GEORGE TOWN, Cayman Islands,
Jan. 16, 2020 /PRNewswire/
-- Consolidated Water Co. Ltd. (Nasdaq Global Select
Market: CWCO), a leading developer and operator of advanced water
supply and treatment plants, was notified that the Congress of the
State of Baja California, Mexico
recently passed Decreto #37. The bill amends the earlier approved
Decreto #335 by extending to June 30,
2020 the expiration of authorizations related to the
company's desalination project in Rosarito, Mexico.
The extended authorizations, which would have otherwise expired
on December 31, 2019, cover the
payment tariff, guaranties and bank credit lines required to be
established for the Rosarito
project by the State entities.
The project consists of a desalination plant to be constructed
in two phases of 50 million gallons each, with the first phase
including the installation of a pipeline infrastructure to deliver
potable water into Mexico's water
system. The Rosarito desalination
plant is expected to be the largest of its kind in the Western
Hemisphere, providing a much-needed new source of drinking water
for the coastal region of Baja
California.
"Decreto #335, as extended by Decreto #37, represents a key
element for the completion of the project's development phase,"
commented Consolidated Water CEO Rick
McTaggart. "This congressional extension allows the
State of Baja California
additional time to establish the financing and securitization
structure required for the payments it will make under the
project's water supply contract. We believe this extension
demonstrates the State's continued commitment to the completion of
this important project."
Baja California's need for
additional potable water has increased significantly over the past
few years, with rapidly growing coastal cities becoming heavily
dependent on the overtaxed Colorado River. The aging aqueduct from
the river to the coastal region crosses several earthquake zones.
As has happened in the past, any failure along the 125 miles of
canals and pipelines could interrupt fresh water supplies to an
estimated 2 million inhabitants along the coast. The Rosarito desalination plant will serve to
diversify the region's water resources and enhance drinking water
supplies in Baja California for
decades to come.
Decreto #37 was published in the Official newspaper of
Baja California on December 31, 2019. No other amendments were made
to Decreto #335.
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
Statements
This 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) its
ability to complete the project under development in Baja California, Mexico; (v) the future
financial performance of its subsidiary that manufactures water
treatment-related systems and products and provides design,
engineering, management, operating and other services applicable to
commercial, municipal and industrial water production; (vi) the
collection of its delinquent accounts receivable in the
Bahamas; (vii) its ability to
integrate and profitably operate recently acquired subsidiary PERC
Water Corporation; and (viii) 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.
Sasnett
Executive Vice President and CFO
Tel (954) 509-8200
dsasnett@cwco.com
Investor Relations Contact
Ron Both, CMA
Tel (949) 432-7566
CWCO@cma.team
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SOURCE Consolidated Water Co. Ltd.