Reverse Osmosis Water Plant

Mr. Nafez Husseini, Chief Technology & Telecom Officer Consolidated Contractors CO. CCC

Project Background

Gaza suffers from a shortage of clean and good conditioned water

Main sources of water in Gaza is from local wells and Israel Water Authorities (MAKAROT)

Target production capacity of 2 million m3 per year

Dispatched through main distribution network of the PWA

Proposed Strategy

Development of a RO sea water plant in Gaza

Plant to be located within GPGC’s property

GPGC to manage and operate the plant

Fuel to be Diesel (Years 1-3) then Gas (Years 4+)

Project to be on a 20-year BOT basis

Selling price to be competitive with current sources

Strategic Advantages

Supply of good quality water to the Palestinian people

Development of sustainable and independent Palestinian utilities sector

Utilizing GPGC’s economies of scale improves efficiency

Financial Overview

Preliminary Model Assumptions

Development Cost: ~ $9 million

Annual Operating Costs:• Years 1 – 3: ~ $1.3 million

• Years 4+: ~ $1.0 million

Estimated Market Share: 3 – 4 %

Expected IRR: 18 %