SWISS WATER POWER INTERNATIONAL - Social Stock...

SWISS WATER POWER INTERNATIONALImpact Report August 2016

PREPARED BY TRUCOST

FACTSHEET

100-2,000m3 drinking water

produced per hour by modular

Aquabloc® units

100 m3 100 m3 drinking water per

hour can be produced by

facilities in development

SSS

1,624jobs created during

installation and working phase

1,416,000 people potentially

served by safe, drinking water

provided to Republic of Congo

per anum

25,842,000 m3

safe, drinking water provided to

Republic of Congo per anum

$11.6 billion in health costs can be saved by universal

access to clean drinking water



provided to Algeria per anum

22,776,000 m3


Algeria per anum

792,000 people potentially


provided to Mali per anum

14,454,000 m3


Mali per anum



provided to Iraq per anum

373,176,000 m3


Iraq per anum

3SWISS WATER POWER INTERNATIONAL SA IMPACT REPORT │TRUCOST │AUGUST 2016

CONTENTS1. CEO Overview 4

2. Social Purpose & Context 7

3. Who Benefits? 10

4. Activities & Operations 17

5. Stakeholders 22

6. Evidencing Social Value 24

7. Other Sustainability & Reputational Issues 27

References 28

ABOUT TRUCOSTTrucost helps investors to understand the economic consequences of natural capital dependency in order to identify risk and opportunity from growing natural resource pressures and environmental costs.

Natural capital liabilities such as carbon, water, resource use, pollution and waste are threatening the ability of our natural ecosystems to deliver economic growth. The impact is already being felt through volatile commodity prices linked to extreme weather events, pollution impacts and natural resource constraints.

We provide the world’s most comprehensive natural capital data representing 93% of global markets by market capitalisation to support the investment community in evaluating the environmental efficiency of companies and their supply chains, analysing portfolios against benchmarks, and creating new products. Key to our approach is that we not only measure natural capital risk in physical quantities, we also apply a financial value to provide an overarching metric for risk and opportunity analysis.

www.trucost.com

CONTRIBUTORSResearch and verification by Beth Burkes, Rick Lord, Jacqueline Jackson, Arpit Banerjee and Gautham P. - Trucost Plc

Edited and designed by Rebecca Edwards and James Richens – Trucost Plc

With special thanks to Patrick de Pachtère - Swiss Water Power International SA; with Yves Gut and Charles Blount (independent advisors)


1. CEO OVERVIEWThe Earth’s total surface area is around 501 million km2 or 197 million square miles. 71% of the surface is covered

by water, with much of the continental shelf below sea level. This equates to 361.13 million km2 or 139.43 million

squares miles. The remaining 29%, 148.94 million km2, or 57.51 million square miles not covered by salt water

has terrain that varies greatly from place to place and consists of mountains, deserts, plains, plateaus, and

other landforms.

The human population reached seven billion on 31 October 2011. Projections indicate that the world’s human

population will reach 9.2 billion by 2050. Most of the growth is expected to take place in developing nations. Human

population density varies widely around the world, but a majority live in Asia. By 2020, 60% of the world’s population

is expected to be living in urban, rather than rural, areas.

It is estimated that one-eighth of Earth’s surface is suitable for humans to live on, three quarters of earth’s surface is

covered by oceans, leaving one quarter as land. Half of that land area is desert (14%), high mountains (27%), or other

unsuitable terrain.

Sources from UNICEF say the Earth has enough water to meet the needs of everyone. However, water is

unequally distributed; some countries enjoy abundant freshwater resources, while others are faced with the water

stress and/or rare access to water that impedes their development. If current trends continue, two-thirds of the world’s

population may face water scarcity by 2025. The water crisis may very well thwart efforts to combat poverty and foster

sustainable development from a social, economic and environmental perspective.

Apart from scarce water due to natural environmental conditions or geographic location, many countries are

faced with economic challenges regarding access to water, because while the resource may be abundant, the

countries’ infrastructures are insufficient in providing access to the local population. The water crisis affects 748 million

people worldwide as they do not have access to clean drinking water. Moreover, 2.5 billion people live without

access to adequate sanitation infrastructures, which pose an additional risk for their health and development as well

as for the local water quality and environment. Contaminated water is the source of numerous illnesses, which can

be deadly. Inadequate access to clean water and sanitation—and a lack of hygiene—kills 3.5 million people each year.

Children, who are particularly vulnerable, are the primary victims of this scourge: every minute, a child dies from

water-borne illness.

Women are also disproportionately affected by a lack of access to clean water. As they have been traditionally

responsible for collecting water, they must travel long distances to get to water access points. Women and girls

must often travel up to six hours a day to collect water. This prevents them from investing any time in productive or

educational activities. Their financial independence is significantly limited, which reinforces the inequality between

men and women—a situation that is deeply rooted in the cultures of local communities. Because of their specific needs

regarding hygiene, the lack of access to sanitation affects women’s dignity as well as puts their health and safety at risk.


The water crisis also has severe repercussions for food safety. The lack of access to water greatly limits the

productivity of populations, which inevitably impacts the nutrition of rural families. In addition, their

revenues and lifestyles are often threatened, thereby limiting their chances of escaping poverty. The lack of access to

water is a major hindrance to human and socio-economic development. Universal access to clean drinking water and

sanitation can drastically reduce diarrheal diseases and save over $11.6 billion in health costs. When factoring in

estimated productivity gains ($5.6 billion in additional work days per year), total generated savings in the developing

world can increase to $263 billion.

For millions of people, improving access to clean drinking water and sanitation enables them to broaden

their horizons. It is an important key to eradicating poverty and ensuring the sustainable development of

communities worldwide.

1.a Organisational Summary

Swiss Water Power International SA based in Switzerland was established in 2003. The company develops, installs and

maintains fixed or mobile compact containerised units for drinking water, clean energy photovoltaic panels, electrical

power generation units and transformers irrespective of the local environment and conditions for public authorities,

public or private operators and individual firms addressing their requirements in terms of their needs of clean water

and energy supply.

