KOSRAE WATER PROJECT 

KEY POINTS

• We plan to export bulk shipments of water from the small Pacific island of Kosrae.
• The local Government will receive 50% of net project profit. 
• We offer employment and training.
• We will establish and fund Conservation Areas. 
• We promote the health benefits of drinking natural water.
  

LOCATION: KOSRAE ISLAND, PACIFIC OCEAN

OUR AGREEMENT WITH THE STATE GOVERNMENT OF KOSRAE

We have an exclusive agreement which permits the export of unlimited amount of bulk water and this agreement is binding for 99 years. 

The heart of our agreement is that the Government receives 50% of net project profit. Our rationale is simple:

1. To the negotiating table, the Government brings the resource. 

2. To the same table, we bring the engineers, the management and the finance.

3. The contribution is equal and is "half and half".

The people receive half the profit and we receive half the profit. There is no exploitation of Third World resources or people. 

We are very proud of our agreement.

Brian (left) and Robert (third left) at the signing ceremony of our export permit.

THE INFRASTRUCTURE

We have written permission from the Municipality to evaluate a local river for our water – the Mutunte River. The river has an existing small weir that we can use. 

We have permission to use both an existing 12” pipe and an existing 8” pipe. These pipes will move the water from the river to the Okat Wharf. 

The Okat Wharf occurs on a large deep-water harbour. We will establish a 25,000 tonne concrete holding tank at the wharf, from which to load our ships. 

The weir at the headwaters of the Mutunte River (above photograph). Due to the island’s falling population, even this small weir supplies excess amounts of water. Our plan is to add approximately 2 metres height to the weir wall. The 12” water supply pipe can be seen at bottom right parts of the photograph. 

Team talk; Kosrae.

We will take water in a piecemeal manner. We have six days to take our water, clean it and store the cleaned water at the storage tank at the wharf. The water will be shipped on the seventh day. Our impact on the flow of the river water will be almost non-existant. 

The area receives over 5 metres of rainfall per year and the river “floods” on an almost daily basis. It is this floodwater that we will target. Peak flood flow rate in the Mutunte River has been documented at approximately 25,000 litres per second (United States Geological Survey Report, 1984). 

The outlet at the Mutunte River dam wall (above photograph). The 12” water supply pipe can just be seen in centre left parts of the photograph.

THE ENVIRONMENT

• We are very clear; using the project to protect the environment is our number one goal.
• We will sponsor the establishment of Conservation Areas over any catchment that we take water from. We will thus secure the catchment against illegal farming and illegal forestry. 
• We will only collect flood water; water that is otherwise immediately lost to the sea.
• We will protect the environment and, in so doing, we will protect the source of our water. 
  

The photograph shows part of the cloud forest at the headwaters of the Mutunte River. We will establish and fund a Conservation Area over these hills, thus protecting the area from illegal logging and illegal farming.

INITIAL BUDGET - United States Dollars (US$)

• Marketing China                                             40,000
• Repair a village water system                          5,000
• Bank loan repayment                                      10,000
• General administration, fees                           25,000

Total:                                                                      80,000 

The INITIAL BUDGET will mainly fund a marketing campaign into Chinese cities. 

OVERSUBSCRIPTION BUDGET        (US$) 

• Improve the Mutunte River weir                     10,000
  
• Improve the 12" pipe, Mutunte River             20,000
• Improve the 8" pipe to Okat Wharf                20,000
• Purchase a water filtration plant                   100,000          
• Build a 25,000 tonne storage tank                100,000
• Improve harbour infrastructure                       40,000
• Purchase harbour boat, pumps                      30,000  
• General administration                                    30,000 

Total:                                                                   350,000

The above photograph shows the 12” pipe in the Mutunte River. The Municipality of Tafunsak has indicated, in writing, that we can use this pipe. The pipe is presently barely used. There will be no need to establish pipe infrastructure, down the Mutunte River.

