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Grundfos LIFELINKTM: Reducing Financial and Operational Risks to Water Security at the Community Level International Water Security Conference Oxford (UK), 16-18 April 2012 Rasoul D. Mikkelsen rmikkelsen@grundfos.com


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Risks to Water Security at Community Level Many types of risks: ADB report identifies 49 different types! Focus here on 3 risks & how LIFELINKTM system deals with them: • Affordability • Mechanical and financial sustainability • Financial integrity


Branchless Banking


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1. LIFELINKTM Infrastructure


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LIFELINKTM Water Unit/Water Dispenser


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LIFELINKTM Control Panel


Revenue collection and management based on Mobile Banking Local bank

Service fee to GLL

Transfer money by Mobile Banking (GSM)

Profit

Service call Forward water credits to Water Key via GPRS Service "Get credit"

Forward water credits to Water Credit Database (Internet)


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2. LIFELINKTM Integrated, Global Water-Credit System


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3. LIFELINKTM Operating & Maintenance System (O&M) • Lifetime (10-15 years) guarantee backed by Grundfos LIFELINKTM • Remote monitoring (24/7) via telephone/internet link • Long-term, fixed-price service contract

• Local service companies backed by Grundfos LIFELINKTM


Grundfos Remote Management example Service team schedule planning

Event & Alarm logs

Preventive service planning Alarm overview

Service team on call Global overview of Lifelink Water systems installed in specific countries

GRM system messages

Trend curves for selected data (acc. water usage, credit balance etc.)


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Case Study: KMC Semi-Urban, Nairobi


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Risk 1: Affordability Guaranteed service at a fixed price over 10-15 years

Total life-cycle (TLC) costs as low as USD 1.00/cubic metre Various business models: • OEM (components only): Support for installation and revenue collection • Turnkey project: full service, installation, support for revenue collection, community development or O&M • Public-private partnership (PPP): support for installation and revenue collection and O&M • PPP+: as PPP plus support for community development


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Risk 2: Mechanical & Environmental Sustainability • Extraordinary reliability record of Grundfos pumps and

pumping systems • Lifetime guarantee • Fixed-price service contract (including preventive maintenance, spare parts, and replacement, if necessary)

• Solar energy means low operating costs, ease of maintenance, carbon neutral, and zero footprint


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Risk 3: Financial Integrity • Grundfos LIFELINKTM can be linked to global water credit system based on Grundfos servers in Denmark • Closed system of revenue collection and disbursement begins when

consumer cash is converted to water credits (digital cash) and ends when accounts paid and any surplus paid to designated beneficiaries

• Fully transparent; fully backed up and archived • Zero possibility of corruption or malfeasance


Musingini, KENYA (Rural village) Data: Capacity of water system per day Capacity utilization Liters of sold water per day No. Of jerry cans sold per day Consumption by village

Consumption by vendors

12.000 35% 4.200 210 100%

0%

Budget, Annually

KSH:

Revenue:

229.950

Costs: Bank: Grundfos: Parts Salary Profit/Loss:

0 (175.000) (40.000) 14.950 (215.000)

Price per jerry can, village Price per jerry can, vendors

3,00 0,0

Total costs:

Revenue per day in average, village: Revenue per day in average, vendor:

630 0

Bank formular:

Total revenue per day:

630

Bank loan: Years: Interest:

DKK

0 10 0,00%


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Summary Grundfos LIFELINKTM system provides unique response to risks to water security in at least 3 respects:

• Affordable – low, total life-cycle costs (e.g. $1.00/m3) • Reliable – life-time guarantee (10-15 years), carbon

neutral, zero impact • Secure – transparent and prevents corruption


Global Water Security Time to take action and Business as usual is not an option

We assess that during the next 10 years, water problems will contribute to instability in states important to US national security interests. Water shortages, poor water quality, and floods by themselves are unlikely to results in stats failure. However, water problems combined with poverty, social tensions, environmental degradation, poor leadership, and weak political institutions contribute to social disruption that can result in state failure. US Office of the Director of National Intelligence February 2012


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Thank you!

Email: rmikkelsen@grundfos.com


LIFELINK – Reducing financial and operational risks to rural water security  

Rasoul Mikkelsen, Grundfos LIFELINK – Reducing financial and operational risks to rural water security ----Mobile technology innovations and...

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