Considerations in Local Sourcing Sample Clauses

Considerations in Local Sourcing. The thickness and material of the tanks produced by REDI are of a high quality when they are compared with the local ones (in the case of LDPE tanks). These offer the advantage of burying the tanks without the risk of collapsing, an important characteristic for scenarios where there is not enough space and then the modules should be installed underground. Nevertheless, the price is a limiting factor for the market penetration. In Tanzania a tank with a diameter of 2200mm and a height of 2820mm (more or less the dimensions of the Lumbrifilter used in Tanzania) costs 1000 euros approx. In contrast, the production cost of the Lumbrifilter was 5000 euros. Same figures apply to the case of Ecuador and in both cases the custom fees applied for the importation of the tanks in the country resulted to be highly expensive. A prohibitive price taking into account the purchasing power in the three countries. In the case of Tanzania, the size of the Lumbrifilter is not competitive with other options already available in the market like septic tanks. To treat 1000L/day a septic tank requires 0.7m2 instead the INNOQUA system (here only Lumbrifilter) occupies near 3m2. A factor relevant in informal settlements were there is a battle for the space due to its limited availability. However, in the case of Ecuador, septic tanks do not allow to comply with local standards, hence the market necessarily required a secondary treatment. Regarding the MCU, the monitoring and control of the treatment systems are interesting plus, but their development, installation and monitoring are extremely complicated for an environment where a lot of people do not know how to read and/or write. Besides the technical knowledge and the access to sensors, arduinos, etc. is limited and expensive. Additionally, anything that requires electricity is near or close to not work properly due to the constant power cuts faced in the case of Tanzania pilot.
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