SOURCE: Consolidated Water Co. Ltd.
GEORGE TOWN, GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - Apr 9, 2014) - Consolidated Water Co. Ltd. (NASDAQ: 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 the receipt of a new contract to refurbish the Lower Valley desalination plant and the extension of an existing contract to operate the North Sound desalination plant. Both contracts are with the Water Authority-Cayman ("WAC"), the water utility owned by the Cayman Islands Government, and each of the plants is located on the island of Grand Cayman.
Following a competitive tender process, the WAC has awarded to Consolidated Water a contract to refurbish its 800,000 US gallons per day (USgpd) Lower Valley desalination plant. The refurbishment includes complete replacement of the high pressure pumps; the first and second pass membrane racks, including membranes, pressure vessels and piping; the energy recovery systems; the controls systems; and associated electrical power systems. The WAC will demolish the existing Lower Valley Plant equipment to be replaced under the contract and prepare the existing plant building for installation of the new equipment. The contract requires completion of the refurbishment work within 250 days following the contract's execution date.
Following the commissioning of the refurbished plant, Consolidated Water will operate the plant for a period of three months and comply with certain performance criteria before transferring the plant to the WAC. The refurbished plant will have a rated water production capacity of 800,000 USgpd.
Consolidated Water constructed and commissioned the Lower Valley desalination plant in 1997 for the WAC and operated the plant under contract until 2013. The Company expanded and refurbished the plant during this period under various contracts and contract extensions. The WAC took over operations and maintenance responsibilities involving the plant in January 2013.
The Company also announced a 12-month extension of its contract to operate the WAC's 1.6 million USgpd North Sound seawater desalination plant. Consolidated Water constructed and commissioned the North Sound plant in 2002 for the WAC, expanded its production capacity in 2007 from 800,000 USgpd to 1.6 million USgpd, and has satisfactorily operated the plant under contract since commissioning. The operations contract was originally scheduled to expire on April 1, 2014. The WAC has extended the contract for 12 months, with certain adjustments to the terms of the contract as agreed between the WAC and the Company and approved by the Central Tenders Committee of the Cayman Islands Government.
The 12-month extension period will allow the WAC sufficient time to arrange the public tender process for a new operations contract for the plant, as required under the Cayman Islands Public Management and Finance Law. Consolidated Water intends to participate in this tender process.
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/or distribution facilities in the Cayman Islands, Belize, the British Virgin Islands, The Commonwealth of The Bahamas, and Bali, Indonesia.
Consolidated Water 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 relationships with the governments of the jurisdictions in which it operates, the outcome of its negotiations with the Cayman government regarding a new retail license agreement, its ability to successfully secure contracts for water projects, including the projects under development in Baja California, Mexico and Bali, Indonesia, its ability to develop and operate such projects 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.