There is an existing 8” pipe from Mutunte to the Okat Wharf (above photograph), a distance of 4.5 kilometres. This pipe is buried and is barely used. We have an agreement, signed by the Government, that allows our exclusive use of this pipe, for 99 years. 

There is thus existing infrastructure from the dam site to the wharf. We have either signed permission, or indication of permission, to refurbish and use this infrastructure. Capital expenditure for our project will be low.

The Okat Wharf (above photograph). The 8”pipe stops at the edge of this wharf, approximately under the yellow forklift.

Okat Harbour. Central parts of this harbour are approximately 60 metres deep.

RESPONSIBLE INVESTING

Our business model includes the following:

1. The Government has 50% net project profit. There is no exploitation of the local people. We have put our money where our mouth is. 

2. Kosrae has almost zero industry and, apart from a small civil service, almost zero employment. Our project offers a tremendous employment opportunity for the young people of Kosrae.

3. We will establish and fund Conservation Areas over any catchment from which we withdraw water. There will be no illegal logging and no illegal farming. We will protect the trees.

4. We strike back against the environment destroying monster - the Desalination Plant. We must not let the culture of big business profiteering rule and destroy us.

5. As company policy, we refuse to have any connection with plastic water bottles.

6. This is a commercial operation. However we acknowledge our responsibility for wisdom in our business. At present there is a dearth of control on mankind's use of water. Billionaires buying up water rights is not water management.  The water industry needs fair and open regulation, both in terms of water usage and water laws. For the benefit of all, we will endeavour to address and provide leadership on global water issues.

Part of the headwaters of the Mutunte River. This area will be within our proposed Conservation Area. The riverbed shows many large boulders, indicating a strong flood flow.

WATER SUPPLY 

Kosrae receives on average approximately 400 million tonnes of rainwater per year; that’s over 1 million tonnes of rainwater per day.

Due to the island’s steep topography, and small size, nearly all of this water is immediately lost to the sea.

At full production, we expect to export significantly less than 1% of annual rainfall. 

The island has no dry season and the rain is evenly spread throughout the year. 

We will never deplete the resource.

WATER ANALYSIS - Mutunte River 

Testing Parameters                 Value                            WHO Standards 

pH value                                      6.73                             6.5 - 8.5  

Dissolved Solids, mg/L              34.3                             500 max

Alkalinity, mg/L                           32.9                            110 max

Turbidity, NTU                            0.122                          5.00 max

Sulphate, mg/L                           0.28                             200 max

Chloride mg/L                            3.94                             200 max

Nitrate, mg/L                              0.68                              45 max

Calcium, mg/L                            0.50                            250 max

Magnesium, mg/L                      0.02                              50 max

Sodium, mg/L                             0.05                            150 max

Fluoride, mg/L                            ND                              1.50, max

Iron, mg/L                                   ND                             0.30 max

Aluminium, mg/L                        ND                              0.20 max

Arsenic, mg/L                             ND                              0.10 max

Cadmium, mg/L                         ND                            0.003 max

Copper, mg/L                            ND                              0.05 max

Lead, mg/L                                 ND                              0.01 max

Manganese, mg/L                      ND                              0.50 max 

Mercury, mg/L                           ND                            0.001 max

Nickel, mg/L                               ND                              0.02 max

Zinc, mg/L                                  ND                              3.00 max

Potassium, mg/L                        ND                            12.00 max

ND = Not Detected

NTU = Nephelometric Turbidity Unit

mg/L = Milligrams per Litre

Water within the Mutunte River. Water depth is approximately 1 metre.

WHY NOT DESALINATION WATER 

The acceptance of reverse osmosis as a water solution is a commercial myth and wealthy investors, for the benefit of wealthy investors, create this myth. 

We are reminded of the tobacco industry in 1970.

There is a difference between clean water and healthy drinking water. Natural water has minerals which act in a beneficial manner with the body's organs and this process, of water acting in concert with our body, has evolved over thousands of years. 

Our product is 100% natural. 

Reverse osmosis water is a wolf in sheep’s clothing.

