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1
The Problem
2
80% of Cambodians live in a rural area.
• In rural areas 67 % of water is
contaminated at the point of use.
• Less than 7% of rural households
have access to piped water to the
house.
• In the dry season water delivery may
$2-5 per cubic meter.
Without piped water, women and girls can spend
significant time collecting water for home use
sometimes at personal risk.
Difficulty in water access and cost of water supply
leads to insufficient use for hygiene and sanitation.
The Solution - Piped water
3
A well maintained piped water system to
the house is the modern solution.
The Aim: Increase access to safe piped
water in areas with real benefits:
• Clean water close to the point of
consumption.
• Hygiene (bathing, hand washing,
laundry).
• Increased latrine use/uptake
(pour flush).
Leading to strong impact:
 Improved health
 Reduced time off school
 Increased savings
 Increased time
 Increased safety
The Next Problem: How to reach scale in rural areas?
4
Only large systems are receiving financing, and
only for short tenors.
Cambodia has over 14,000 villages and the
majority are small villages (<500HH)
Many villages are distantly located, making
them uneconomical to connect into a larger
water network. Therefore…
• People are often paying high rates for
water delivery in the dry season.
• NGOs build wells or small systems that lack
sustainability and scale.
• Private operations lack water safety plans
There are significant barriers for a private operator to invest.
• Designing for low density and low cost networks.
• Unknown in current demand and growth.
• Limited access to finance.
• Engineering skills for good design and water safety
• Lack of models for a financial return in rural areas
The Solution – TapEffect
5
TapEffect's vision is to increase access
to affordable clean tap water for households
in under-served towns and rural areas
of Cambodia.
TapEffect is a social enterprise that brings
the technical know-how and financial
capabilities to ensure that piped water
networks are designed, built and operated
sustainably.
TapEffect works with private water
operators to implement best practice in
bringing safe water to their communities.
• Allocation of responsibilities
to match village capabilities
with tiered technical support.
Vision, Mission and Value Proposition
6
The TapEffect Vision
Families have access to viable piped water supply that improves their lives and
increases opportunity.
The TapEffect Mission
To be the leader in sustainable water networks
The TapEffect Value Proposition
A streamlined approach for bringing modern water supply to rural villages
TapEffect Team
7
Chan Nimul
Project Facilitator
Ajay Chouhan
Operations Manager
Nimul is the project facilitator at TapEffect
Nimul brings to the team his local
knowledge and extensive water experience
from working in the sector. As a consultant,
Nimul has fulfilled senior roles to manage
studies for organisations such as SBK
Cambodia, UNDP Cambodia and World
Vision International, demonstrating his
capabilities in delivering outputs and
managing relationships on projects
throughout Cambodia.
B.E. Mechanical, MSc Water
Management
Ajay is the operations manager at TapEffect
Ajay brings to the team knowledge on
creating engineering systems combined
with his skills in building staff capacity. Ajay
has worked in both Cambodia and Australia
in design and implementation of systems, in
project and organisational management,
and in development of staff capacity. Ajay
worked with Engineers Without Borders-
Australia in project implementation,
standards development and in an advisory
role.
BE Mechanical, MS Development
(current)
Nick Boerema
Managing Director
Nick is the founder and Managing
Director of TapEffect. Nick is an engineer
and brings to the team project
management and team leadership
experience, extensive knowledge of the
sector and a passion for
entrepreneurship and business. Nick has
relevant experience in project
development, management and
budgeting and project financing.
B.E. & PhD Renewable Energy
nb@tapeffect.asia
Talmage Payne
Chairperson
Talmage has vast experience in
establishing and directing businesses
and NGOs, including as:
●Founder and Director of First Finance
Cambodia, Discovery Farms, Vision
Fund Cambodia, and Hagar Catering.
●CEO and Board Director of Hagar
International
●Country Director of World Vision
(Cambodia) (previously) and World Hope
International (Cambodia) (presently)
talmage.payne@worldhope.org
Sam Socheata
Procurement
Socheata has recently joined the team to
provide procurement support and has
already demonstrated her value and
eagerness to take on responsibilities.
Socheata recently completed her bachelor
degree in Environmental Science at the
Royal University of Phnom Penh. She is
also currently completing a degree in
English literature at the Institute of Foreign
Language.
BSc Environmental Science
World Hope Support
Finance, Admin & Community
support
Song Kallyan: Finance Manager, WHI
Sok Socheata: Accountant, WHI
Nuth Samol: Community support
Liza Ordnance: Programme Development
Partners
8
• World Hope International believes communities across
Cambodia should have access to clean water and
is supporting TapEffect to achieve this vision.
• World Hope Social Venture initiatives include Mobile Power
(SL), First Step Economic Zone, Inc (Sierra Leone), Helios
Minigrids (Sierra Leone), GRO Greenhouses (Sierra Leone),
and Thera Metrey (Cambodia).
• Talmage Payne (WHI’s Director in Cambodia and TapEffect’s
Chairperson) is an experienced social entrepreneur having
founded companies such as Vision Fund, First Finance,
Urban Village and Hagar Catering.
