June 20, 2008
4675 Ponce de Leon Blvd. Suite 305 Coral Gables, Fla. 33146
Tel: (305) 662 8779 – Fax: (305) 662 8727
e‐mail: [email protected]
Associated offices in:
Sao Paulo, Brazil – Caracas, Venezuela – Santo Domingo R. D.
Buenos Aires, Argentina – Washington, D. C. – Barcelona, Spain
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Table of Contents
ABBREVIATIONS.................................................................................................................................... 3
COMPANY AND CONTACT ..................................................................................................................... 4
CONFIDENTIALITY STATEMENT ............................................................................................................................4
MARKET OVERVIEW .............................................................................................................................. 5
SENIOR AND TECHNICAL MANAGEMENT TEAM ..................................................................................... 6
MANAGING PARTNERS........................................................................................................................................7
PAST PERFORMANCE............................................................................................................................. 8
WATER AND SEWER...........................................................................................................................................8 TURN KEY SEWER TREATMENT PLANT ....................................................................................................................8 EQUIPMENT & CONTAINERS ...............................................................................................................................9 WASTE TO ENERGY ...........................................................................................................................................9
WHAT IS WASTE TO ENERGY?.............................................................................................................. 10
OUR TECHNOLOGY .............................................................................................................................. 11
VIEW OF THE PLANT ............................................................................................................................ 12
THE PROJECTS ..................................................................................................................................... 14
CARBONCREDITS ................................................................................................................................. 17
NAT SOURCE .................................................................................................................................................18
CASH FLOWS ....................................................................................................................................... 19
ELECTRICAL POWER MARKET .............................................................................................................................22
POTENTIAL CLIENTS............................................................................................................................. 22
SWOT ANALYSIS .................................................................................................................................. 23
CPM.................................................................................................................................................... 24
LOCATION ........................................................................................................................................... 27
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Abbreviation
• BTU = British Thermal Units
• CABA = City of Buenos Aires
• CIVAP = A Consortium of Municipalities in the State of Sao Paulo
• CPM = Critical Path Method ( disbursement requirements )
• EPI = Energy Products of Idaho (out technology provider)
• ERPA = Emission Reduction Purchase Agreement
• GREEN ENERGY = Power Generated with non Fossil Fuels
• GUARUJA = A Costal community serving as the Beaches to the
City of Sao Paulo, next to the Port of Santos
• MSW = Municipal Solid Waste
• MW = Mega Watts (unit of electric measure in general)
• MWh = Mega Watts hour (unit of electric measure at time of
selling or buying power)
• PPA = Power Purchase Agreement
• RDF = Refuse derived Fuel
• SOROCABA = A Municipality 150 Km. west of the City of Sao Paulo
• TIPPING FEE = How much will be charged to dispose of different
types of waste
• TPD = Tons per day
• UMVARIG = Union of Municipalities of the Valley of Rio Grande
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COMPANY AND CONTACT
Company name: SEFICOGBH LLC. Address: 4675 Ponce de León Blvd., Suite 305 Coral Gables, Fl. 33146
Telephone: (305) 662 8779 (305) 662 8779 Fax: (305) 662 8727 (305) 662 8727 e‐mail: [email protected] [email protected] Contact: Emilio Zabaleta Jr. Pablo Antoniazzi Web page: www.sefico.com
CONFIDENTIALITY STATEMENT The information and data embodied in this plan are strictly confidential and are supplied on the understanding that they will be held confidentially and not disclosed to third parties without the prior written consent SEFICO GBH LLC, a Delaware Corporation.
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MARKET OVERVIEW
ince the company’s creation back in 1961, most of the resources of the developing countries have been placed in potable water supply, leaving sewerage and solid waste to the effects of nature. Now as their populations increase and the need for
additional sources of clean water disappear due to pollution, they have realized the urgency of implementing the appropriate collection, treatment and disposal of domestic, industrial pollutants and solid waste.