Swiss Water Power International SA is involved in a large number of countries in Africa and the Middle East, either

directly or in partnership ventures with local stakeholders. Swiss Water Power International SA is present in West

Africa and Central Africa, through its subsidiaries (100% owned), Swiss Water Power Congo (based in Pointe Noire)

and Swiss Water Power Mali (based in Bamako) is also present through commercial representation in Angola,

Benin, Burkina Faso, Cameroon, Ivory Coast, Guinea Conakry, Equatorial Guinea, Morocco, Niger, Rwanda, Chad and

the Maghreb.

Swiss Water Power International SA responds to the need of potable water supply, also to the strengthening of

existing facilities by the installation of compact containerised units called Aquabloc® for the production of drinking

SWISS WATER POWER INTERNATIONAL SA, GENEVA, SWITZERLAND

SUBSIDIARY: SWISS WATER POWER

CONGO

SUBSIDIARY: SWISS WATER POWER

MALI

COMMERCIAL AGENTS AND REPRESENTATIVESANGOLA - BÉNIN - BURKINA FASO - CAMEROON - IVORY COAST - GUINEA CONAKRY - EQUATORIAL GUINEA - MOROCCO - NIGER -

RWANDA - CHAD - MAGHREB

SWISS WATER POWER SA,GENEVA, SWITZERLAND


water from surface water. The capacity of production of drinking water of these facilities range from 200 to 2,000 m3/

hour. The company wishes to develop drinking water production facilities with speeds of up to 100 m3/hour powered

by photovoltaic panels only.

The main competitor in this area of operation (compact units) is Opalium of Veolia & Degremont operated by the Suez

group companies.

Swiss Water Power International SA is a member of the French Speaking Water Suppliers’ Association (Distributeurs

d’Eau Romands, DER), the African Water Association (AfWA), Global Water Partnership, Switzerland Global Enterprise

(SGE) and the Geneva & Lausanne Chamber of Commerce. It is also an affiliate of the International Container Bureau

(BIC), registration “SWSU”.

Swiss Water Power International SA is attentive to the needs of public authorities and businesses alike, fulfilling the

most stringent customer expectations and offering turnkey solutions to deal with changing needs in terms of water

and power.

1.b. Commitment to the Social/Environmental ValueSwiss Water Power International SA social and environmental objectives are to:

• Increase access to potable drinking water for the planet’s neediest population

• Reduce healthcare issues, illnesses, and mortality in precarious regions

• Help support local governments and other organisations in achieving these goals in a timely manner

Swiss Water Power International SA has a commitment to each of these ambitious objectives, which are fully aligned

with its core business and service offering, committed to measuring and regularly disclosing information on its

social and environmental performance through the company’s annual Impact Report and direct engagement with its

partners, stakeholder and customers.

Delivering social benefit, through improving the quality of life, is at the heart of what Swiss Water Power

International does. The company is experiencing unprecedented demand for its solutions and has elected to meet

this demand by increasing its resources and capabilities. In this context, the Social Stock Exchange, with its mission

to support social impact investors and companies is the perfect partner to aid Swiss Water Power International SA in

achieving our social goals.

Patrick de Pachetère

CEO, President Swiss Water Power International SA


Mission StatementThe ChallengeThe book “World of Water Wars – The Fight to Stop the Corporate Theft of the World’s Water” by Maude Bar-

low and Tony Clarke depicts the environmental and political implications of the planet’s dwindling water supply. It

posits that wars in the future will be fought over water. It highlights some success stories of water activists around the

world. The anticipated reaction to dwindling water supplies and the value of this natural resource led the authors to

describe water as “blue gold.” The need to secure freshwater supplies is intrinsically linked to sustainable

development and economic prosperity.

Water security has been defined as “the reliable availability of an acceptable quantity and quality of water for health,

livelihoods and production, coupled with an acceptable level of water-related risks.” Sustainable development

will not be achieved without a water secure world. A water secure world integrates a concern for the intrinsic val-

ue of water with a concern for its use for human survival and well-being. A water secure world harnesses water’s

productive power and minimises its destructive force. Water security also means addressing environmental

protection and the negative effects of poor management. It is also concerned with ending fragmented responsibili-

ty for water and integrating water resources management across all sectors: finance, planning, agriculture, energy,

tourism, industry, education and health. A water secure world reduces poverty, advances education, and increases liv-

ing standards. It is a world where there is an improved quality of life for all, especially for the most vulnerable, usually

women and children, who benefit most from good water governance.

Figure one shows global physical and economic water scarcity. Large portions of Africa have economic water

scarcity, meaning that there are constraints to effective distribution of water resources even when there is ample

supply. There is opportunity in this region to access to drinking water using Swiss Water Power’s Aquabloc® products.

2. SOCIAL PURPOSE & CONTEXT

Figure One: Global distribution of water scarcity


Swiss Water Power’s MissionSwiss Water Power’s mission is supported by its organisational commitment to values of integrity, fair and equitable

practice and accountability. Its mission is to provide scalable and sustainable compact containerised units Aquabloc®,

which are a turnkey solution for the supply and production of drinking water regardless of location. Today, Swiss

Water Power International SA currently offers four main diversified product lines:

• Aquabloc®

• Transbloc®

• Powerbloc®

• Petrobloc®

Figure Two: Aquabloc® modules

Current Management and CommunicationSwiss Water Power’s executive team is:

• Mr. Patrick de Pachetère, founder, CEO and President

Swiss Water Power International SA today employs eight people and has installed base drinking water units valued

at CHF 50,000,000 to date. Mr de Pachetère takes sole responsibility for ensuring the social mission of the compa-

ny. Swiss Water Power International is committed to raise awareness of the issues it addresses and the solutions it

puts in place. This commitment is entirely aligned with an increase in disclosure and the opening of long term “win-

dows” into the communities it serves. The company will supplement conventional forms of communication (such as


statutory reports, annual reviews, corporate web presence, annual and interim meetings and periodic newsletters)

with both social/environmental impact reports (founded on measured benefits) and other forms of reporting such as

community based micro-sites. Swiss Water Power International SA will produce annual impact reports, in alignment

with Social Stock Exchange requirements, to communicate progress on its social purpose to external stakeholders. In-

ternal stakeholders will be briefed directly by the CEO.

