TEAM CHINA/CALIFORNIA

 

SICHUAN PROVINCE WASTEWATER TREATMENT PROJECTS

 

TERM SHEET/ PROJECT BENCHMARKS

 

FINANCE

 

1.      PROJECT “BUNDLES” NINE MEDIUM SIZE WASTEWATER PROJECTS IN ONE PROVINCE INTO ONE DEVELOPMENT PROGRAM FOR EFFICIENCY IN EQUIPMENT, CONSTRUCTION MANAGEMENT, FINANCE, FEASIBILITY STUDY, AND CIVIL ENGINEERING COSTS.

  1. TOTAL CAPACITY (9 PROJECTS): 400,000 M3/D
  2. TOTAL PROJECTED COSTS: USD $81-million
  3. TOTAL EPC COSTS: USD $ 67-million
  4. SICHUAN PROVINCE FINANCIAL CONTRIBUTION: USD $24-million
  5. TOTAL TO BE FINANCED: USD $ 57-million
  6. EQUITY TO BE PLACED: USD $ 10-million
  7. DEBT TO BE PLACED: USD $ 47-million
  8. AVERAGE DEBT COVERAGE RATIO: 1.58
  9. CASH FLOW TO EQUITY: 55% of Net Cash Flow
  10. EQUITY RETURN (Pre-Chinese tax): 21% per year during 10 year debt
  11. GROSS YEARLY REVENUE: USD $ 14-million (a complete cash flow pro forma is available)

 

GOVERNMENT SUPPORT

 

  1. TEAM CHINA SECURED MOU FROM SICHUAN PROVINCE ENVIRONMENTAL PROTECTION BUREAU (SPEPB) 09.10.02
  2. SPEPB SECURES 30% CASH CONTRIBUTION TO TOTAL COSTS FROM EACH OF THE NINE CITIES 02.03
  3. TEAM CHINA RECEIVES CONFIRMATION MOU FROM SPEPB 03.03 STIPULATING UNITED TARIFF AND INDEPENDENT ENTITY TO COLLECT TARIFF
  4. TEAM CHINA ENTERS INTO MOU WITH “HERREL ENVIRONMENT INVESTMENT CO.”, CHENDGU, SICHUAN. HERREL WILL ACT AS LOCAL EPC FIRM, WITH EQUITY CONTRIBUTION 04.03
  5. SICHUAN PROVINCE OPTION TO SECURE CHINESE BANK DEBT
  6. ASIAN DEVELOPMENT BANK (ADB) MEETINGS 04.03 DEMONSTRATE THEIR DESIRE TO PLACE LONG TERM DEBT
  7. USA EMBASSY/BEIJING, USA CONSULTATE/CHENGDU, SICHUAN & U.S. DEPT OF COMMERCE ENVIRONMENTAL TECHNOLOGIES DIVISION (WASH., D.C.) RECONFIRM SUPPORT OF PROJECT DEVELOPMENT

 

 

  1. PROJECT MOU ALLOWS FOR UP TO 50% OF EXPORT OF USA TECHNOLOGY & EQUIPMENT, WHICH QUALIFIES PROJECT FOR BOTH EX-IM BANK FINANCING AND ADB FUNDING
  2. TECHNOLOGY FROM USA (WESTECH) SAVES UP TO 50% ENERGY COSTS WHICH REDUCES COSTS OF OPERATIONS

 

DEVELOPMENT EXPERIENCE

 

  1. TEAM CHINA/CALIFORNIA AND ITS PARTNERS HAVE SIGNIFICANT EXPERIENCE IN DEVELOPMENT OF INFRASTRUCTURE PROJECTS IN CHINA, AND ELSEWHERE. THIS INCLUDES BUSINESS DEVELOPMENT, APPROVAL CYCLE, JOINT VENTURE AGREEMENTS, CHINESE BANKING RELATIONSHIPS, AND EQUITY INVESTMENTS. THE COMPANY IS WELL KNOWN TO THE USA GOVERNMENT AND IS REGISTERED WITH THE USA EMBASSY IN BEIJING AND IS A GOLD KEY MEMBER OF THE USA CONSULTATE IN CHENGDU, SICHUAN.
  2. PATRICK D. MULCAHY, DIRECTOR, HAS BEEN INVOLVED IN CHINA SPECIAL EVENT AND INFRASTRUCTURE DEVELOPMENT FOR 18 YEARS. ALL PRINICIPALS OF THE COMPANY HAVE EXTENSIVE ENGINEERING, FINANCE AND DEVELOPMENT EXPERIENCE IN CHINA. DR. JAY ROLAND HAS AN EXTENSIVE HISTORY OF ACCOMPLISHMENT IN INFRASTRUCTURE DEVELOPMENT IN NUMEROUS COUNTRIES, AND IS THE FINANCE DIRECTOR FOR THE PROJECTS. MALCOLM JONES, PE, IS CHAIRMAN OF THE WATER RESEARCH INSTITUTE AND CHAIRMAN OF THE ENGINEERING COMMITTEE OF THE LAGUNA NIGUEL WATER DISTRICT.

 

NOTE: A COMPREHENSIVE BUSINESS PLAN AND FINANCE MODEL IS AVAILABLE.

 

For additional information, please contact:

Patrick D. Mulcahy

Director

Team China/USA/Team China/California

15421 Red Hill Avenue

Tustin, CA 92780

T: 714-258-8887 Email: Patrick@teamchinausa.com  www.teamchinausa.com

 

Dr. Jay Roland, Director, Team China/California

T: 480-538-5456 Email: jrrtam59@cox.net

 

04.10.03