of production and business of the Xxxxx Trading and General Services JSC in 2006-2010: Moving gradually from their role of employer to the role of owner by creating increasing proportion of revenues from investment field is expected to reach 25% in 2006 and 40% in 2010; the Company strives to become a strong company in the field of investment and construction.

Investment projects to build Offices, hotels and apartments for lease have met the following requirements:

– Contribute to the implementation of Hanoi’s plans of economic and social development.
– Contribute to increase the number of luxury hotels in the area.
– Handle the shortage of high standard accommodation for the important events of the city on the occasion of 1000 year anniversary of Thang Long-Hanoi.
– Build civilized and modern living space.
– Contribute to complete the plan of Doi Can route following to the master plan approved by the city People’s Committee.

FINANCIALS

(A) Expected construction and operation plan of the project :

Expected operation life of the project is 20 years
Expected construction period of the project is 24 months (from the beginning of 2009 to the end of 2010)
Expected exploitation period of the project is 20 years (from 2011 to the end of 2030)
(B) Expected Capital of the Project

Owner’s equity
Expected that 30% of total investment of the project is from the project owner’s equity equivalent to 65,266 million VND

Loan:

Expected that 70% of total investment of the project is from loan equivalent to 150,000 million VND.
Lender : VIETCOMBANK – Ba Dinh
Lending conditions: Interest rate is 10%/year, grace period in 2-year construction.
Loan term is 10 years (from 2009 to 2018)
Loan will be used to implement Items of Construction, Equipments and other cost of the Project.
Total mobilized capital: 150,000 triÖu ®ång
– Mobilized capital of 2009: 72,250 triÖu ®ång
– Mobilized capital of 2010: 77,750 triÖu ®ång

(C) Payment plan of the project’s principal and interest:
During the construction period (2009-2010) arising interest rates will be paid by the Owner’s equity.
From 2011 to 2018 Principal will be paid steady over years and interest of investment capital will be paid on the raimaining debit balance
(D) Plan of extraction and establisment of basic depreciation fund as a payment fund for the project:
The construction project has duration of 20 years, the rate of basic depreciation is 5%/year.
Equipments have duration of 8 years, the rate of basic depreciation is 12%/year.
Duration of the project and equipments is based on Decision of Ministry of Finance about average rate of basic depreciation extraction of 8% in enterprises.
(E) Revenue and capacity of the project:

To ensure the project’s feasibility, we calculate the project’s capacity as followings:
When the project comes into operation, the project’s capacity is expected to gradually increase through years as followings:

Year 2011 -2012 The project is expected to reach 80% of designed capacity
Year 2013-2014 The project is expected to reach 85% of designed capacity
From 2015 The project is expected to reach 90% of designed capacity

EXPECTED RATE OF RETURNS

– The index of IRR = 14,08%> average discount rate (10%) in which average discount rate is defined as stabilized average value of financial discount of the project’s expected funds.

– Payback time: As calculated, payback time is 9.83 years (2018) which means 8 years after project coming into operation and 10 years since commencement.

Timor Leste Electricity Lining Project

INSTALLATION AND COMMISIONNING OF ELECTRICITY LINING FOR DILI, REPUBLIC OF TIMOR LESTE. (PROJECT SUM: $8,000,000.00)

PROJECT FUNDING NEEDED : USD$ 1,000,000.00 (ONE MILLION DOLLARS ONLY)

The project above is a GOVERNMENT DIRECT NEGOTIATION project awarded by the Prime Minister Department to provide financial assistance to war veterans.

COMPANY NAME: xxxx LDA

The company have signed agreement with war veterans promising to provide financial assistance. The government will direct award the contract to xxxx Lda ( a 100% owned Timorense Company)

xxxx is seeking project funding of $1,000,000.00 to be deposited into the company bank account. The government requires each lobbying company to show PROOF OF FUND in cash in the company bank account before processing the contract application.

Investor will sign an agreement with xxxx.

xxxx will in return TRANSFER ALL SIGNATORY RIGHTS of the Company Bank account to the Investor as stated in the company resolution.

Investor will deposit $1,000,000.00 CASH into the company account.

xxxx will submit contract application to the Government.

Once the Contract have been awarded and signed, Kabura request that the bank account to be in JOINT SIGNATORY or in any ways investor feel comfortable.

xxxx will utilise the $1,000,000.00 to purchase equipment, material and working capital.

xxxx will submit project claims of USD$ 2,400.000.00 as soon as the first stage of work is completed estimated to be within 2 (TWO) month of work start.

xxxx will pay back USD$1,000,000.00 once receive first payment claim.

xxxx will pay investor USD$1,000,000.00 on the second payment claim as profit for the funding.

