(FKRHV

RI7RPRUURZ

/D\RXWDQGSURGXFWLRQ.DWHULQD6KLPDQRYD7H[W7UHYRU*UDKDP3KRWRV3lU/DQGTYLVWDQG-RKQ'ROHFHN3LFWXUHVRQSDJHÀYHIURP

´0.%\HDUV

$1HZVSDSHU)LOOHG:LWK0HPRULHVµDQG´6RFLRORJLFDO6WXG\RIWKH$XJXVWHQERUJ$UHDLQ0DOP|µE\%3IDQQHQVWLOO3ULQWHGRQ&\FOXV2IIVHW

HQYLURQPHQWDOO\IULHQGO\SDSHUE\7U\FNHUL:LNLQJ$%0DOP|

´ZHPXVWFUHDWHDQHQYLURQPHQWLQRXUVRFLHW\WKDWSURPRWHVFRRSHUDWLRQEHWZHHQ
SHRSOHDQGKHOSVWKHPEHFRPHLQIRUPHGDQGDFWLYHFLWL]HQVµ

8QRcKUHQIURP´)LQDO5HSRUWRIWKH6RFLDO+RXVLQJ3ROLF\&RPPLVVLRQµ628

)URPWKHVL[WKÁRRU,QJULGORRNVRXWDFURVVWKHSRQGJOLVWHQLQJ
LQWKHVXQVKLQHWRZDUGVWKHJUHHQURRIVRIWKHLQGXVWULDOHVWDWH
QRZ LQ WKHLU IXOO VSULQJ VSOHQGRXU RI UHG DQG \HOORZ ÁRZHUV
7KHVFKRROFKLOGUHQV·YRLFHVFDQEHKHDUGIURPWKHLUH[XEHUDQW
JDPHV LQ WKH QHZ VFKRRO\DUG E\ WKHLU HFREXLOGLQJV ZKLOH
PHORGLFU\WKPVÁRZIURPWKHPXVLFSOD\JURXQG,QJULGZDWHUV
KHU\RXQJWRPDWRSODQWVVKRRWLQJXSIURPWKHZRQGHUIXOORFDO
FRPSRVWDQGWKHQFROOHFWVKHUFRDW



$IWHUDVKRUWVWRSDWWKHUHVRXUFHKRXVHZKHUHVKHWKURZV

KHUIRRGZDVWHDQGRWKHUUHF\FOLQJ,QJULGJHWVRQWKHHOHFWULF
VWUHHWWUDLQDQGJOLGHVRIIVLOHQWO\WRWRZQ,W·VVRPXFKHDVLHUWR
JHWDURXQGQRZGD\VVLQFHWKHWUDLQVWRSVRXWVLGHWKHGRRUDQG
WKHKRXVHKDVEHHQDGDSWHGIRUHOGHUO\UHVLGHQWV$QGE\MXVW
SD\LQJIRUWKHHQHUJ\VKHDFWXDOO\XVHV,QJULGKDVPDQDJHGWR
VDYHDOLWWOHH[WUDHDFKPRQWKIRUKHUJUDQGFKLOGUHQ,W·VLPSRU
WDQWWRWKLQNRIWKHJUDQGFKLOGUHQ

(NRVWDGHQ $XJXVWHQERUJ ² WKH $XJXVWHQERUJ (FR
1HLJKERXUKRRG ² LV RQH RI WKH IDUWKHVW UHDFKLQJ
SURJUDPPHVRIHFRORJLFDOGHYHORSPHQWLQDQH[LVW
LQJQHLJKERXUKRRGLQ(XURSH7KHSURJUDPPHZDV
GHYHORSHG WKURXJK DQ LQLWLDO SDUWQHUVKLS EHWZHHQ
WKH0.%+RXVLQJ&RPSDQ\DQGWKH&LW\RI0DOP|
ZKRRZQVWKHLQGXVWULDODUHDLQ$XJXVWHQERUJ/RFDO
UHVLGHQWV EXVLQHVVHV DQG RWKHU RUJDQLVDWLRQV KDYH
EHHQLQYROYHGLQWKHGHYHORSPHQWDQGLPSOHPHQWD
WLRQRIWKHSURMHFW
 (NRVWDGHQVWDUWHGLQDQGWKHÀUVWSKDVHRI
WKHSURJUDPPHZLOOEHFRPSOHWHLQ

´7KLVZDVDUHDOO\JUHHQDUHDZKHQ,ZDV
OLWWOH DQG WKHUH ZDV HYHU\WKLQJ KHUH WKDW
\RXFRXOGZDQWSRVWRIÀFHEDQNFKHP
LVWV IRRG VKRSV DQG ORDGV RI FRPPXQLW\
JURXSV ZKHUH ZH \RXQJVWHUV FRXOG PHHW
DQG VSHQG RXU WLPH 6RPH RI XV VWLOO OLYH
KHUH , FDPH LQWR FRQWDFW ZLWK (NRVWDGHQ
ZKHQZHZHUHDUUDQJLQJDFHOHEUDWLRQIRU
$XJXVWHQERUJ·V WK DQQLYHUVDU\ , WKLQN
LW LV JUHDW WKDW (NRVWDGHQ LV UHWXUQLQJ
$XJXVWHQERUJWRLWVIRUPHUJORU\ZKHQLW
ZDVJUHHQDQGQHZO\EXLOWDQGDOVRPDNHLW
LQWRDQHQYLURQPHQWDOO\VXVWDLQDEOHDUHDµ

