PERTH, Australia, Jan. 3, 2012 /PRNewswire/ --
- WRG joint venture to supply in excess of 1,400,000 cubic metres
per year of drinking water for 25 years on take or pay
contract
- Joint venture will contract with WRG to manufacture, supply and
install it's proprietary Advanced SeaWater Reverse Osmosis
system
- Installation expected to be completed within 12 months
Water Resources Group Ltd (ASX: WRG: US: OTC-WTRSY) is pleased
to announce that the Municipality of Santa
Catarina in the Republic of Cape
Verde, an Island Nation 570 km off the coast of Western Africa, has signed a binding Water
Offtake Agreement with its 49% owned joint venture company, Blue
Aquifer LDA agreeing to the commercial terms of supply for the
contract.
The binding Agreement, signed by the President of the Municipal
Council of Santa Catarina,
Francisco Fernandes Tavares, is for
the supply of 4,000 cubic metres per day as an initial requirement
with the provision that this could be increased in the near term.
The Contract calls for Blue Aquifer to supply potable water to
Santa Catarina for a term of 25
years, a contract worth at least USD95,000,000.
The President said, "We have a serious water deficiency in our
Municipality and I am pleased that Blue Aquifer, a locally
controlled Water Supply Company, has been successful with their
proposal to supply us with water for the next 25 years. Their
relationship with the Water Resources Group has given them a
leadership position in this country and I am sure that there will
be a number of other Municipalities that will contract their
services in the future."
Blue Aquifer LDA which is 49% owned by Water Resources Group Ltd
will manage and operate the plant. All equipment and systems will
be purchased from Water Resources Group Ltd by Blue Aquifer. Water
Resources Group Ltd will also be entitled to 49% of the net income
from Blue Aquifer LDA from water sales for the 25 year contract
term and provide a service and maintenance contract.
The CEO of WRG, Brian Harcourt,
said, "This is a milestone event for Water Resources Group Ltd,
reinforcing our business model as outlined in the company's
Prospectus. We expect that other municipalities in the Cape Verde Islands will follow the lead of
Santa Catarina and take advantage of
our low cost, chemical free, community based desalination systems.
Our partner, Blue Aquifer, is well placed to supply this market,
and also the ECOWAS countries (Economic Community of West African
States), with a population of over 250 million people with serious
deficiencies in drinking water."
Notes for Editors:
- Water Resources Group Limited is an Australian company with its
main operations located in El Dorado
Hills, California. The Company is providing advanced,
low-cost, chemical-free, community-based water desalination
systems.
- The Company's initial product is its Advanced Seawater Reverse
Osmosis ("ASWRO") Desalination Plant incorporating its breakthrough
Plasma Chemical Reactor technology that produces ozone from ambient
air for pre-treatment of water, in place of chemicals and
chlorine.
- The ASWRO system is scale-able, in that it doesn't compete with
large scale plants, and can be tailored to suit any community. It
is automated and managed remotely, making it simpler and easier to
manage and secure.
SOURCE Water Resources Group Ltd