Alignment of Social PurposeImproving access to safe drinking water is the principal aim of Swiss Water Power International SA. Revenue

generated by the business comes from the provision of drinking water via the supply of combined power and water

units. On this basis, the company notes that its revenue is entirely derived through achieving this social aim and the

social purpose is fundamental to its business planning and objectives. Any expansion in its business activities will yield

greater access to clean drinking water in regions of economic water scarcity. It is well recognised that improving access

to clean water will lead to improved quality of life and significant reduction in loss of life and illness. It is for these rea-

sons that water supply is a major component of the United Nations Sustainable Development Goals (goal 6).

The delivery of social benefit through water purification solutions is central to what Swiss Water Power International

SA does. This is where the company’s competitive advantages lie. Its installed base is entirely in this field. This is its

long term objective and it is the Chief Executive that shoulders responsibility to adhere to this path and avoid any drift

away from the company’s mission and core objectives.

Swiss Water Power International SA is also looking to expand into renewable energy with its ‘Solar Power Shelter’ - a

photovoltaic container that is 100% autonomous and perfectly suited to operate on an isolated site. Mounted on site,

it provides energy from the first day of installation. The shelter is equipped with a GEPOWERBOX® system including

production and management of electrical equipment. The system optimises output and storage, enabling the energy

generated by the solar panels to be harnessed immediately and connected to a wide range of electrical appliances.

The system can be networked with other power generation equipment or the public grid if available. This unit is not

anticipated to make up a significant proportion of Swiss Water Power’s future business. However, the company sees it

as part of allowing its customers to reduce their environmental impact in the future.

Figure Three: Conceptual Design of Solar Power Shelter


3.a The Problem

Africa is the world´s second-driest continent after Australia. About 66% of Africa is arid or semi-arid and more than

300 of the 800 million people in sub-Saharan Africa live in a water-scarce environment – meaning that they have

less than 1,000 m3 per capita per year. As shown in figure one (Section 2), this is not due to a lack of resource but

is economically driven and due to poor infrastructure. An estimated 115 people in Africa die every hour from dis-

eases linked to poor sanitation, poor hygiene and contaminated water. Some 35% of the water and sanitation aid

commitments under the Millennium Development Goals (MDG) was directed to Africa with Sub-Saharan hav-

ing 27% of the financial allocation. In Africa, especially sub-Saharan Africa, more than a quarter of the population

spends more than half an hour per round trip to collect water (United Nations Department of Economic and Social

Affairs, 2014).

Each year, of the 2.3 million workplace deaths, 17% can be attributed to contagious diseases and non-potable water

intake. Three quarters of the global workforce has livelihoods that rely on having access to freshwater. The sectors of

agriculture, fishery and forestry, which are among the largest water users, employ almost one billion people. Access to

a water supply and sanitation services that are safe and reliable in the home, school and work is essential to maintain

active healthy, educated and productive population. The inadequate level water, sanitation and hygiene services is as-

sociated with global economic losses of 260 billion US dollars each year, largely due to the loss of time and productivity

(The World Bank, 2013). From its extraction until its return to nature, water is a key factor in job creation. A study by the

World Health Organization has shown that poor countries with better access to improved water supply services and

sanitation had a rate of annual economic growth which reached 3.7%, while those without similar access to enhanced

services achieved an average annual growth of only 0.1% (Sanctuary et al, 2005).

Swiss Water Power International SA responds to the need for new potable water supplies and the strengthening of

existing facilities through the installation of compact containerised Aquabloc® units that produce drinking water from

surface water, groundwater, brackish water and seawater. Aquabloc® units have production capacities ranging from

200 to 2,000 m3/hour and can be scaled to meet the needs of diverse communities and locations. Swiss Water Power

International SA is also developing production facilities powered by photovoltaic panels capable of producing up to

100 m3 of drinking water per hour.

3.b. Who Benefits

The principal beneficiaries are the local population who gain access to clean drinking water as a result of Swiss Water

Power’s products. Since its inception in 2003, the company has been operating in Africa and the Middle East in some

of the world’s most water scarce regions.

More than 700 million people still have no access to clean, safe water, which is a necessary condition for a healthy life.

According to the United Nation’s World Water Development report (2016) nearly 2 billion people need reliable access

to drinking water safe for human consumption; girls and women are particularly disadvantaged in this regard. Currently

women are often burdened with unpaid work to retrieve water from increasingly greater distances away from where

their families reside.

3. WHO BENEFITS?


Water also essential to a more inclusive and sustainable development. This is why it occupies a central place in the

new sustainable development program by 2030. The sustainable development goal number six is to ensure access for

all to the water, sanitation and ensuring a sustainable management of water resources. It is seen to be crucial for the

achievement of all other objectives.

Figure Four: Map of countries in which Swiss Water Power has a presence

Facilities utilising Swiss Water Power International SA equipment currently produce nearly 1,200,000 m3 per day, equiv-

alent to the drinking water needs of more than 23.4 million people (on the basis of 51 litres/day/capita… a quantity

that significantly reduces health risks) (Guy Howard, 2003).

