3 Remarks

As is typical with construction of real estate, it is not possible to make concrete prices without a substantial site analysis of the location and the required plant performance. In addition, labor costs are also very different in the countries around the world. The following example calculation, which was created for the rather expensive location in Germany can only be taken as a point of reference.

Hypothetical scenerio: To construct a plant to supply 500 inhabitants, the costs for planning and the supervision of the building, including the travel expenses amount to 30,000 to 50,000 USD would to be settled. The production costs are entirely location-dependent. The example calculation shown below shows the individual cost components.

3.1 Composition of the production costs

The total expenses consist as follows:

	Item		Costs	Remark
A	Primary planning costs and royalties		Germany / Netherlands [EUR]	Fixed costs, graded depending on the project size
B	Paid labour / production costs on site		Country of destination	Variably according to labour costs of the regulation country
C	Material costs	C1	Country of destination	On site available material
		C2	Germany / Netherlands [EUR]	NOT on site available material
D	Fees for local approval, decree, licensing	D1	Country of destination	Depends on the country of destination
	Construction care on site by NL- / DE technicians or engineers (Fee for 5-7 days)	D2	Germany / Netherlands [EUR]	As per commisioned project size
E	Travel expenses, Consultants Accomodation		Germany / Netherlands [EUR]	Daily rates for engineers, engineers, responsible site managers from DE / NL

3.2 Current Costs (annual)

	Item	Costs	Remark
A	Servicing (wage and material)	Country of destination	Costs determined by the factors the factors specific to the country of site
B	Prescribed interval check of the result quality	Country of destination	Costs determined by the factors specific to the country of site
C	Consultancy support contract (Optional)	Germany / Netherlands	The support contract encloses regular customer care and consultancy Regular quality assessments and proposals are worked out to enhancement or modification of the supplied system together with the customer.

3.3 Life span, return of investment and back building costs

The estimations underlying the long-term stability of the projects and the dismantling processes have proved no principle-conditioned end of the life span. Therefore the systems installed theoretically last indefinitely. We can estimate and present a life span of 50 years as a useful life to receive a calculation of costs comparisons against other system alternatives. Experiences in Germany have shown that - including in Germany for the investment operator to prescribe legal transfers to reserve - the sewage price (m³) sinks by approx. 60%.

4 Cost example

4.1 Production costs

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4.2 Operating expenses (p.a.)

The operating expenses are to be determined with the help of the local regulations of the country.