Proposal to the U.A.E. regarding cooperation with Rosvoda Corporation Project (megaplants)

Cooperation and partnership with the United Arab Emirates forsupply and bottling of large amounts of high-quality drinking water.

© B I G C O R P O R A T I O N & R O S V O D A C O R P O R A T I O N , 2 0 1 4 2

Rosvoda Corporation offers its strategic partners in the U.A.E. aunique opportunity for the construction of high-quality waterbottling mega-plants and infrastructure in their own country orneighboring countries for further consignment of finishedproducts to water-shortage regions. We have calculated theconstruction costs for two mega-plants with a total annualbottling volume of 46.5 million tons per year.

The drinking water market is growing rapidly year by year andhas significant capacity for continuous growth. RosvodaCorporation has a large supply of drinking water at its sources,sufficient to build two drinking-water bottling mega-plants,which would be the world’s largest, in countries suffering fromwater scarcity and to create a leading global brand name inquality drinking water.


No one else in the world is offering a proposal for aproject of such magnitude. Our project is the one andonly in the global water industry.

Part 1

Target markets fordistribution of our high-quality drinking water arethe Mediterranean, theRed Sea regions, thePersian Gulf and India.

Every year the situationrelated to the shortage ofdrinking waterdramatically deteriorates.Drinking water will soonbecome worth its weightin gold.


Many countries in the world face shortage of drinking water,they need a serious effort to provide the population with safedrinking water.

Water poverty index

World sources of healthy drinking water are tragicallyrunning low year over year – in many countries watersystems are supplied with desalinated water;industrial and agricultural enterprises are poisoningwater storages; water reserves in water-bearingstrata are steadily decreasing.

Outrunning growth of use of desalinated water (insome countries the share of desalinated water hasgrown up to 75% of the water balance). Desalinatedwater cannot be purified like water from reservoirs inorder to obtain healthy drinking water.

As a result, the human race will be forced to drinkbottled natural healthy drinking water in order tosurvive.


The number of people in the world who need naturalhealthy drinking water, is more than a billion people today.

States with water scarcity need to undertakesome serious measures and efforts to preventpossible shortage of drinking water amongthe native population, caused by sustainableindustrial and agricultural development,immigration and rapid growth of population.

The annual growth of population in water-shortage countries is 3% over the last twodecades and will continue to increase by thesame pace.

© R O S V O D A C O R P O R A T I O N , 2 0 1 4 7

Fresh water resources are decreasing every year, andwater intake (water consumption) is increasing. Thedemand grows, the proposal falls. Over the pastcentury, world population grew from 1.6 billion up to6 billion people; the water intake increased from 500km3 to 3,800 km3. Water consumption is growing at3% and 1% ahead of population growth.

Experts estimate the gap between water supply andwater demand is expected at 40% in 2030.

The situation will develop under the crisis scenarioand at some time the price for healthy drinking waterwill be beyond control. That’s what happened in 1973,when the explosion of oil prices enriched the ownersof oil resources. In the next decade we'll face suchsnowballing growth of the prices in the drinkingwater sector.


Market prices for drinking water resources will increaseseveralfold in the coming years. In the future we have toface water wars.

Multi-billion investments are needed to supply growingdemand for fresh water in water-shortage countries. Forexample in Saudi Arabia the average annual investment indesalination amounts to $2.69 billion. The whole 20-yearprogram costs at least $ 60 billion.

The main investment pattern today is the construction ofdesalination plants.

The desalination plants are not capable to substitute thenatural drinking water and provide healthy drinking water;thus it is necessary to invest in continuous delivery ofdrinking water to the region (if there is no other naturalconditions for the solution of this problem in the country).


Desalination of sea water does not solve all problemsof water-shortage countries.

Scientific researches in many countries are proving theimpossibility of drinking desalinated water for a living organism.(This is dead water) It occurs because of heavy pollutingsubstances that remain in water and are unable to be completelyremoved by any purification systems. Some of these pollutants,including isotopes of hydrogen, bromine, algal toxins, endocrinedisrupters are preserved in the process of desalination.Moreover, desalination plants use coastal water, contaminatedby industrial, household and storm run-off.