OUR MARKETS

1. Our immediate focus is the Chinese recreational beverage industry. China has 5 of the largest beer brewing companies in the world. 

2. Due to water pollution issues, Chinese cities have a massive demand for bottled water. We can supply this industry with best quality natural water.

3. We can provide short-term, medium-term and long-term relief supply to water stressed Asian mega-cities. 

4. In the decades to come, we predict that we can economically ship our water to California, India, Pakistan, and all Middle East countries.

Street scene: Kosrae Island.

SHIPPING

We are in discussion with new technology companies regarding the shipping vessel. We aim to have:

1. Dedicated vessels.

2. Tankers with a "single-skin", not a "double-skin". There is no environmental risk associated with shipment of water.

3. Use of new technology materials in tanker fabrication.

4. Solar and wind power-assisted vessels.

WHO WE ARE

We are three, one Kiwi and two Australians. We are self funded. 

Robert is a successful Sydney businessman. 

Brian is a geologist with thirty year's industry experience, including approximately 12 years at country level management. 

Brett is also a geologist and has been recipient of the prestigious "Australian Geologist of the Year" award..........twice. 

Robert in the bush in Kosrae.

TIMELINE 

•              January 2013 Research worldwide 

•              October 2014 Kosrae identified as target country 

•              February 2015 Three month evaluation trip to Kosrae 

•              March 2015 Signing of our export permit.

•              May/August  2015 Crowd-funding 

•              September/December 2015 Marketing in Asia

•              January/June 2016 Infrastructure upgrade 

•              July/October 2016 Spare 

•              Christmas 2016 First shipment

      THE FUTURE - THE FINAL FRONTIER

The world is on the cusp of a potentially catastrophic potable water shortfall and the supply and regulation of potable water will be a 21st  Century growth industry.

In our opinion, most countries will be neither willing nor able to  support the export of water. If country "A" has water and country "B" has no water, then country "A", politically and strategically, is in an enormously powerful position. 

Following identification of our first client we will consider a small "Initial Public Offering - IPO" on the Australian Stock Exchange. We would aim to issue approximately 15 million shares, at par value of 20 cents, to raise approximately $3.0 million.

We remain deeply committed to safeguarding the environment and we will honour, without compromise, our social responsibilities in this island community.

IN SUMMARY 

Our business model is to export bulk amounts of natural drinking water. The export market includes the beverage industry, short and medium term relief supply, water stressed Asian megacities, India and the Middle East. 

We will export water in tanker-sized shipments and these shipments will range from 10,000 to 200,000 tonnes. 

We claim to supply some of the world’s best quality, naturally occurring drinking water. This is not a synthetic imitation. This is water made by Mother Nature.

Our criteria are strict. We will not develop projects in countries that are industrialised, in countries where there is use of fertilizers, insecticides or pesticides, or in countries where there are naturally occurring water borne diseases.

We offer the government a 50% free carried position in our project net profit. We have requested from the State that any water catchment areas, which we may use, will be declared Conservation Areas. We will pay for the establishment and maintenance of these Conservation Areas. We will protect the environment and, simultaneously, protect the source of our water. 

Our project offers the people of Kosrae employment, professional training and a sense of pride in what surely will become their hallmark industry. 

Join us in our adventure.

Google Map; Kosrae Island.

Risks and challenges

1: We have no markets. We must do a marketing campaign into the eastern seaboard cities of China. Until we have a market, the project remains a "good idea". Once we have our first client the project immediately turns into "reality". 


2: There is a perception that construction of desalination plants is the answer to water shortages. We do not agree. Many countries in the world do not have a water shortage problem; they have a water management problem. Desalination plants are already expensive, environment destroying, dinosaurs. 


3: Cost of shipping to market. This is not a serious problem. We should be able to land the water at destination for approximately one cent per litre. 

4: Technical problems. We do not see any serious technical problems, other than normal, project development operational challenges. The infrastructure is largely in place and just needs refurbishment.