“○○○
○Project” proposal
1) Why do you recommend this project?
Let’s Solve! And we are the solver!
Cambodia is changing rapidly and the distinctions between rural and urban are becoming less clear, however, with a vast majority of poor people still living in rural areas (up to 90%, according to World Bank 2007), the rural economy remains the cornerstone of national development and the challenge of poverty reduction is firmly grounded in addressing rural livelihoods and rural features.
Energy is central to sustainable development and poverty reduction efforts. It affects all aspects of development -- social, economic, and environmental -- including livelihoods, access to water, agricultural productivity, health, population levels, education, and genderrelated issues. (UNDP) The issue is particularly pressing for least and developing countries, since economic development—vital if millions are to be helped out of poverty—requires greater use of energy, while the equally vital sustainability of that development imposes a requirement for better use of energy.
In Cambodia, a mere 15 percent has access to grid electricity, with a majority of them living in urban cities. In rural Cambodia, where about 11 million people live beyond the reach of electric grids, most villagers rely on one of two sources for lighting: kerosene lamps, which serve nearly half of this off-grid market (left), or automobile batteries, which villagers use if they have a bit more money and seek energy for lighting or cell phone charging. However there are major downsides to these two alternatives.

Villagers explain that the open flame kerosene lamps often burn their children.

And although using automobile batteries is safer, it requires frequent trips to dieselpowered charging stations to recharge the battery.
 Currently, for an average poor family, fuel expenditures on a kerosene lamp are about $50 per annum.

And with rising fuel costs in the country coupled with frequency of recharging, the automobile batteries also don’t provide a sustainable solution, on average the villagers spent about $100-150$ annually to recharge the batteries

With regard to cooking, most people in the rural areas rely on firewood that threatens them with smoke-related health problems
These are just some of the most pressing issues that threaten the country. If these issues persist, the poverty trap in Cambodia will perhaps grow stronger. Hence, there is an urgent need to consider poverty reduction with an integrated approach as described earlier.

Traditional aid models have been ineffective in creating long-term self-sustaining solutions and empowering the BoP, continuing to offer a “hand out” over a “hand up.” The for-profit sector has typically shied away from engaging in this segment because top of the pyramid models don’t translate well in the BoP and require different approaches to achieve financial sustainability. In fact, few investors see opportunities for achieving an acceptable return on investment by funding BoP enterprises.
LES has been implementing since 2012, for more than 2 years, LES has brought recognition and engineering solutions to the marketplace through innovative products& services of solar home. Today, LES is proud to build on this highest-experience by partnering with others to tackle the challenges in energy for which now facing our life. LES offerings with
Mono, Poly Crystalline and Thin Film Technology Offers proven energy yield advantages for affordable& comfortable solar power solutions that boast the smallest carbon footprint and fastest energy payback time of any PV technology.
LES is established with dedicated to improving the quality of life for people who haven’t connected to grid and create safe, education, economic development, health, incomes and environmental.
Our vision: “Reduce dependence on fossil fuels and creating green environment”.
Our mission: “Improving quality of life through, clean energy solutions for people at where we work and where we do business.
2) Business Model and Profit structure of the project
Business Model:
At its core, LES is a necessary intermediary between all of the players interested in serving the poor, focused on building social business partnerships and social enterprises have complementary capabilities, priorities and risk tolerances. By working with both sides as evangelists, social investment fund, strategic consultants, and implementation partners while leveraging the support of existing resources, LES works towards bridging this gap and launch the next generation of partnerships.
We approach this problem with three concrete steps. Collect the necessary solutions, technologies and partners, Weave them together to form a sustainability and then
Distribute such innovations across the markets.
Collect: Bring together locally proven social solutions, social partnership, factories, who are interested in serving the poor, Our solutions design for affordability, and reliability, and innovative financiers-support& invest into project, to increase awareness, diffuse best practices, and build an efficient marketplace.
Weave: Create disruptive products, processes and business models using innovative design approaches and establish partnerships that breakdown traditional silos, leverage synergies, provide bundled solutions and engage the poor as entrepreneurs. Entrepreneurship is a

powerful tool for addressing the challenges of eradicating poverty and creating jobs in the communities. It follows the same precepts of social entrepreneur, though it strongly focuses on the development benefits to the entrepreneur and society and his or her community, and the efficient delivery of products and services to low-income villagers as opposed to the commercial and for-profit benefits to the participants of a typical model.
Distribution: Rapidly scale up proven models that can benefit from economies of scale
(without diluting the mission) and, importantly, scale out solutions by replicating them across the markets.
Profit Structure of the Project:
Social Investment
Fund
Lender
Bridge: 100% received repayment
High Business Impact
LES-
Implementing:
30% of profit margin
Villagers
. Accessed clean energy
. Safe
. Health
. Education
. Incomes
. Happiness
Entrepreneurs
5% on commission based
. Created jobs
. Built awareness on clean environment
. Capacity building
. Incomes
Communities
. No pollution
. No emission
. Green environment
. Fresh/independence
3) Analysis on the local market where the project is run
Apart from the apparent need of intervention as highlighted above, Prey Veng Province as the location for the first target to be implemented by the funding.