µ,IDOOWKHFRRNHUVRI$XJXVWHQERUJ
ZHUHSLOHGRQWRSRIHDFKRWKHUµ
ERDVWV WKH ÀUVW ERRNOHW DERXW
$XJXVWHQERUJIURPµWKHQWKH

WRZHUZRXOGEHÀIWHHQWLPHVKLJKHU
WKDQWKHVWHHSOHRI3HWUL&KXUFKLQ
0DOP|  ,I DOO WKH EDWKWXEV ZHUH
SODFHG HQG WR HQG WKH\ ZRXOG
VWUHWFK IURP WKH &HQWUDO 6WDWLRQ
WR 1REHO 6TXDUH DQG WKH ÁRRU
DUHD LV WKH HTXLYDOHQW RI D ÀYH
PHWUH ZLGH URDG RI SDUTXHW DQG
OLQROHXPIURP0DOP|WR/XQGµ7KH
VDPH ERRNOHW SURXGO\ GHGLFDWHV
DZKROHSDJHWRDGHVFULSWLRQRI
WKH GLVWULFW KHDWLQJ V\VWHP XQGHU
WKHWLWOHµ

7KUHH7RQQHVRI&RDOSHU

+RXUµ

 0LON VKRSV JURFHUV EXW

FKHUV EDNHUV WREDFFRQLVWV VKRH
VKRSVWR\VKRSVDQGHYHQDVHOI
VHUYLFH IRRG VKRS ZHUH DPRQJVW
WKHVHUYLFHVIRUWKHQHZUHVLGHQWV
 6XFKQHZIDQJOHGOX[XULHVZHUH
RQH RI WKH SURXG ERDVWV RI RQH
RIWKHÀUVWKRXVLQJHVWDWHVEXLOWLQ
WKH QHZ SRVWZDU KRXVLQJ SROLF\
LQ 6ZHGHQ 1HZ VSDFLRXV KRPHV
ZLWK PRGHUQ IDFLOLWLHV DQG D KLJK
TXDOLW\OLYLQJHQYLURQPHQWZHUHWKH
IRXQGDWLRQ RI WKH QHZ 6ZHGHQ

RIZKLFK$XJXVWHQERUJEHFDPHD
OHDGLQJV\PERO
 $XJXVWHQERUJZDVGHVLJQHGE\
5LNVE\JJHQV DUFKLWHFW EXUHDX LQ
6WRFNKROP IRU WKH QHZO\ VWDUWHG
0DOP| &LW\ +RXVLQJ &RPSDQ\ D
ZKROO\RZQHGVXEVLGLDU\FRPSDQ\
RIWKH&LW\RI0DOP|:RUNVWDUWHG
LQ)HEUXDU\DQGWKHKRXVLQJ
HVWDWHZDVFRPSOHWHLQ7KH
VFKRROZDVFRPSOHWHGLQDQG
DQLQGXVWULDOHVWDWHZDVEXLOWGXULQJ
WKHV
 0DQ\RIWKRVHZKRPRYHGLQWR
$XJXVWHQERUJZHUH\RXQJIDPLOLHV
IURP VPDOO DSDUWPHQWV HOVHZKHUH
LQ 0DOP| RIWHQ LQ D SRRU VWDWH
RIUHSDLUZLWKIHZIDFLOLWLHV7KRVH
ZKR UHPHPEHU WKH $XJXVWHQERUJ
RI WKH ·V DQG ·V UHFDOO WKH
FKLOGUHQDQGDOOWKHDFWLYLWLHVJRLQJ
RQ ORFDOO\ ² WKH IRRWEDOO FOXE WKH
FLQHPD WKH ZUHVWOLQJ FOXE VRPH
RI WKH VPDOO µJDQJ ZDUVµ ZLWK
VXUURXQGLQJ QHLJKERXUKRRGV DQG
RWKHUFRORXUIXOUHPLQLVHQFHV

\H

VWHUGD

\

,QJD/LOO+DOOEHUJERUQEUHGDQGDFWLYH
UHVLGHQWLQ$XJXVWHQERUJ

 ,QWKHODWH·VDQGHDUO\·V
KRZHYHUWKLQJVVWDUWHGWRFKDQJH
7KHODUJHO\WZREHGURRPHGÁDWVRI
$XJXVWHQERUJRQFHFRQVLGHUHGVR
VSDFLRXVKDGQRZEHHQVXUSDVVHG
E\ PRUH PRGHUQ WRZHU EORFNV
ZLWK WKUHH DQG IRXU EHGURRPHG
DSDUWPHQWV $WWHPSWV ZHUH PDGH
WR PRGHUQLVH WKH GLVWULFW ZLWK
ODXQGU\ URRPV LQ HDFK EXLOGLQJ
DQGWKHFORVXUHRIWKHORFDOERLOHU
KRXVH DQG LQFLQHUDWRU VR SURXGO\
RSHQHGLQWKH·V%XWDPLJUDWLRQ

IURP $XJXVWHQERUJ OHIW HPSW\
DSDUWPHQWV DQG LQFUHDVLQJO\ D
VHQVH RI DEDQGRQPHQW SUHYDLOHG
$XJXVWHQERUJKDGOHIWWKHOLPHOLJKW
DQGEHFDPHDIRUJRWWHQFRUQHURI
WKH FLW\ QXUVLQJ D EUXLVHG KLVWRU\
DQGDVRFLDOO\VWUDLQHGSUHVHQW
 1HZPLJUDWLRQWR0DOP|LQWKH
·VDQG·VPDQDJHGWRLQFUHDVH
WKHSRSXODWLRQDQGEURXJKWDQHZ
FXOWXUDO GLYHUVLW\ WR WKH QHLJK
ERXUKRRG DOWKRXJK PDQ\ RI WKH
VRFLDO GLIÀFXOWLHV FRQWLQXHG 6LQFH