S Our product base is not a luxury; rather it is the basic requirement to support human life on our planet. Around 1970 SEFICO started researching how to control the air pollution that was then created by the garbage incinerators that were widely used in our urban cities. This research was stopped after the U. S. Clean Air Act, when all incinerators were shut down and a new generation of landfills was created. The costs of these plants are in the hundred millions of dollars, way beyond any subsidy from public funds of Municipalities or governments. Private investment is basically the only solution we have foreseen for these installations in Latin America. The revenue obtained by the sale of electricity, Tipping Fees for destroying Solid Wastes, possible sale of potable water and recyclable residues, amply will justify the utilization of these plants as Alternative Energy Sources to Fossil Fuel plants. Electric Distribution companies in the region have indicated their intention to purchase all the power we can generate, this power is also known as “Green Energy”, it is generated without the utilization of Fossil Fuels and its creation can be used to obtain Carbon Credits, as stipulated by the Kyoto Accord. Today Latin America Generates well over SIX HOUNDRED AND FIFTY THOUSAND DAILY TONS OF MUNICIPAL WASTE ( 650,000 TPD ), if all was to be used to generate “Green Energy”, the area would save around 975,000 barrels of oil PER DAY ( 350 MILLION BARRELS OF OIL PER YEAR ), that could be given a more appropriate utilization, without detriment to our Global Atmosphere or Natural Resources, this would be equivalent to reutilizing over 46 Billion Dollars worth of oil per year, just by using our garbage as fuel.
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SENIOR TECHNICAL & MANAGEMENT TEAM (individual Curriculum Vitae available upon request)
• James Farrell, LL.B. 1963 Georgetown University Law Center, Washington, DC. B.S. Geology 1958 Rensselaer Polytechnic Institute, Troy, NY, 25 years of experience as CEO and General Counsel of multiple Public companies.
• Robert Varner Jr. B.A. from the University of Florida in 1969, and J.D. from
Stetson University College of Law in 1974, 30 years of experience in Municipal Contracts.
• José Marsicobetre, Civil Engineer, Universidad Central de Venezuela, 1974.
Master Degree in Operations Research, Universidad Simon Bolivar, Caracas 1975‐76. Major ( retired ), Venezuelan Army, graduated on July 5, 1964, with 15 years of experience in the Municipal Field.
• Bruno Kohne, Mechanical Engineering from Karl Human Gymnasium in Essen,
Germany. USMC, San Diego, California, Sergeant (E4) Honorable Discharge, with over 25 years of experience with one of the largest Waste to Energy Technologies in Germany.
• Benjamin Gilbert, Mechanical Engineer, 1965 BSME Georgia Tech. MBA Columbia
University 1982, with over 30 years of experience in Alternate Fuels at Florida Power and Light.
• Domingo Marsicobetre, Master in Chemistry ‐ Universidad Central de Venezuela
1971 Doctor in Sciences ‐ Universite du Poitiers, France 1976 Master in Administrative Sciences ‐ UVC‐CEP 1981, over 30 years of experience in the Oil and Gas Industry.
• Cesar Inserny, 1995 UCLA The Anderson Advanced Executive School 1984
Stanford University Master of Science Construction, Engineering and Management 1972. Universidad Católica “Andrés Bello” in Venezuela, Civil Engineering Degree, a life time experience in Construction Management of Heavy Industry.
• Jorge L. Zabaleta, Degrees in Architecture, Engineering and Construction
Management from MDC. Auto CAD design with various Architectural firms from 1968 to 1983, design & construction management for large scale home projects from 1983 to 1994, construction procurement and management for national & international projects with SEFICO since 1994.
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• John M. Macho has over 20 years of experience in international trade, including senior positions with the Florida Department of Commerce and Enterprise Florida, Inc. From 1999 to 2006, as a member of the Board of Directors of The Florida Export Finance Corporation (FEFC) which provides information, technical and consulting assistance to exporters throughout the State of Florida, Mr. Macho assisted Florida companies to enter in to or expand their international trade activities. Since 2006 John Macho has been working with SEFICO overseeing packaging for the loan, insurance, guarantee programs political and credit risk insurance offered by EXIMBANK Umbrella Policy.
MANAGING PARTNERS
• Pablo Antoniazzi, University of Argentina MBA (1975), Master in Finances
(1978). General Manager of Grupo Beraza Hermanos, Inc. (GBH) & subsidiaries.
• Emilio Zabaleta Jr., University of Miami Mechanical Engineer Class of 69 and MBA from GSM with over 30 years of experience in the Municipal Field, member of the Florida Pollution Control Association since 1973. CEO of SEFICO & associated companies related to the management and disposal of solid and liquid waste.