Desalinated or demineralized water is harmful. Demineralizedwater is very aggressive. Artificially mineralized water cannot bedigested by humans. Demineralized water has bad taste andquenches thirst poorly. Numerous long-term studies haveproven that desalinated water causes health detrimental ofpeople and animals.


Desalinated water is very dangerous to human health.Permanent use of any kind of desalinated drinking watercauses incidence rate, rise in mortality and birth ofchildren with congenital diseases.


www.desalinatedwater.info

After the process of water desalination high concentrations of stable heavy isotopesof hydrogen (deuterium) and oxygen (oxygen-17 and oxygen-18), as well as heavywater, i.e. water in which light isotopes of hydrogen (protium) and oxygen (oxygen-16) are replaced by heavy isotopes, still remain. The ions of deuterium and heavywater are significantly less mobile than the ions of protium and ordinary water.This leads to disorder of the normal activity of organisms: inhibition of biochemicalprocesses and physiological reactions, changes in the operation of pharmacologicalpreparations, inhibition of muscle contraction, alteration of resistance againstsome external physical factors. As deuterium easily replaces protium particularly inDNA and RNA molecules, it can cause genetic changes during cell division.Deuterium is significantly less mobile than protium, therefore oxidation-reductionreactions will stop first. If heavy water often gets into a living organism (and this iswhat happens when desalinated sea water is supplied), protium in the organismwill gradually be replaced by deuterium and the organism will be destroyed.

Boron is more common in sea water than in fresh water. Reverse osmosismembranes remove only 50 - 70% of boron. The rest remains in the water and issupplied to the drinking water system. Current drinking water regulations andquality standards do not protect people from boron because boron is rarely foundin fresh water.


Desalinated water kills the living organism!


The living water of glacial origin The dead desalinated water of artificial origin

Ph

oto

s o

f w

ater

cry

stal

s

The photos clearly depict the enormousdifference between the water crystals.

In addition to the above mentioned serious hazard for human health and generation there are risks of following diseases:

• cancer• increased morbidity and mortality from cardiovascular disease• diabetes, obesity• decreased secretion of tri-iodothyronine and aldosterone• increased secretion of cortisol• morphological changes in the kidneys (including a more

pronounced atrophy of glomeruli)• swollen vascular endothelium limiting the blood flow• reduced skeletal ossification in fetuses• increased diuresis (around 20%)• increased body water volume• increased elimination of minerals from the body• hyponatremic shock or delirium• higher risk of fracture in children• neurodegenerative diseases• pre-term birth, low weight at birth• Impotence, infertility.


Desalinated drinking water kills the living organism!

The basic way to solve water problem in water-shortage countriesis desalination of sea water. Unfortunately, this approach hasserious negative consequences for human health.

Desalinated water is very dangerous for human health because it ispoisoned with contaminants and isotopes that could not becompletely removed during desalination.

Demineralized water is very aggressive. Artificially mineralizedwater is not practically digested by the organism. Scientistsworldwide have proven that distilled drinking water causes a wholebunch of diseases: cancer, cardiovascular, diabetes, obesity,impotence, etc.

World sources of fresh water in surface water reservoirs andgroundwater sources are rapidly degrading; furthermore freshwater is tragically poisoned with substances used in agriculture,industry, housing service and utilities system.


Desalination plants are not capable to substitute natural drinkingwater and provide the world population with healthy drinking water;thus it is necessary to invest in projects of continuous delivery ofdrinking water to water-shortage regions (if there is no other naturalconditions for the solution of this problem in the country).

In the coming years drinking water willbecome one of the world's major strategicresources (like oil, gas, gold, etc.).

Considering the limit of world’s fresh waterreserves and continuously growing scarcityof natural healthy drinking water resources,investment in natural water is the bestinvestment for today and next centuries.


Drinking water will soon be referred to as "blue gold”.

Part 2

Our water is condensed in the glaciers and is free fromcontaminants, including the harmful isotopes, such asdeuterium and tritium. Passing through the underflowalluvial rocks, water is enriched with necessary mineralsuseful for human.

