As previously disclosed in its reports
filed with the Securities and Exchange Commission, Consolidated Water Co. Ltd. (the “Company”), through its wholly-owned
Netherlands subsidiary, Consolidated Water Cooperatief, U.A., owns a 99.9% interest in N.S.C. Agua, S.A. de C.V., a development
stage Mexican company. On June 16, 2016, the Company announced that on June 15, 2016 the State of Baja California, Mexico (the
“State”) designated a consortium comprised of NSC, NuWater S.A.P.I. de C.V. and Degremont S.A. de C.V. (the “Consortium”)
as the winner of the Government of Baja California, Mexico bidding process No. SIDUE-CEA-APP-2015-002 for the financing, construction
and operation of a seawater desalination plant in Playas de Rosarito, Baja California, Mexico.
The Consortium expects to finalize a definitive
public-private partnership agreement with the State within 60 days from June 15, 2016, which is the time period allotted by the
State. After execution of the definitive agreement, the Consortium intends to finance, design, construct, operate and maintain
the desalination plant and an accompanying pipeline to deliver drinking water from the desalination plant to the Mexican potable
water system in two phases. In the first phase, which is expected to be operational by the end of 2019, the desalination plant
will have a production capacity of 50 million gallons of drinking water per day. In the second phase of the project, the Company
and its partners will double the desalination plant's production capacity to 100 million gallons per day by 2024 and extend the
drinking water delivery pipeline. At the end of the 37 year operating period, both phases of the plant and pipeline are to be handed
over to the State.
A copy of the Company’s press release
is provided as Exhibit 99.1 to this report.
Note about forward-looking statements
.
Certain statements in this report, other than purely historical information, including estimates, projections, statements relating
to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements
are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements
generally are identified by the words “believe,” “project,” “expect,” “anticipate,”
“estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,”
“may,” “should,” “will,” “would,” “will be,” “will continue,”
“will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions
that are subject to risks and uncertainties which may 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, the outcome of its negotiations
with the State for a definitive public-private partnership agreement, its ability to finance, construct and operate the Rosarito
project profitably, its ability to manage growth and other risks detailed in the Company's periodic report filings with the Securities
and Exchange Commission. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether
as a result of new information, future events, or otherwise.