Consolidated Water Co. Ltd. Announces Contracts With the Water Authority-Cayman
April 09 2014 - 8:28AM
Marketwired
Consolidated Water Co. Ltd. Announces Contracts With the Water
Authority-Cayman
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.
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, 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.
For further information, please contact: Frederick W. McTaggart
President and CEO (345) 945-4277 David W. Sasnett Executive Vice
President and CFO (954) 509-8200 info@cwco.com or RJ Falkner &
Company, Inc. Investor Relations Counsel (800) 377-9893
info@rjfalkner.com
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