WKH HDUO\ ·V WKH 0.% +RXVLQJ
&RPSDQ\ KDV EHHQ ZRUNLQJ DFWL
YHO\ RQ WKH VRFLDO DQG SK\VLFDO
UHJHQHUDWLRQRIWKHDUHD7KH(8·V
85%$1SURJUDPPHKDVVXSSRUWHG
LPSURYHPHQWV LQ WKH DUHD DQG
IXUWKHU LQLWLDWLYHV DUH FXUUHQWO\
WDNLQJSODFH
 $XJXVWHQERUJKDVQRZEHFRPH
D OHDGLQJ H[DPSOH RI HQYLURQ
PHQWDOO\ DGDSWHG XUEDQ UHQHZDO
DQG WKH IRFXV RI DWWHQWLRQ RQFH
PRUHIURPKRPHDQGDEURDG

)ORDWLQJFDUVLQEDVHPHQWJDUDJHV
ZDVKLQJ PDFKLQHV XQGHU ZDWHU
VPDOOEXVLQHVVHVZKHUHVWDIIUROOXS
WKHLU WURXVHUV DQG SXW WKHLU VKRHV
RQ WKH GHVN  D IUHTXHQW VLJKW LQ
$XJXVWHQERUJ LQ UHFHQW \HDUV ,Q
DGGLWLRQWRWKHLQFRQYHQLHQFHDQG
FRVWV DVVRFLDWHG ZLWK WKH UHJXODU
ÁRRGLQJLQWKHQHLJKERXUKRRGDUH
WKHDGGLWLRQDOHQYLURQPHQWDOSURE
OHPVRIUHOHDVHVRIXQWUHDWHGZDVWH
ZDWHU
 $W WKH URRW RI WKH SUREOHP LV
D FRPELQHG VHZDJH DQG UDLQZD
WHUGUDLQDJHV\VWHPWKDWLVXQGHU
GLPHQVLRQHG IRU PRGHUQ FRQGLWL
RQV ZKHUH JUHHQ VSDFH KDV EHHQ
UHSODFHG ZLWK KDUG VXUIDFHV DQG
QDWXUDOVWUHDPVKDYHEHHQFXOYHU
WLVHG ,Q SDUWV RI WKH FLW\ WKHVH
SUREOHPVEHFRPHDFXWHDQGLQ$X
JXVWHQERUJQHZVROXWLRQVDUHEHLQJ
VRXJKW
 7KH URRIWRSV RI WKH LQGXVWULDO
HVWDWHDUHQRORQJHUEODFNELWXPHQ
EXWYDU\LQFRORXUIURPOXVKJUHHQ

%RWWRP JUHHQ URRIV RQ
WKHLQGXVWULDOHVWDWHWRS
OHIW D GURS FKDQQHO
FRQVWUXFWHG E\ 0RUWHQ
2YHVHQ RQ WRS NLGV
VZLPPLQJ LQ WKH ÁRRG
DQG DERYH RQH RI WKH
SRQGVLQWKHDUHD

WREULOOLDQW\HOORZDQGGHHSHVWUHG
DV WKH VHDVRQV DQG ZHDWKHU FRQ
GLWLRQVFKDQJH0LOOLRQVRIVSULQJ
WLPH ÁRZHUV WUDQVIRUP WKH IRU
PHUO\GUDEURRIVLQWRDZRQGHUIXO
JDUGHQ DQG IHHGLQJ JURXQG IRU
EXWWHUÁLHVEHHVDQGRWKHULQVHFWV
 2YHUWHQWKRXVDQGVTXDUHPHW
UHV RI JUHHQ URRI QRZ DGRUQ WKH
RIÀFHVDQGZRUNVKRSVRIWKHLQGXV
WULDO DUHD DQG FDQ DOVR EH VHHQ
RQ VFKRRO EXLOGLQJV WKH UHF\FOLQJ
KRXVHV DQG RWKHU QHZ EXLOGLQJV
LQ$XJXVWHQERUJ$SDUWIURPORRN
LQJ ZRQGHUIXO DQG SURPRWLQJ D
GLYHUVLW\RISODQWLQVHFWDQGELUG
OLIH$XJXVWHQERUJ·V%RWDQLFDO5RRI
*DUGHQVDOVRKDYHDKXJHQXPEHU
RI RWKHU EHQHÀWV FXUUHQWO\ EHLQJ
UHVHDUFKHG E\ VHYHUDO DFDGHPLF
LQVWLWXWLRQV%XWWKHSULQFLSOHIHDWXUH
LQ$XJXVWHQERUJLVWKHDELOLW\RIWKH
URRIVWRFRSHZLWKH[WUHPHGURXJKW
ZKLOVWDWWKHVDPHWLPHEHLQJDEOH
WRVRDNXSKXJHDPRXQWVRIUDLQ
ZDWHU

 8S WR  RI WKH UDLQZDWHU
WKDW IDOOV RQ WKH URRIWRSV LV KHOG
WKHUH LQ WKH OD\HUV RI VWRQHFURSV
DQG PRVVHV VRLO RU WKH XQGHUOD\
RI JUDYHO PLQHUDO ZRRO RU UHF\
FOHG SRO\XUHWKHQH $ ODUJH SUR
SRUWLRQ RI WKH UDLQZDWHU UXQRII
IURPWKHLQGXVWULDOHVWDWHLVFRQVH
TXHQWO\ NHSW RXW RI WKH GUDLQDJH
V\VWHPWKHUHE\GHFUHDVLQJÁRRG
LQJULVN
 7KHZDWHUIURPWKHUHVWRI$X
JXVWHQERUJ LV WKHQ OHG LQWR D ODU
JHVFDOHRSHQUDLQZDWHUV\VWHPWKDW
JXLGHVWKHZDWHUIURPGUDLQSLSHV
LQWR VPDOO FKDQQHOV ZKLFK LQ WXUQ
ÀOOODUJHUFKDQQHOVDQGXOWLPDWHO\
DQXPEHURISRQGVWKURXJKRXWWKH
DUHD5DLQZDWHULQVWHDGRIEHLQJ
DSUREOHPLQ$XJXVWHQERUJLVQRZ
EHFRPLQJ D UHVRXUFH  7KH SRQGV
ZLOOEHFRPHWKHIRFXVIRULQFUHDVHG
ZLOGOLIH RSHQ ZDWHU LV SOHDVLQJ
WRWKHH\HDQGFUHDWHVZRQGHUIXO
SOD\ RSSRUWXQLWLHV IRU LQQHUFLW\
FKLOGUHQ

