GEORGE TOWN, Grand Cayman,
Cayman Islands, Aug. 26, 2016 /PRNewswire/ -- Consolidated
Water Co. Ltd. (NASDAQ Global Select Market: "CWCO") ("Consolidated
Water" or "the Company"), which develops and operates seawater
desalination plants and water distribution systems in areas of the
world where naturally occurring supplies of potable water are
scarce or nonexistent, today announced that on August 22, 2016 the State of Baja California, Mexico (the "State")
signed a public-private partnership contract (the "APP Contract")
with Aguas de Rosarito S.A.P.I. de C.V. ("AdR"), the special
purpose project company owned by NuWater S.A.P.I. de C.V. and
N.S.C. Agua, S.A. de C.V. (the Company's subsidiary) for the
design, construction, financing, and operation of a seawater
desalination plant in Playas de Rosarito,
Baja California, Mexico ("the Project"). Degremont
S.A. de C.V., a subsidiary of Suez Environmental of France has been selected by AdR to design and
construct the Project.
The APP Contract was executed between AdR, the State Water
Commission of Baja California
("CEA"), the Government of Baja
California represented by the Secretary of Planning and
Finance ("SPF"), and the Public Utilities Commission of
Tijuana (the "CESPT"). The
APP Contract requires AdR to design, construct, finance and operate
a seawater desalination plant (and accompanying aqueducts) with a
capacity of up to 100 million gallons per day in two phases: the
first with a capacity of 50 million gallons per day and an aqueduct
to the Mexican potable water system in Tijuana, Baja California; and the second phase
with a capacity of 50 million gallons per day and an aqueduct to a
second delivery point in Tijuana. The first phase must be
operational within 36 months of commencing construction, and the
second phase must be operational by the end of 2024. The APP
Contract further requires AdR to operate and maintain the plant and
aqueducts for a period of 37 years starting from the commencement
of operation of the first phase. At the end of the operating
period the plant and aqueducts will be transferred to CEA.
The total Project cost is expected to be approximately 9 billion
Mexican pesos, or approximately US$490
million (based upon the currency exchange rate as of
August 23, 2016). Annual
revenues from the Project are expected to be approximately 1.02
billion Mexican pesos, or approximately US$55.5 million (based upon the currency exchange
rate as of August 23, 2016).
Water rates under the APP Contract are indexed to the Mexican
national consumer price index over its term. Electrical
energy costs incurred by AdR to desalinate and deliver water are
treated as a pass through charge to CEA, subject to efficiency
guarantees. AdR expects to raise Mexican peso denominated
debt financing through a consortium led by the North American
Development Bank, which also provided financial advisory services
to the Company and its partners through the bidding process and
contract negotiations.
"The execution of a definitive agreement to design, construct,
finance and operate the 100 million gallon per day Rosarito
Seawater Desalination plant in Baja
California, Mexico is the culmination of more than six years
of development work by the Company and its partners" said
Rick McTaggart, the Company's Chief
Executive Officer. "We are obviously very pleased that the
Government of Baja California has
the placed its confidence and trust in our team to execute this
project which will eventually supply drinking water to millions of
people in northwest Mexico. We would also like to acknowledge
the initiative and efforts of the Governor of Baja California and his staff that made this
project a reality -- a project that will ensure that the State has
a reliable and drought-proof source of drinking water for its
citizens for the next 40 years."
CWCO-G
About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. develops and operates seawater
desalination plants and water distribution systems in areas of the
world where naturally occurring supplies of potable water are
scarce or nonexistent. The Company operates water production and
distribution facilities and provides water-related products and
services to customers in the Cayman
Islands, Belize, the
British Virgin Islands,
The Commonwealth of The Bahamas,
Indonesia and the United States.
Consolidated Water Co. Ltd. is headquartered in George Town, Grand Cayman, in the Cayman Islands. The Company's ordinary
(common) stock is traded on the NASDAQ Global Select Market under
the symbol "CWCO". Additional information on the Company is
available on its website at http://www.cwco.com.
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words
"believe", "estimate", "project", "intend", "expect", "should" or
similar expressions. These statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements inherently
involve risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements.
Factors that would cause or contribute to such differences include,
but are not limited to, continued acceptance of the Company's
products and services in the marketplace, changes in its
relationship with the government of the State, its ability to
finance, construct and operate the Rosarito project profitably, and its ability
to manage growth and other risks detailed in the Company's periodic
report filings with the Securities and Exchange Commission
("SEC").
By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions
or changes after the date of this release.
For further information, please contact:
Frederick W.
McTaggart, President and CEO, at (345) 945-4277 or
David W. Sasnett, Executive Vice
President and CFO, at (954) 509-8200 or via e-mail at
info@cwco.com
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visit:http://www.prnewswire.com/news-releases/consolidated-water-co-ltd-announces-signing-of-a-public-private-partnership-contract-for-the-rosarito-mexico-desalination-plant-300318974.html
SOURCE Consolidated Water Co. Ltd.