Payment can be arrange with an instruction to the bank or government for a direct assignment of payment to a specific second party by the project holder on a specific terms agreed and signed by the project holder with another party with the company resolution done properly.

Government Payment is usually paid between 30-90Days upon the submission of project claim. It can be earlier with a good relationship between the project holder and the respective government department.

LETTER OF CONTRACT ACCEPTANCE WILL BE SIGNED IN THE PRESENCE OF HEAD OF GOVERNMENT.
ESTIMATED PERIOD OF FUNDING AND PAYBACK :
MAXIMUM 6 MONTH
100% PROFIT WITHIN 6 MONTHS
INVESTOR WILL HAVE FULL CONTROL OF BANK ACCOUNT UNTIL PAYBACK.

enquiry@capital.com.my

Colombia Gold Mining Project

xxx Limited (the Company) is the owner of three gold mining licenses in Colombia, South America covering 10,564 hectares and has completed its exploration program and now is embarking on the construction of a gold production facility at the mining site to produce in excess of 100,000 ounces of gold per year. An add-value by-product from this gold mining facility is the confirmed presence of platinum in the target area. Platinum production is forecast to be 12,000 ounces per year, in addition to the gold produced.

The Managing Director of xxx, xxx xxx has been involved in the Colombian business community
for the past decade and has gained an in‐depth understanding of the political and economic
environment there. He has also developed an impressive Colombian business network that has
helped mature this exciting mining project.

The Management of xxx have approved a robust business plan and financial forecasts that requires
investment of US$55,199,880 USD on capital equipment for the development of a substantial gold
production processing plant on its mining concessions in Chocó province of Colombia.

xxx is financing this project with loans and new collateral totalling $55,000,000 US dollars. The
following is the funding scenario.

New Capital $4,000,000
Through loan available from HSBC Bank in Colombia $51,000,000
The loan from HSBC bank in Colombia is secured in the long term against financial guarantees
issued by the USA Ex-Im Bank related to the project and in the short term by leased Standby Letter
of Credit collateralised credit lines with HSBC.

The new capital amount $4,000,000 is required to cover the cost of the leased collateral and related
company expenses. This amount can be either as a loan to the company or as equity in exchange
for shares in xxx

The asset value of the developed project facility will be $44,000,000. In addition to this plant
collateral the certified appraisal of the in-ground assets in the concession area shows an asset value
of $142,995,356. This appraisal is not shown in the forecast balance sheet as is the requirement to
comply with international financial reporting standards and is therefore in addition to the net
assets indicated in the forecasts attached but never the less it is a substantial benefit to the
company.

The business plan shows that the project loan will be fully repaid within 60 months from the
beginning of operations.

The Company has an experienced management team with the necessary skills and experience to
ensure business success. The principal staff and consultants have extensive experience relating to
the core business of the company and the management is very confident of achieving or exceeding
the financial forecasts.

It is intend that xxx will be producing gold and platinum from the project and be cash flow positive
within nine months of implementation of the project loan. This project is very much seen as stage
1 of the development of the concession areas and the goal is to further develop the facilities to
reach a production is excess of 1 million ounces per year within the next 3‐5 years. It is anticipated
to do this by debt funding without any further dilution of shareholding.

We invite you to review our detailed information relating to this project.

enquiry@capital.com.my

Vietnam Ethanol Biofuel Plant, Hoa Binh province

COMPANY BACKGROUND

The certificate of business registration No. xxx dated 06 July 2007 was granted to xxx – Hoa Binh one member limited company by Hoa Binh people’s committee allowing the implementation of investment project on Constructing the xxx manioc starch processing plant in Phong Phu and My Hoa commune, Tan Lac district, Hoa Binh province, with the capacity of 15,000 tons of product/year with the total investment of 32 billion dong.

• Turnover in 2007: VND 14,43,306,000
• Turnover in 2008: VND 22,317,459,410
• Turnover in 2009: VND 79,796,629,800

Major products: Manioc starch
Stable production capacity: 20,000ton/year (designed capacity 30,000ton/year)
Auxiliary product: Dry manioc, manioc starch, manioc dreg and so on.
Material market: Fresh and dry manioc: Mainly of Hoa Binh province and neighboring provinces, the Company directly purchases from farmers and agents, small trader
Output consumption market: Foodstuff, candy, cookies, instant noodle, paper, textile, pharmacy processing companies and so on in Vietnam and mainly exported to China.
Development orientation:

In 2008, the Company expanded its business cooperative manufacture activities and its current members are: xxx manioc starch plant, Phu Tho province and xxx manioc starch plant, Son La province

At first, due to the concentration in investment and lack of market, the xxx starch products were mainly traded through intermediate companies. Since mid 2008, after expanding the market and looking for customers via information channels, becoming member of CAEXPO fair – 2008 in Nam Ninh – China, the Company directly exported its products to the main markets such as China, Taiwan and so on.