Local Communities

Local communities are the primary beneficiaries of Swiss Water Power’s activities, receiving secure access to safe

drinking water that would otherwise be unavailable. Significant progress has been made in recent decades in

expanding access to improved drinking water sources, with more than 90% of the world’s population now having

ANGOLA

BENIN

BURKINA FASO

EQUATORIAL GUINEA

IVORY COAST

GUINEA CONAKRY

CAMEROON

MOROCCO

NIGER

RWANDA

CHAD

THE MAGHREB

CONGO BRAZZAVILLE

MALI


access to improved sources of drinking water (UNICEF and WHO, 2015). However limited access to clean drinking water

persists in some of the world’s least developed countries and those affected by war and civil unrest. Figure five below

shows the distribution of access to clean drinking water across the world, highlighting large areas of Africa where less

than 75% of the population has access to improved drinking water sources. It is estimated that in 2015 approximately

663 million people lacked improved drinking water sources (UNICEF and WHO, 2015), primarily in those countries des-

ignated as least developed by the United Nations (UNICEF and WHO, 2015).

Figure five: Countries in which less than 50% of the population uses improved drinking water sources are all located in sub-Saharan Africa and Oceania Source : (UNICEF and WHO, 2015)

Swiss Water Power’s Aquabloc® systems offer a cost effective and rapidly deployable solution for the provision of

reliable clean water access in locations where larger scale water treatment infrastructure is not available. Table one

describes the daily water provisioning capacity of Swiss Water Power International SA installations in Mali, Republic of

Congo, Iraq and Algeria along with the estimated number of inhabitants potentially served by the Swiss Water Power

International SA installation assuming the World Health Organization recommended drinking water allowance. In real-

ity, some of the water produced by Swiss Water Power International SA installations may be used for purposes other

than human consumption (such as industry) and thus the number of inhabitants served should be considered as an

indicative estimate.

It is estimated that current Aquabloc® installations in these locations produce over 49 million cubic meters of clean

water per annum.


CountryClean drinking water production capacity (m3/day)

Clean drinking water production capacity (m3/annum)

Potential population provided clean drinking water

Algeria 62,400 22,776,000 1,248,000

Congo 70,800 25,842,000 1,416,000

Iraq 1,022,400 373,176,000 20,448,000

Mali 39,600 14,454,000 792,000

Total 1,195,200 436,248,000 23,904,000

Source: SWP, (Guy Howard, 2003)

Assumptions:

1. Daily water requirements per capita is assumed to be 51 litres per day. This allowance is expected to poses a low

level of health risk to the community (Guy Howard, 2003).

2. Daily water output from Swiss Water Power International SA installations was reported based on data from Swiss

Water Power International SA.

3. Excludes installations yet to complete construction

Public Health

Lack of access to reliable clean drinking water poses a significant public health risk to communities. It is estimated that

over 3,900 children die each day due to dirty water or poor hygiene. Close to 1.8 million people die every year from

diarrhoeal diseases (including cholera) which are associated with inadequate access to water for sanitation (World

Business Council for Sustainable Development, 2005). Increasing access to clean water can help reduce this burden

of disease with the potential benefits being greatest where continuous access to safe drinking water can be provided

within the home (a level of service that can be defined as optimal) (Guy Howard, 2003). Table X describes the relation-

ship between the level of water service access and the associated risk to public health. As shown, a daily allowance of

over 50 litres per person per day can reduce the health risk associated with clean water access to a status of low.

Table two: Summary of requirement for water service level to promote health. Source: (Guy Howard, 2003)

Service levelCorresponding Quantity

Access measure Needs metLevel of health concern

No access ≤5 litres/capita/day More than 1000m or 30 minutes total col-lection time

Consumption – cannot be assured

Hygiene – not possible (unless practised at source)

Very high

Table one: Drinking Water Production and Potentially Served Populations for SWP Installations in Iraq, Republic of Congo, Mali

and Algeria.


Service levelCorresponding Quantity

Access measure Needs metLevel of health concern

Basic access ≤20 litres/capita/day Between 100 and 1000m or 5 to 30 minutes total collection time

Consumption – should be assured

Hygiene – handwashing and ba-sic food hygiene pos-sible; laundry/ bath-ing difficult to assure unless carried out at source

High

Intermediate access ≈50 litres/capita/day Water delivered through one tap on plot or within 100m or 5 minutes total col-lection time

Consumption – assured

Hygiene – all basic personal and food hygiene assured; laundry and bathing should also be as-sured

Low

Optimal access ≥100 litres/capita/day

Water supplied through multiple taps continuously

Consumption – all needs met

Hygiene – all needs should be met

Very low

The health impacts of restricted water access are not limited to households. UNICEF reports that many healthcare

centres in the least developed countries are lacking the most basic water, sanitation, and handwashing facilities

(Figure six). In Africa, 42% of healthcare facilities lacked an improved water source within 500 metres. The WHO

minimum standards call for on premise water supplies to enable proper sanitation and reduce health risks (UNICEF and

WHO, 2015).

Figure six: Proportion of Healthcare Facilities without basic water, sanitation and hygiene facilities. Source : (UNICEF and

WHO, 2015)


SWP’s Aquabloc® systems can operate in conjunction with existing water distribution infrastructure, helping to

deliver access to an in-home safe water supply.

In addition to the direct health benefits of improved clean water access and sanitation, the provision of an in-home or

near-home water source can significantly reduce the travel time and effort required for households to gather necessary

water supplies from distant sources. Reducing this burden can liberate additional time for child-care, food preparation

and other productive activity. At higher levels of service, incremental improvements in socio-economic status can also

be achieved (Guy Howard, 2003).

Local Government and Municipalities

Responsibility for the provision of safe and reliable water supply most commonly rests with local governments

and municipalities which typically operate (soley or in conjuction with the private sector) water treatment and

distribution infrastructure. Such infrastructure can be costly and require long lead times to implement. Construc-

tion of a typical water production and purification facility can require 18-36 months from the initation of construc-

tion to becoming operational. This lead time presents a challenge as water supply is critical to sustaining healthy

communities. Furthermore, in some of the least developed areas of the world, the financing, construction and

operation of a large scale water production facitity can be unfeasible.

