The solar electric system he spent a year Sangria has consulted for numerous banks in Latin America on currency Abaka's partner in Karagwe is a natively owned company called the following table presents Abaka's expected operational calendar and customers who dispose of their old batteries in this manner. The most some imposing challenges. which guaranteed the privatization of several key industries, including As an RE service provider targeting emerging markets, Abaka will compete Second, the company will in India. Tanzania, about 100 kilometers from the western shore of Lake Victoria, at the rate most families use their radios. Residents of Karagwe realize to power their radios with inefficient dry cell batteries. power. by anarchy, exodus, bloody violence, and massive inflation. workforce. center, where services such as electric coffee processing, water pumping, Furthermore, this company has no understanding of solar electricity, and mortgage payments. Ms. Winger has over six years of experience in the energy industry, as The financial statements presented in the Appendix reflect only General Electric, Philips, Sharp, Magnavox, Toshiba, Thompson's of constructed in Karagwe. During the Summer of 1999, Mr. Stiller conducted an informal survey of Mr. Obago is a native of Kenya, and is the Chief Operations Officer at It is nighttime in Africa, and pitch black envelops the During this time, the use of RE has expanded at ten times the First, Karagwe is an extremely dispersed village, with 350,000 people living in foresee an exit occurring until at least 2006. equity investment with a loan from a government or nonprofit relief agency nations have repeatedly allowed governments and businesses in the There is a substantial World Bank presence in Tanzania, as well as in neutralize this risk by helping the community to diversify and expand its For example, the vast majority of people who contacts. power station and community center. average of about five peak sun hours per day, roughly 10 percent more than Abaka's required $1 million capital investment will be obtained significant characteristic of this revolution has been astonishing growth. Furthermore, because Karagwe is a farming community, Laboratory (NESL) in Eugene, Oregon. with a local organization to help with operations, marketing, legal Karagwe is a remote farming community in the northwestern corner of Abaka Energy Solutions will be organized as a Delaware C-corporation, with Abaka will introduce affordable electricity to Karagwe by offering But despite this recent surge of activity, the RSVP industry still faces impressive career, Mr. Bartholf has provided strategic planning, project Because people in this region maintain a purchasing Abaka will seek this capital from Almost every household in bars, restaurants, grocery stores, and weekly farmers' markets, This community center will also serve as a nucleus of This is consistent with the company's premier installer of PV systems, and one of the most admired men in (KARADEA), the Tanzania Foreign Investment Center, the Tanzania Revenue Division for three years, and graduated from International Natural Revolution" contains the seed that will become the world's This Furthermore, Abaka will explore the possibility of accepting that modernization cannot take place without electricity, and that access expand into a global provider of RE products and services by seeking new
and the country experiences generation shortfalls during drought Over the why this is necessary in Karagwe. In the near future, Abaka The following questions were posed, generally in this Because there is not much in Dry cell The average yearly income is about Nevertheless, Abaka's solar electric systems will be sold as Furthermore, it was clear that almost every individual had a basic diversifying its operations and holdings into other areas of the world. Authority, the Tanzania Electric Supply Company, and the Africa Projects the long run provide a far superior value for the money. that boast such abundant RE natural resources. economy. as the founders know, there are no market-based instruments available for community. Asia, and Latin America. Initially, Through a combination of a proven business model, a strong management team, and this comprehensive energy business planto guide the organization, Green Power will be long lasting, profitable business. and schools on tribal lands. to aid foreigners in identifying lucrative opportunities in Tanzania. its yearly income for a necessary item such as reliable electricity. using Excel spreadsheets for financial analyses and optimization
development to permeate emerging markets all over the world. Abaka will attempt to obtain the majority of this capital either which produce electricity from solar radiation, wind, and hydrogen, coal-fired electricity). satisfy the need for rural energy development. Mr. most families continue to light their homes with crude kerosene lamps, and 15,000-watt solar/ wind power station and community center will be that it represents 45 percent of a typical family's annual income. on selling solar electric systems through micro-credit arrangements. streets, in bars and restaurants, or on shuttle rides between villages. Abaka will continuously readjust this refrigerators, and computers. Abaka's target customer is a in the industry known as Renewables for Sustainable Village Power (RSVP). was provided by Jason P. Spellberg and Gaspar V. Makale, and was Abaka will lose 5 percent of its revenue to currency exchange fluctuations will be small by Western standards. This will have a positive effect on net income and cash flow. telecommunications company that has substantial financial, marketing, and The services provided here will enable, motivate, and community. America. working for Prouffer International.
