Business Model

We propose a 2 layer legal structure:
• Producers Cooperative would be set up locally to implement and run limited numbers of schemes in the same region (3 to 20)
• Mother Company (SPRL) would help start Producers Cooperatives and will support them.

A distinct cooperative of the type “Producer” would be created by region, composed of several sites on the same river or couple of rivers.

The entire Belgian rivers are tributaries of rivers emptying into the North Sea, except Momignies whose waters are part of the basin of the Oise, which flows into the Channel via the Seine. Here is their list in alphabetical order. Every River with sufficient Flow and existing sites suitable for retrofitting is a candidate.

NettoWatt SPRL, as the Mother Company, will offer two main services to the Producing Coops :

The Mother Company will fund prestudies, and help Cooperatives raise the needed money, set up their own structure, and implement the generating site

The cooperatives will in return pay a lump sum to the Mother Company (as soon as they have raised the money) for retribution of the expenses occurred for the prestudies, the risk taken, and the effort to supervise the implementation.

The Mother Company will also take care of the day to day management of the cooperatives :

• organize members meetings
• manage administration
• communicate and lobby
• manage relationships with Suppliers

The cooperatives will pay a management fee each year proportional to their revenues.

A framework contract will rule the collaboration between the coops and the mother company, that will be signed at the start of the collaboration.

Kick Off : A case by case analysis will be made for each cooperative to determine a fair price for the first lump sum, based on the risk taken, the success ratio of the pre studies, the actual cost of the prestudies (including subsidies), and a fair profit for the SPRL.

Management Fees : Management fees are bound for a minimum period of time set to 10 years. It will be fixed at 20% of the cooperative revenues for the first 5 years, and then will be reviewed every 5 years based on the economy of scales or other evolving factors. After 10 years, the coops will be free to either continue the collaboration or to do the day to day management themselves or trust them to another company.