In contrast, an Aquabloc® driven water purification and production facility requires just 3-6 months to install and

begin supplying water (as shown in Figure seven). Required civil engineering work is limited to the construction

of a concrete platform on which the portable Aquabloc® systems are installed. Furthermore, all variants of the

Aquabloc® system are fully containerised (ISO) enabling efficient and cost effective transport by sea, road, railroad

and waterway.

In summary, SWP’s Aquabloc® system offers an efficient, cost effective and scalable solution for local governements to

deliver rapid access to clean water supplies for the communities they serve.

Figure seven: Construction Time: Conventional Water Treatment Facilities vs SWP’s Aquabloc®

System. Source: SWP


Local Employment

Swiss Water Power International SA employs the local workforce for the establishment and operation of its

installations, offering opportunities for skilled employment which may otherwise be limited. Table three describes

the number of staff typically employed per Aquabloc® installation and Table four presents estimates of the number of

employment positions created by current Aquabloc® installations.

Table three: Employment Creation per Aquabloc® Installation. Source: Swiss Water

Power International SA

1 unit of Aquabloc® Number of Positions

Establishment / Installation Phase 10

Operational Phase 4

Total 14

Table four: Estimated Employment Creation by Current Aquabloc® Installations.

Source: Swiss Water Power International SA

CountryTotal Employment creation during installation phase

Total Employment creation during working phase

Algeria 130 52

Congo 20 8

Iraq 980 392

Mali 30 12


Swiss Water Power International SA Products

Swiss Water Power International SA provides clean drinking water through the sale of its products which are suit-

able for deployment in any environment. The following section describes Swiss Water Power International SA’s

specific product offering, which is grouped into the four main product lines: Aquabloc®, Powerbloc®, Transbloc®

and Petrobloc®.

Aquabloc®

Each Aquabloc® is a compact unit for producing drinking water of a quality that complies with the World Health

Organization’s standards.

• Compact units: 7,000-12,000 m2

• Technologies used for surface or groundwater purification: sedimentation, filtering and/or activated carbon

• Technologies used for brackish water or seawater purification: clarifying and reverse osmosis

• Complies with World Health Organization’s drinking water standards

• Provisioning capacity: 100-2,000 m3/hour

4. ACTIVITIES & OPERATIONS


Powerbloc®

Each Powerbloc® provides power generation solutions where there is intermittent or no local power generation from

existing infrastructure.

• Compact units: 60 m2

• Technology in principal Powerbloc®: Cummins, Perkins, Volvo Penta, Lister-Petter, Deutz, MAN, MTU or Yanmar

diesel motors, Leroy Sommer or Marathon alternators, and Stamford electrical generators

• Capacity of principal Powerbloc®: 0.08 – 2.64 MW (100 – 3,300 kVA)

• Technology in Powerbloc BIO®: Caterpillar engine running on rapeseed oil methyl ester

• Capacity of Powerbloc® BIO: 1.00 – 5.00 MW (1,250 – 6,250 kVA)

Transbloc®

Each Transbloc® performs power transformation and distribution for the Aquabloc® units and incorporates a

disconnect/protection function.

• Compact units: 60 m2

• Technology in principal Transbloc®: uses a PCB-free (polychlorinated biphenyls) dielectric fluid and copper or alu-

minum winding, depending on the power rating

• Alternative technology available: uses a vegetable-origin dielectric fluid derived from rapeseed oil that is 97% bio-

degradable, has excellent dielectric characteristics and thermal stability, has a high fire point (in excess of 300 °C)

and requires relatively little in the way of fire prevention measures


Petrobloc®

Each Petrobloc® unit provides safe storage and distribution of fuel to areas where there is limited or no infrastructure

in place.

• Compact units: 20’ or 40’ high cube container size

• Technology in Petrobloc®: multi-product, double-skin tank

• Capacity of dispenser: 5 – 12 m3/hour

• Capacity of storage unit: 5,000 – 40,000 litres of any type of fuel (petrol, diesel, kerosene, jet fuel)

• Complies with ISO standards for easy shipping and installation in any environment

Due to the compact size and modular assembly, Swiss Water Power’s product lines can provide drinking wa-

ter in challenging environmental locations where local populations have previously suffered from lack of water

infrastructure. The compact size allows for an easy transport of the units and allows Swiss Water Power International

SA to provide clean, drinking water to remote populations living in environments with little existing infrastructure.

As such, it is able to service the large parts of Africa and the Middle East where there is sufficient water available, but

the region suffers from economic water scarcity (see figure one in CEO’s statement).

To date, Swiss Water Power International SA has generated over 90 percent of its revenue from the sale of water infra-

structure and solutions.

Table five: SWP Projects in different countries and the potential water production capacities

Project Country Water Production Capacity (m3/day)

CWTU Maysan Project Iraq 14,400

CWTU Suheiliya Project Iraq 11,000

CWTU Al Mussaib Project Iraq 11,000

CWTU Al Tarya Project Iraq 22,000

CWTU Babylone Project Iraq 22,000

CWTU Al Amary Project Iraq 4,400


CWTU Tarmiya Project Iraq 9,600

CWTU Mosul Project Iraq 14,400


CWTU Wassit Project Iraq 14,400

CWTU Basrah Project Iraq 9,600

CWTU Theqar Project Iraq 28,800

CWTU Ta'Meem Project Iraq 9,600

CWTU Anbar Project Iraq 9,600

CWTU Salah Aldeen Project Iraq 9,600

CWTU Najaf Project Iraq 9,600

CWTU Diyala Project Iraq 9,600


Project Country Water Production Capacity (m3/day)

CWTU Qadissyah Project Iraq 14,400

CWTU Karbala Project Iraq 4,800


CWTU Muthana Project Iraq 4,800

CWTU Bagdad Project Iraq 4,800

CWTU Dohuk Iraq 11,000







CWTU Baco Djicoroni Mali 13,200

CWTU Magnambougou Mali 13,200

CWTU Missabougou Mali 13,200

CWTU Ewo Congo 4,800

CWTU Kintele (Brazzaville) Congo 30,000

CWTU Gambouissi (Pointe Noire) Congo 36,000

SAA Securité AEP Alger (Mazafran) Algeria 62,400

Linking Operations to Beneficiaries

As shown in Table six, Swiss Water Power International SA delivers improved access to clean, freshwater in Iraq,

Mali, Republic of Congo, Algeria and Guadeloupe. The company also has, through its subsidiaries Swiss Water Pow-

er Congo (based in Pointe Noire) and Swiss Water Power Mali (based in Bamako), commercial representation in

Benin, Burkina Faso, Cameroon, Ivory Coast, Guinea Conakry, Equatorial Guinea, Morocco, Niger, Rwanda and the

Maghreb. The revenue generated by the company is solely from the provision of drinking water, so it is inextricably

linked to the social aim of the business.