The opening of these economies has sparked the proliferation of Abaka will be able to legally avoid all import duties through flexibility, and expandability, so that one single power source can be France, and a host of streamlined, globally-aggressive telecommunications The area is so At some point in the community center, and to jump-start operations: February-September double-digit inflation. agency in Tanzania. Development Fund, Completed coursework in PV system design and installation, Helped to install a 1.5 kW grid-tied PV system on a home in Edwards, CO, Completed coursework in the fundamentals of wind generator operation and association with this noble initiative. use of clean renewable energy. disposable batteries, and solar has several advantages over them. liberal tax and import laws in an effort to attract foreign investment.
unequivocally confirms Abaka's intention to provide a positive To become the world leader in the creation, development, and deployment of and taking care of existing ones. The school itself is located in Karagwe, and is operated
above the surrounding plain leaves it exposed to the tropical trade winds, currency risk. Bank of Bangladesh, the Solar Electric Light Fund of Thailand, and Soluz However, Abaka's presence in Karagwe will drastically expand the operation in Karagwe. the regional utility grid, while 0.6 percent are electrified with solar Stiller. Finally, professionally printed brochures, The Tanzanian government has set up an Investment Center cell batteries retail for about $3.00, and may last two or three weeks at facilitate dealings with the Tanzanian government, as well as with
NESL's International and Village Power Program for nine years, and Abaka will rely greatly on publicity and word-of-mouth advertising to It can be extremely Abaka's ideal project in New England. Bim Stiletto, a primary schoolteacher in Karagwe, arrives home after a
business in a poor, developing community without trustworthy local Joseph Rosenthal, Ph.D. demand for affordable solar electric systems in Karagwe, all systems will already well known to the community, customers will be dealing directly governed by a multiparty democracy based on English common law. important message of these conversations is that a tremendous latent handle all day-to-day operations of the business. In some cases, a sales are not close to what they could be. Brazil, and knows the global RE industry as well as anybody. both Mr. Stiller and Mr. Patel on a full-time basis. Each system will come with a solar by 2020. visited on a regular basis. demonstrate that Abaka does not plan to seek further external capital to as a system installer and integrator, and as a fundraiser. In addition, the financial statements assume
In addition, the company will seek assistance in further developing legal, prosperity, within the community. Once and businesses the option of paying for their system in twelve monthly Sue has an MBA and work experience with the Bonneville Power Administration in their renewable energy department. In regulates the battery's state of charge, preventing it from being progress. partnership with a large, multinational corporation interested in an executive office in Portland, Oregon, USA, during the first quarter of Abaka's founders. and this cannot be ignored as a potential threat to Abaka's success meaning that the country's 32 million people are widely dispersed particularly cheap. Eugene. of entrepreneurship. Karagwe is a dispersed farming community of 350,000 people. both the public and private sectors. Customers will start their lifetime relationship with Abaka upon receipt will offer "pre-financing" plans to its customers. Mr. WorldSolar, Inc., Energy Choices Africa, and the Tanzania Investment communities to establish sustainable RE projects all over the world. more Karagwe families will be able and willing to afford Abaka's has posted an average annual economic growth rate of 3.5 percent over the for capital and strategic support, Abaka will offer an investor equity, customers will pay for their systems first, in entirety, before they Ms. Flinger has developed RE policy in Bangladesh, in Egypt, and in many micro-finance plan for solar electric systems.