Beside manufacturing and consuming the main product of plant – xxx starch of Xxxplant, the Company also sell its products to xxx manioc starch plants and xxx manioc starch plant – Son La and deploys the import of dry manioc product and other agricultural products.

The Company, currently, tends to develop the production of Ethanol bio-fuel to meet the market demand and policy of the State.

BASIS AND PERIOD OF PROJECT FORMATION

xxx – Hoa Binh one member company limited was established in 2006, specializing in produce starch from manioc. The products of Company are mainly for import. Annual productivities rapidly grow, contribute to the development of manioc material in the region and neighboring areas; and contribute to the hunger and poverty eradication for farmers (mostly in rural areas). However, the manioc starch is still semi-product and it can be used to generate many other products with higher value. The import is at times inactive because of the foreign partners.

Meanwhile, at present as well as in the future, the bio-fuel in the place of fossil fuel is a strong trend in Vietnam. The Government has approved the Project on Development of bio-fuel up to 2015, with vision to 2025. xx – Hoa Binh one member limited company recognizes the necessity of investment in the bi0-fuel production from manioc to meet the market demand, bring about the obvious socio-economic efficiency.

The projects of this investment are as follows:
+ Invest in constructing a new plant for producing bio-fuel
+ Expand an existing manioc starch plant to produce more bio-fuel.

The selection of investment project shall be analyzed in the Project.

TARGET OF PROJECT:
Invest in constructing manioc ethanol bio-fuel production plant with the capacity of 20,000,000 liters/year.

MARKET RESEARCH

Introduction of Ethanol production technology:

Fermentation, one of the oldest technology applied by human, to produce various kinds of products, including foodstuff, aromatic spices, beverage, pharmaceutical products and chemicals. However, at present, there are many simpler products which are synthesized from oil and gas at low cost. The future of foodstuff fermentation industry depends on the high efficiency use capacity and special enzymes for synthesizing complex products and the adaptation to different materials as well as different quality of material. thanol is made from various kinds of agricultural products as cereals, fruits and glucose compound.

Energy crisis in 1970 recovered the interest in producing ethanol through fermentation, however, the use of ethanol still depends on productivity and cost of natural ethylene.

Price of sugar and cereals, like that of oil and petroleum, had shot significantly since 1973 and may increase more and more (now reach USD100/barrel).

The glucosic or starch materials can be fermented through various steps to be converted into ethanol. Many different kinds of materials are used to produce ethanol by traditional fermentation method, applied to three kinds of agricultural products: sugarcane, starch and materials containing cellulose. Sugar (from sugarcane, beets, fruit and so on) can be converted into ethanol, Starch (from seeds, bulbs) must, at first, be hydrolyzed into fermentable glucose under the effect of enzymes. Cellulose from timber, agriculture waste containing glucose solution can be converted into glucose by mineral acids. After generating basic glucose, it shall be fermented by enzymes and converted into ethanol.

The more use of bio-fuel shall deduct the greenhouse effect and environmental pollution.

Such bio-fuel as ethanol is one of the best tools to fight against the air pollution from vehicles. Ethanol composed of 35% of oxygen. The additional oxygen added into fuel shall enhance the complex burn period and minimize the toxic exhausted gas.

Petroleum mixed with 10% of ethanol shall reduce the waste which causes greenhouse effect as CO (carbon monoxide) (25-30%), particular matters) (50%) and evaporated organic compounds (7%)

Ethanol may be used in the place of such toxic chemicals as benzene (toxic compound in petroleum). In addition, ethanol is free from sulfur.

The increasing use of bio-diesel shall raise the environmental benefit and the rate of use of ethanol converted from cellulose has increased reasonably in Ontario Canada.

Canadian government foresees that, if about 35% of petroleum containing ethanol is used, the Greenhouse gas shall cut off about 1.8 million ton/year, equivalent to the exhausted gas from more than 400,000 cars.

The American Lung Association of Metropolitan Chicago supposes that the use of ethanol petroleum shall reduce 25% of exhausted gas since 1990.

Ethanol can significantly balance the energy, e.i. generating more energy than the cost to generate itself. This is an useful energy which is generated through effective procedures.

It consumes less than 35,000BTU of energy to generate ethanol from corn, meanwhile, ethanol generates at least 77,000BTU of energy. Thus, the capacity of balancing energy of ethanol is very high.

Researches from various sources show that ethanol can significantly balance the energy. Most recently, The U.S Department of Agriculture) showed that ethanol saves at least 77% of energy.