Water from our clean mountain sources is high-qualityunderflow alluvial drinking water of glacial origin. Ourwater is better than any natural equivalent in the world.There are no other natural water sources in the world thatcan provide a significant volume of high-quality water closeto ports for shipping to countries experiencing waterscarcity.

Our drinking water is extracted from the underflow sourcesof clean mountain rivers, from a depth of 30 m, other thanfrom open or surface reservoirs, that ensures its exclusivesafety and high quality.


Our drinking water resources are inexhaustible and sufficient forconstant annual production of the target volumes of 46.5 milliontons of glacial high-quality water.


Sochi

Our sources are located a few kilometers away from theBlack Sea coast, convenient for shipping of large volumes ofdrinking water to water-shortage countries.

Sochi, Russia


Drinking water from our sources complies with thehighest quality standards. Our proposal iscompetitive at the world market in terms of volume,price and quality.

Minerali-zation, mg/l

Hardness, mg/l Ca, mg/l Mg, mg/l Na, mg/l

Sulfates (S), mg/l

Chlorides (Cl), mg/l Fe, mg/l

High quality water standards

< 500 < 7.0 25 - 80 5 - 50 < 20 < 150 < 150 < 0,3

Rosvoda 280 3.23 57 5 4.5 13.2 2 0.03Evian 380 3.1 81 26 6,5 13 9Vittel 403 91 20 7 105Nord 120 17 6.2 11 18 0.025

Water from Baikal 170 2 30 10 5,4 10 1

FIJI 220 18 15 18 1.2 9


ElementsHQ

standardRosvoda

waterEvian Elements

HQ standard

Rosvoda water

Evian Elements HQ standardRosvoda

waterEvian

Acidity (pH) 6.5 – 8.5 7.5 7.16 Li, mg/l 0.03 0.002 - Sr, mg/l 7 0.38 -

Mineralization,

mg/l500 280 380 Be, mg/l 0.0002 0.00001 - Mo, mg/l 0.02 0.00015 -

CO2, volume % 0,2 - - B, mg/l 0.3 0.017 - As, mg/l 0.006 0.0001 -

Flavor, grad 0 0 0 Mn, mg/l 0.05 0.001 0.001 Cd, mg/l 0.001 0.00005 -

Odor, grad 0 0 1 Fe, mg/l 0.3 0.03 - Hg, mg/l 0.0002 0.00006 -

Hardness, mg-

eqiv/l7,0 3.23 3.1 Co, mg/l 0.1 0.0002 - Pb, mg/l 0.005 0.001 0.001

Chlorides, mg/l 150 2 9 Ni, mg/l 0.2 0.0007 0.001 Ca, mg/l 25-80 57 81

Sulfates, mg/l 150 13.2 13 Cu, mg/l 1 0.032 - Mg, mg/l 5-50 5 26

Nitrites, mg/l 150 - 0.85 Zn, mg/l 3 0.016 - Ag, mg/l 0.0025 - -

Na, mg/l 20 4.5 6.5 Se, mg/l 0.01 0.0006 -


Our high-quality glacial drinking water is extracted fromunderflow sources of mountain rivers, at a depth 30 m. Thewater is not in contact with surface environment and thiseliminates the risk of contamination and ensures the exclusivesafety and quality of drinking water.

We have closely explored the mountain springs in the Alps,Norway, New Zealand, Chile and other countries. Nowherein the world can similar sources of superior-qualitydrinking water in large volume and located near the sea befound.

Mountain rivers of Norway and New Zealand and other studied

countries located near the sea do not have an adequate underflow

alluvial layer. Water from such sources is surface water, polluted

and can never be used for bottling.

Rivers Of New Zealand

Rivers Of Norway

The photo clearly depicts the complete absence of alluvial layer in the mountain rivers


An example of one of the countries: in addition to geologicaldifferences of the sources, the irregularities of New Zealand’s climate(storms, floods, earthquakes, tsunamis) also play significant role andendanger both the operation of the water intake and the stability ofthe marine tanker transportation.


There are no other such natural places and water sources in theworld that can provide a significant amount of high-quality waterclose to places convenient for sea transport loading andtransportation (the daily volume of our water transported is theequivalent of 2,500 - 5,000 rail cars).

