UV Disinfection of Drinking Water for the Vietnamese Household: Scale up Strategy for Vietnam

1
UV Disinfection of Drinking Water for the
Vietnamese HouseholdScale up Strategy for
Vietnam

• Leah Tivoli, Public Affairs/Public Health
• Laura McLaughlin, Public Health/Engineering
• With support from
• Clarita Lefthand, Public Health
• Robert Catherman, MEDRIX

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Overview

• What we have currently
• Market Need
• Experienced Organization
• Operational Product
• What we need to Scale up
• Leadership
• Funding
• More Government Support

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Market Need Health
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Improved versus Safe Water

• Improved water Water that has been piped into
  dwelling, piped into yard/plot, public tap,
  tubewell/borehole with pump, protected dug well,
  protected spring, rain water.
• Safe water Water free from microbial
  contamination

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Drawbacks of Boiling Water
Drain on Electricity

NEED FOR A CLEANER SAFER ALTERNATIVE
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MEDRIXs Mission

• MEDRIX is committed to providing safe water
  treatment solutions for the betterment of
  community health and well-being.

World Bank Safe Water Project- Vietnam
CLEANER, SAFER, AFFORDABLE
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System Description
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System Description

• Sand pre-filter
• Connecting pipes
• UV treatment system
• Clean storage container
• Safe nozzle
• Stand

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System Specifications

• Max Treatment rate of 4 liters per minute
• UV System size 1/4 cubic foot
• With storage containers fits into the corner of a
  kitchen

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UV Inactivation

• 8 watt 254 nm low pressure UVC bulb
• Effective against bacteria, protozoa, viruses

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Advantages of UV System Design

• Compact design
• Passive system
• Stainless steel
• More effective
• More energy efficient (one year)
• 3 kwh vs 365,000 kwh
• Annual energy Cost
• 2 vs 200

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Feasibility MEDRIX Pilot

• Center for Rural Water and Sanitation (CERWASS)
  Thua Thien Hue, Vietnam
• Well-received by the public
• Lessons Learned
• Follow-up
• Training
• Design

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Product Safety RD

• Followup 4 times a year
• Training Water Certificate Training program
• User Safety H2S test, Strip test, Teach Product
  Safety

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Organizational Structure
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Price

• 50/system
• To replace UV lamp 8
• To replace ballast 1.20
• Household Income 1800/6

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Target Market Hanoi

• 40,000/820,000 households
• Political epicenter, National Labs, Ministry of
  Health
• MEDRIX Office
• Urban income 8x rural income
• Ability to pay
• Concentrated market
• Greatest impact
• Attain Financial Stability
• Stimulates Entrepreneurship
• Poorest Segments
• Cooperative buying
• Future growth to rural

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Financial Projections
Goal Sell 40,000 Units in 5 Years
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Pro Forma Cash Flow Statement First 5 Years
Income Statement
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Social Return On Investment
Reach
Employment
Our product reinforces Vietnamese trade and
commerce REPRODUCIBLE, SCALABLE, FINANCIALLY
SUSTAINABLE
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The future for MEDRIX in Hanoi
Product Experience

• Leadership
• Funding
• Government support

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• Questions/Comments?

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Competitors
Ultraviolet Technology Australasia Pty Ltd
(UVTA) UVTA is a leader in Australia in design
and manufacture of Ultraviolet disinfection
systems based on the advanced technology using UV
radiating mercury vapour lamps and Fluoropolymer
(AFP840) tubing. (2005) Eureka Forbes' Aquaguard
Reviva (450). UV product Rs 6,500 (147)-Rs
8,000 (181). We seek to become a one stop shop
for water purification, by offering appropriate
solutions to consumers,'' expanding to Vietnam,
Thailand, Malaysia (Feb 6, 2006)

• MEDRIX
• All goods are bought and sold in Vietnam (money
  stays in Vietnam)
• All employees are from Vietnam
• Price point is more affordable
• Our model could be more easily implemented in the
  rural market

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Competitive Advantage
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Other POU Treatment Types

• Bottled
• Filtration (Biosand, Ceramic)
• Filtration Chemical (PFP, GWI)
• Chemical (Chlorine)
• Combined chemical (PuR, PG)
• Ultraviolet
• Solar (SODIS)

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There is no silver bullet

• Hygiene
• Safe Water
• Reduction of Water Transport

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Whats wrong with piped water?

• Piped water supplies may not provide reliable,
  quality water
• However, there are limitations
• Political
• Necessity for large investment of public dollars
• Geographical
• Cost
• Time
• Cultural (pop. density)

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Opportunity for MEDRIX UV Energy and Water in
place

• 700 million ? infrastructure projects
• 90 on electrical grid (2004)
• improved water 90 urban and 67 rural
• 50 population to cities by 2020

Ha Giang Province 2001
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How much for a million?

• 2005 Project to supply 1 million people in the
  Hanoi region with piped water.
• Total Project cost USD 112 million
• MEDRIX could supply 1 million people in Hanoi
  with a reliable source of safe water for USD 10
  million, which would include water monitoring,
  education program, and a water technician
  program.

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Energy Efficient

• 1 hour 8 watts
• 1 hour1000 kwh 1,000,000 watts
• Boiling lt1 hour
• MEDRIX gt30 minutes
• One year 1460 watts vs 365,000,000 watts
• Annual Cost .056/kwh 200 versus 0.82
• By 2020, 50 of population will be in urban areas
  and the capacity is not there to support

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Lessons Learned What makes MEDRIX sustainable?

• Complements Development
• Allows users to control treatment
• Addresses a range of needs and preferences
• Short- and long-term applicability
• Utilizes collaborative implementation
  partnerships
• SCALABILITY

Adapted from the CDCs Safe Water Program
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How effective?
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Vietnam Water Quality Standards
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Profit per Unit
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Cooperatives in Vietnam (2006)

• This is a complex and complicated process which
  requires
• (1) the mobilization of public opinion and
  provision of information fostering a new vision
  on cooperatives
• (2) participatory cooperative training for
  cooperative leaders, managers and staff on the
  role and functions of genuine cooperatives with
  particular reference to the preparation of
  cooperative bye-laws and
• (3) the precise definition of the role the
  Government of Vietnam could and should play in
  promoting the emergence of a viable cooperative
  structure.

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Why Vietnam?

• GDP growth 7
• About to enter WTO
• MEDRIX complements infrastructure
• Receptive to product

http//www.asiapacificbusiness.ca/peo/outlook2005/
vietnam_05.pdf