years. The remaining 98 percent have no hope of seeing the grid extended Because of the international recognition For a comprehensive background on the challenges of conducting business in U.S. SEC, build project website: January-March 2000, Venture Financing: $1 million for construction of power station and These successful center. Solar Electric Kits. in Karagwe, including inventory handling, payment collection, product remote villages of foreign countries. in Karagwe strongly suggests that this price is feasible, despite the fact Europe, or South Africa. Tanzania's GDP is expected to grow at 5 percent annually through will be mitigated in Karagwe through the partnership with SSEW, which will cash at the end of 2000 will be needed to jump-start operations; this The increasing return on equity figures SSEW will run all operations of the business
Ratio Comparisons. Abaka is confident that the political and economic climate in Tanzania is attractive financing options for solar electric systems. As a result, it is no surprise that 100 percent of the He has traveled extensively for cancer research, and honored by the Saturn Corporation for granted exclusive supply and branding rights for all products and services Tanzania. development assistance organization. Samuel Obago. But as he greets his family working and playing under this new Karagwe citizens. Abaka has partnered with a local company called the Seattle which consistently blow from the west. the living room. negotiations, and other important aspects of conducting business. poorest nations. station and community center, as well as the partnership with SSEW, will organizations all over the world. In addition, posters will be used to announce new service offerings or often do not understand the concept of credit, and, especially when an Abaka will also seek and accept financing from private, ownership, all Abaka customers will be invited to attend free educational 10.2 percent, a trend that is expected to continue. support, as well as capital, in launching this venture. In order to minimize exposure, almost all collected the population has electricity. Liam Stiller, Abaka's founder, is completing his M.B.A. in Competing Technologies. American company is the lender, regularly assume that includes a significant safety cushion in case of financial emergency. will be shipped by sea from suppliers in the U.S. or Europe to the Indian families to make purchases in small monthly installments, in the same way Green Power Consultancy is a start-up organizationin Burlington, VT that offers designs and advice to architects and consumers regarding environmentally sensitive buildings as well as energy consumption recommendations. aspect of Abaka's operation in Karagwe. Abaka will immediately specialize in providing electricity and electric becoming more and more favorable for business every day, and that real In Karagwe, solar kit financing will generate almost $800,000 of net RE.
2002. Justin Sangria, Ph.D. Green Power has conservatively forecasted sales of $202,343 for year two, rising to $238,402 for year three. As far these markets at the grass-roots level. the company will explore the possibility of leveraging a partnership or Developing Strategies for Effective Business Practices," available Abaka's Board of Advisers, and Appendix F for the resume of one of incentive to aggressively generate sales by subscribing new customers, in hand, is clean and safe, and provides the familiar fluorescent, white
Despite these simplistic financial tendencies, the typical Karagwe to spark an entrepreneurial spirit by providing new opportunities for During their payment period, and throughout their duration of Karadea, an influential UN-funded nongovernment organization that will be affordable for the average Karagwe family. country has demonstrated over 38 years of political stability, and is Furthermore, customers will be encouraged to return their used to Abaka's success in Karagwe. To circumvent this problem, Abaka He has in Adobe Acrobat format from the Abaka website, There are no street lights, no glows in the policies designed to attract foreign investment. This curriculum, which has been implemented in contracts. purchase systems in affordable monthly installments, similar to the way distribution, marketing, and financial strategies for conducting business adopted the National Investment Promotion and Protection Act in 1990, Green Power will be led by the seasoned management team of Dan and Sue Lang. Mr. Patel will technologies. This will enable Karagwe. also attempt to identify reliable suppliers in South Africa to reduce its partnership with a global technology company interested in penetrating whatever fashion they deem appropriate or effective. This translates into a year-end price of $288, which is a tremendous For This proposed project in Karagwe will require a long-term commitment. Ensure all of the solutions have economic considerations built into the respective models. Experts predict that the world's electricity company public. Dr. Black is a Senior Analyst at NESL's International Programs function), Written and conversational literacy in Spanish, Able to travel extensively, and to remote locations (have been to 17 customers to upgrade to larger power systems. reception desk will be established at the community center, and SSEW will Karagwe as a solar energy professional. Most of these services will be provided within a year after Dr. Black will continue to provide constructive criticism, new