Our underflow sources have unique combination of quality and quantity of water. Glacial water passing through the underflow alluvial layer complies with the highest quality standard. Water is taken from clean underflow sources of mountain rivers at depths of 30 meters from the surface. This water

has never had contact with the atmosphere and sources of pollution. Sources have a powerful year-round underflow water discharge without interruptions and breakdowns. Clean drinking water supply at our sources is inexhaustible.

Our sources are located in geographic proximity to the coast, which allows for the convenient transportationvia sea of large volumes of water to countries with water scarcity.

No serious natural hazards for the operation of water intake: The region is a part of the area of moderate seismic hazard; earthquakes are very rare and have low magnitude. The region is not exposed to river floods, capable to destroy the infrastructure of water intake.

No serious natural hazards for water transportation. The region is located in a quiet sea wave area; navigation and tankering can be carried out practically all year

round. In the process of terminal construction there is no need to build heavy-duty protective structures. Complete absence of tsunamis.

Close sea access to regions and countries with water scarcity. An example is the distance from the seaport of Sochi to the seaport of Jeddah in Saudi Arabia - just over 2,000

nautical miles.

Warm subtropical climate, appropriate facilities and infrastructure for all-year enterprise activity.

Part 3

Water intake is performed 12–25 kmfrom the sea along the river, wherethe wells for drawing clean underflowdrinking water are being drilled inline, and a fiberglass pipeline is beinglaid using special technology tosupply drinking water to themaritime terminal for loading intospecially built and equipped ocean-going tankers of the Suezmax type.

Our clean mountain sources arelocated along the Shahe, Psezuapseand Ashe rivers of the GreaterCaucasus Mountain Range.

28

There are no more free underflow sources in Russia suitable fordrawing high-quality glacial water. The other rivers are eitheroccupied with local water supply structures, or are not suitable forwater intake.

Greater Caucasus Mountain Range

Adler

Sochi

MoldovkaSalkino

Leselidze

Krasnya Polyana

Solokhaul

Kirov mountain village

Georgievskoye

TUAPSEOlginka

Site

Location layout of underground fresh water deposits

in eastern part of Krasnodar region

Explored underground water deposits (intensively operated deposits

are indicated in bold letters)

Golovinka

Lazarevskoye

© B I G C O R P O R A T I O N & R O S V O D A C O R P O R A T I O N , 2 0 1 4

Water intake is carried out via a network of wells located alongthe mountain river streambed. The depth of the wells is 30 m.

The wells are equipped with stainless fiberglass pipes, thusexcluding oxidation processes in the water intake system.

The water diversion infrastructure includes laboratory, watertreatment equipment, pumping equipment, tanks (reservoirs) tostore the operational supply of drinking water.

Our water diversion structure has been designed as a modernhigh-tech enterprise. All necessary international certificateshave been obtained, guaranteeing the consistently high qualityof our drinking water.


Location map of water supply wells at one of our clean,natural mountain sources.

Advantages of fiberglass pipes:

• Corrosion resistance to water, acid,saline and alkaline media

• Complete absence of electrocorrosion

• Smooth inner surface

• No scaling during the lifetime of the pipe

• Durability

• High strength

• Low fragility

• Can withstand a wide temperaturerange

• Low flammability

• Stability of physical and mechanicalcharacteristics


High-strength fiberglass pipes are a modern alternative tostainless steel, surpassing steel in many respects. 50–100 years ofquality and reliability guaranteed.

Our project has been designed as a modern high-techenterprise. All necessary international certificates havebeen obtained, guaranteeing the consistently highquality of our drinking water.

The quality of drinking water is maintained and doesnot change at any stage of production andtransportation, well facilities, water treatment, pipelineand tankering.

A proprietary world-class laboratory will be equipped tomonitor the quality of drinking water.


We guarantee the consistently high quality of our drinking water.

Rosvoda Corporation’s cleanmountain sources of drinking waterare protected from any subversiveacts of violators and terrorists, as wellas the impact of weather cataclysmsand natural disasters. Our drinkingwater sources are underground anddo not come into contact with theexternal environment. (The sourcescannot be cut off, poisoned, blown upor contaminated).

The water-intake infrastructureconsists of controlled-access guardedenterprises.


