VREP VANUATU RURAL ELECTRIFICATION PROGRAM PHASE 1 (50% SUBSIDY) FUNDED BY WORLD BANK & New Zealand Government

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1 VREP VANUATU RURAL ELECTRIFICATION PROGRAM PHASE 1 (50% SUBSIDY) FUNDED BY WORLD BANK & New Zealand Government

2 VALUE USD$5,000,000 USD$2,000,000 USED IN OPERATIONAL COST OF SETTING UP THE PROJECT REST USED FOR THE SUBSIDY OF THE PRODUCTS PLUS SPENT ON AWARENESS OF THE THIS PROJECT PROGRAM STARTED IN LATE 2015 AND WILL RUN UPTO END OF 2018 EXPECT TO LIGHT UP APPROX 20,000 HOMES 2 COMPANIES etech Vanuatu Ltd and PCS WERE SELECTED ON MERIT WITH THE PRODUCTS SELECTED FROM LIGHTING GLOBAL CERTIFIED LIST. PRODUCT RANGE FROM 5WATTS TO 30WATTS

3 TYPICAL SPECIFICATIONS 3 4 LIGHTS PLUS PHONE CHARGING THROUGH USB SLOTS. 6 8 HOURS OF LIGHTS 1 WATT TO 4 WATT LIGHT BULBS 2 YEAR WARRANTY LEAD ACID BATTERIES / LITHIUM Ion batteries

4 CHALLENGES CAPITAL INVESTMENT ON THE PRODUCTS EXAMPLE TO GET A CONTAINER LOAD OF PRODUCTS ITS COSTS VENDORS APPROX USD$120,000 THE PAYMENT TERMS FROM SUPPLIERS ARE 50% DEPOSIT AND REST PAYABLE ONCE GOODS ARE READY TO BE SHIPPED. FROM THE DATE OF PAYMENT TO THE ORDER GETTING READY CAN TAKE UPTO 3 WEEKS AND THEN 4 6 WEEKS FOR SHIPMENT TO ARRIVE. AWARENESS OF THIS PROGRAM AS ITS IS RELEVANT TO THE RURAL AREAS LOGISTICS AS ISLANDS AND VILLAGES ARE VERY REMOTE

5 THERE IS NO ASSISTANCE FROM THE BANKING SECTOR OR GOVERNMENT STATUARY BODIES TO ASSIST THE DELIVERY AND FUNDING THE LOAN at a decent rate to the vendors. The typical lending rates are min 11% to 16% Cash flows has to be heavily monitored to avoid financial problems Lot of funding agencies have come and gone after discussing what are the issues we as vendors face but you never hear back from them As cost of living in VANUATU is very high the deliverables become more expensive

6 MOST OF THE PROJECTS IN VANUATU ARE FUNDED UNDER LOAN FROM AID AGENCIES HENCE WE DO GET LOT OF CONSULTANTS COMING IN WITH DIFFERENT IDEAS AND NOT UNDERSTANDING WHAT IN REALITY THE PEOPLE NEED. PRIVATE SECTOR INVOLVEMENT HAS BEEN VERY MINIMAL OR NON EXISTANCE HENCE LOT OF PROJECTS HAS FAILED OR DOOMED TO FAIL. MOSTLY THE CONSULTANCY IS BETWEEN THE GOVERNMENT AND THE DONORS LATELY ONE OF THE TOPICS THAT IS AROUND IS THAT PRIVATE SECTOR INVOLVEMENT and we hope that will eventuate and assist on successful implementation of projects and the projects that matters the most.

7 etech Vanuatu Ltd has Offices in Port Vila and branch in Santo and companies in Solomon Islands, Timor Leste, Australia. Our Main business has in in IT field and from year 2000 we have diversified to Radio Comms VHF / HF Since 2015 we have diversified further in the Solar Power and expect this sector to overtake other sectors You can check us up on

8 PCS Established in Divided into 2 main areas being Projects primarily in the telecommunications sector. Retail and Solar targeted to the smaller lighting kits, government and residential sector.

9 PCS RECENT PROJECTS 760 kw Grid Connected solar solution installation divided between 2 locations Vanuatu Government Parliament House and NDMO as the local subcontractor for Clay Energy kW Solar and 2MWh Battery Off Grid Installation at Iririki Island Resort as the local subcontractor for Sunergise Upgrade of major Vanuatu Telecommunications Network to 4G Upgrade of other operator to commence Oct installation of 5 Greenfield Telecommunications towers with 5 to complete before year end. Includes installation of tower, Off-grid Solar Solution and telecommunications equipments

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