ideas, and These financing Abaka's chief competition in Karagwe is certainly kerosene and Abaka will construct a 15,000-watt solar/ wind power station and community this community to spend money on, Karagwe families tend to retain a In addition, Abaka will allow subscribed customers SSEW. As permanent employees, the founders will seek, identify, train SSEW technicians on proper maintenance and operation of the power that end-users will be able to perform the installations themselves. Karagwe: Abaka will negotiate the most attractive supply agreements possible, and Abaka's initial establishment in Karagwe, but eventually they will It's fast and easy, with LivePlan. Therefore, questions concentrated www.Abaka.com There is an operational risk inherent whenever a company in one country industry, and has worked on RE development projects in 23 foreign A customer service office and Become the premier environmental energy consultancy in the state within five years. The second is to ensure that all ofits offerings are based on economic justifications; the solution should make sensebeyond the environmental considerations because it has long-term economic value. responsibilities, conduct sound science, function without supervision, This Karagwe family that earns about $700 per year. 1,650 meters (5,400 feet) above sea level. Abaka's expectation that the services offered at the community Karagwe residents depend heavily on coffee for their revenue. In Tanzania, Additionally, as a full-time employee within a year. strategies to distribute power. where the community center will be useful. respectively. fifty or so Karagwe residents surveyed during the summer of 1999 indicated that a consumer would buy an automobile in the United States. In addition, Abaka will actively help a partner company information about solar energy, will be widely distributed. countries on 4 continents); self-sufficient and culturally adaptive. Families submit no property taxes or An expert in the RE field has been recruited to design this station, and project in Karagwe. expenses, plus $1 million in seed venture financing to launch the project Entrepreneurship at the University of Oregon. large-scale solar project to electrify several remote community centers
long day of work. subsequent years, so that smaller systems can be traded in and upgraded to This business plan will mainly describe the financing rice and fish that must be imported from surrounding districts. security materials will be purchased in the United States, South Africa, editing the business plan, by providing fresh ideas and approaches, and by developing countries. Karagwe, Abaka will generate cash flows that will be used to finance 1993. equipment, such as television sets, satellite dish receivers, One third of the world's population has no electricity. By this time, research on solar financing in Karagwe while doing an internship for SSEW To build Abaka Energy Solutions into a global provider of renewable Only in the past people in this village possess an automobile, and those who do earn three Rossimond Light & Power will thoroughly purchasing power that is greater than half of their annual income. Nevertheless, viewed as luxury items. What other electrical appliances do you own? in developing strategies for executing this business plan, and in locating Most of these conversations took place on the workforce of three to five maintenance technicians and two to four or Kenya. Additionally, these maintain a full-time Oregon-based staff, as well as an expanding travel following. kerosene lamps are crude and dangerous; it is easy to find an adult in are delivered to the first wave of customers, Abaka's the past decade, for instance, PV production costs have been reduced by 80 customers will have to pay all of their monthly installments before before it is sent to a battery for storage. All of these advisers have agreed to lend their assistance the demand for solar electric systems latently exists in Karagwe, and it To solidify people's confidence in these financing options, and to communities through the application of solar and wind energy technologies. unequivocally reliable and durable, the commercial RE industry is still in There are few regions in the world 2000, Optimize solar kit packaging and assembly: November 2000, Subscribe customers to solar kit financing plans: December 2000, Expected Revenue from Pre-Financing Program, Operating and maintaining the power station and community center, Placing supply orders and maintaining inventory, Overseeing and orchestrating solar kit assembly and distribution, Servicing customer repair calls and manufacturer's warranties, Printing and distributing advertisements, such as billboards, and will additionally offer a partner company direct, unlimited access to This business plan energy (RE) products and services, with projects potentially spanning all By Financing Terms. Expert business tips and advice delivered weekly. organizations all over the world, and has taught the wind energy class at order: It is important to note that these questions were not posed in a formal Mr. Patel's expert reputation is common knowledge in the a washroom, and an animal pen. When customers have satisfied their payment Liam Stiller, Executive Officer. In other Karagwe, Kagera, Tanzania, International Natural Energy, dollars in order to meet the company's major expense accounts. local that Mr. Stiller met. Because SSEW's name is Mr. A solar electric system, on the other In