Although at present in the US, ethanol is mostly produced from corn, they developed new technology to produce ethanol from various sources of energy

Thanks to the tremendous material reserves, the U.S is able to generate a large number of ethanol, enhance the energy safety, economic safety and environmental protection.

Flexible fuel vehicles (FFV) are those vehicles which can use fuel mixture with 85% ethanol. If E85 (mixture with 85% of ethanol, 15% of lead free petroleum) is not available, the vehicle can use directly the lead free petroleum or any kind of fuel with 85% of ethanol.

The giant car manufacturers as Daimler Chrysler, Ford, General Motors, Mazda, Mercury, Isuzu and Mercedes manufactured vehicles which can consume E85. FFV has been produce over the years with latest models are introduced.

E85 fuel is the mixture of 85% ethanol and 15% of lead free petroleum, U.S department of Energy considers this fuel is an alternative energy.

Currently, there are more than 4 million of vehicles used on the roads of the U.S and car manufacturers are producing more and more of this kind of vehicle. To serve this kind of FFV, many petroleum stations have been installed all over the U.S.

When the E85 is not available, FFV can directly consume petroleum and mixture with ethanol at any ratio up to 85%. The important thing is that there is no vehicle which only consumes “ethanol”. All cars can consume E10 without modifying the motor.

The E85 fuel is for FFV, however, some misunderstood that ethanol is the mixture of 85% ethanol and 15% of petroleum.

The ethanol manufacturers are making best effort but it still lacks of about 6 billion Gallons (1 gallon = 3.8 liters)

At present, in the U.S, there are about 97 ethanol producing plants which are run at best capacity, 09 plants are being expanded and 35 plants are being constructed.

According to statistics, up to 2012, the U.S shall consume up to 7.5 billion of gallons of this kind of fuel, the number at present is 5 billion of gallons.

The unusual demand for ethanol makes the manufacturers work at their best effort, sell it at higher price and keep on building new ethanol plants.

The trend of ethanol consumption worldwide

The countries in the worlds are producing and consuming a large number of ethanol and expanding the ethanol production scale. Brazil and Switzerland is using a large number of ethanol for fuel. Some states of Canada encourage the use of ethanol by reducing the price to 45cents/gallon.

India government is encouraging the use of ethanol for vehicle fuel. Currently, some manufacturers in India use redundant alcohol to mix with petroleum or for oxidization matter for petroleum.

According to the tests of Indian Institute of Oil and Gas, some states study the use of about 10% of ethanol mixed with petroleum and 15% of ethanol mixed with diesel oil for vehicles.

In France, ethanol is generated from grapes which are unqualified for wine production.

In Brazil, in 1970s, when the oil price increases, the country set up a program of producing ethanol for vehicles to minimize the imported oil. In Brazil, ethanol is mainly made from sugarcane. Pure ethanol (100% ethanol) is used for about 40% of vehicles in Brazil. The remaining vehicles use the mixture of 24% ethanol and 76% petroleum. Annually, Brazil consumes nearly 4 billion of ethanol gallons. In addition, Brazil also exports ethanol to abroad.

In many years, Switzerland uses ethanol to produce chemicals. For many reasons, since 1980, the consumption of crude oil in Switzerland has been knocked off to a half. Concurrently, the consumption of petroleum and diesel for transportation increased. The amount of exhausted gas reasonably decreased thanks to the installation of converter in exhaust system of vehicles to minimize the amount of CO. CO2, Nitrogen oxide.

Currently, Switzerland considers the mixture of petroleum and ethanol and diesel is the alternative fuel to minimize the air pollution.

Analyzing the necessity of investment

As above analyzed in part of above market and material region, construction investment of bio-fuel production plant supported for policy of replacing gasoline gradually is suitable with enterprises with necessary conditions. xxx Hoa Binh One Member Limited Company is one of enterprises which are producing and doing business in san starch product effectively in our country with increasing output and turnover over years:

Turnover in 2007: 14.4 billion dong
Turnover in 2008: 23.3 billion dong
Turnover in 2009: 79 billion dong

The company has good relationship with material region in provinces of Hoa Binh, Phu Tho, Son La, Tay Nguyen, etc to ensure full material supply for Company. Current starch product is for export. Because it is in half-finished goods form, received efficiency is not effective. Therefore, bio-fuel production investment from san is correct direction with full conditions on material source, production technology, capital source, etc. Together with bio alcohol production chain investment, investment in treatment system of waste water according to environment ensuring requirement shall give double effectiveness from creating energy source (biogas) to reuse for the works as power generation, steam supply and ensure that the impact of the Project for the environment is in allowable limit.

