In effect it is an asset manager of all the various equity positions that are negotiated with JV and commercial partners. The commercial opportunities have required both innovative structuring and creative modelling, particularly as they transcend a wide range of water related activities. Listed below are some of the projects and how commercial reward has been secured;
IAL holds an equity position in a water bottling business, the business ‘white labels’ on behalf of x3 companies who are already deeply ensconced in the drinks & beverage market.
IAL also holds an equity position and distribution rights in a saline bag company based in North Africa – the initial water identification by GWS was leveraged in order to secure these positions.
IAL s currently working with JV partners in Nepal and India – the project has been to secure ‘water rights’ on a large aquifer and pump the resource to a storage farm on the border with India (Northern State of Uttra Pradesh). Uttra Pradesh has a population of over 200m people and is one of India’s most water stressed regions.
Tariffs, indexing and sustainability reports have been presented and agreed. Whilst basic in terms of delivery, initial revenues will come from filling large water containers and trucks. The storage facility will take approximately nine months to complete, thereafter stronger revenues will follow from industrial and agri users.
IAL is a shareholder in the Joint Venture Company
Food Security is unquestionably one of the key issues facing world leaders. GWS has identified many previously unknown bodies of water in regions and countries that have a high industrial profile around agriculture (large contributor to the countries GDP).
IAL has secured a position in hydroponics consultancy business as well as a further position in an asset management company that secures ‘water rights’ over large swathes of land suitable for intense agri farming.
IAL has a royalty from x5 water targets identified by the initial GWS identification. The royalty is embedded in a JV Company that contracted with a State Water Company (30 year supply contract). The royalty provides for a sum to be paid on every cubic metre of water pumped. Volumes are measured at the point of extraction and are subject to digital auditing (mobile phone masts).
In order to manage political and ‘in country’ risk IAL have created a model whereby once the pumped volume is consistently proven over a 3-6 month window (measured on a daily basis), the proven metric is applied and the IAL share is monetised to an ‘in country’ pension fund.
IAL’s secondary core business centres around both sourcing and structuring finance for companies engaged in infrastructure and downstream commercial activities.