• ARGENTINA: Eduardo J. Cavanagh, University of Buenos Aires Industrial
Engineer(1974); Master in S&M Metalurgic Business, O.I.T. Torino, Italy(1986); CEO Saforcada S.A. (railway equipment), CEO Solresin S.A. (environmental management & processes), Director of Engineering Commerce & Assistance(international technical business) with 30 years experience in international business negotiations; U.I.A. counselor, business chamber ADIBA President.
• BRAZIL: Gilmar Zanatta, Mechanical Engineer University in Sao Paulo,
Managing Director of INTERPORT since inception in 1990. Mr. Zanatta has been promoting and making presentations of the SEFICO‐EPI technology in Brazil since 2002, thus bringing us to a position of recognition in Brazil, that has permeated to other Countries of the MERCOSUR.
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PAST PERFORMANCE: In order to be concise in this we have only shown Past Performance in relationship to Municipal Potable Water, Liquid – Solid Waste, for additional experience we invite you to visit our web site at www.sefico.com Water and Sewer: Pipelines, some with pumping stations and / or with plants, (prices in US$ Millions). ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦
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ANDA, Zona Norte, El Salvador, 90 Km. Ductile Iron (H. D) 48” and 36” (12.2 ) MIN. SALUD PUBLICA, Plan Sabal, El Salvador, 15 Km. 12” D. I and smaller ( 2.3 ) N W C, Montego Bay, Jamaica, 30 Km., 36” D. I and smaller ( 6.4 ) Xaya Pixcaya, Guatemala, 40 Km., 48” D. I and smaller with plants ( 8.3 ) A & A, “Cinco Ciudades”, Costa Rica, 50 Km., 36” D. I and smaller ( 6.1 ) A & A ( SNAA ), Costa Rica, 36” and smaller in different contracts. ( 5.6 ) ICE, Costa Rica, 24” and smaller in different contracts ( 3.5 ) Empresas Municipales de Medellín, 100 Km., 4” D. I ( 4.8 ) Empresas Municipales de Bogotá, 30 Km. 24” D. I and El Zapo plant ( 0.75) INOS, Caracas, 200 Km., 36” and smaller in different contracts with plants. ( 25.7 ) ACUEDUCTO DE LIMA, Peru, 48” Concrete pipes and smaller. ( 15.4 ) EMAP, Ecuador, 36” and smaller in different contracts. ( 2.2 ) CORPOSANA, Paraguay, 36” and smaller in different contracts with plants. ( 8.7 ) IDAAN, Panama, over 300 Km. 48” and smaller in contracts and plants (30.6) PANAMA CANAL CO., 36” and smaller in different contracts. ( 6.7 ) IRHE, Panama, 16” and smaller in different contracts. ( 0.5 ) SANAA, Honduras, 24” and smaller in different contracts. ( 1.5 ) INAA, Nicaragua, 16” and smaller in different contracts. ( 0.8) FKAA, Fla. City a Key West, 115 Km. 36” D. I ( 26.1 ) MDWSA, Miami, 60” H. D. and smaller in different contracts ( 25.4 ) INAPA, Dominican Republic, steel pipes 36” and smaller. ( 2.5 ) INAPA, Dominican Republic, Ductile Iron 42” and smaller for the A. of Puerto Plata, San Pedro de Macorís and La Vega ( 11.9 ) INAPA, Dominican Republic, Ductile Iron pipes, 24” A. Barahona ( 2.3 ) INAPA, R. D. Ductile Iron, 36” San Francisco De Macorís ( 3 )
and many other throughout the Caribbean, Central and South America. TURN KEY SEWER TREATMENT PLANTS, with pump stations and force mains. ♦ ♦ ♦ ♦ ♦
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Bimini, Bahamas, Hotels, effluents used to flush toilets. Santo Domingo, D. R., Hotels, effluents used for irrigation. Venezuela, diverse industries, 90% contaminants reduction. Panama, Canal Zone and private developments. South Florida, many smaller plants for apartments, hotels, industries, processing plants, developments, etc. Costa del Este, Panama, the largest wastewater Plant ever built in that Country, it started at 100,000, and it has gone through the first expansion and will end up treating 10 Million Gallons per day.