Therefore, it can be defined that the project is constructed on the firm basic:

– According to policy of State on bio-fuel production development
– Meeting the demand of the market
– Having reliable material supply region.

It is defined in “The report of production situation, orientation and development solution of san tree in next time” of Ministry of Agriculture and Rural Development that “-Ensure full supply of materials for starch processing plants and Ethanol production plant to operate until the maximum capacity. Planning of focused material san has scale from hundred to thousands of ha”. San material consumption shall help the agriculture developing firmly and stably because the economic efficiency increases much than only starch production (half-finish goods) as previously. This also helps material region (mainly mountainous region) to develop better in socio-economical field.

ADVANGATES & DIFFICULTIES

Advantages:

Reliable market due to orientation of increasing bio-fuel usage with State encouragement.
Stable san material with development possibility by enlarging cultivation area as well as applying new transplant with high productivity.
xxx Hoa Binh One Member Limited Company is doing business in san starch product, so it has good relationship with material region and experience in doing business.
xxx Hoa Binh One Member Limited Company has skillful staff that is convenient for alcohol production technology approach to operate the alcohol plant effectively.
The project is supported and gives good development conditions by the local
Especially, the Government has favorable policy for projects under field of bio-fuel production.
Difficulties:

Because this project requires large capital source, it needs the help from banks in borrowing capital for the project implementation.
As one of leading enterprise in implementing developing project of bio-fuel of the Government, the enterprise shall face initial difficulties in approaching new technology and market.
However, they are apparent difficulties needed to overcome by enterprise.
CHOOSING INVESTMENT METHOD

1. Expected investment scale

Product orientation
Ethanol bio-fuel product must reach Vietnam standard in national fuel standard system and these products are sold for petrol business unit as Vietnam National petroleum corporation, Military Petroleum Joint Stock Corporation, etc.

Expected capacity scale
On the balance basic between capacity of xxx Hoa Binh One Member Limited Company on field of finance, technical infrastructure, etc. with new developing demand of market, capacity module of equipment chain on the market, xxx Hoa Binh One Member Limited Company decided to choose capacity scale of the project as alcohol production: 600 liter/day – 20 million liter/year.

2. Investment method

With conditions of xxx Hoa Binh One Member Limited Company, there are two investment methods:

A. New construction in ethanol bio-fuel Plant
B. Construction enlargement of ethanol bio-fuel production system on the platform of available san starch production plant, combining with the finishing the technical infrastructure in Phong Phu commune, My Hoa, Tan Lac District, Hoa Binh province.

After analyzing on the real conditions, xxx Hoa Binh One Member Limited Company chooses B method because of following reasons:

– Large platform (10 ha) which is enough for enlargement demand
– Location of the plant is the central of material region
– Infrastructure availability: Transportation, power supply, water drainage.
– Available management staff and technical workers can approach alcohol production technology.
– Investment cost is much smaller than construction in new place.
– Alcohol and san starch production can support each other in production process according to the situation of market and material.

The investment form is defined as: Construction enlargement of ethanol bio-fuel production system on the platform of available san starch production plant, combining with finishing the
technical infrastructure in Phong Phu commune, My Hoa, Tan Lac District, Hoa Binh province.

TOTAL INVESTMENT AND ECONOMIC EFFECTIVENESS

1. Total investment

– Investment basis: According to the Circular No. xxx dated 25th July, 2007 of the Ministry of Civil Construction for guiding the management of investment expenditures on
construction.

– According to the expense account for investment on basic design, investment summary as follow:

Total investment 280,360 million VND
+ Total fixed investment 273,300 million VND
– Equipments: 167,575 million VND
– Build 50,673 million VND
– Project management and other expense: 6,246 million VND
– 5% of back up expense 11,172 million VND
– Interest during the construction time: 22,274 million VND
– Current fixed asset: 15,360 million VND
+ Mobile capital: 7,060 million VND

2. Capital source
– Self-financing: 80,360 million VND, account for 28.66% of the total investment.
– Loan from commercial banks: 200,000 million VND, account for 71.34% of the total investment. Including:
+ Expense for domestic equipments – 167 billion VND
+ Construction expense (except the general layout expense) – 26.2 billion VND
+ Expense for the power – 6.8 billion VND
Interest for loan: 13% year.
Loan time: 8 years

RESULT OF ECONOMIC ANALYSIS

Net value

Net value of the project is calculated on basis of discount of project cash flow through the years with discount interest rate of average 17.02%. Through calculation, NPV of the project
is 23.493 million VND, resulting that the project is feasible.