We guarantee the stable marine supply andhigh quality of our drinking water!

Part 4

Our sea terminal is capable ofloading two tankers with drinkingwater simultaneously in all weatherconditions, almost year round.

This solution is mature, highlyeffective and widely used in theworld oil industry. We have adaptedthis solution considering the specificfeatures of the drinking water.


Our own sea terminal for loading drinking water will be located12 km away from the water intake on the Black Sea coast.


An offset mooring facility will be used for loading ocean-goingtankers with water. This allows for the shipping of up to 300,000tons of water per day to water-shortage countries under anyweather conditions.

Our marine fleet consists of 35 sea tankers of SUEZMAX class,specially constructed and equipped to transport drinking waterwhile preserving its highest quality. Capacity of one tanker is150,000 tons (2,500 railway cars).


Our own maritime private securitycompany ensures:

- Safety of ships and crews.

- Steady delivery schedule.

- Insurance and security savings.Transportation is performedyear round, so a proprietarysecurity company iseconomically feasible.

- Effective protection against newdevious methods of piracy.

- Legality of security activities inaccordance with internationallegislation.


We guarantee the safety and security of thesupply of drinking water year round.

Part 5


Humankind will always consume healthy drinking water, under anyeconomic and social conditions, in any global circumstances (war,disasters etc.). Water is life!

The global industry of extraction and supply of fresh water is amarket with annual turnover of more than a half trillion USD.

Market volume of bottled water in the 2011 amounted to 261.8billion liters.

The market of drinking water has been growing steadily since1985, with an average growth rate of 6%. The highest growth of11.4% was fixed in 2000

According to the International Water Management Institute (IWMI)over past 100 years water consumption has increased sixfold, andby 2050 it will increase tenfold. Currently, 1 person is accounted forabout 2.5-3 liters of water a day. According to UN estimates, by2025 the world population will increase up to 8.5 billion; therefore,additional amounts of fresh water will be required. It is obviousthat water crisis may be expected in the coming years.


www.zenithinternational.com


The conclusion: the market entry of arid regions is open for entryof a powerful player who is able to supply large amounts of high-quality clean drinking water with high organoleptic properties at aprice adequate for the population of his country.

High-quality water for bottling can be obtained neither bypurification nor by desalination, but only from natural watersources. And only such water can be useful for a livingorganism.

In arid regions consumption of bottled drinking water ishigher than the world average, since tap water cannot beused for drinking and cooking.

All drinking water sources in arid regions have beenexplored and are actively being exploited. The increasingdemand of a growing population is supplied by means ofwater purification and desalination of sea water.


46.5 million m3 of high-quality bottled drinking water is sufficientto supply the annual demand of 63.7 million people, based on thedaily norm of 2 liters per person.

Bottled drinking water of superior quality from Rosvoda Corporation has enormous potential in fast-growing global market of drinking water.

*Data calculated on the basis of potential human consumption of healthy natural drinking water only.

Population million

people

Bottled water consumptionTarget consumption 1,5 l per

capita per dayTarget consumption 2,5 l per capita

per day

L per capita per year

M3 per year(bottling water consumption on

local markets data)

Target m3 per year

Deficit m3 per year

Target m3 per yearDeficit m3 per

year

Saudi Arabia 28.7 95 2 726 988 15 716 060 12 989 073 26 193 434 23 466 446UAE 4.8 153 734 438 2 628 137 1 893 699 4 380 228 3 645 790

Qatar 1.7 95 161 446 930 441 768 994 1 550 734 1 389 288Oman 2.8 13 34 946 1 518 480 1 483 534 2 530 800 2 495 854Israel 8.0 88 704 000 4 380 000 3 676 000 7 300 000 6 596 000

Cyprus 0.9 98 84 477 471 951 387 474 786 585 702 108Egypt 83.7 3.8 317 923 45 806 040 45 488 117 76 343 400 76 025 477

Total, excl India 208.1 4 764 218 71 451 109 66 686 890 119 085 181 114 320 963

India 1 236.5 4.8 5 935 272 676 991 963 671 056 691 1 128 319 938 1 122 384 666

Total, incl India 1 444.6 10 699 490 748 443 071 737 743 581 1 247 405 119 1 236 705 628

Part 6


Marine tanker shipping provides cost-effective delivery ofdrinking water to water-shortage countries whilepreserving its highest quality.