Demonstration: Ou Svay Commune
9
Ou Svay commune: Proposed commune for
demonstrating the model
• WHI is already working in this commune.
• GRET (2015): Feasibility Study Report for
Piped Water Supply in Ou Svay Commune.
Found a willingness to connect by 58% of
families.
• The TapEffect project demonstrates the use
of multiple distributed systems across the
commune, each serving around 200-300HH.
• Ability to connect systems together once
demand reaches a certain level.
• MIH provide 20 year utility licence for water
supply to a commune.
Revenue Model
10
Ownership model
The benefit of ownership is that it provides flexibility to adjust the operating
model – particularly important during the start up phase.
• Households pay for metered water (2500R/m3 = Approx. $4.3/mth,
Commune: $3-4k/mth) and a one time connection fee ($55).
• TapEffect employ the operator and pay a maintenance team and sales
agents for site visits.
• Approach is easily adaptable as TapEffect launches the business model
Franchise Model
The franchise model allows local operators to own a system – this minimises
the operations costs and costs of funds for TapEffect. With equity, local
operators are incentivised to manage the system as designed.
• TapEffect receives an upfront design/construction payment (improves
working capital) – Approx $15k - $30k
• TapEffect receives principle & interest repayments if system is financed.
Payments can be straight debt or royalties that match the revenue for the
water operator. $500-$1000/mth
Project Finance and Capital Requirements
11
Financing
• Using a blended mix of capital reduces
the capital required by the
entrepreneur
• TapEffect enables the access to this
finance
Progress & Milestones
12
Strong foundational progress achieved
2016
• Team begins working together under the consultancy Phnom Consulting Group.
• Various field trips highlight the willingness and capabilities of villages to pay, but
no sustainable and scalable solution exists.
• Ideation of the TapEffect model.
2017
• The team gains experience managing various projects together- Design and
construction of irrigation canals in Kratie (Approx. $100k works).
• P2H model developed through discussion with various stakeholders.
• Investor (WHI) found for TapEffect, team builds a small water system with WHI as a
relationship tester.
2018-2019
• Capital raise for demonstration project
• Implementation of demonstration project – leading to further financing and
capacities to deliver more water systems.
Strategy
13
Team
• Increase team to strengthen marketing, site management,
engineering, administration, maintenance, investor relations.
Internal Processes: Aim is to make deployment of a system as
efficient and as economical as possible.
• Develop process for system design and deployment.
• Develop tools for design and operation.
• Develop marketing material for increasing household
connection rate.
• Develop standard operating model for system design,
deployment, marketing, operation.
Implementation
• Test standard operating model
• Build further three systems.
• Use system as a demonstration for further investment
14
Nick Boerema
+855718420086
nb@TapEffect.com

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TapEffect - Piped Water Networks, Cambodia

  • 1. 1
  • 2. The Problem 2 80% of Cambodians live in a rural area. • In rural areas 67 % of water is contaminated at the point of use. • Less than 7% of rural households have access to piped water to the house. • In the dry season water delivery may $2-5 per cubic meter. Without piped water, women and girls can spend significant time collecting water for home use sometimes at personal risk. Difficulty in water access and cost of water supply leads to insufficient use for hygiene and sanitation.
  • 3. The Solution - Piped water 3 A well maintained piped water system to the house is the modern solution. The Aim: Increase access to safe piped water in areas with real benefits: • Clean water close to the point of consumption. • Hygiene (bathing, hand washing, laundry). • Increased latrine use/uptake (pour flush). Leading to strong impact:  Improved health  Reduced time off school  Increased savings  Increased time  Increased safety
  • 4. The Next Problem: How to reach scale in rural areas? 4 Only large systems are receiving financing, and only for short tenors. Cambodia has over 14,000 villages and the majority are small villages (<500HH) Many villages are distantly located, making them uneconomical to connect into a larger water network. Therefore… • People are often paying high rates for water delivery in the dry season. • NGOs build wells or small systems that lack sustainability and scale. • Private operations lack water safety plans There are significant barriers for a private operator to invest. • Designing for low density and low cost networks. • Unknown in current demand and growth. • Limited access to finance. • Engineering skills for good design and water safety • Lack of models for a financial return in rural areas
  • 5. The Solution – TapEffect 5 TapEffect's vision is to increase access to affordable clean tap water for households in under-served towns and rural areas of Cambodia. TapEffect is a social enterprise that brings the technical know-how and financial capabilities to ensure that piped water networks are designed, built and operated sustainably. TapEffect works with private water operators to implement best practice in bringing safe water to their communities. • Allocation of responsibilities to match village capabilities with tiered technical support.
