MONTREAL, QUEBEC -Carbon2Green Corporation ('Carbon2Green' or the 'Corporation') (TSX VENTURE: CGN) is proud to announce the signing of a Framework Agreement with the Intergovernmental Organization World Sports Alliance ('WSA' or the 'Alliance') (www.wsaigo.org) for the purpose of facilitating the establishment of Jatropha Curcas plantation projects in WSA's 27 Member States and ensuring the required financing of the projects.
The agreement provides for the appointment of Carbon2Green as WSA's Lead Business Partner in the new WSA Jatropha-Bio-fuel Public-Private Partnership (JBF-PPP) Program. This new program will focus on the establishment and operation of Jatropha Curcas plantation projects and the production of Bio-fuel in WSA's Member States. Organized within the framework of the WSA PPP format, the new WSA JBF-PPP will enable the implementation of the WSA Infrastructure and Human Resource Programs for the achievement of the Millennium Development Goals (MDG) adopted by the United Nations in 2000.
As Lead Business Partner and Local Operator of the Jatropha-Bio-fuel PPP Program's projects within WSA Member States, Carbon2Green will have the responsibility for the development of the plantations and the construction of the refineries for the oil produced from the Jatropha Curcas fruits. For periods ranging between 20 to 25 years depending upon the Member State in which a JBF-PPP is located, Carbon2Green will also have the responsibility for the operation of the above mentioned refineries whose entire annual production will be purchased by the participating Member State. As is the case with all other WSA PPP Projects, the Jatropha Curcas plantation projects and their related refineries will be owned by WSA until their transfer to the Participating Member States at the end of the conclusion of the JBF-PPP Project.
As Project Manager of these projects within the WSA PPP framework, Carbon2Green will receive a remuneration equivalent to 10% of the costs of installation of both the plantations and the refineries, and as Local Operator, it will receive an amount equivalent to 36.85% of the net profit derived from the projected annual millions of liters sale of Bio-fuel to the Member State.
The installation of the financial architecture of each project remains WSA's entire responsibility. WSA will ensure the integration of the projects and will liaise between Carbon2Green, the financial partners and each participating Member State. The financing of each project is based upon the discounted value of the monetary flow generated by the production and sale of the Bio-fuel over the 20 to 25 year duration of each Project.
Democratic Republic of Congo
WSA expects to conclude the first PPP Project with the Government of the Democratic Republic of Congo (DRC) before the end of the next quarter.
Under the WSA PPP formula, this Project will integrate the pilot project which Carbon2Green has initiated in the area of Bandundu in the DRC. This project provides for the cultivation of 14.000 hectares of Jatropha Curcas on depleted soil and thereafter its projected annual production of 24 million liters of Bio-fuel.
Following the signature of the JBF-PPP Project with the DRC and the confirmation of the required financing, a budget of about USD $27.6 Million will be allocated by WSA to Carbon2Green as previously negotiated by the parties. This budget will cover the commercial portion of the Jatropha-Bio-fuel PPP Project including the implementation cost of the plantations and the production of Bio-fuel.
While the ownership of the JBF-PPP Project lies with WSA, the WSA JBF-PPP DRC Project agreement provides that, in addition to its remuneration as Project Manager and its participation in the net profits from the sale of the Bio-fuel to the DRC, Carbon2Green will retain full ownership of the carbon credits which the project will generate, which, when the project will be completed and financed, is projected to generate up to 3.500.000 of tCERs by the end of 2021.
The Chairman of Carbon2Green's Board of directors stated that 'WSA is the ideal partner for us, because in addition to facilitating the establishment of the Jatropha projects within its 27 Member States, and ensuring the financing of the projects, we share WSA's same vision pertaining to the importance of sustainable and environmental development, and also to the implications for private companies within social development. This agreement reaffirms our shareholders' belief and confidence in the spirit and in the growth potential of our company.'
About World Sports Alliance (www.wsaigo.org)
WSA is an Intergovernmental Organization (IGO) organized under the Vienna Convention on the Law of the Treaties of 1969 (THE UNITED NATIONS TREATY SERIES vol. 1155, p.331, ENTERED IN FORCE ON 27 JANUARY 1980); having been constituted on 20 May 2007 by the joint declaration of three Sovereign States, the Kingdom of Morocco, the Dominican Republic and the Republic of Niger which adopted the Rabat Declaration (UN-ECOSOC-E/2007/NGO/1) referred to as WSA's Constitutive Act.
WSA continues the creation and development process of its 'Development Fund' and its 'Heritage Fund', which will enable it to finance its projects, within the framework of its Public-Private Partnership (PPP) Programs, within its participating Member States, in order to fulfill its mission for the creation, implementation and sustainability of its youth programs and to contribute to the achievement of the United Nations Millennium Development Goals in order to built a human, just and equitable society.
WSA uses Sports, Physical Education and Leisure as a catalyst to design and then implement extracurricular youth training and educational Programs and a network of youth sport community centers within the territory of its Member States for the achievement of the MDGs. In order to finance its activities, WSA developed a business model for the establishment of commercial ventures with each of its Member States within their respective territories through the creation of PPPs. These PPP's are business activities which join the public and private sectors in order to generate income for its participant while meeting present and urgent needs of the Member States within a framework aiming to preserve the environment.