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EQUIPMENT AND CONTAINERS FOR SOLID WASTE: (our own manufacturing) Client list: ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦
B F I (Browning Ferris Industries), Florida. Attwoods, Inc., Florida. Attwoods Dominicana C x A, Santo Domingo, R. D. D I X I Sanitation, Dominican Republic. SLS / Byrn, Santiago, Dominican Republic. W M X Technologies (Waste Management U. S. A.), Florida. Kimmings Recycling, Florida. Bahamas Solid Waste, Nassau, Bahamas. Aseo Capital, Colombia Ecoser, Santiago de Chile, Chile. Metro Dade Solid Waste. City of Ocala Solid Waste. Broward County Recycling Center. Republic Waste, Florida. U. S. A. Waste, Florida. Cleantec Waste Services, Florida. E. W. S. ( Environmental Waste Services ) Surfside Carting, Florida. TECNILIMPIEZA S x A, Dominican Republic ( our Subsidiary ) Arwood Inc., Jacksonville, Fl.
WASTE TO ENERGY ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦
Supplier to various MONTENAY plants in the US. Technical Association with the VIVENDI group ( FRANCE ). Technical Association with OGDEN Energy Group, ( Convanta Energy USA ). Technical Association with Von Roll Environmental Technology Ltd. ( SWIZZ ) Technical Association with Berryman & Henigar ( USA ). Technical Association with Lurgi Energie und Entsorgung ( GERMANY ) Technical Association with LSD Umwelt und Recyclingtechnologie GmbH Technical Association with CWT – Thermoselect ( SWIZZ ) Licensed by Energy Products of Idaho EPI ( USA ) Licensed by Global Energy Solutions GES ( USA & UK ).
www.energyproducts.com www.sefico.com www.teamges.com
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What is Waste to Energy? Our cities and towns generate every day enormous quantities of municipal and commercial solid waste. Increasingly, it's become clear that no single waste disposal technique can handle all the garbage that any community generates. An integrated waste management approach suggests using complementary measures such as minimization, recycling, and energy recovery through thermal treatment of residuals and land filling, all in a manner that preserves the environment and conserves natural resources. Integrated waste management allows a community to apply the safest and most cost effective techniques to reduce what is thrown away, to reuse the material and energy resources in the remaining waste and to significantly minimize what is ultimately land filled. Wastes to Energy Plants are characterized by high reliability, high‐energy efficiency and low emissions owing to modern combustion technology and highly effective flue gas cleaning systems. The plants are designed in accordance with the most recent state of the art technology for power plant, combustion and environmental control engineering. The energy content of today's municipal and commercial refuse is approximately 25 to 40 percent of the energy value of bituminous coal. Scrap tires have 15.000 BTU fuel value/pound; slightly higher than coal. Basically every 1.0 Million Tons of Garbage processed generates the same electricity than 1.5 Million Barrels of Oil would. Therefore, in modern plants, the heat of combustion is captured for the generation of steam, electricity and district heat. Heat or Steam may also be sold to industrial customers for use in manufacturing process. In areas of scarce water, these plants could be built with a Sewerage Treatment plant alongside and its effluent used to generate the steam necessary for the boilers. Also clean distilled water can be produced, mineralized and made potable, for either bulk sale or bottling for consumers.
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OUR TECHNOLOGY for these first five Plants
With more than 100 fluidized bed energy systems providing over five million hours of operating experience, SEFICO & Energy Products of Idaho (SEFICOEPI) have quietly established themselves as leaders in waste fuel fired fluidized bed combustion/boiler technology. EPI is a world leader in the development and implementation of proprietary and patented technologies used to convert biomass and other waste fuels into usable forms of energy. Since 1973, EPI has pioneered and perfected fluidized bed and related technologies for utility, industrial and commercial uses. Although our primary focus remains our world renowned fluidized bed technologies, our vast experience has lead to a stable of superior auxiliary and related proprietary technologies.
Fluidized bed combustion systems use a heated bed of sand-like material suspended (fluidized) within a rising column of air to burn many types and classes of fuel. This technique results in a vast improvement in combustion efficiency of high moisture content fuels, and is adaptable to a variety of "waste type fuels. The scrubbing action of the bed material on the fuel particle enhances the combustion process by stripping away the carbon dioxide and char layers that normally form around the fuel particle. This allows oxygen to reach the combustible material much more readily and increases the rate and efficiency of the combustion process.