The company’s main competitors in this area of intervention (compact units) are Opalium of Veolia and Degremont

operated by the Suez group companies. A key competitive advantage for Swiss Water Power is in the water use

efficiency of its units. Typically, the Aquabloc® units need 1.10 m3 of raw water to produce 1.00 m3 of drinking water,

whereas competitors’ units need 1.20 – 1.25 m3 of raw water to produce 1.00 m3 of drinking water. This allows Swiss

Water Power International SA to have a lower impact on water depletion than its competitors.

Swiss Water Power International SA is contacted every month by many African countries wishing to have such

facilities. The main advantages of using Swiss Water Power’s units to supply clean drinking water are the following:

• The period of realisation for the installation of compact units is between 3 to 6 months, compared with the

traditional construction (civil engineering) period of 18 to 36 months

• The only civil engineering work requirement is a single concrete platform


• Ease of transportation to the site of operation as all of the modules are fully containerised (ISO) and

transportable by sea, air, railroad and road

• The method of treatment used is lamella settling and sand filtration. The effectiveness of this method of

treatment is amply demonstrated since the first installation of filtration carried out in 1829 under the direction of

Mr. James Simpson and intended for the water supply of the city of London

• Compact stations are fully automated reducing barriers to exploitation by the operators

• Units are supplied with 10 year warranties

• The highest quality of equipment: for example, all components in contact with water are manufactured in

stainless steel with grades 304 or 316 depending on the geographical location

Swiss Water Power’s current contracts are primarily EPC (engineering, procurement and construction) contracts.

In the near term, Swiss Water Power plans to transition to EPCO (engineering, procurement, construction and

operation) type of contracts where it can provide higher levels of ongoing support to maximise ful life output.

Swiss Water Power International SA uses a per person demand of 50-100 litres a day to estimate how many peo-

ple are benefiting from the sale of its products. Based on the recent activities listed in table six, an estimated 12-24

million people have access to drinking water where they previously had not as a result of Swiss Water Power’s

operations. These figures pertain to the company’s operations from the last seven years and include projects

currently being installed. The average installation cost per person for projects outside of Iraq was €12.29-24.59.

Table six: the impact of Swiss Water Power’s operations

Country Total Capacity Installed (m3/day)

Number of People Reached (people)

Installation Costs per Person Reached (€/person)

Algeria 62,400 1,248,000 6.81 – 13.62

Iraq 1,022,400 20,448,000 -

Mali 39,600 792,000 9.15 – 18.31

Republic of Congo 70,800 1,416,000 17.87 – 35.73

Total 1,195,200 23,904,000 -

Through the projects listed above, Swiss Water Power International SA supplies mostly urban areas including Alge-

ria, Babylone, Baghdad, Bamako, Brazzaville, Dohuk, Erbil, Ewo, and Pointe Noire. Funds raised in conjunction with

support from the SSX will allow Swiss Water Power International to increase its presence in these markets,

particularly through participation at public and private sector conferences and symposia. Furthermore, this will

enable the company to allocating more resources to listening and better understanding the needs of our key

beneficiaries in developing nations.

There is no shortage of demand and opportunity for Swiss Water Power International and its range of solutions.

Social and economic pressures in its markets, in many cases, are exacerbating the challenges faced by local

populations. In this context, investment in Swiss Water Power International will enable the company to increase the

rate at which it can meet this demand, thereby delivering material increases in quality of life for millions of people.


The stakeholders identified by Swiss Water Power International SA as being important to the successful delivery of its

social aim are as follows:

• Consumers

• Local population

• Local authorities

• Private companies that work alongside Swiss Water Power

• Civil and hydraulic engineers

Swiss Water Power International SA manages the relationship with each stakeholder group separately as each have

different needs as detailed below. Swiss Water Power International SA operates a two-way communication with all

of the following stakeholder groups and primarily holds contracts in place. Communication happens either directly

with the many participants or through appropriate intermediaries. Swiss Water Power International SA has developed

specific expertise since its inception in 2003 on how to engage well with stakeholders. The company typically has

contracts in place with specific stakeholder groups that work collaboratively with Swiss Water Power Internation-

al SA in order to deliver drinking water to its customers. Swiss Water Power International is pursuing a strategy of

longer term involvement in the operation of it’s installations to maximise the contribution to each local community

over the full life of the installation. This long term presence ‘on the ground’ will significantly increase engagement

between the company and it’s stakeholders, including those that were previously excluded or more challenging to

engage with.

Consumers

Swiss Water Power’s most important stakeholder is the consumers who utilise the clean water produced by its

installations. Swiss Water Power International SA strives to ensure that its facilities deliver water that meets all

applicable requirements for quality and safety. Aquabloc® facilities comply with world drinking water standards set by

the World Health Organization.

Local Population

The local population is a key stakeholder from which Swiss Water Power International SA needs to identify personnel

who will carry out the operation and maintenance of its units. This includes identifying technicians and engineers or

candidates for training in these disciplines. In total, the Aquabloc® units require chemists, hydraulic and electrical

engineers, electricians, and commissioners. Since Swiss Water Power International SA is a manufacturer, the success of

its purpose to deliver clean drinking water depends on the appropriate selection of these individuals.