Only newbuilt tankers designed and equippedfor drinking water transportation are suitablefor shipping large volumes of high qualitywater. Special technologies and activities areour know-how and ensure preservation ofdrinking water quality during the seatransportation.


We offer to our strategic partners in the U.A.E. the construction oftwo mega-plants: the first in their own country, the second in aneighboring water-shortage country, with total annual bottlingcapacity of 46.5 million tons of drinking water in Bag-in-Box, withguaranteed water supply from our unique mountain sources.


We offer to our partners the construction of the two largestdrinking-water bottling mega-plants in the world.

SCHEME MEGA - PLANT ON LAND

mega-plants

100HECTARE.

SPM-5 KM.

PORT.

Scheme мega - plant on land

Key features of drinking water bottlinglines

• High speed filling.

• High accuracy of filling and constantspeed.

• BiB capacity from 1 to 1000 liters.

• Overall automation.

• Equipment materials – stainless steeland special plastics.

• Standards of equipment- EuropeanHygienic Engineering & Design Group(EHEDG).

• Conformance to EU Health and Safetywork acts.

• CIP/SIP

• Bottled water gets packed intocontainers to be delivered to consumersin different regions of the world.


Supplier of Bag-in-Box plant is chosen between market leaders:Smurfit Kappa, Sacmi Pakim, Rapak, DuPont, Tetra Pak, SIG.


Full cycle of bottling in Bag-in-box see :http://www.corporationbig.com/bib#!bib/clx

We offer to our partners the construction of mega-plants forbottling of our unique high-quality drinking water directly inthe countries suffering from water scarcity.

Water will be bottled in various types of packaging. 10-litreBag-in-Box is a basic type. These packages ensurepreservation of drinking water quality under anytransportation and storage conditions.

The following table shows the planned annual volume ofbottling at both mega-plants of our partners.


Tons 46 500 000Litres 46 500 000 000No of working days per year 320

The drinking water bottling mega-plants will be locatedclose to maritime terminals in major transport nodes ofwater-shortage regions.

The Bag-in-Box (BIB) packaging system consists of a multilayer plasticbladder equipped with a tap or a cork and seated inside an externalcontainer (carton/box/barrel/industrial container). The bladderprotects the product, and the external container protects the bladder.The bladder is filled with the product by a special semi-automatic orautomatic filling machine.

The bladders are manufactured from different types of polymerdepending on the characteristics of the product (pH, solid contents,product temperature in the process of filling, etc.), productiontechnologies, shelf life and storage conditions for the finished product,which will ultimately determine the level of product protection fromexposure to oxygen, humidity, UV radiation, etc.

Bag-in-Box is an economical and practical solution for hot countries.

BIB packages provide excellent barrier protection from light and theexternal environment, ensuring the preservation of the highest quality.In contrast to BIB, plastic bottles produce toxins at high temperature orunder insolation.


Bag-in-Box is a low-cost effective solution for maintaining quality inwarm climate countries under all conditions of transportation andstorage of drinking water. Plastic bottles will never provide a similarlevel of safety and quality of drinking water.

Proposal of Rosvoda corporation for the supply of high-quality drinking water of glacial origin is unique in terms of quality, price, volume and consistency of year-round supply.

Rosvoda corporation together with its regional partners will solve essential problems of drinking water shortage in countries with water scarcity. The water-bottling project is the best opportunity for our

regional partners to establish themselves as leaders in the regional market of high-quality drinking water. Our project is the largest and the best in the world water-supply market.

Today is the best time and opportunity for investment in natural drinking water. An annually growing shortage of drinking water, as well as the hazard for human health caused by consumption of desalinated water will soon lead to explosive growth in prices for natural, wholesome drinking water in the same way

that the price of oil skyrocketed in 1973 during the oil crisis.

Everyone will benefit from cooperation with our corporation!

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www.rosvodacorp.ru

Proposal to the U.A.E. regarding cooperation with Rosvoda Corporation Project (megaplants)

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