– In opinion of total investment: NPV = 22.499 million VND
IRR = 18.73%
Time for returning capital: 12.78 years

– In opinion of investor: NPV – 30.976 million VND
IRR = 22.93%
Time for returning capital: 11.72 years

Capital return rate

The IRR is the discount rate with corresponding NPV = 0. In other words, the IRR is the discount rate so that total price of receivables in the future brought about by investment is equal to the investment capital. Project to be invested must have IRR being greater than or equal to normal loan interest rate. Here, IRR of the project is 18.73%, which is higher than long term loan interest rate used in financial solution. In conclusion, the project is feasible, based on the calculated IRR.

Time for investment capital return

Time for investment capital return is determined via net income and deducted gradually from investment capital until the balance is reached. The time until the balance is reached is the time for returning the project capital. For project of producing biological fuel, time for capital return is 12.78 years; investor’s time for returning capital is 11.72 years.

Profitability index

Profitability index (PI) is the difference between net current value of total ingoing cash flow and outgoing cash flow of the project. Through calculation, PI of the project is 1.082, which is greater than 1 and is the basis for concluding the feasibility of the project.

Breakeven point

Breakeven point can be calculated according to output or turnover of the project. Accordingly, we have output breakeven point or turnover breakeven point. The purpose of analyzing the breakeven point is to plan the profit gained on basis of establishing a relationship between expense and income. The lower the breakeven point is, the more efficient the project and the smaller the risk is. For project of producing biological fuel Ethanol, we are searching for an output breakeven point, meaning to determine annual capacity of the production line at which the total turnover of the plant is just enough to cover the expenses (including both direct and indirect expenses); in other words, the income before-tax is equal to 0. Through calculation, we determine that with average capacity of about 45.6%, equivalent to 9,120 thousand liters of final product per year in stable stage of the project, the enterprise will be at the breakeven point through the years.

PROJECT SCHEDULE

– Total time for work completion, from the approval of the project: 18 months
– Total time for construction and installation of equipments: 15 months.

CONCLUSION AND RECOMMENDATIONS

1. Conclusion: With above calculation results, we can determine that this project is feasible. The important point is that the Project is appropriate with strategy of the State, makes contribution to stable development of cassava cultivating and procession of the country.

2. Recommendation: Via analysis of the project, we can see that to implement the State’s strategy on biological fuel successfully, the State should have specific policies on supporting the project investors with regard to planning of developing material regions, product consumption and distribution system, especially in investment capital borrowing.

Provinces, especially Hoa Binh, should create favorable conditions for xxx Hoa Binh Co., Ltd. to establish a neat connection with material regions which keep developing their productivity, area and output to assure stable material supply to the Plant.

Vietnam Waste Management Plant Project

Investment in municipal waste separation, recycling, composting and bale-press packing plant with a capacity of 2,000 tons per day in the form of BOT Contract for 49 years in Hanoi, Vietnam

The need for the project investment and the investment objective:

Hanoi City has 6.2 million people living in an area of 3,300 km2, with an average density of 1,880 person/km2. The City is divided into 29 districts and towns. It has diverse terrain conditions, including: mountainous, midland and lowlands areas.

In 2009, Hanoi achieves the GDP growth rate of 9.5-10%. The rate of municipal waste collected per day in 2 cities: Hanoi and Ha Dong is 95-98%.

The total waste volume in Hanoi City amounts to 5,500-6,000 tons/day. The urban areas generate about 3.000 tons/day (60%), waste from the industrial zone is estimated at 500-600 tons/day (10%), construction waste is about 1,000-1,200 tons/day (20%), and the septic sludge and other waste are 500-600 tons/day (10%). The wastes are not totally classified/separated and still mixed in the municipal waste.

Currently, the municipal waste of Hanoi City is disposed of at a sanitary landfill at Nam Son, Kieu Ky, Xuan Son, and Chuong My. The suburban districts’ municipal wastes are buried arbitrarily in ponds (open dumping method). There is no collection and treatment system for wastewater/leachate.

Municipal solid waste in over 1,000 villages (Minh Khai, Cat Que, Duong Lieu, Hoai Duc, Tan Hoa, etc) are not collected and processed properly, thus becoming a source of pollution in many places.

The collection of municipal and solid waste in general is still assigned mainly to the Hanoi URENCO (a member state Limited Company), Ha Dong Urban Environment company, Son Tay, Xuan Mai, and environment enterprises in the suburban districts.

Disposal of municipal waste by means of burying/landfilling becomes less preferred in the economical, environmental and social aspects. The landfills in Hanoi are fully burdened with the volume of incoming waste. The landfill in Nam Son, receiving about 3,000 tons per day, will be filled up by year 2011; the landfill in Xuan Son is expected to be filled up by June 2010; and in the Thoong Mountain landfill, the cells 1, 2, and 3 have been filled up with no more land available for expansion but still continuing to receive waste.