short, Abaka's commitment for a percent (an additional 50 to 75 percent is required to cost-compete with electricity in cultivating a prosperous economy. systems for home and commercial applications by allowing customers to and distribution hub. demonstrate the company's dedication to the community, a crises that have plagued Tanzania ever since the 1960s, people are Working with SSEW, Abaka will sponsor development. This is scores of developing countries, like premier growth industry of the twenty-first century. The following table shows the valuation analysis for Abaka's In the past five years, a number use. has nearly thirty years of experience as a licensed general contractor in increase their income by working harder, and then to save more of that The smallest kit offered will be priced at $24.00 per month. Petroleum/ Amoco have established dedicated RE divisions, and are Energy Solutions Company Business Plan forum, Incorporation: Finalize business plan, incorporate, file with the Ms. Strong has worked in the U.S. RE industry for over seven years in It is unlikely that Abaka can The following table shows Abaka's anticipated operating expenses His wife is busily cooking in the kitchen, his eldest son studiously their financing agreements. Abaka will price these kits as low as possible while still yielding an
percent. Lights, charge controllers, wiring, connectors, and radios electricity. Rudolph Heisemann. As a result, Abaka Energy Solutions will empower the world's underdeveloped the potential for further growth demonstrated, Abaka will most likely exit Although the Tanzanian shilling has deflated considerably against the The construction of a 15,000-watt Please see the Appendix for a detailed description of the industry, and the bank has become one of the most fortuitous lending projects. TANESCO is not equipped to buying has finally arrived, and his family is already putting it to good anticipates subscribing about 250 families in 2001, the first year of and finance lucrative new project opportunities all over the world. experiences two dependable rainy seasons per year, and receives an annual Professor Like many rural agricultural villages, Karagwe is a tight-knit utility grid into the periphery of Karagwe for at least ten years. its infancy, and the electricity markets in developing parts of the world Karagwe is surrounded by a plantation of several hectares, and coffee is Felicia Strong, M.B.A. oversee progress and to direct funding. infrastructure from the instability occurring in neighboring regions. target market in Karagwe consists of about 19,000 families. nations. resources to help Mr. Patel attract these technicians to Karagwe. For ECA, Mr. Obago evaluates project
multi-national relief agencies, and, possibly, from large corporations. Mary Flinger. Tanzanian money will be immediately converted into U.S. dollars by candle, and they tend to be noisy and smelly during operation. therefore increase exquisitely over the next five years, as Abaka's The main purpose of these billboard advertisements
telecommunications access to internet browsing. In exchange, a partner company will be A Board of Directors Tanzania, where political stability harbors fantastic economic purchased, and the community center itself will have a clean, modern solar energy systems to families in Bangladesh will be extremely valuable Mr. Patel has very close ties. Indonesia and South Africa. chief of staff. However, these pre-financing plans will be expensive. company's Officer for Africa Operations. How do you light your house and power your radios? venture financing needed. After the power station and community center are completed, a full-time Abaka will have to do via a management buyout. heavily utilized, both in the construction of the power station and in private accredited investors, nonprofit relief agencies, or possibly as a She will aid during the summer of 1999. improve the community's prosperity, thereby building real demand two kerosene lamps, for he has about thirty exams to grade. income, and $2.7 million in accumulated cash, by 2006. region. Karagwe, and has been installing solar energy systems there for eight Many experts predict that this global "Energy to use the community center for free during their contract term.
excess of $1,000 per year. operational years 2001-2006. and funded by one of Tanzania's most important non-government Mr. Bumholtz served two years in Paraguay with the Peace Corps, and has electrical systems are provided, but money is not collected. house teeming with activity. will be to inform and remind customers of scheduled educational training refrigeration, computing, telecommunications access, and Internet browsing Seattle Solar Electronics Workshop (SSEW). He Mr. Stiller has already invested $8,000 in administrative, travel, and since 1991. degree in entrepreneurship and marketing from the University of Oregon. About 350,000 people, or 60,000 households, live in this on RE projects in sub-Saharan Africa, and has traveled extensively in the This valuation analysis The solar Solar International, one of the world's largest producers of PV a typical African retailer. $700 per family, and, though this is strikingly poor by Western standards, This page left intentionally blank to accommodate tabular matter A Board of Advisers The Grameen model is now Coffee. energy technical school in the southern Hemisphere. micro-credit or financing option to their customers.
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