Consolidated Water Wins $20 million Desalination Plant Design, Build and Operate Project in Cayman Islands
May 10 2022 - 1:00PM
Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a
leading developer and operator of advanced water supply and
treatment plants, has signed a definitive agreement with the Water
Authority of the Cayman Islands for its planned seawater reverse
osmosis plant in George Town, Grand Cayman.
Consolidated Water will design, construct and commission the
plant over approximately the next 18 months and then sell the
facility to the Authority. The company will subsequently operate
and maintain the plant and produce water for 10 years after
commissioning. The plant will produce up to 2.64 million gallons of
potable water per day using two independent reverse osmosis
trains.
The company expects revenue generated over the approximate
11.5-year term of the contract to total about $20 million, based on
January 2022 values. The majority of the revenue is expected to be
generated by the construction and sale of the plant during the
first 18 months. The construction fee is subject to an inflation
adjustment on January 1, 2023, with operating fees adjusted
annually for inflation over the term of the engagement.
When the plant is completed as expected in the fourth quarter of
2023, it will be the ninth seawater reverse osmosis desalination
plant that Consolidated Water has constructed on Grand Cayman. The
seven plants currently operated by Consolidated Water produce the
majority of the piped drinking water on Grand Cayman, which is home
to about 95% of the nation’s population.
“This major win was the result of our many years of experience
designing, building and operating some of the most energy-efficient
seawater desalination plants in the world,” stated Consolidated
Water CEO, Rick McTaggart. “Since 1973, our cost-effective water
supply solutions have supported the growth and development of Grand
Cayman by supplying safe and affordable potable water to residents
and visitors.”
In November 2021, the Cayman Islands eliminated certain travel
restrictions for COVID-19 vaccinated travelers. This allowed
tourists to enter the Cayman Islands for the first time since March
2020. Then in March of this year, several major airlines resumed
their flights to the Island, and cruise ships with thousands of
passengers were welcomed back to port. About Consolidated
Water Co. Ltd.Consolidated Water Co. Ltd. develops and
operates advanced water supply and treatment plants and water
distribution systems. The company operates water production
facilities in the Cayman Islands, The Bahamas and the British
Virgin Islands and operates water treatment facilities in the
United States. The company also manufactures and services a wide
range of products and provides design, engineering, management,
operating and other services applicable to commercial and municipal
water production, supply and treatment, and industrial water and
wastewater treatment. For more information,
visit www.cwco.com.
Cautionary Note Regarding Forward-Looking
StatementsThis press release includes statements that may
constitute "forward-looking" statements, usually containing the
words "believe", "estimate", "project", "intend", "expect",
"should", "will" 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 (i) continued acceptance of the company's
products and services in the marketplace; (ii) changes in its
relationships with the governments of the jurisdictions in which it
operates; (iii) the outcome of its negotiations with the Cayman
government regarding a new retail license agreement; (iv) the
collection of its delinquent accounts receivable in the Bahamas;
(v) the possible adverse impact of the COVID-19 virus on the
company’s business; and (vi) various other risks, as detailed in
the company's periodic report filings with the Securities and
Exchange Commission (“SEC”). For more information about risks and
uncertainties associated with the company’s business, please refer
to the “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” and “Risk Factors” sections of the
company’s SEC filings, including, but not limited to, its annual
report on Form 10-K and quarterly reports on Form 10-Q, copies of
which may be obtained by contacting the company’s Secretary at the
company’s executive offices or at the “Investors – SEC Filings”
page of the company’s website at http://ir.cwco.com/docs. Except as
otherwise required by law, 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.Company Contact:David W.
SasnettExecutive Vice President and CFOTel (954)
509-8200dsasnett@cwco.comInvestor Relations
ContactRon Both or Justin LumleyCMA Investor RelationsTel
(949) 432-7566Email ContactMedia Contact:Tim
RandallCMA Media RelationsTel (949) 432-7572Email Contact
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