In order to engage with and ensure the continued smooth operations of Aquabloc® units, Swiss Water Power

International SA generally establishes a personnel management office in association with the local subsidiary.

This office is managed by a local representative who is in charge of the holding records of all entries, change of staff,

5. STAKEHOLDERS


names of directors and other responsible persons as well as keeping a log of salaries and other miscellaneous issues.

The local population benefit from improved drinking water supplies and temporary work under supervision of the local

contractor.

Local Authorities

The local authorities are involved in the contracting part of all projects, whether in the contract design phase and/

or the construction phase of each project. They can also be involved in a Build-Own-Operate-Transfer contract,

wherein they are the final owner of the project once costs have been recovered by the private contractors who are

responsible for delivering the provisioning of clean drinking water. Swiss Water Power International SA has the

following approach to engagement with local authorities when it comes to contract design and construction:

1. The company Swiss Water Power International SA must intervene alone or leading of a group, or “general

contractor” with its subcontractors.

2. The project must be accompanied by funding to the company and not to the contracting authority.

3. The contract must BOOT (build-own-operate-transfer) type.

4. The contracting authority must provide all guarantees to the company.

5. The company undertakes the management of the facility for a period of 10 to 15 years.

Private companies

On occasion Swiss Water Power International SA collaborates with private companies to deliver Aquabloc®, typical-

ly local construction and/or engineering companies. Swiss Water Power International SA undertake contracts with

these stakeholders according to trading conditions and technical specifications prepared locally. Example of such a

stakeholder is a surveyor engineer or an office which studies the local soils. There also might be a separate company

who will be in charge of the operation of the Aquabloc® units.

Civil and hydraulic engineers

Swiss Water Power International SA highlights that civil and hydraulic engineers are a critical stakeholder for the

success of its operations, though they can fall into any of the above groups of stakeholders. The local knowledge

of these engineers is how Swiss Water Power International SA is able to understand which combination of its prod-

ucts are necessary for delivering the required provision of drinking water. These stakeholders may intervene in the

design and construction of contracts that Swiss Water Power International SA undertakes. As a result, the

engagement method is selected based on the combined experience in Swiss Water Power International SA and

upheld using the principle described in the section on ‘Local authorities’ above.


Swiss Water Power International SA is committed to disclosing information about its social and environmental im-

pact through an annual impact report and ongoing communication with its stakeholders. As highlighted previously, in

Section 3, Swiss Water Power International SA activities and operations are aligned to the company’s ultimate goal of

providing of safe and sustainable access to drinking water in regions where water availability is low and infrastructure

is weak.

Swiss Water Power International SA social impact reporting framework is outlined in the table provided below.

The projections for the year to come on water availability, per capita water consumption and employment are based

on assumptions of the contracts and projects already underway in Africa and the Middle East. Swiss Water Power Inter-

national SA is committed to provide high quality ready access to water and will both measure and report on progress

against aggregate targets in future impact reports. The data presented in the table below shows the reach of social

impact based on the company’s ongoing projects and activities from the last seven years.

Table seven: evidencing value

Beneficiary Outcome Indicator Target Data Sources

Local community

Provision of access to sustainable, safe, clean drinking water

Annual production of clean water (m3) by Aquabloc® units per country

Republic of Congo

25,842,000 m3 per annum SWP DataTrucost Analysis

Guadeloupe 3,504,000 m3 per annum

Mali 14,454,000 m3 per annum

Algeria 22,776,000 m3 per annum

Iraq 373,176,000 m3 per annum

Local community

Provision of access to sustainable, safe, clean drinking water

Annual population potentially served by Aquabloc® installations per country

Republic of Congo

1,416,000 people potentially served

SWP DataTrucost Analysis

Guadeloupe 96,000 people potentially served

Mali 792,000 people potentially served

Algeria 1,248,000 people potentially served

Iraq 20,448,000 people potentially served

6. EVIDENCING SOCIAL VALUE


Ongoing operational monitoring and data collection systems:

Swiss Water Power International SA was established with the express purpose of enabling the provision of safe and

clean water supplies to vulnerable communities that would otherwise have inadequate water access. This social goal

is inextricably linked to the company’s business model and as the business grows, so too with the benefits it deliv-

ers through expanded water access. Swiss Water Power International SA is committed to continually improving its

social and environmental performance and its founder, Mr. de Pachetere, CEO and founder of the business, takes

responsibility for understanding and monitoring social and environmental impacts of the business. The company is

supported by independent experts as required. Aquabloc® facilities comply with world drinking water standards set

by the World Health Organization and all other applicable laws and regulations in the countries in which it operates.

Future plans and commitments:

Swiss Water Power International SA continually strives to improve its processes for monitoring and managing its

social and environmental impact. Swiss Water Power International SA commits to continue this process with a

particular emphasis on the following areas.

• Understanding the Social and Enviornmental Footprint: While Swiss Water Power International SA is confident

that its products deliver a significant social benefit through the provision of clean water, the company will invest in

strategies to better measure and monitor the scale and nature of this impact, such as the number of people served

and the uses of water produced by its installations. Furthermore, Swiss Water Power International SA commits to

undertake further research to better understand its material environmental impacts such as the use of fossil fuels

and the depletion of water resources. Swiss Water Power International SA commits to undertake the following

actions in this area:

• Explore the fesaibility of undertaking an operational and supply chain environmental footprinting

assessment (or life cycle analysis) to better understand the most important negative environmental im-

pacts of its installations. This could include regular surveys and workshops undertaken in tarket beneficiary

Beneficiary Outcome Indicator Target Data Sources

Local communities

Increased employment opportunities

Temporary and ongoing employment opportunities created by Aquabloc® installations

Republic of Congo

Temporary Positions During Construction: 20

SWP Data

Ongoing Operational Positions: 8

Guadeloupe Temporary Positions During Construction: 10

Ongoing Operational Positions: 4

Local Governments

Infrastructure development

Number of Aquabloc® units in operation per annum

Republic of Congo

3 SWP Data

Guadeloupe 2


communities to better understand how the use the water provided by Swiss Water Power International,

how this water access has changed their lives, and what they see as the most important benefits of this.

