GEORGE TOWN, Grand Cayman, Cayman Islands, Aug. 26, 2016 /PRNewswire/ -- Consolidated Water Co. Ltd. (NASDAQ Global Select Market: "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 that on August 22, 2016 the State of Baja California, Mexico (the "State") signed a public-private partnership contract (the "APP Contract") with Aguas de Rosarito S.A.P.I. de C.V. ("AdR"), the special purpose project company owned by NuWater S.A.P.I. de C.V. and N.S.C. Agua, S.A. de C.V. (the Company's subsidiary) for the design, construction, financing, and operation of a seawater desalination plant in Playas de Rosarito, Baja California, Mexico ("the Project"). Degremont S.A. de C.V., a subsidiary of Suez Environmental of France has been selected by AdR to design and construct the Project.
The APP Contract was executed between AdR, the State Water Commission of Baja California ("CEA"), the Government of Baja California represented by the Secretary of Planning and Finance ("SPF"), and the Public Utilities Commission of Tijuana (the "CESPT"). The APP Contract requires AdR to design, construct, finance and operate a seawater desalination plant (and accompanying aqueducts) with a capacity of up to 100 million gallons per day in two phases: the first with a capacity of 50 million gallons per day and an aqueduct to the Mexican potable water system in Tijuana, Baja California; and the second phase with a capacity of 50 million gallons per day and an aqueduct to a second delivery point in Tijuana. The first phase must be operational within 36 months of commencing construction, and the second phase must be operational by the end of 2024. The APP Contract further requires AdR to operate and maintain the plant and aqueducts for a period of 37 years starting from the commencement of operation of the first phase. At the end of the operating period the plant and aqueducts will be transferred to CEA.
The total Project cost is expected to be approximately 9 billion Mexican pesos, or approximately US$490 million (based upon the currency exchange rate as of August 23, 2016). Annual revenues from the Project are expected to be approximately 1.02 billion Mexican pesos, or approximately US$55.5 million (based upon the currency exchange rate as of August 23, 2016). Water rates under the APP Contract are indexed to the Mexican national consumer price index over its term. Electrical energy costs incurred by AdR to desalinate and deliver water are treated as a pass through charge to CEA, subject to efficiency guarantees. AdR expects to raise Mexican peso denominated debt financing through a consortium led by the North American Development Bank, which also provided financial advisory services to the Company and its partners through the bidding process and contract negotiations.
"The execution of a definitive agreement to design, construct, finance and operate the 100 million gallon per day Rosarito Seawater Desalination plant in Baja California, Mexico is the culmination of more than six years of development work by the Company and its partners" said Rick McTaggart, the Company's Chief Executive Officer. "We are obviously very pleased that the Government of Baja California has the placed its confidence and trust in our team to execute this project which will eventually supply drinking water to millions of people in northwest Mexico. We would also like to acknowledge the initiative and efforts of the Governor of Baja California and his staff that made this project a reality -- a project that will ensure that the State has a reliable and drought-proof source of drinking water for its citizens for the next 40 years."
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 distribution facilities and provides water-related products and services to customers in the Cayman Islands, Belize, the British Virgin Islands, The Commonwealth of The Bahamas, Indonesia and the United States.
Consolidated Water Co. Ltd. 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 relationship with the government of the State, its ability to finance, construct and operate the Rosarito project 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, at (345) 945-4277 or David W. Sasnett, Executive Vice President and CFO, at (954) 509-8200 or via e-mail at [email protected]
SOURCE Consolidated Water Co. Ltd.