SOURCE: Consolidated Water Co. Ltd.

Consolidated Water Co. Ltd.

March 08, 2010 07:30 ET

Consolidated Water Co. Ltd. Announces Water Purchase Contract for Affiliate's Bar Bay Plant in British Virgin Islands

GEORGE TOWN, GRAND CAYMAN, CAYMAN ISLANDS--(Marketwire - March 8, 2010) -  Consolidated Water Co. Ltd. (NASDAQ: CWCO) today announced that its affiliate, Ocean Conversion (BVI) Ltd. ("OC-BVI") and the British Virgin Islands Government have signed a definitive contract for the purchase of water by the Government from OC-BVI's desalination plant located at Bar Bay, Tortola, BVI.  CWCO owns a 43.5% equity interest in OC-BVI.

The contract requires OC-BVI to complete a storage reservoir on the Government site within 12 months. The initial contract is for a seven-year term, with a seven-year extension option exercisable by the Government. Under the terms of the contract, the Government is obligated to purchase at least 600,000 US gallons of water per day from the Bar Bay plant, which has a total production capacity of 700,000 US gallons per day. The Bar Bay Plant has been delivering water to the Government since January 2009 under a Heads of Terms agreement that was signed between the parties in December 2008.

"We are very pleased to announce that our BVI affiliate has formally contracted with the BVI Government for the purchase of water produced by its Bar Bay plant in Eastern Tortola," stated Rick McTaggart, President and Chief Executive Officer of Consolidated Water Co. Ltd. "This signing, which marks the successful conclusion of a long negotiation process, demonstrates OC-BVI's commitment to provide a safe and reliable supply of potable water to the islands." 

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/or distribution facilities in the Cayman Islands, Belize, the British Virgin Islands and The Commonwealth of The Bahamas and Bermuda. Additional information on the Company is available on its website at http://www.cwco.com.

Consolidated Water Co. Ltd. is headquartered in George Town, Grand Cayman, in the Cayman Islands. The Company's ordinary (common) shares are 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 Governments of the jurisdictions in which it operates, the manner in which the disputed issues between OC-BVI and the BVI Government are resolved, the ability to successfully secure contracts for water projects in other countries, the ability to develop and operate such projects profitably and the Company's ability to manage growth and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. 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.

Contact Information

  • For further information, please contact:
    Frederick W. McTaggart
    President and CEO
    (345) 945-4277

    David W. Sasnett
    Executive Vice President and CFO
    (954) 427-6283
    Email Contact
    http://www.cwco.com

    RJ Falkner & Company, Inc.
    Investor Relations Counsel
    (800) 377-9893
    Email Contact