Application Form for Expressions of Interest

Deadline: December 1, 2013 at 18.00 GMT

About VIVUS VIVUS is a Ghanaian-based company. As a social enterprise, we are entrepreneurs that look at profitability but work to bring a positive social impact. VIVUS specializes as a provider of logistic solutions reaching the bottom-of-the-pyramid markets. This means we build distribution networks, develop low-cost transport solutions, and improve supply chains to make sure products and services can reach poor or traditionally disadvantaged people.

About the 3-wheeled Rural Mobility Initiative for Ghana

Fig. 1 3-wheeled motorized tricycle

Fig. 2 two-seater tricycle

Fig 3. 3-wheeled mini truck

3-wheeled motor vehicles have brought revolution to several parts of the developing world; about the way rural inhabitants and smallholder farmers transport their goods and themselves. As an example, the number of Chinese Rural Vehicles reached about 22 million units in 2001 the majority being 3-wheeled vehicles and has transformed Rural China. Their main advantages regard their low-cost price, their maneuverability in poor rural terrain and their load capacity which fits the reality of what small scale farmers can produce. In Ghana, the use of 3-wheeled vehicles (tricycles) emerged only in the last 10 years and has gone beyond refuse collection in Accra to now include many business activities including pure water distribution, consumer goods distribution and hiring for the collection of general goods. We intend to empower rural communities and organizations by providing 3-wheeled tricycles and vans to undertake the cost-effective transportation of goods such as food produce, fuel wood and so on.

Vivus 3-wheeler Rural Mobility Initiative for Ghana

EOI Application

The 3-wheeled Rural Mobility Initiative for Ghana exists to enable the mass adoption and widespread use of 3-wheeled vehicles in Rural Ghana. With financial support from the Bill and Melinda Gates Foundation, we are pleased to announce the establishment of the Vivus Move Smarter Fund, a revolving loan facility of 110,000 GHS (~55,000 USD) projected to grow three-fold by 2014. This facility will finance two purposes: A work and pay scheme in collaboration with rural banks; providing 3-wheeler tricycles and vans to rural households and organizations (FBOs, district assemblies) under an operational lease. The establishment of 3-wheeler rural transport/taxi companies to be co-founded with rural organizations or entrepreneurs.

Request for Expressions of Interest 3-wheeler rural transport/taxi companies Rural taxi companies consist of a minimum of 5 motorized tricycles to be stationed at ranks and that will provide transportations services to a rural community or a cluster of communities - ranging from the collection of farm commodities, refuse collection, water and sachet water distribution and the moving of general goods for households and small rural businesses. VIVUS seeks Expressions of Interest (EOI) from local entrepreneurs and rural organizations (district assemblies, non-governmental organizations) open to embrace an income-generating activity and with the ability to invest. In this partnership, Vivus will pay half the capital cost (51%), with the rest of the capital cost and land availability to be provided by the organization/entrepreneur (49%). The operating margin will be split accordingly. On average, a 5-tricyle rural taxi company will cost 22,000 Ghana Cedis excluding land space as taxi rank/parking space. We can finance up to 15 tricycles per each taxi company.

Vivus 3-wheeler Rural Mobility Initiative for Ghana

EOI Application

Here is an overview of the profitability analysis of the usage of tricycles for pure water distribution in Accra: (scenarios respectively of 200 and 300 sachets of water sold daily)

ITEM Number of trips per day: Number of water sachet bags sold/day: Factory cost per bag: Cost per bag sold: Net revenue: Gross profit: Number of days (reduced from 26/month): Net revenue/month: Cost of Revenue (water sachets): Gross profit/month: Fuel (15/day): Operator salary and commission per month: Servicing of tricycle: Maintenance safe surplus (40% of servicing cost): District Assembly tax sticker (10/month): 3rd party comprehensive insurance (300/year): Sales and Marketing (3% of gross profit) General and Administration (15% of gross profit) Misc (2% of gross profit) Operating Expenses Earnings per tricycle/month Earnings per tricycle/year: Cost of a tricycle: Fair usage Depreciation: Earnings/tricycle during lifetime

2 200 1.3 1.8 360 100 23 8280 5980 2300 345 500 90 30 10 25 69 345 46 1460 840.0 10080 3500 3 years 30240

ITEM Number of trips per day: Number of water sachet bags sold/day: Factory cost per bag: Cost per bag sold: Net revenue: Gross profit: Number of days (reduced from 26/month): Net revenue/month: Cost of Revenue (water sachets): Gross profit/month: Fuel (20/day): Operator salary and commission per month: Servicing of tricycle: Maintenance safe surplus (40% of servicing cost): District Assembly tax sticker (10/month): 3rd party comprehensive insurance (300/year): Sales and Marketing (3% of gross profit) General and Administration (15% of gross profit) Misc (2% of gross profit) Operating Expenses Earnings per tricycle/month Earnings per tricycle/year: Cost of a tricycle: Fair usage Depreciation: Earnings/tricycle during lifetime

3 300 1.3 1.8 540 150 23 12420 8970 3450 460 500 90 30 10 25 103.5 517.5 69 1805 1645 19740 3500 3 years 59220

As can be seen, the tricycles repay themselves in a period of less than 4 months.

