Location Within Country: Khulna Division
|Duration of assignment (months): 4 Months|
|Name of Client: BRAC||Total No of staff-months of the assignment: 28|
|Contact Person: Akramul Islam, Director, CD and WASH
|Start date (month/year): October, 2021
Completion date (month/year): January, 2022
|Narrative description of Project:
The study should (1) seek to identify new opportunities to provide WTPs in the Bangladeshi market using Grundfos and Hydro technologies. The study will also assess the likely financing requirements and business model necessary to make the opportunities commercially viable for local businesses and Grundfos and Hydro (2). The study should have an expansive scope, considering the possibilities for projects of new and variable scales supported by new innovative finance arrangements. The study should include an assessment of suitable Grundfos and Hydro technologies for different market contexts and geographies, community sizes, water quality types, expected or required water prices, the financial capabilities of local SMEs and businesspeople to pay for and invest in WTP technology and set up, financial support (loans / investment) required from banks, different possible WTP ownership models (direct SME ownership, franchising, leasing of technology etc).
The objective of the study is to help partners demonstrate the business case to engage in WTP markets in the manner proposed by the “Safe water for all: a new partnership for growth in Bangladesh” Project; identifying the geographies (urban, peri-urban, rural), community sizes, appropriate Hydro and Grundfos technologies required local business/SME capability, size of required investment for Grundfos and Hydro products to be deployed in a commercially viable manner.
|Description of technical specialization provided by the firm:
The study will explore the following areas, with both qualitative and quantitative data source utilised in the manner deemed most appropriate by the consultant.
i. BRAC Communities
a. What is the demand for clean water in specific communities and why?
b. What is the water quality issues in these locations?
c. What is the input water source? (Borehole, watercourse etc.)
d. What size communities (number of households) can we work in? Using Grundfos and Hydro technologies, what are the minimum requirements for population density and payment ability?
e. Assessing communities’ perceptions on demand for drinking water, willingness to pay and what key variables may impact the solution delivered (HHs, water quality, water tariff etc.) What land ownership issues must the project consider in a given location?
ii. Market conditions
a. Market analysis – the current and future requirement for WTPs in Bangladesh, including assessment of areas of most need/capacity to support.
b. Assessing the competition in the market, mapping competitors, technologies deployed in market, the existing value chain, and understanding the current perceptions of existing BRAC WTP solutions.
c. Establishing/advising the partnership of any key legal and regulatory enablers and barriers, including regulation, enforcement of regulation, land access that will impact project possibilities.
d. Highlighting the key institutions and stakeholders, both public and private that will facilitate new developments in WTPs, with reference to local investor and business organisations.
ii. Business model – WTP owners and operators
a. Which organisations would be relevant as systems owners? Are franchise/leasing/pay back models viable? What alternative approaches could be adopted?
b. Are local investors from these communities motivated or capable of investment in WTPs? If so, to what level?
c. What are the potential WTP owners and operators’ necessary capabilities to own and/or manage the systems (financial, technical, and managerial)? What barriers are we likely to face?
i. Operational factors
a. Examining in what contexts Grundfos and Hydro technical solutions will be credible, highlighting the required geographical and infrastructural needs for effective installation and operations of different types and sizes of water treatment solutions.
b. Assessing the supply chain and potential challenges, channels of distribution of both WTP solutions and drinking water
c. Does BRAC and the wider consortium have any obvious skills gaps that would impact the ability to expand our approach to WTPs in the ways proposed by this project?
d. Examining in what contexts Grundfos and Hydro technical solutions will be credible, highlighting the required geographical and infrastructural needs for effective installation and operations of different types and sizes of water treatment solutions.
e. Any requirements for compliance in Bangladesh, certifications or accreditations of technology relevant to Hydro and Grundfos
i. Financial and Investment
a. What are the likely finance and investment requirements for the different potential business models and project contexts identified?
b. What developments or alternatives to the current BRAC WTP financing model may need to be explored to support the variety of solutions Grundfos and Hydro can provide. This may include (but not limited to examination of leasing, franchise and work-out pay back options).
c. What investment products are particularly attractive to local investors, both SMEs and larger?