Clearford Announces signing of agreement with The Upper Southern Province of the Republic of Maldives
Ottawa, Ontario – (January 27, 2011) – Clearford Industries Inc. (“Clearford” or the “Company”, TSX-V:CLI) today announced it has signed an agreement with The Upper South Utilities Limited (“USUL”) of the Republic of Maldives to negotiate and enter into sewerage infrastructure projects for up to fifteen of the islands (“Projects”) located in the Upper South Province, using Clearford’s SBS system. The parties have agreed to work in good faith to establish a binding contract for construction and financing that enables the Maldives to pay for the Clearford infrastructure over a 20 year period. The estimated value of the servicing program is $40,000,000 dollars.
The Republic of Maldives is located in the Indian Ocean off of the southwest tip of India and has a population greater than 300,000 people distributed over approximately 200 inhabited islands out of a total of more than 1,000 islands controlled by the Republic. Currently, sanitary sewers are installed on fewer than 12 of the inhabited islands. The islands are coral and sand structures with a very porous nature and as a result the ground water on the un-serviced islands is often contaminated by onsite disposal of human sewage. Due to this circumstance, residents on many of the islands rely upon both rainwater harvesting and commercially available bottled water as their sources of drinking and cooking water, with no alternative but to use contaminated groundwater for other household purposes. Improving the groundwater so as to minimize risk is considered the most effect way of developing a sustainable water supply, by avoiding total reliance on costly desalinated water as the main source of supply. The groundwater can only be improved by providing an appropriate piped wastewater collection system.
The present government is the Republic of Maldive’s first democratically elected one. The Government has established seven nation wide Provinces in order to decentralize government services, avoiding the need for the islands to rely on Male’s central administration and control. Each Province has been provided with a utility company, with a mandate to provide commercially sustaining essential services to the islands within their territories. The Government wholly owns these utility companies. The Upper South Utilities Limited operates under this government mandate to provide water and sewerage services to the islands in the Upper South Province. The Upper South Province’s initial project has placed a priority on fifteen islands within its territory.
The intention of this agreement is for the parties to work together to secure financing, design and implementation of the Projects using the Clearford waste-water collection and treatment process so as to enable collection and treatment of sewage on the un-serviced islands. This agreement provides Clearford with an exclusive right to work with USUL for six months to secure
financing terms from International Banking sources, for the Projects, payment being fully guaranteed by the Republic of Maldives. Financing terms refers to Reconstruction and Development terms having a low interest rate and a moratorium of repayment acceptable to USUL.
“The Maldives has been one of the 10 priority countries for Clearford during the last year of international business development. We have interacted with and made proposals for servicing on some of the islands over this period. I am confident that we have a very knowledgeable customer and an optimal technical solution for their requirement” commented Bruce Linton, President and CEO of Clearford.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Clearford Industries Inc.
Clearford Industries Inc. (TSX-V: CLI) is the developer of the patented Small Bore Sewer ™ (SBS™), a watertight small diameter wastewater collection system that provides servicing with superior operational and environmental performance at a significantly lower cost when compared to historic gravity sewers. Clearford’s SBS™ technology and industry expertise provide the enabling platform to deliver, on a global basis, turnkey, fixed-price wastewater collection, treatment and energy generation solutions that are ideally suited for water-scarce regions, those with unreliable water distribution networks, and new developments seeking a greener approach to water and wastewater management. For more information on Clearford, please visit www.clearford.com.
Forward Looking Statements
This news release contains certain statements that constitute forward-looking statements as they relate to the Company and its management. Forward-looking statements are not historical facts but represent managements current expectation of future events, and can be identified by words such as “believe”, “expects”, “will”, “intends”, “plans”, “projects”, “anticipates”, “estimates”, “continues” and similar expressions. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct.
By their nature, forward-looking statements include assumptions and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. If and when forward-looking statements are set out in this news release, Clearford will also set out the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities law, the Company assumes no obligation to update or revise any forward looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: industry cyclicality; the ability to secure third party agreements; successful integration of Clearford’s system with third party technology; competition; reduction in demand for products; collection from customers; relationships with suppliers; product liability; intellectual property; reliance on key personnel; environmental; interest rates; uninsured and underinsured losses; operating hazards; risks of future legal proceedings; income tax matters; credit facilities; availability and terms of financing; distribution of securities; restrictions on potential growth; effect of market interest rates on price of securities; and potential dilution.
For further information:
Clearford Industries Inc.
Phone: (613) 762-8402