Project Proponent:

Neil C. Delgado
Entrepreneur, Economist & Environmentalist
 Environmental
Company

Water Division Waste Recycling

Division

Bulk Water Waste Water

Industrial Waste to Hazardous
Supply Treatment
Oil Energy Waste
Treatment (W2E) Recycling

BOT 1

BOT 2
Recovering Depleting Resources
 Project proponent is already engaged in the
hauling hazardous waste for over 12 years;
 Current business is 132,000 liters per month
 Clientele base include Semirara Mining
 Plant can treat different industrial used oil
whether it is petroleum or synthetic;
 There are relatively few companies engaged
in this business;
 Due to industrialization and rapid car sales in
the Philippines the demand for lubricants is
ever increasing;
 Revenues from treatment charges and sale of
treated oil;
 Business model can be replicated anywhere;
 Technical Description: Furnace Dehydration
Facility
 Location: Gen. Trias, Cavite (industrial site)
 Production Capacity: 20,000 liters per day
 Land area: 5,525 square meters
 Plant area: 1,221 square meters
 Feed stock: Petroleum or synthetic based oil
 Product output: Distillate oil, Spindle
 By-product: Water and sludge
 Capital to finish plant facility
 Start up materials and feed stock
 Operating fund for the next 3-6 months
 2017 2018 2019

Production in liters per day 10,000 12,000 15,000

Gross Income ₱ 124,800,000.00 ₱ 149,760,000.00 ₱ 187,200,000.00

COGS 22,464,000.00 26,956,800.00 33,696,000.00

Net Margin 102,336,000.00 122,803,200.00 153,504,000.00

Operating Expenses 20,467,200.00 24,560,640.00 30,700,800.00

EBITDA ₱ 81,868,800.00 ₱ 98,242,560.00 ₱ 122,803,200.00

Solution For Tomorrow’s Energy
 Availability of feed stock which is over 8600
tons a day;
 Philippines is the 3rd biggest dumper of
plastics in the world;
 3 kg of plastic waste can produce 1 liter of
synthetic (diesel) fuel;
 Revenues from power generation and fuel
sales;
 Business model can be replicated anywhere;
BOO/BOT Project
 Availability of funding in bulk water supply
projects thru debt or private equity financing
 Tariff levels are adjusted to recover cost on
investments
 Depletion of the usual source from ground
water
 Water districts cover less than 40 % of the
population under their jurisdiction
 Business model provides stable cash flows
which can be attractive to private equity
investors
Water Supply System

Surface Water
Water Treatment System

Water Distributor/
Consumers Off-taker
 Business development
 Feasibility studies
◦ Financing institution
 Proposal (Unsolicited/Bid)
◦ Offtakers
 Approval and signing
 Project implementation
 Operation
 Water Company Initially will develop BOT
Projects.
Secures loan for
Smaller project
initial funding
BOT 1
LGUGC

BOT 2

LOCAL
BANKS
Bigger projects

BOT 3
Buys in Capital will be used
to fund new BOT projects
BOT 4
PE FUND
 P.E.
FUND

Buys in [xx%]
WATER
COMPANY

EXISTING NEW NEW NEW

PROJECTS BOT 1 BOT 2 BOT 3

[Capital from PE fund will be used to develop new BOT projects]

 P.E. PRE-DEV PROJECT
FUND FUNDER PROPONENT

[xx%] [yy%] [zz%]

SPV
COMPANY

NEW NEW NEW

BOT 1 BOT 2 BOT 3

[100% of PE Funds will be used to develop new BOT projects]

 SPV 1

Environmental
Company

SPV 2

Investment
PE FUND 1
Company

PE Fund 40%
SPV 3
PE FUND 2 Mezzanine Cap 60%

PE FUND 3

SPV 4
PE Fund will finance 100% of BOT project
 2017 2018 2019 2020
Production in Million Liters per Day (MLD) 29,692 30,417 31,124 32,137
Gross Income ₱ 162,563,700.00 ₱ 166,533,075.00 ₱ 170,403,900.00 ₱ 175,950,075.00
COGS 1,820,393.25 1,820,394.25 1,820,395.25 1,820,396.25
Net Margin 160,743,306.75 164,712,680.75 168,583,504.75 174,129,678.75
Operating Expenses:
Pumping Expenses 50,478,185.27 50,478,186.27 50,478,187.27 50,478,188.27
Water Treatment Expenses 11,137,768.04 11,137,769.04 11,137,770.04 11,137,771.04
Quality Control Expenses 1,877,344.06 1,877,345.06 1,877,346.06 1,877,347.06
Total Operating Expenses 63,493,297.37 63,493,300.37 63,493,303.37 63,493,306.37

EBITDA ₱ 97,250,009.38 ₱ 101,219,380.38 ₱ 105,090,201.38 ₱ 110,636,372.38

 Investors acquires hybrid debt and equity
with the latter as a collateral provided by the
borrower to secure the investors.
 Priced usually to provide a certain IRR returns
to the investors
 Senior debt over Preferred and Common
shares that represents a claim over assets