2016/02/09 Signing of Minutes of Meeting on Conducting JICA's Project "the Verification Survey with the Private Sector for Disseminating Japanese Technologies for CHEMILES Technology - Groundwater Treatment System without Chemical to Improve Water Quality"

On February 4th, 2016, NAGAOKA signed minutes of meeting with the Japan International Cooperation Agency (hereinafter referred to as JICA), and Hanoi Water Limited Company (hereinafter referred to as HAWACO) on implementation of JICA'S project "the Verification Survey with the Private Sector for Disseminating Japanese Technologies for CHEMILES Technology - Groundwater Treatment System without Chemical to Improve Water Quality" which is conducted at Tuong Mai Water Treatment Plant in Hanoi city, Vietnam.

In this project, JICA will entrust the implementation of the survey to NAGAOKA. NAGAOKA will provide the full-scale CHEMILES system to Tuong Mai water treatment plant in Hanoi city and monitor CHEMILES treated water and current Tuong mai's treated water to prove that CHEMILES technology contributes to improve the overall water quality of Tuong Mai water treatment plant. In addition, this project also aims for dissemination of CHEMILES technology to HAWACO and other waterworks companies in Hanoi and other areas in Vietnam as Japanese technology.

JICA's scheme, "the Verification Survey with the Private Sector for Dissemination Japanese Technologies" aims to demonstrate the Japanese technologies are highly effective in improving specific development challenges and to stimulate Japanese economy.

This project is scheduled to start in March 2016 and continue for 1 year and 6 months. NAGAOKA will ensure the successful implementation of this project to prove effectiveness and advantages of CHEMILES technology and to develop CHEMILES's market in Vietnam.

NAGAOKA has received an order for the Official Development Assistance (ODA) project for the first time. With the outcomes of this project, NAGAOKA will promote the business in South East Asia and other developing countries.

PROJECT OUTLINE

Title "Verification survey with the Private Sector for disseminating Japanese technologies for CHEMILES Technology - Groundwater treatment system without chemical to improve water quality"

Target CountryViet Nam

Target Are: Tuong Mai Water Treatment Plant in Hanoi

Duration 1 year 6 months from the concluding of the contract between NAGAOKA and JICA

Support Agent Japan International Cooperation Agency(JICA)

Implementing Organization

<Japan side>

Nagaoka International Corporation: Project developer, project manager

Oriental Consultants Co. Ltd: Project consultants

<Vietnam side>

Hanoi Water Limited Company (HAWACO): Project counterpart

Hanoi University of Civil Engineering, Institute of Environmental Science and Engineering (IESE): Project supporter

Vietnam Water and Sewerage Association (VWSA): Project supporter

Background: At present, almost 70% of water consumption in the metropolitan Hanoi is derived from the groundwater source. Hanoi Water Limited Company (HAWACO) now faces the problems of difficulty of removal of high levels of iron, manganese and ammonia nitrogen in groundwater due to lack of treatment technology and chemical injection management. Our counterpart, HAWACO is the government organization comprising 80% Hanoi's total water supply and operating 12 major water treatment plants and several small water supply stations for groundwater in Hanoi.

Purposes of ProjectTo verify advantages and effectiveness of CHEMILES system if it improves the water quality of Tuong Mai water treatment plant and to research the feasibility of applying this technology to other water treatment plants operated by HAWACO.

About CHEMILES: CHEMILES is an extremely high speed chemical-less groundwater treatment system to remove high levels of iron, manganese, and ammonia nitrogen in groundwater. By utilizing contact oxidation and biological treatment, no chemicals (i.e. Chlorine) are required to inject. That is, operation of CHEMILES does not need chemical management and CHEMILES does not cause production of harmful by-products resulted from chlorination (i.e. Trihalomethane). CHEMILES is recognized as a people friendly and environmentally-friendly system.

Through Vietnam Water and Sewerage Association, in 2003 NAGAOKA introduced CHEMILES to HAWACO. Consequently NAGAOKA and HAWACO implemented a pilot test of CHEMILES at Tuong Mai water treatment plant from July 2014 to March 2015. CHEMILES successfully proved its high treatment efficiency in removing high content rate of iron, manganese and ammonia nitrogen.

Expected Outcomes for NAGAOKA: A positive result of this project will increase opportunities to apply CHEMILES to other water treatment plants run by HAWACO and expands CHEMILES's market in Vietnam as well as other countries in South East Asia, such as Thailand, Laos, and Cambodia.

The financial forecast of our business plan does not need any adjustment by this contract.