For additional information on EPI’s Technology please visit their Web Site at:
www.energyproducts.com
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Top View of the plant
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Side view of the plant
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THE PROJECTS We currently have five ( 5 ) projects to be started in South America, these will be the first of its kind in the area ( ONLY DOLLARS SHOWN, NO CENTS ) Argentina: One Plant for CABA ( City of Buenos Aires ) with a Capacity to process 1,500 Tons per day of Municipal Solid Waste. Approximate cost: US$160,000,000 Brazil: Five Plants as follows, all would handle multiple Municipalities: CIVAP US$140,000,000 UMVARIG US$140,000,000 SOROACABA US$140,000,000 GUARUJA US$140,000,000 GRAND TOTAL US$720,000,000 Cost of all five plants How these funds would be repaid? Below are the first 10 year estimates of operation for all five plants. ERPAs US$164,856,965 TIPPING FEES US$1,316,230,000 SALE OF GREEN ENERGY US$1,215,250,000 ______________ GRAND TOTAL US$2,696,336,965
Income during the first 10 years of operation of these 5 plants
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CARBON CREDITS ERPA ( Emission Reduction Purchase Agreement )
ERPAs signed, pre 2012
1,033,000€11,879,500
576,624€6,631,176
576,624€6,631,176
611,197€7,028,765
611,197€7,028,765
Totals€ 11.50
400,000288,312288,312271,643271,6422012
400,000288,312288,312271,643271,6432011
233,0000067,91167,9112010
SOLRESINGUARUJASOROCABAUNVARIGCIVAP
ARGENTINA1,500
BRAZIL1,000
BRAZIL1,000
BRAZIL1,000
BRAZIL1,000
CountryTPD
ERPAs signed post 2012
2,800,000€16,800,000
2,018,184€12,109,104
2,018,184€12,109,104
1,901,501€11,409,006
1,901,501€11,409,006
Total€ 6.00
400,000288,312288,312271,643271,6432019
400,000288,312288,312271,643271,6432018
400,000288,312288,312271,643271,6432017
400,000288,312288,312271,643271,6432016
400,000288,312288,312271,643271,6432015
400,000288,312288,312271,643271,6432014
400,000288,312288,312271,643271,6432013
SOLRESINGUARUJASOROCABAUNVARIGCIVAP
ARGENTINA1,500
BRAZIL1,000
BRAZIL1,000
BRAZIL1,000
BRAZIL1,000
CountryTPD
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Total of signed ERPAs
Pre 2012 €39,199,383Post 2012 €63,836,220
Total €103,035,603
ERPAs have been signed with NATSOURCE ASSET MANAGEMENT CORP. and they are available upon request. Natsource
Natsource’s Asset Management unit is a leader in the fast‐growing environmenta markets, with a focus on the greenhouse gas markets. It has approximately US $1.3 billion in assets under management. Its products include the Greenhouse Gas Credit Aggregation Pool (GG‐CAP), the Natsource Carbon Asset Pool (NAT‐CAP) and a series of Managed Accounts and Private Investment Vehicles. In 2007, New Energy Finance, the world’s leading independent provider of research to investors in this field, determined in its third annual survey of clean energy investing that Natsource was the world’s largest buyer of greenhouse gas offsets on a risk‐adjusted basis.
For more Info on Natsource please visit www.natsource.com
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CASH FLOWS:
NPV= $177,086,048.97 IRR= 52%
ROI= 94.40%
he Plant in Argentina will be designed to handle 1,500 TPD of MSW in addition to a ture expansion for Medical and Industrial Waste stream.
Of the four Plants for Brazil, two will be built in Rural areas where the amount of Industrial and Medical waste will be minimal, but the accessibility to an alternative Biomass to enhance the RDF will be available, these will be CIVAP & UMVARIG, while the two plants for SORACABA & GUARUJA / SANTOS will have the availability of more Industrial and Medical waste on their Tipping Fee streams, like the one for Argentina, thus the differences on the ROI.
Tfu
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NPV=
$110,304,152.38
IRR= 50% ROI= 37.27%
CIV UMVARIG
AP &
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SOROCABA & GUARUJA
NPV= $160,772,866.42 IRR= 64% ROI= 92.05%
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ELECTRICAL POWER MARKET: ( Argentina’s is quite similar )
Electrical Power Market in Brazil
Fonte: CCEE
Price of Electrical Power as ContractedPrices in Reales based on future sales
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Potential clients for PPA: Through out the last few months we have been carrying negotiations with various large power distributors in the area, some are international public companies, they all have shown a tremendous amount of interest in signing the appropriate PPA with our individual plants, some have even suggested a possible participation in the ownership of these in a near future.
The name of these power distributing companies will be disclosed upon further negotiation.
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WOT Analysis via ChartS
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CPM for the Buenos Aires Plant
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Location of plant
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