 7KH UDLQZDWHU V\VWHP KDV DOVR
VSDZQHG D QHZ ORFDO EXVLQHVV $
UHVLGHQW ZKR KDG VSHQW \HDUV RI
DPDWHXUUHVHDUFKLQDFHOODULQ$X
JXVWHQERUJSUHVHQWHGKLVLGHDVWR
0DOP|·V :DWHU 'HSDUWPHQW ZKR
KLUHG KLV VHUYLFHV WR VXSSRUW WKH
V\VWHP·VGHVLJQDQGFRQVWUXFWLRQ

+



2

0RUWHQ2YHVHQUHVLGHQWFDUSHQWHUFUDIWV
PDQDQGZDWHULQQRYDWRU

´,ZDVDVNHGDWWKHVWDUWRIWKHSURMHFWLI
, ZDQWHG WR GHVLJQ WKH UDLQZDWHU V\VWHP
7KH,QVWLWXWHIRU(FRORJLFDO7HFKQRORJ\QRZ
EDVHGLQ$XJXVWHQERUJKDVGRQHUHVHDUFK
LQWRWKHPRYHPHQWRIZDWHUIRU\HDUV
,KDYHLQWURGXFHGP\DQG,(7·VLGHDVLQWR
WKH SURMHFW DQG , KDYH EHHQ FRQVXOWHG LQ
YDULRXVZD\V(NRVWDGHQLVDQDWWHPSWWR
FUHDWHDJUHHQRDVLVLQWKHXUEDQHQYLURQ
PHQWZLWKWKHDLPRISURPRWLQJDQHFRORJ
LFDOPHVVDJHµ

EUHDWKLQJVSDFH

+LGLQJ LQ WKH ZLOORZ XQGHUJURZWK
FUDZOLQJWKURXJKWKHWXQQHOVSODVK
LQJ LQ WKH SRROV RI UDLQZDWHU RU
SOD\LQJ RQ WKH SOD\ HTXLSPHQW 
WKHUH DUH PDQ\ QHZ DQG H[FLWLQJ
H[SHULHQFHV

LQ

$XJXVWHQERUJ

6FKRRO·V QHZ SOD\JURXQG $ QHZ
EDVNHWEDOO FRXUW GRXEOHV XS DV D
ODUJHPDJD]LQHIRUUDLQZDWHUWKH
DPSKLWKHDWUHFDQÁRRGIURPWLPH
WRWLPHWRVWRSÁRRGLQJLQWKHFHOODU
RIWKHVFKRROEXLOGLQJWUHHVEXVKHV
DQGÁRZHUVVRIWHQXSWKHDUHDDQG
WKHFKLOGUHQJURZYHJHWDEOHVDQG
KHUEVLQQXPHURXVUDLVHGEHGV
 7KH GXOO ROG SOD\JURXQG KDV
FRPH DOLYH ZLWK YRLFHV DQG
JUHHQHU\7KHLQIDQWV·SOD\JURXQG
ZDV SUHYLRXVO\ GRPLQDWHG E\ D
WHPSRUDU\ FODVVURRP ZKLFK KDV
QRZ EHHQ UHSODFHG E\ D QHZ
HFRFODVVURRP RQ DGMDFHQW ODQG
7KH QHZ GHPRXQWDEOH EXLOGLQJ
LV PDGH SULPDULO\ ZLWK QDWXUDO
PDWHULDOV KDV FRPSRVWLQJ WRLOHWV
VRODU FROOHFWRUV DQG KHDW SXPS

KHDWLQJZLWKDQLQVWDKHDWERRVWHU
V\VWHPIRUPD[LPXPHIÀFLHQF\DQG
RIFRXUVHJUHHQURRI
 7KH SXSLOV KDYH KHOSHG EXLOG
WKHLU RZQ UHF\FOLQJ KRXVH IURP
VWUDZDQGFOD\ZKHUHWKH\QRZFDQ
UHF\FOH WKHLU ZDVWH DQG FRPSRVW
OHIWRYHUV IURP WKH GLQLQJ URRP

/RZÁXVKWRLOHWVKDYHEHHQLQVWDOOHG
LQQHZHQWUDQFHEXLOGLQJVDOVRZLWK
JUHHQ URRIV DQG ZRUN KDV WDNHQ
SODFHWRGHFUHDVHHQHUJ\XVH
 3XSLOV KDYH EHHQ LQYROYHG
WKURXJKRXW WKH FKDQJH SURFHVV
DQG DUH QRZ ZRUNLQJ WRZDUGV
WKH *UHHQ )ODJ IRU WKH VFKRRO

$XJXVWHQERUJ·VVFKRRODOVRSOD\HG
DNH\UROHLQWKHGHVLJQRIFKDQJHV
WR WKH SDUN ZKHUH WKH PXVLF JDU
GHQVDQGPXVLFSOD\JURXQGDUHWKH
UHVXOWRIWKHSODQQLQJSURFHVVDQGD
QHZVWUHDPDQGSRQGVXUURXQGHG
ZLWKQDWLYHWUHHVSURYLGHVSDFHIRU
SOD\UHOD[DWLRQDQGQDWXUHVWXG\
ZKLOVWWDNLQJFDUHRIUDLQZDWHU
 /RFDOUHVLGHQWVKDYHDOVREHHQ
DFWLYHO\GHVLJQLQJFKDQJHVWRWKHLU
FRPPXQDO JDUGHQV DURXQG WKH
WHQHPHQWV7KHGHVLJQSURFHVVKDV