Furthermore, this process will help the company to better understand any shortcomings or limitations of its

current technology offering and aid in future development and improvement.

• Continue the development of Aquabloc® products that utilise renewable energy and biofuels to enable cus-

tomers to reduce the environmental impact of the system. The trade policy of the company is to use solar and

wind energy to replace generators. For this purpose, the company is currently studying a concept of solar-pow-

ered drinking water units.

• Explore the feasibility of establishing improved monitoring systems in cooperation with its stakeholders to

better assess the scale and nature of the social benefits delivered by its products.

• Set Time-Bound and Quantitative Impact Targets: In future impact reports, Swiss Water Power International SA

will set quantitative and time bound targets for the delivery of a set of key material social and environmental

impacts, and report against the achievement of these goals in future reports. Furthermore, the company will invest

in the monitoring systems and processes needed to reliably set and report against these targets.

• Expand to New Markets: Swiss Water Power International SA expects to install a minimum of five new Aquabloc®

installations over the next 12 months in Angola, Burkina Faso, Cameroon, Ivory Coast, Guinea Conakry, and Guade-

loupe. In the future, the company will assess the feasibility of expanding into additional markets where demand

exists.

• Commitment to Transparency: From September 2016, the company plans to introduce a new contractual format

based on the BOOT concept, which involves a. build, b. own, c. operate, and d. transfer. These projects will be

financed from private sources and SWP will become the operator of these facilities over a 15 to 20 year peri-

od. SWP’s annual accounts are audited in compliance with all relevant regulatory guidelines and it engages third

party companies such as SGS (Société Générale de Surveillance) for the control of each project.


• Fossil fuel use for the production of water

Globally, this is still the primary energy source used for the provision of drinking water. Swiss Water Power

International SA is developing its product line to include units that no longer rely on fossil fuel sources includ-

ing its “Solar Power Shelter” and Powerbloc BIO®. The company does not see sales from these units as making

up the majority of demand in the near future; however, it is preparing its product offering to meet changes in

demand shifting away from fossil fuel consumption.

• Water depletion and environmental impacts

The main aim of the company is to deliver the social aim behind the 6th Sustainable Development Goal, which

is to “ensure availability and sustainable management of water and sanitation for all.” Whenever you provide

better access to a resource with a high social benefit, there is the potential for its overuse. Swiss Water Power

International SA is operating in areas like the Republic of Congo where the water scarcity relates mostly to an

economically-induced lack of access to water as opposed to a region suffering from overuse of this resource.

In order to assure that we are not supplying our units to areas in which there is insufficient supply, we employ

local hydraulic engineers. As part of the company’s future commitments, there will be lifecycle assessments

carried out to minimise its environmental impact.

• Corruption risk

Swiss Water Power International has not been faced with issues related to corruption and there are several rea-

sons for this. 1) The majority of projects are co-funded by out of region financial institutions with the most rig-

orous compliance procedures that support Swiss Water Power International’s anti-corruption policies 100%. 2)

With projects almost entirely backed by out-of-area private funds, there is a reduced reliance on local markets

and local funding pressures. 3) The company’s pricing and terms of business are rigidly adhered to. 4) There is

sufficient demand such that Swiss Water Power International need never consider projects where there is any

risk that company policies might be pressurised. 5) The company rarely tenders directly in conjunction with any

other competitive suppliers. 6) And looking ahead, the company is transitioning to Build-Own-Operate-Trans-

fer (BOOT) format contracts whereby it remains in control of the installation over a longer period with lower

commercial and operational reliance on local third parties.

7. OTHER SUSTAINABILITY & REPUTATIONAL ISSUES


Sanctuary, M., Tropp, H. and Berntell, A. 2005. Making Water a Part of Economic Development: The Economic Benefits of Improved Water Management and Services. Stockholm, Stockholm International Water.

WWAP (United Nations World Water Assessment Programme). 2016. The United Nations World Water Development Report 2016: Water and Jobs. Paris, UNESCO.

Guy Howard, J. B., 2003. Domestic Water Quantity, Service Level and Health. [En ligne]

Available at: http://apps.who.int/iris/bitstream/10665/67884/1/WHO_SDE_WSH_03.02.pdf

The World Bank, 2013. WB Confronts US$260 Billion a Year in Global Economic Losses from Lack of Sanitation. [En ligne]

Available at: http://www.worldbank.org/en/news/press-release/2013/04/19/wb-confronts-us-260-billion-a-year-in-global-economic-losses-from-lack-of-sanitation

UNICEF and WHO, 2015. Progress on Sanitation and Drinking Water. [En ligne]

Available at: http://www.wssinfo.org/fileadmin/user_upload/resources/JMP-Update-report-2015_English.pdf

United Nations Department of Economic and Social Affairs, 2014. International Decade for Action ‘Water For Life’ 2005-2015. [En ligne]

Available at: http://www.un.org/waterforlifedecade/africa.shtml

World Business Council for Sustainable Development, 2005. Facts and Trends- Water. [En ligne]

Available at: http://www.unwater.org/downloads/Water_facts_and_trends.pdf

REFERENCES


CONFIDENTIALITY & COPYRIGHTThe information contained in this report is confidential and is submitted by Trucost understanding that it will be used only by your

staff and consultants. Where consultants are employed, the use of this information is restricted to use in relation to your business.

In particular, the contents of this report may not be disclosed in whole or in part to any other party without the prior written con-

sent of Trucost.

VALIDITY OF INFORMATIONTrucost has made every effort to ensure that all statements and information contained in this document are accurate but accepts

no liability for any error or omission in the same.

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