• to unlock efficiencies from the current infrastructure such as energy savings, improved infrastructure, minimized technical and financial losses, reduced operations and maintenance expenditure and increased revenue; and
• to create smart sustainable infrastructure development

After conducting an energy audit / assessment and acceptance of its findings and recommendations, preceding funding the recommended infrastructure related smart energy efficient project, M3 will present to the utility an indicative “term sheet” that includes an outline of terms on which a fully funded integrated smart infrastructure improvement programme e.g., energy efficiency retrofit may be provided, subject to M3’s full investment due diligence.

The terms set out in an indicative “term sheet” are not legally binding and following the signing of this “term sheet”, M3 and the utility (“the Parties”) will seek to agree a legally binding Energy Services Agreement (“ESA”) which will set out the basis on which the above programme will proceed up to completion.  

Pay back is always negotiable however an agreed payment holiday is permissible and in the case of (1) pay back will only become effective after an agreed 6 – 12-month payment holiday (after each implementation phase and required period to verify average efficiencies). Pay back will purely be calculated from these unlocked efficiencies (i.e., operational and maintenance savings and improved revenue) and NOT from existing budgets.

In addition, the energy saved will be utilized at the absolute discretion of the utility (project owner) to drive / stimulate growth.

With regard to smart revenue streams from the sales of internet / WiFi connectivity, M3 would suggest to workshop with all significant stakeholders for a speedy but robust consolidation of ideas and business models to primarily seek to compensate utilities for utilizing its new smart public lighting infrastructure for purposes of internet / WiFi connectivity across all areas.

In addition, M3 commit to sustain these smart energy efficient technologies for the duration of the agreed energy savings performance contract (ESPC) / Energy Savings Agreement (ESA) term at NO COST to the utility.

Furthermore, as this utility Smart Energy Efficient Project is an off-balance sheet service offering, The utility does not need to raise any CAPEX or raise a liability on its balance sheet.

In the case of (2) above, the Build-Operate-Transfer (BOT) method of financing a project is preferred as it is also a flexible form of medium-to-long term outsourcing

Under the build-operate-transfer (BOT) method, an entity (project owner) grants a concession to M3 to finance, build and operate the project for a predetermined period of X years, hoping for both parties to earn a profit.

After that predetermined period, the project is returned to the entity (project owner) that originally granted the concession.

We prefer a build–operate–transfer (BOT) as a form of project delivery method, to finance, design, construct and operate the facility stated in the concession contract. This we believe enables the project proponent (M3) to recover its investment, operating and maintenance expenses in the project. However local reputable consulting engineers and/or contractors are encouraged to participate.

Due to the medium-to-long-term nature of the arrangement, the fees are usually raised during the predetermined concession period. The rate of increase is often tied to a combination of internal and external variables, allowing the proponent to reach a satisfactory internal rate of return for its investment.

Based on each project economics, we don’t like build–own–operate–transfer (BOOT) projects since we never want to claim ownership.