WDNHQ SODFH RYHU WKUHH \HDUV
LQYROYLQJWKLUW\JDUGHQVZLWKVHYHUDO
PHHWLQJV ZLWK UHVLGHQWV DURXQG
HDFK \DUG 7KH UHVXOW LV D SUR
JUDPPH RI FKDQJHV ZLWK PRUH
WUHHV DQG ÁRZHULQJ SODQWV PRUH
EHQFKHVSRQGVDQGZDWHUFKDQQHOV
YHJHWDEOHSORWVDQGIUXLWDQGEHUU\
EXVKHV DOO FUHDWLQJ D SOHDVDQW
OLYLQJHQYLURQPHQW
 *UHHQZDVWHIURPWKHJDUGHQV
DQGSDUNLVFRPSRVWHGDQGUHWXU
QHG WR LPSURYH WKH LPSRYHULVKHG

6DÀMD ,PVLURYLF UHVLGHQW FRRUGLQDWRU RI
*1,67$1  FRPPXQLW\ RUJDQLVDWLRQ IRU
\RXQJSHRSOH

´,JRWLQYROYHGWKURXJKUHVLGHQWV·PHHWLQJV
(NRVWDGHQ KDV RSHQHG RXU H\HV WKURXJK
LQIRUPDWLRQUHVLGHQWV·PHHWLQJVDQGVHPL
QDUV<RXFDQDOZD\VULQJRUGURSLQDQG
DOOLGHDVDUHWDNHQVHULRXVO\&RPPXQLW\
SDUWLFLSDWLRQ KDV ZRNHQ XS WRR SHRSOH
DUH EHJLQQLQJ WR UHDOLVH WKDW WKHLU OLYLQJ
HQYLURQPHQWLVLPSRUWDQW

µ

VRLO(OHFWULFDQGHWKDQROSRZHUHG
KHGJHWULPPHUV ODZQPRZHUV DQG
RWKHUPDFKLQHVZLOOGHFUHDVHQRLVH
GLVWXUEDQFHDQGGUDVWLFDOO\GHFUH
DVH KDUPIXO SROOXWDQWV /RFDO
SHRSOH DUH QRZ ZRUNLQJ IRU WKH
PDLQWHQDQFHFRQWUDFWRUDQGFRQWUL
EXWLQJWRWKHGHYHORSPHQWRIDIDU
UHDFKLQJ HFRORJLFDO PDLQWHQDQFH
SURJUDPPH

,W LV LPSRUWDQW WR EH DEOH WR JHW
DERXWHDVLO\WRJHWWRZRUNVFKRRO
WKHVKRSVRUWKHGRFWRUV²EXWLWLV
QRWDOZD\VVRVLPSOH%XVVHUYLFHV
FDQQRWDOZD\VWDNHWKHURXWHVVRPH
SHRSOH ZDQW WR WUDYHO F\FOLQJ
DQGZDONLQJDUHQRWIRUHYHU\RQH
DQG FDU WUDYHO LV IUDXJKW ZLWK

H[SHQVHFRQJHVWLRQDQGSROOXWLRQ
,Q $XJXVWHQERUJ QHZ DWWHPSWV
WR LQFUHDVH PRELOLW\ DUH WDNLQJ
SODFH
 7KH*UHHQ/LQH·V]HURHPLVVLRQ
HOHFWULFWUDLQVJOLGHVLOHQWO\WKURXJK
WKHVWUHHWVRI$XJXVWHQERUJSLFN
LQJXSORFDOSHRSOHDQGGURSSLQJ
WKHPRIIDWWKHEXVVWDWLRQWKHGRF
WRUVWKHSRVWRIÀFHRUWKHEDQN
 1HLJKERXULQJDUHDVZKLFKKDYH
WKHVH VHUYLFHV DUH QRW HDV\ WR
UHDFKRQWKHEXVRUUHJLRQDOWUDLQV
ZKLFKVWRSDW$XJXVWHQERUJVRD
QHZIRUPRIQHLJKERXUKRRGWUDQV
SRUW WKDW FRXOG FXW WR WKH KHDUW
RIUHVLGHQWLDOFRPPXQLWLHVZLWKQR
QRLVHDQGQRSROOXWLRQZDVGHYHO
RSHGLQWKH(NRVWDGHQSURJUDPPH
1R VXSSOLHU RI DQ DSSURSULDWH
YHKLFOH FRXOG EH IRXQG VR WKH
SURMHFW KHOSHG HVWDEOLVK D QHZ
ORFDOEXVLQHVVWRGHVLJQDQGEXLOG
WZRSURWRW\SHWUDLQVWKDWQRZVHUYH
DQXPEHURISHULSKHUDOFRPPXQL
WLHV HYHU\ KDOI KRXU 2WKHU DUHDV

0DULH*XVWDIVRQUHVLGHQWDQGPHPEHURI
WKHHOHFWULFFDUSRRO

´$VDORFDOUHVLGHQW,WKLQNLWLVJRRGWKDW
ZH FDQ FRPH ZLWK VXJJHVWLRQV DQG RSLQ
LRQVDQGWKDWVRPHRQHOLVWHQVWRXV(NR
VWDGHQ KDV EHHQ D JUHDW VXSSRUW ZKHQ
ZHZHUHVWDUWLQJXSWKHHOHFWULFFDUSRRO
:KHQSHRSOHDVNDERXW(NRVWDGHQ,XVX
DOO\ VD\ WKDW LW LV HFRORJLFDO OLYLQJ LQ WKH
PDNLQJµ

