Consolidated signs BVI desalination water sales agreement

Consolidated Water Co Ltd announced on 8 March 2010 that its affiliate, Ocean Conversion (BVI) Ltd (OC-BVI) and the British Virgin Islands government had signed a contract for the purchase of water by the government from OC-BVI’s desalination plant located at Bar Bay, Tortola.

The contract requires OC-BVI to complete a storage reservoir on the government site within 12 months. The initial contract is for a seven-year term, with a seven-year extension option exercisable by the government.

Under the terms of the contract, the government is obligated to purchase at least 0.6 MGD (2,270 m³/d) from the Bar Bay plant, which has a total production capacity of 0.7 MGD (2,650 m³/d). The Bar Bay Plant has been delivering water to the government since January 2009 under a Heads of Terms agreement that was signed between the parties in December 2008.

Last month, Biwater (BVI) Limited won a BOOT contract with the government for a seawater desalination plant on Tortola. The plant will produce 2.3 MIGD (10,450 m³/d) of potable water per day, has a construction value of US$ 43 million and a subsequent 16-year operation and maintenance period.

Biwater says the cost of water in Tortola will be substantially reduced by the new contract.


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