ACT Water Rewards Co-op
I’ve drunk water or intend to drink water from the ACT and I want to become a member of the ACT Water Rewards Co-op http://eepurl.com/crfT0j
Traditionally water infrastructure has been funded with bank debt. With bank debt, the bank loans money to the water authority. The water authority builds the infrastructure and sells water to customers. The customers give money to the water authority, and the water authority repays the bank loan.
With a Water Rewards Co-op, the Customers/Investors loan money to the Water Authority and the Water Authority repays the loan with water. Investors get a return on their money by receiving a discount on their water bills.
With Water Rewards there is no interest cost. Instead, the Water Authority receives less money over the life of the water infrastructure. Unlike interest, discounts do not compound. The reduction in profits is small and spread over the whole life of the water infrastructure.
What Water Rewards means for the ACT
The ACT government can replace water infrastructure loans of $1.3 Billion dollars with Water Rewards. ICONWater profit will increase by $70M each year. The holders of Water Rewards will have the equivalent of a 10% inflation-adjusted annuity. They can decide when to activate their annuity. Each year they leave it the discount increases by 10%. If a holder of Water Rewards does not wish to use them to pay for water, they can sell them to a person who can. An equivalent inflation-adjusted annuity from a bank currently has interest rates of 2% to 3%.
Water Rewards are a desirable investment and will be in high demand. The ACT Water Rewards Co-op will control demand by issuing free, transferable Rights to Buy Water Rewards to Co-op members. Any person whose water is metered by ICONWater will be entitled to Rights to Buy. To replace the current debt, the Co-op will issue, on average, about $4,000 worth of rights to each member.
The Rights to Buy can be sold and are likely to be the same value as their face value.
ACT Water Rewards Co-op
SEE-Change ACT is forming an ACT Water Rewards Co-op and will invite ICONWater customers to join for no cost. The Co-op will take the proposal to the ACT government as the owner of ICONWater.
A small money transfer fee will cover the cost of operating ACT Water Rewards and will impose no burden or cost on the ACT Government or ICONWater.
There is no change to ICONWater operations. For the ACT government, it can ask the Water Rewards Co-op to raise further funds for other water basin infrastructure such as the development of wetlands and better use of stormwater.