PERTH, Australia, Aug. 23, 2011 /PRNewswire/ -- Water Resources
Group Ltd (ASX: WRG: US: OTC-WTRSY) is pleased to announce its
Joint Venture Company, Blue Aquifer LDA, has been selected to
supply potable water to the Municipality of Santa Catarina in the
Republic of Cape Verde, an Island
Nation 570 km off the coast of Western
Africa.
A Letter of Intent has been signed by the President of the
Municipal Council of Santa Catarina and calls for 4,000 cubic
metres per day as an initial requirement.
The President, Francisco Fernandes
Tavares said; "I'm pleased to inform you that Blue Aquifer
is our preferred supplier of potable desalinated sea water for this
project and, assuming that commercially reasonable terms and a
competitive price can be agreed, we intend to enter into a 25 year
contract."
Blue Aquifer which is 49% owned by the Water Resources Group
(WRG) will manage and operate the plant. All equipment and systems
will be supplied by WRG for a total sale price of approximately
US$10 million. WRG will also earn 49%
of the water sales for the 25 year contract term.
The Municipality of Santa Catarina requires water to be supplied
by September 2012 and WRG expects to
enter into formal agreements by October
2011.
WRG is also pleased to announce the completion of the Joint
Venture Agreement with the 51% shareholders of Blue Aquifer. One of
these shareholders is Loid Engineering, a well known engineering
firm in this region.
The CEO of WRG, Brian Harcourt
said, "We are very pleased to have concluded this Joint Venture
Agreement which has attracted the Santa Catarina project. We
believe that in the near future other municipalities in the
Cape Verde Islands will take
advantage of our low cost, chemical free, community based
desalination systems and Blue Aquifer is well placed to supply this
market."
Mr. Harcourt, who has just returned to Australia from North
Africa, also advised "Our Moroccan contract is nearing
completion and we are aiming to start construction of both
Cape Verde and the Moroccan
installations by the end of this year. These plants when commenced
will generate over US$2 million per
month in revenue for the Company starting in early 2012 and should
be a catalyst for the establishment of additional projects."
SOURCE Water Resources Group Ltd