New Consolidated JV to build Bahamas UF/RO plant

Seawater desalination water company Consolidated Water Co Ltd, based in the Cayman Islands, announced 23 May 2012 that it has formed a joint venture (JV) with The New Providence Development Company Limited (NPDC) in Nassau, Bahamas.

This JV will own and operate a retail water utility that will provide potable water to some of the most prestigious areas in the Bahamas, including Lyford Cay and Old Fort Bay. Its contract will include a new ultrafiltration (UF)/reverse osmosis (RO) plant.

Consolidated has agreed to purchase 50% of the ownership in the JV for Bah$ 7 million (US$ 7 million). NPDC is transferring its existing retail water utility business, which presently provides water to approximately 1,000 customers, to the JV for its 50% ownership.

The JV will operate pursuant to a 25-year exclusive water utility franchise granted by the Bahamas government for the western end of New Providence Island.

"We are pleased to have the opportunity with this JV to add a Bahamian retail water utility to our operations," commented Rick McTaggart, Consolidated's CEO. "The expertise we have acquired operating a retail water utility in Grand Cayman for more than 38 years, combined with NPDC's operating experience in the Bahamas, which began the mid-1960s, will enable the JV to provide customers on the western end of New Providence Island with a world- class water supply."

NPDC is transferring a business to the JV that currently collects groundwater from approximately 1,700 acres (690 ha) of land, treats that groundwater and distributes potable water to its customers. The JV will have a license to continue collecting this water for the term of the 25-year franchise.

Consolidated will be contracted to provide management and engineering services for the JV, including the construction of a new water treatment plant that incorporates UF and brackish-water and seawater RO technologies. Construction of the plant should be completed by the end of 2012.

"We expect to close this transaction on or before June 30, 2012, after which we will commence construction of the new plant improvements," concluded McTaggart.

Tags

Cayman Islands | Bahamas | Bahamas | Cayman Islands


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