Business man

Publication Date: March 20 2016

Subject Matter: Water & Opportunity – Proven Performance  

Calgary, AB, Canada – CAPEX-WORLD Corp ("CAPEX") announced today that it has successfully empowered one of the most important high-end hotels in Tulum; Riviera Maya (the “Client” and or “Hotel”) to complete an investment in a sustainable Osmosis plant augmented by an Ozone Based System treat up to 163,000 liters of similar to Sea Water Quality water daily. The end product will be good for Human consumption and stored in three Hurricane resistant Cisterns of up to 70,000 liters each to first stabilize and thereafter be tested prior to distribution (the “Facility”).

This Client tests this water, on average, every two hours in a laboratory to verify that this water complies with the Mexican Regulatory Norm 127-SSA1-1994 which determines the water is good for human touch and consumption. Throughout a sustainable hurricane-proof distribution infrastructure and another 2 mini-plants that will be added to the Facility during Q – 2 2016, this Hotel will distribute this water at 4 atmospheres to its pools, buildings, rooms, restaurants and other areas (not for irrigation). The Client will also use the water to produce up to 3 tons of Ice and up to 6,000 bottles of drinking water daily for internal use as well as for retail and wholesale purposes creating a whole new business for the Hotel.

Lowering operation costs and logistics by up to 65% in this category, producing purified Ice and drinking water, enhances the guests experience, prevents traffic hazards and eco-contamination and allows the option to establish an onsite laundry facility in the near future. These together with the fact that the solution is effective and goes perfectly well with our core values are only some of the merits that inspired us to pursue this direction.

Prior to this Facility and with no availability of a public water system, the Hotel was obtaining the non-drinking-water from an independent contractor that was providing such water to the Hotel with large, noisy and polluting trucks at an approximate direct cost of MEX $380.00 per truck. The delivered water was than pumped into elevated tanks and from there distributed by gravity to its destination at less than 1 atmosphere pressure. The Ice was provided by a different independent contractor at a direct cost of approximately MEX $13.00 for each 5 kilos and the drinking water from a third provider, all resulting in intense administration, logistics, indirect pollution and a very expensive overall cost with no incremental revenue and no feasible option to establish an onsite laundry facility.

Instead of the projected MEX $4,000,097.25 on the non-drinking-water and the MEX $400,000.00 on the Ice and the MEX $1,200,000.00 in drinking water that this Hotel projected to spend in 2016 to accommodate their needs based on the old methods, by utilizing the new method this Hotel will pay a total of approximately MEX $1,428,451.00. If we do not include amortization this Hotel will enjoy quality drinking water at a price of MEX $0.00228 per liter directly on site.

The consolidated ROI (“Return on Investment”) on this Facility, the ICE and Water Plants is projected to be less than 18 months, which can be accelerated to be under 9 months depending on the net revenues of the sale of ICE and Water. From a cash flow perspective, this Client will experience an immediate monthly increase in Cash From Operations of up to MEX $350,000.00 just by not purchasing any further ice and or water. Based on the sale of ice and bottled water this Client may experience a monthly incremental revenue of up to MEX $1,000,000.00 by selling ice and water to this Client’s immediate network i.e. guests, affiliates, providers and or others.

From an asset based perspective other than the construction work associated with the osmosis, ice, packaging buildings and cisterns which were and or will be paid based on a 6 months free of interest payment, this client will pay for the system in 48 equal monthly payments that carry an interest of 5% annually on the financed portion of the System. The fact that we can create an IRR (“Internal Rate of Return”) on this infrastructure cost savings driven investment is very powerful and is a result of CAPEX’s experience and expertise to convert cost based areas into profit driven opportunities leveraging on Economics of Scale, Networking and Economic Wisdom.

Up to a 75% smaller foot print on this Category is this Facility’s greatest achievement in terms of sustainability. This parameter was estimated as the difference in the carbon based emissions that are created in the old system from the water’s transportation (more than 9,000 trucks annually) and the emissions related to the production of the electricity necessary to power the pumps and other electrical components that are part of the new Facility. On another front this hotel will start providing drinking water to elementary schools, the Red Cross, the Fire Department and the Police as part of this Client’s ongoing efforts to support the local community.

CAPEX took a lead position in this endeavor by assisting this Client to determine objectives, evaluate alternatives, technologies, contact and negotiate with providers, perform due-diligence and identify what is the most beneficial combination of the technologies and or providers considering effectiveness, cost, risk, sustainability and others. In Addition, CAPEX contributed creative models and finance alternatives, corporate governance, performance and guarantees. We were also heavily involved in the preparation of all legal documents, the appropriate closing and the execution of such by all parties’ legal representatives.

This project fits perfectly well with our core values and Social Responsibility Strategy. Accordingly, we will continue to use our influence, expertise and global-network to minimize the human footprint by encouraging other Clients and or Affiliates to put proven and effective green technologies and or methods to work. 

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for and on behalf of
Daniel Portnoy
President & CEO
Calgary, AB Canada