Cluster operation

In countries where MPI Clean Water is active, then there’s a need for a Cluster Operation. It is the policy of MPI Clean Water to position the operations in clusters of 10 MWCs in combination with activities of the Country Holding in the same area.

In urban areas where there are cities with 500,000 or more people, there are enough potential areas for establishing a Cluster Operation. A good example is Mombasa in Kenya, a city with a population of more than 1.2 million. Potentially there is space for a full Cluster Operation. In countries with comparable cities like Mombasa, MPI Clean Water will concentrate the establishment of Cluster Operations in or close to bigger cities. In Kenya cities like Nairobi and Kisumu are possible locations.

In rural areas we apply a ‘star’ -construction. The star consists of an area between several medium- sized cities. In these areas several villages are located within the influence of the medium-sized cities. For every MWC a rural service area consists of at least 12,000 inhabitants.

The Cluster Operation leverage model

  • One of the objectives of a Country Holding is to help an MWC to duplicate itself: every MWC should generate enough profit to invest in setting up at least one additional MWC after one year (the leverage model).
  • The second year starts with two MWCs: an interesting leverage (one additional MWC and the first MWC at start).
  • In the third year it is possible to start with four MWCs, and so on.
  • Every Cluster Operation invests a substantial part of its annual dividend. One line of leverage is to set up new businesses or to expand existing businesses.
  • Apart from investing in new businesses, every Cluster Operation will also invest in projects for community development.
  • There are a number of additional issues, outside the scope of this business plan, which have additional profit potential.

Community Development

community development

Advantages of a Cluster Operation with 10 MWCs

  • Very competitive price for locally produced and distributed clean drinking water.
  • Joint venture with local company and work for at least 215 employees.
  • Community development as an objective of Cluster Operations.
  • Technology: guarantee of 100% up and running.
  • Attractive for investors: innovative leverage model, payback period within 2 years after the MWCs are 100% operational and a adequate return.

A5 flyer MPI Cluster Operation