No. Target Provinces No. HHs Accessed to Grid
Potential HHs for Solar Home
Markets
1 Prey Veng 45,546.73 136,640.19
Current electricity accessed with only 15% (National Census 2007)
4) Business administration plan
① Management plan for personnel
1.1
Sokun Sum will lead LES. Sokun has graduated master degrees in business administration and bachelor of business administration. While pursuing this degree,
Sokun worked with a social business development organization (World Toilet
Organization) in the role of country manager; he worked on a team and took an idea of a bundling& product assembling from the conceptual stage to the sales stage. Sokun has several experiences with local and international companies; he has worked over 7 years locally and over 2 years in Singapore.
1.2
Vicheth Som will responsible for operation manager which is support daily activities with field staff and finance staff. More or less he will take care of sales& marketing, procurement plan, staff management, HR management, and entrepreneurship selection, and training. He has joined LES since May 2013.
1.3
Leakhena Yun: Working as finance & administration manager, she will manage finance side and control on stock, inventory, cash flow, cash management, financial report, taxation, sale report, collection report, maintenance report and CRM. She has joined
LES since Feb 2012.
② Management plan for shop/field operation
> Visal Som: Take responsibilities on entrepreneurship program, training, capacity development, mentoring sales activities.
③ Monitoring plan
Category Concept of the Eva luation
Evaluation Indicator Resource Reporti ng Fre quency
Indicator

Quick Win (Based Data)
Job creation in the region introduced
SHSs
Evaluation of the direct job creations in the region by the LES.
The number of employees hired by
LES in the region introduced SHS
Data can be collected in normal business
Quarte rly
Improving the stability of power supply in the region introduced
SHSs
Evaluation of the incre ase electricity supply in
the region.
・ Number of h ome introduced SH
S
・
Installed capacity of S
HS
Data can be collected in normal business
Monthl y
Innovation spi rit of entrepreneur and company
Evaluation of the re putation from the perspective
of a third party aga inst overall business
・ Business was taken up in academic research and local and international media.
・ Received an award as a social entrepreneur.
Informati on
Half Ye ar collectio n
Long-term Evaluation
Improving the stability of po wer
Evaluation of the in crease electrification
rate in the region. supply in the
region introd uced SHSs
Electrification rate in the region introduced
SHS
Estimate d by the
number
of hom e introd uced SH
S and st atistics
Half Ye ar
Improving the
living in the
region introd uced SHSs
Evaluation of the re duction of fuel cost
by introducing SHS s.
Income generation for
household (per intro duction of solar pane l, comparison to diese l, kerosene)
Estimate d by the
number
of insta lled capa city of S
HS and
Quarte rly

statistics
Evaluation of the im provement of educa tional environment o f children.
Study time at night f or children in the hou se introduced SHS
Interview
to hous ehold
Yearly
Evaluation of the im pact on family life by lighting at night
(e.g. Family get- tog ether, safe, clean, h appiness)
Impact assessment on
family life by lightin g at night (e.g. .Famil
y get-together)
Interview
to hous ehold
Yearly
5) Repayment plan for the fund
① Required sum amount of the loan (Under $5,000)
-
Step1 of partnership between Bridge and LES, LES request for 4,000USD (Four
Thousand US Dollars Only).
② Expected loan period (8 months)
Based on the repayment policy, LES expected to repay in 8 months of period.
③ Expected rate of repayment (unit: 100%)
④How the fund is planned to be used (Describe each usage in detail.)
Revenue (Sales)
Solar Home System 50W 20
Total Revenue (Sales)
Qty
20
Unit Price
350.00
350.00
Amount
7,000.00
7,000.00
50% Down
Payment
$
3,500.00
$
3,500.00
⑤Expected sources(or factors) of the profit to repay the fund
Cost of Goods
Solar Panel 50W
Charge Controller
Battery 50Ah
LED lamp
Mounting
Qty
1
1
1
3
1
Amount
$ 60.00
$ 20.00
$ 70.00
$ 10.00
$

Cable& wire
Entrepreneurs
(Commission fees)
Labor/transportation fees
Total Cost of Goods
1
1
1
10
Cost of goods
$ 4,000.00
20
Monthly Installments:
Total Installment in 12
Months:
Profits:
$
292.00
$ 3,500.00
$ 3,000.00
6) Expected areas of social impact
① Environment: No pollution and no emission
5.00
$ 10.00
$ 10.00
$ 15.00
200
$ 200.00
$
4,000.00
② Employment: Create job for local people, provide capacity building, educate, and increase income for them.
③ Energy: Safe, clean, independence, sustainable power supply.
④ Education: Motivate children with study at night time, get entertainment and link to the world information by TV and radio.
⑤ Health care: Prevention families from difficulty of health care
⑥ Human right: Everybody has the right access to the clean energy and it’s the right energy form to create income, and economic development
⑦ Etc.
Address: Russia Blvd, House.18D, Prey Tear Village, Sangkat Chomchao, Khan Por Sen Chei,
Phnom Penh.