  • 6. Vision, Mission and Value Proposition 6 The TapEffect Vision Families have access to viable piped water supply that improves their lives and increases opportunity. The TapEffect Mission To be the leader in sustainable water networks The TapEffect Value Proposition A streamlined approach for bringing modern water supply to rural villages
  • 7. TapEffect Team 7 Chan Nimul Project Facilitator Ajay Chouhan Operations Manager Nimul is the project facilitator at TapEffect Nimul brings to the team his local knowledge and extensive water experience from working in the sector. As a consultant, Nimul has fulfilled senior roles to manage studies for organisations such as SBK Cambodia, UNDP Cambodia and World Vision International, demonstrating his capabilities in delivering outputs and managing relationships on projects throughout Cambodia. B.E. Mechanical, MSc Water Management Ajay is the operations manager at TapEffect Ajay brings to the team knowledge on creating engineering systems combined with his skills in building staff capacity. Ajay has worked in both Cambodia and Australia in design and implementation of systems, in project and organisational management, and in development of staff capacity. Ajay worked with Engineers Without Borders- Australia in project implementation, standards development and in an advisory role. BE Mechanical, MS Development (current) Nick Boerema Managing Director Nick is the founder and Managing Director of TapEffect. Nick is an engineer and brings to the team project management and team leadership experience, extensive knowledge of the sector and a passion for entrepreneurship and business. Nick has relevant experience in project development, management and budgeting and project financing. B.E. & PhD Renewable Energy nb@tapeffect.asia Talmage Payne Chairperson Talmage has vast experience in establishing and directing businesses and NGOs, including as: ●Founder and Director of First Finance Cambodia, Discovery Farms, Vision Fund Cambodia, and Hagar Catering. ●CEO and Board Director of Hagar International ●Country Director of World Vision (Cambodia) (previously) and World Hope International (Cambodia) (presently) talmage.payne@worldhope.org Sam Socheata Procurement Socheata has recently joined the team to provide procurement support and has already demonstrated her value and eagerness to take on responsibilities. Socheata recently completed her bachelor degree in Environmental Science at the Royal University of Phnom Penh. She is also currently completing a degree in English literature at the Institute of Foreign Language. BSc Environmental Science World Hope Support Finance, Admin & Community support Song Kallyan: Finance Manager, WHI Sok Socheata: Accountant, WHI Nuth Samol: Community support Liza Ordnance: Programme Development
  • 8. Partners 8 • World Hope International believes communities across Cambodia should have access to clean water and is supporting TapEffect to achieve this vision. • World Hope Social Venture initiatives include Mobile Power (SL), First Step Economic Zone, Inc (Sierra Leone), Helios Minigrids (Sierra Leone), GRO Greenhouses (Sierra Leone), and Thera Metrey (Cambodia). • Talmage Payne (WHI’s Director in Cambodia and TapEffect’s Chairperson) is an experienced social entrepreneur having founded companies such as Vision Fund, First Finance, Urban Village and Hagar Catering.
  • 9. Demonstration: Ou Svay Commune 9 Ou Svay commune: Proposed commune for demonstrating the model • WHI is already working in this commune. • GRET (2015): Feasibility Study Report for Piped Water Supply in Ou Svay Commune. Found a willingness to connect by 58% of families. • The TapEffect project demonstrates the use of multiple distributed systems across the commune, each serving around 200-300HH. • Ability to connect systems together once demand reaches a certain level. • MIH provide 20 year utility licence for water supply to a commune.
  • 10. Revenue Model 10 Ownership model The benefit of ownership is that it provides flexibility to adjust the operating model – particularly important during the start up phase. • Households pay for metered water (2500R/m3 = Approx. $4.3/mth, Commune: $3-4k/mth) and a one time connection fee ($55). • TapEffect employ the operator and pay a maintenance team and sales agents for site visits. • Approach is easily adaptable as TapEffect launches the business model Franchise Model The franchise model allows local operators to own a system – this minimises the operations costs and costs of funds for TapEffect. With equity, local operators are incentivised to manage the system as designed. • TapEffect receives an upfront design/construction payment (improves working capital) – Approx $15k - $30k • TapEffect receives principle & interest repayments if system is financed. Payments can be straight debt or royalties that match the revenue for the water operator. $500-$1000/mth
  • 11. Project Finance and Capital Requirements 11 Financing • Using a blended mix of capital reduces the capital required by the entrepreneur • TapEffect enables the access to this finance
  • 12. Progress & Milestones 12 Strong foundational progress achieved 2016 • Team begins working together under the consultancy Phnom Consulting Group. • Various field trips highlight the willingness and capabilities of villages to pay, but no sustainable and scalable solution exists. • Ideation of the TapEffect model. 2017 • The team gains experience managing various projects together- Design and construction of irrigation canals in Kratie (Approx. $100k works). • P2H model developed through discussion with various stakeholders. • Investor (WHI) found for TapEffect, team builds a small water system with WHI as a relationship tester. 2018-2019 • Capital raise for demonstration project • Implementation of demonstration project – leading to further financing and capacities to deliver more water systems.
  • 13. Strategy 13 Team • Increase team to strengthen marketing, site management, engineering, administration, maintenance, investor relations. Internal Processes: Aim is to make deployment of a system as efficient and as economical as possible. • Develop process for system design and deployment. • Develop tools for design and operation. • Develop marketing material for increasing household connection rate. • Develop standard operating model for system design, deployment, marketing, operation. Implementation • Test standard operating model • Build further three systems. • Use system as a demonstration for further investment