KDYH H[SUHVVHG DQ LQWHUHVW LQ WKH
WUDLQV DQG D *UHHQ /LQH LV SUR
SRVHGWRVROYHWUDQVSRUWSUREOHPV
LQ WKH FLW\ FHQWUH RI 0DOP| DQG
LQWKHGLVWULFWKRVSLWDO7KHHOHFWULF

]HU
RHPLVVLRQ

*UHHQ/LQHVHUYLFHFRXOGHDVLO\EH
WUDQVIHUHG WR D GLIIHUHQW SDUW RI
WKHFLW\LIQHFHVVDU\
 7KH HOHFWULF WUDLQV KDYH VWLPX
ODWHGRWKHUORFDOGHEDWHVRQWUDQV
SRUWZKLFKKDVUHVXOWHGLQDQXPEHU
RI UHVLGHQWV VWDUWLQJ $XJXVWHQ
ERUJ·V(OHFWULF&DU3RRO7ZRHOHF
WULF FDUV DUH FKDUJHG ZLWK HFR
ODEHOOHGSRZHUDWDUDSLGFKDUJH
VWDWLRQ E\ WKH PDLQ VTXDUH LQ WKH
QHLJKERXUKRRG DQG ORFDO SHRSOH
DQGEXVLQHVVHVFDQERUURZWKHFDUV
DQGSD\E\WKHKRXUDQGDOVRSDUN
IUHHRIFKDUJHWKURXJKRXWWKHFLW\
$ TXLFN VZLSH ZLWK WKH PHPEHU
VKLSFDUGLQWKHORFDOVXSHUPDUNHW
UHOHDVHV WKH NH\V DQG D VHFRQG
VZLSHZKHQWKHNH\VDUHUHWXUQHG
UHJLVWHUV WKH WLPH DQG ELOOV WKH
PHPEHU·VDFFRXQW7KHUHVXOWLVDQ
HIÀFLHQWFOHDQDQGFKHDSIRUPRI
FDURZQHUVKLSIRUWKHIXWXUH
 &KDQJHV DUH DOVR SODQQHG WR
WKHWUDIÀFV\VWHPLQ$XJXVWHQERUJ
WR GUDPDWLFDOO\ GHFUHDVH WKURXJK

WUDIÀF DQG FUHDWH D VDIHU DQG
FOHDQHUORFDOHQYLURQPHQWDQGSUR
PRWHF\FOLQJDQGZDONLQJDVZHOODV
HQFRXUDJLQJWKHXVHRI$XJXVWHQ
ERUJ·V QHZ FOHDQ WUDQVSRUW V\V
WHPV

WUDLQVUXQRQDEDWWHU\XQLWFKDUJHG
ZLWK HFRODEHOOHG HOHFWULFLW\ DQG
UXEEHULVHG ZKHHOV VR WKHUH LV QR
QHHG IRU H[SHQVLYH LQIUDVWUXFWXUH
DQG DIWHU WKH WULDO SHULRG WKH

*RUDQ1LNROLFUHVLGHQWDQGHOHFWULFVWUHHW
WUDLQFRPPXWHU

´,WDNHP\VRQWRQXUVHU\HYHU\GD\,XVHG
WRZDONF\FOHRUWDNHWKHEXV7KHHOHFWULF
VWUHHWWUDLQVDUHWKHEHVWWKLQJ(NRVWDGHQ
KDVGRQHDUROOLQJPHHWLQJSODFH,ZDV
HYHQ LQYROYHG LQ PDNLQJ WKH ÀUVW GLVSOD\
WKDWZDVSUHVHQWHGWRUHVLGHQWVZKHUHZH
FRXOGVHHWKHLGHDVIRUWKH(NRVWDGHQSUR
JUDPPH$XJXVWHQERUJZDVRQFHD´WRZQ
LQWKHWRZQµZLWKLWVRZQLQIUDVWUXFWXUHDQG
LGHQWLW\(NRVWDGHQLVWU\LQJWRUHJHQHUDWH
WKHDUHDZLWKDQDGGHGHFRORJLFDOGLPHQ
VLRQµ

µ7KHUH·V QR SRLQW VHSDUDWLQJ RXU
ZDVWHµ ZDV RQH RI WKH FRPPRQ
FRPSODLQWVZKHQ(NRVWDGHQJRWXQ
GHUZD\ LQ  µHYHU\WKLQJ MXVW
JRHV WR WKH LQFLQHUDWRU DQ\ZD\µ
%XW UHVLGHQWV KDYH QRZ VHHQ KRZ

Z

D

VWHQRW

WKLQJV DFWXDOO\ ZRUN WKH\ KDYH
EHHQ WR WKH UHJLRQDO UHF\FOLQJ
SODQW DQG HYHQ IROORZHG ZDVWH
XSWR(XURSH·VODUJHVWSDSHUPLOO
2OGSODVWLFERWWOHVDUHQRZFRPLQJ
EDFN LQ WKH VKDSH RI FRPSRVW
PDFKLQHV DQG FRPSRVWHG NLWFKHQ
VFUDSV IHHG WRPDWR SODQWV DQG
URVHV RQ EDOFRQLHV DQGVXSSO\ DQ
RUJDQLFIDUPHURQWKHRXWVNLUWVRI
WKH FLW\ ,Q IDFW WKHUH·V QRW PXFK
ZDVWHOHIWPRVWO\MXVWUHVRXUFHV
 6L[W\KRXVHKROGVKHOSHGVKDSH
WKH UHF\FOLQJ V\VWHP LQ D SLORW
VFKHPH ZKHUH WKH\ IROORZHG WKH
SDWK RI WKHLU ZDVWH YLVLWHG FRO
OHFWLRQ V\VWHPV LQ RWKHU 6ZHGLVK
FLWLHV DQG PDGH VXJJHVWLRQV IRU
WKH GHVLJQ RI UHF\FOLQJ KRXVHV
LQ $XJXVWHQERUJ DQG PHWKRGV RI
LQIRUPLQJDQGHQWKXVLQJUHVLGHQWV
7KLUWHHQ UHF\FOLQJ KRXVHV KDYH
EHHQ EXLOW WKURXJKRXW WKH KRXVLQJ
HVWDWHDQGRQHKDVEHHQEXLOWE\
VFKRROSXSLOVLQFOD\DQGVWUDZVR
WKDWWKH\WRRFDQUHF\FOH