Vivus 3-wheeler Rural Mobility Initiative for Ghana

Instructions to Applicants

EOI Application

Applicants must thoroughly answer the following questions and explain how they stand out as relevant partners. Applications must include complete responses to all the questions (including each subquestion) in no more than seven (7) pages. Applicants must submit answers in this MSWord document, providing answers in the appropriate text box. Send submissions via email no later than December 1, 2013 at 18.00 GMT to s-richard@vivusrenewables.com. Please put your name/the name of your organization followed by VIVUS MOVE SMART FUND in the email subject line.

Eligibility All applicants must be entrepreneurs with a history of demonstrated, successful entrepreneurship in their target areas or legally recognized entities with a deep interest in rural entrepreneurship.

Selection Criteria Vivus will evaluate applications based on the responses to the questions.

Next Steps A Review Committee will evaluate all eligible applications. VIVUS will shortlist proposals and contact successful applicants and work with them to complete a feasibility study on the ground followed by financing. Applicants will learn the results of the EOI stage approximately four weeks after the deadline.

[This is the end of the background and instructions. The cover page and application begin on the next page.]

Vivus 3-wheeler Rural Mobility Initiative for Ghana Expression of Interest: Official Application

EOI Application

Instructions: Please provide an answer to each question in the box provided. Your total application, not including the cover page, cannot exceed six pages. Exceeding the page limit or failing to answer all questions will result in an automatic disqualification.
Full Name/Organization Name Point of Contact
*Please list one individual to receive all communications from Vivus regarding this EOI.

First Name

Last Name

Address

Point of Contact Email

Point of Contact Phone Number

How did you learn about this opportunity? (If) Your organization is a:
*Please check only one box.

__ Farmer-based organization __ Development Aid organization __ District Assembly __ Other (please specify)

Q1 Market Potential Give us an overview of the rural community you are operating in or intend to? (population size, density, economic profile) [Provide answer here]

What is the level of economic activity as compared to the capital of the Region? (E.g. comparing Konongo to Kumasi in the Ashanti Region). Please affect a score from a scale of 1-10; with 10 being the highest score given. Describe the level of economic activity. [Your Score from 1 to 10] [Provide answer here]

Please list all the economic activities/rural businesses that could potentially benefit from the availability of tricycles offering loading services? [Provide answer here]

Vivus

Vivus 3-wheeler Rural Mobility Initiative for Ghana

EOI Application

Is there any significant economic activity already in operation (e.g. agro-processing company with an out grower scheme, clay, quarrying) with a potential interest for the undertaking of transportation services on their behalf? Have you approached them already? [Provide answer here]

Describe the level of farming activities currently taking place. Please provide more insights about smallholder farmers. [Provide answer here]

How many market days are currently taking place? Do you see potential in supporting regularly small farmers in aggregating their production from the farm gate level to market days? [Provide answer here]

What other existing modes of transportation (machinery, animal, human) are in use for loading goods within your rural community? In your opinion, what are their strengths and weaknesses? [Provide answer here]

Q 2 Partnership How many 3-wheeled motorized tricycles and/or 3-wheeled mini-vans do you request in establishing a rural taxi company in your rural community? [Provide answer here]

Describe your experience as an entrepreneur. Describe your development impact as an entrepreneur. [Provide answer here]

Describe appropriate marketing activities you believe could promote the establishment and ongoing run of a rural taxi company in your community. [Provide answer here]

Vivus

Vivus 3-wheeler Rural Mobility Initiative for Ghana

What amount of funding are you requesting from the VIVUS MOVE SMART FUND? [Provide answer here]

EOI Application

Please confirm the following: (1) I am in a position to contribute half of the operational cost of establishing a rural tricycle company? The minimum amount is 10,780 GHS (ten thousand seven hundred and eight Ghana cedis) for the lowest budget of 22,000 GHS ____Yes _____No Loan Other___________________

Your source of funding: Own Cash

(2) I am in a position to make land available at no cost as parking space ____Yes _____No Land leased by me Free Land to be requested

Your type of land: Own Land Other ___________________

Describe any additional support you could potentially offer to make the joint-venture a success [Provide answer here]

What suitable month/quarter in 2014 do you see as ideal in establishing the rural taxi company in your community? [Provide answer here]

In your opinion, will authorities be receptive to or apprehensive against the establishment of rural taxi companies comprised of 3-wheeled tricycles? [Provide answer here]

Any questions should be addressed to s-richard@vivusrenewables.com. Best of luck!

Vivus