Finding suitable locations for municipal waste landfill is a never ending problem if Hanoi continues to handle municipal waste by means of landfilling.

At present, the government is looking for new waste processing technologies and minimizing waste disposal to landfill. Simultaneously, the government is to generate capital investment in advanced technology, and to adopt a sustainable process for municipal waste and solid waste management. The City has a policy to encourage investors to invest in waste management, and is offering contracts in the form of Build and Transfer (BT), and Build-Operate-Transfer (BOT), allowing potential companies and individuals taking part in investing capital and technology for recycling and treatment of the municipal waste with the aim of minimizing landfilling.

The city is encouraging recycling (by classification and then re-use the classified waste) which is an indispensable trend in municipal waste treatment, and thus minimizes the amount of waste going to landfill. Waste reuse is classified as follows:

Group A: Production of compost and organic fertilizers from fermented organic materials.
Group B: Burn to generate energy and reuse the energy from the flammable organic material.
Group C: Re-use the materials such as metal, plastic, rubber, etc.
Group D: Bale, sterilize and use as ground levered material, construction materials for the inorganic materials and inert materials (brick stone, sand, glass, pottery, etc.)

The investment in technology in the direction of Group (A) – (D) mentioned above depends on markets and the investors involved.

The objective of this project investment is to build a recycling plant for processing municipal waste with a capacity of 2,000 tons/day minimum, following the projected direction stated in Group (A) – manufacturing compost; Group (C) – recycling, re-use; and Group (D) – baling, re-use as levered material. The products in Group (A), (C), (D) will have a consumption markets in the country and abroad. The most interesting part of the project is that the recycling technologies stated in Group (A), (C), and (D) are being integrated in order to increase the efficiency of waste recycling rate.

Simultaneously, the above technologies are integrated with the bale-press and packing technology to optimize the volume for recycling, to reduce the area of warehousing and transportation cost, and thus increases the overall efficiency of the project.

Likewise, all issues related to the environment (odor, emissions, waste water) in the project are completely mitigated and given the highest consideration. There will be no wastewater/leachate discharged out of the perimeter. The wastewater/leachate shall be collected, treated and re-used in the process and within the facility. The odor shall be minimized by means of applying deodorizers and disinfectants, using microbial technology. The receiving area shall be fully covered and the odor extracted and filtered before being released to the atmosphere.

All products in Group (A) – compost, and Group (C) – recycling materials, will be packed and shipped out of Hanoi City area to the markets identified by the investors. The inert materials in Group (D) which accounts to ≤ 15% of total waste volume shall be baled at site and could either be sold to potential buyers for use as reclamation materials and slope retaining walls; or could be landfilled at approved sanitary landfill.

Investment Scale

The plant is planned to receive and process 2,000 tons of municipal waste/day. It requires a minimum area of 15ha to be used for:
– Collection of municipal waste for 3 days = 10,000 m2
– Receiving and sorting of waste = 10,000m2
– Shedding and bale-press packing area and storing of bales (15 days allowance) = 15,000m2
– Composting area (21 day-cycle, 60% organic composting in municipal waste) = 50,000m2
– Storage area for compost, recycled materials, and bales = 40,000m2
– Area for wastewater/leachate treatment, air pollution = 5,000m2
– Technical area = 6,000m2
– Administration area = 1,000m2
– Open space, paths, and green area = 13,000m2
Total area required = 150,000m2

The project is proposed at Nam Son solid waste treatment complex, Soc Son, Hanoi.

The main design solutions are as follows:

• Municipal waste arrives at the factory area will go through the weighbridge and then the trucks shall get into a fully covered receiving area where the waste shall be unloaded. The wastes shall be disinfected and deodorized with microbes. At this floor, workers shall separate bulky waste (tables, wardrobes, chairs, concrete wall), dangerous materials (aerosols, fire extinguisher, etc), as well as packages containing chemicals, paint crusted, etc shall be recovered, and the remaining waste shall be pushed into Pit No. 1.

• There will be two (2) grapnels that grab the wastes and placed them in the individual hopper at the beginning of the conveyor belt system. The waste will be moved up to the second floor meant for separation of waste by means of four (4) conveyors. From here waste are separated manually. Items of non-organic materials such as plastic, rubber, aluminum cans, are separated. The workers shall collect household hazardous items such as battery, spray canes, aerosols, etc. These materials are placed at recycling material store. The wastes shall pass through conveyor belt No. 5 where a magnetic separator will separate all the metal components of the waste. The remaining wastes on the conveyor shall be placed in Pit No. 2 where the wastes are generally organic waste that could be turned into Composts.