 5HVLGHQWV FDQ VHSDUDWH SDSHU
FDUGERDUG SODVWLF JODVV PHWDO
EDWWHULHVDQGRUJDQLFZDVWHZKLFK
LV WUDQVIRUPHG E\ WKH FRPSRVW
PDFKLQHWRDQXWULHQWULFKFRPSRVW
LQMXVWIRXUZHHNV,QWKHQHDUIXWXUH
UHVLGHQWVZLOODOVREHDEOHWRVHS
DUDWH EXON\ ZDVWH WH[WLOHV HOHF
WURQLFDQGKD]DUGRXVZDVWHDQGD

VZDSVKRS

LVSODQQHGIRUUHXVDEOH

LWHPV
 2YHURIZDVWHLVDOUHDG\
UHF\FOHG DQG E\ WKH WLPH WKH
V\VWHP LV IXOO\ RSHUDWLRQDO 
ZLOOEHUHF\FOHGRUUHXVHG7KHROG
UHIXVH FKXWHV LQ WKH KRXVHV KDYH
EHHQFORVHGDQGEURDGEDQGFRP
SXWHU FDEOHV KDYH EHHQ LQVWDOOHG
IRU UDSLG LQWHUQHW DFFHVV DQG 79
VHUYLFHVIRUUHVLGHQWVEXWDOVRIRU
DSLORWHQHUJ\VDYLQJLQLWLDWLYH
 5HVLGHQWVLQWZREORFNVZLOOVWDUW
WRSD\IRUWKHKHDWDQGKRWZDWHU
WKDW WKH\ DFWXDOO\ XVH LQVWHDG RI
KDYLQJ HYHU\WKLQJ LQFOXGHG LQ WKH
UHQW,QWKLVZD\LWZLOOEHFRPHSRV

´, KDYH EHHQ LQYROYHG LQ WKH (NRVWDGHQ
SURMHFWERWKDVDUHVLGHQWDQGDVDQHP
SOR\HH <RX FDQ PDNH \RXU YRLFH KHDUG
DQGJHWLQIRUPDWLRQRIEHQHÀWWR\RXUVHOI
DQG\RXUZDOOHWWKDWFDQKHOS\RXFKDQJH
\RXU OLIHVW\OH 7KH EHVW WKLQJ DERXW WKH
SURMHFWLVWKDWLWKDVXQLWHGVRPDQ\SHRSOH
DQG RUJDQLVDWLRQV HYHU\WKLQJ IURP UHVL
GHQWVWREXVLQHVVHVFRPPXQLW\JURXSVWKH
KRXVLQJFRPSDQ\<RXFDQDOUHDG\VHHWKH
HIIHFWVRIWKHSURMHFWWKHFDUSRROVFKRRO
\DUGUHF\FOLQJKRXVHVµ



+DWLG]D 0XVD UHVLGHQW DQG FRQVXOWDQW LQ
$XJXVWHQERUJ

VLEOH IRU WKHP WR VDYH PRQH\ E\
EHKDYLQJ LQ D PRUH HQYLURQPHQ
WDOO\DZDUHIDVKLRQ7KHEDVLFLGHD
KDVEHHQGHYHORSHGWKURXJKGLD
ORJXHZLWKORFDOSHRSOHOHDGLQJWR
DVHULHVRIHQHUJ\ZRUNVKRSVDQG
LQIRUPDWLRQ RQ KRPH HQHUJ\ FRQ
VHUYDWLRQ
 7KH0.%+RXVLQJ&RPSDQ\KDV
FDUULHG RXW D QXPEHU RI HQHUJ\
VDYLQJ PHDVXUHV LQFOXGLQJ PRUH
HIIHFWLYHVWHHULQJRIKHDWDQGKRW
ZDWHUV\VWHPV$QXPEHURIKRXVHV
KDYH KDG QHZ VHFRQGDU\ LQVXOD
WLRQLQVWDOOHGGUDPDWLFDOO\LPSURY
LQJ WKH H[WHUQDO DSSHDUDQFH RI
WKHEXLOGLQJVZKLOVWFXWWLQJHQHUJ\
XVH 7KH ROG VWHHO FODGGLQJ ZKLFK
KDGFDXVHGLQWHUQDOFOLPDWHSURE
OHPVZDVUHPRYHGDQGWKHIDFDGHV
UHVWRUHGWRWKHLUVJUDQGHXU
/RZÁXVKWRLOHWVKDYHEHHQLQVWDOOHG
LQ WKH VFKRRO DQG D QHZ VFKRRO
EXLOGLQJ KDV EHHQ HTXLSSHG ZLWK
VRODUFROOHFWRUVDKHDWSXPSDQG
LQVWDKHDWV\VWHP7ZRRWKHUEXLOG

