Clinton Global Initiative Commitment by Shari Arison's Miya water solutions company selected as 'exemplary approach' to addressing challenges in Environment and Energy
NEW YORK, Sept. 21, 2011 /PRNewswire-USNewswire/ -- Arison Investments, part of the Arison Group, Shari Arison's global business and philanthropy group, has today launched a Public-Private Funding Vehicle designed to help boost the financing of repairs and efficiency improvements to existing water systems, which will accelerate the delivery of clean drinking water to millions of people around the world.
Typically these water projects in the developing world are not eligible for project financing as they are not deemed to create a tangible asset against which to secure financing.
Arison Investments will be a founding participant through its wholly owned subsidiary Miya, a global provider of comprehensive urban water efficiency solutions, including non-revenue water (NRW) reduction.
"We are very proud to launch a commitment to help face this major global challenge and thank President Bill Clinton for creating CGI and the opportunity to help enable positive global change and action," said Shari Arison, the owner of Arison Group and the founder of Miya.
"Improving water efficiency will provide access to clean drinking water for millions of people, improve quality of service, contribute to the economic empowerment of water utilities, reduce the energy consumption associated with water production and distribution, save many lives through preventing disease and reduce the need for additional water production capacity," Ms Arison continued.
"It's staggering that more than a third of the world's water supply is lost from municipal drinking systems. Often the most cost-effective way to prevent the loss of this non-revenue water is to repair and optimize existing networks, but this approach frequently faces enormous funding challenges. We are launching a commitment to help break this cycle of underinvestment and get a critical group of partners together," said Efrat Peled, Chairman and CEO of Arison Investments and also member of the CGI LEAD group.
"Approaches to maximizing water supply often include increasing water production, developing new freshwater sources and constructing dams. While such investments more easily attract financing and support due to creating a shiny visible asset and may be necessary, they are often not the most cost-effective way of optimizing water efficiency and create major stresses on the ecosystem. Efficiency is the next economic megatrend – people need to do more with less," Ms Peled continued.
A recent publication of the Asian Development Bank, "The Issue and Challenges of Reducing Non-Revenue Water" (November, 2010), states that "Wherever active water loss reduction programs have been initiated and sustained, the gains to consumers and utilities alike have been significant… The costs of improved service delivery are much lower when undertaken through investments in non-revenue water reduction, rather than through investments in capital projects to augment supply capacities."
The Public-Private Funding Vehicle is a broad concept to attract interested participants and create a group of partners to make the equity investment needed in water efficiency projects that can be leveraged to meet the demands of traditional project financing. The participants in the funding vehicle are expected to be public sector institutions as well as private sector investors such as pension funds, financial institutions, private equity funds, hedge funds, NGO's, insurance companies, high net worth individuals and other private sector companies that are in need of water rights.
Based upon initial estimates, allowing for the input of future partners, Arison Investments has estimated that the funding vehicle could seek to finance around eight medium to large water efficiency projects. An average project will result in total water savings of approximately 450 million cubic meters over a 20-year period, which translates to daily water savings of approximately 60,000 cubic meters.
About Arison Investments
Arison Investments, part of Arison, Shari Arison's global business and philanthropy group, is a top-tier privately owned investment company managing a portfolio of international investments valued at over $2.5 billion. Operating in 38 countries on five continents, it provides responses to basic human needs in the areas of finance, infrastructure, alternative and renewable energy and water efficiency.
The impact of any investment is paramount and must enhance the quality of life and the natural environment, in addition to delivering a solid financial performance. Investments are focused on the long term and on the values of sustainability to drive profit.
For further information please visit: http://www.arison.co.il/Investments/en/
Founded by Shari Arison, Miya is a global provider of comprehensive urban water efficiency solutions, including Non-Revenue Water (NRW) reduction, and is a wholly owned subsidiary of Arison Investments.
Miya embodies the solution, but also Arison Investments' commitment to sustainability, actively preparing our planet to meet and address the needs of future generations.
Miya has extensive experience in implementing water efficiency projects around the globe, particularly in Brazil, South Africa, Canada and the Philippines. These projects have proven to not only improve the financial situation of the water utility, but also improve service levels to customers, reduce energy consumption and lower contamination and health risks. In some cases the payback period was as low as a few months.
For further information please visit www.miya-water.com/our-experience/case-studies
Notes to Editors
Videos of commitment announcements will be placed on the CGI YouTube page after the Annual Meeting: http://www.youtube.com/cgivideos
CONTACT: Arison Investments, Media Contact, +44 207 526 3630
SOURCE Arison Investments