• The Organic materials from Pit No. 2 will be used for compost production. Generally, the compost will undergo two main stages namely pre-composting stage and composting stage. Wastes from Pit No. 2 shall be placed at pre-compost furrow measuring 8.5m (width) x 120 m (length) x 12.0m (depth). The waste shall be treated with microbes and remain there for 7 days. There will be eight (8) furrows designed for pre-composting stage.

• On the eight (8) day, the wastes shall be transferred to the composting area. The area is made up of 20 furrows measuring 8.5m (width) x 60m (length) x 2.0m (depth). The waste shall be further treated with microbes and regularly churned using mechanical turner up to thirteen (13) days. It is designed for the wastes to turn into good quality compost after twenty (20) days of pre-composting and composting processes.

• The Compost will be taken to the sieving area. At this stage, inorganic materials (glass, leather, crystal, metal, etc) that are still in the waste/compost shall be recovered and send to Pit No. 3. The good quality compost shall be graded and send to compost packing area for packaging process, complying with the packaging standard. The compost which has been packed shall be stored at the Compost Storage Area.

• Inert materials from the Compost placed in Pit No. 3 shall later be pressed into bales for landfilling or used as reclamation materials or as slope retaining walls.

• Large and bulky materials (beds, wardrobes, chairs, trees, etc) from bulky store area shall be shredded and placed in Pit No.3. These wastes shall be baled using the bale pressed system and later stored at the storage area for bales.

As a result of these integrated processes, the entire waste received amounting to 2,000 tons/day will be converted into the following products:

• Water and moisture: 800-900 tons/day (45%).
• Compost: 350-400 tons/day (20%).
• Recycling products (plastic, rubber, aluminum, metal, glass): 300-400 tons/day (20%).
• Products for inorganic baling for leveling, burying: 300 tons/day (15%).

Techniques to be applied in the BOT project which will receive and process 2,000 tons of municipal wastes/day by the joint venture company between AIC and partners are the combination of the latest technology and integration of the technical know-how of the municipal waste treatment methods. This is to ensure that the proposed BOT project will provide the solutions to the entire municipal waste treatment and related issues arising from managing waste.

Total investment

Total investment for the project is USD 15M only. The percentage of the investment cost are devided as follows:
– Equipment/technology : 65%
– Construction of Infra/buildings : 30%
– Others : 5%

Capital Investment

Capital investment will be raised by Kristar International Sdn Bhd through its own funding mechanism.
Project construction period: Mei 2010 – Nov 2010.
Project operation period: Dec 2010 to Mac 2058 (49 years).

Analysis of the projected financial investment of the project
No. Parameters Unit Results
1 Capacity of waste treated Tons/day 2000 (minimum)
2 Working time in year Day/year 365 days
3 Total investment:
+ Equipment / technology
+ Construction
+ Others USD 15 million
4 Construction time Months 6
5 Interest loan on capital investment %/year 6%
6 Loan repayment period Years 3 years
7 Project lifecycle Years 49 yrs with 7-yr equipment replacement and 12-yr machinery replacement options
8 Number of worker Persons 123

The details of the financial model and justifications are submitted herewith under the financial requirement section.

Progress

The preliminary planning and development of the project, the feasibility study, and site identification have been completed. We are in the process of submitting the basic design for approval by the Hanoi’s People’s Committee.

The estimated time for project implementation is about 7-10 months after getting the construction design approval from the People’s Committee.

The full tendering procedures to select sub-contractors for construction of the facility will take two (2) months. The time taken to complete construction of facilities and installation of equipment is 6 months.

Capital recovery plan

The capital investment shall be recovered from these revenue streams:
– A tipping fee on waste treament paid by Hanoi city at USD 3.50 per ton of waste received.
– Revenue generated from selling of compost at USD 100.00 per ton.
– Revenue generated from selling of recycled materials USD 50.00 per ton.

The cash flow has shown a positive recovery plan and this project is rated as highly profitable and feasible to be implemented.

The project implementation and operation scheme.

The project shall be implemented in the form of BOT contract for a 40 year period. For project implementation, the promoter will:
– Purchase and import machinery and equipment.
– Appoint qualified sub-contractors to construct the facility.
– Carry out the construction of the facility and install, test, and commission the equipment.
– Formal takeover of land to be used for the project from People’s Committee, including access to other related infrastructures (road, drainage, water supply, electricity supply).
– To instruct URENCO (waste collection company of the People’s Committee) to deliver 2,000 ton per day to the facility.
– To liaise with the Electricity Department for electricity supply, and with Water Department for clean water supply.
– To obtain permission from Department of Natural Resources and Environment for the drilling of the underground water in the area to provide water to the facility if additional volume of water is required.
– To recruit workers to work at the facility.
– To formalise procedures for acceptance and payment with the People’s Committee.


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