Z

DQWQRW

LQJV DUH WR EH



OLQNHG LQWR WKH

GLVWULFW KHDWLQJ VFKHPH DQG WKH
GLVWULFW KHDW FXOYHUWV KDYH EHHQ
UHLQVXODWHGEHWZHHQWZREXLOGLQJV
WR PLQLPLVH KHDW ORVV 1HZ YHQWL
ODWLRQ V\VWHPV DGGLWLRQDO LQVXOD
WLRQPRYHPHQWGHWHFWRUVDQGORZ
HQHUJ\ HOHFWULFDO ÀWWLQJV DUH DOO
H[DPSOHV RI WKH NLQG RI HQHUJ\
VDYLQJ LQLWLDWLYHV WKDW KDYH EHHQ
XQGHUWDNHQ

WRPRUU

RZ

0DQ\ TXHVWLRQV DURVH IURP UHVL
GHQWVGXULQJZRUNDURXQGHQHUJ\
LVVXHVLQ$XJXVWHQERUJIRUH[DP
SOH  ZK\ DUH WKHUH QR ZLQG WXU
ELQHV LQ RXU HFRQHLJKERXUKRRG
DQG ZK\ VKRXOG , VDYH HQHUJ\ LI
LW·V MXVW WKH ODQGORUG ZKR VDYHV
PRQH\"
 7KHVH TXHVWLRQV EHFDPH WKH
EDVLV IRU D GHYHORSPHQW SURFHVV
LQYROYLQJ UHVLGHQWV WKH KRXVLQJ
FRPSDQ\WKH&LW\RI0DOP|6\G
NUDIW0DOP|8QLYHUVLW\DQGRWKHUV
7KH UHVXOWLQJ &OLPDWH 3URJUDPPH
DLPVWRGHFUHDVHHQHUJ\XVHDQG
LQFUHDVHWKHXVHRIUHFRYHUHGDQG
UHQHZDEOHHQHUJ\
 $EDUULHUWRGHFUHDVHGHQHUJ\
XVHLVWKHIDFWWKDWKRWZDWHUDQG
KHDW DUH LQFOXGHG LQ WKH UHQW LQ
PRVW6ZHGLVKDSDUWPHQWEORFNV$
EDVLFLQGRRUWHPSHUDWXUHRI

2

&

FDQEHLQFOXGHGLQWKHUHQWLQWKH
IXWXUHEXWDORZHULQGRRUWHPSHU
DWXUHZRXOGUHVXOWLQDFRVWVDYLQJ

IRUWKHUHVLGHQWDQGDKLJKHUWHP
SHUDWXUHZRXOGFRVWPRUH
 7KH PHFKDQLFDO YHQWLODWLRQ LQ
WKH KLJK ULVH EORFNV H[SHOV ZDUP
DLU DOO \HDU URXQG ZLWKRXW KHDW
UHFRYHU\  ,W LV QRZ SURSRVHG WR
WUDQVIHU WKH KHDW WR WKH GLVWULFW·V
KHDWV\VWHPZKHUHWKHGHPDQGIRU
KRWZDWHULVFRQVWDQWWKURXJKRXWWKH
\HDU
 ,QDGGLWLRQWKHUHZLOOEHP





RIVRODUFROOHFWRUVDQGP



SKR

WRYROWDLF SDQHOV LQWHJUDWHG LQ WKH
URRIV RI WKH KRXVLQJ HVWDWH DQG
VFKRRO  7KH VRODU FROOHFWRUV ZLOO
IHHG LQWR WKH GLVWULFW KHDW V\VWHP
DQGWKHVRODUSDQHOVZLOOSURGXFH
HOHFWULFLW\IRUWKHKHDWSXPSV
 $KHDWSXPSDQGUHIULJHUDWLRQ
SODQW LV SODQQHG WR EH LQVWDOOHG
LQ WKH SDUN ZKHUH SLSLQJ LQ WKH
WDUPDFZLOOFUHDWH0DOP|·VFRROHVW
WHQQLV FRXUW GXULQJ WKH VXPPHU
PRQWKVZKLFKLQWKHZLQWHUZLOOEH
WUDQVIRUPHG LQWR WKH LFH ULQN WKDW

WKHFKLOGUHQRI$XJXVWHQERUJKDYH
EHHQORQJLQJIRU7KHKHDWZLOOEH
IHGLQWRWKHKHDWLQJV\VWHP
 +RW ZDWHU XVH LV KLJKHVW LQ WKH
PRUQLQJDQGHYHQLQJZKHQSHRSOH
DUHZDVKLQJXSRUKDYLQJDVKRZHU
EXW PRVW VRODU KRW ZDWHU LV SUR
GXFHG LQ WKH PLGGOH RI WKH GD\
$ ODUJH DFFXPXODWRU WDQN SRVVL
EO\FRQVWUXFWHGLQDQXQGHUJURXQG
JDUDJH ZLOO VWRUH KRW ZDWHU XQWLO
QHHGHG
 $XJXVWHQERUJ·V &OLPDWH 3UR
JUDPPHZLOOEHDFXWWLQJHGJHFRQ
FHSWZKLFKLIVXFFHVVIXOFDQFUHDWH
RSSRUWXQLWLHV IRU VLPLODU LQLWLDWLYHV
IRUHQHUJ\UHGXFWLRQUHFRYHU\DQG
VPDOOVFDOHUHQHZDEOHSURGXFWLRQ

)RUPRUHLQIRUPDWLRQFRQWDFW

7UHYRU*UDKDP

(NRVWDGHQ$XJXVWHQERUJ

$XJXVWHQERUJVJnUGHQ

<VWDGYlJHQ

0DOP|

6ZHGHQ

7HO

)D[

(PDLOHNRVWDGHQ#PDOPRVH

ZZZHNRVWDGHQFRP

ZZZHNRVWDGHQFRP