Water Co. Ltd., which develops and operates seawater conversion plants
and water distribution systems in areas where natural supplies of potable
drinking water are scarce, recently announced that it has signed a
new agreement with Belize Water Services Ltd., the company's sole
consumer for water produced at its plant on the island of Ambergris Caye.
The largest of approximately 200 islands located off the mainland of
Belize, Ambergris Caye has, in recent years, benefited from its growing
popularity as a resort and scuba diving destination for American and
The Company's previous agreement was to expire June
26, 2007. The new agreement expires March 23, 2026 and includes
provisions for a 25-year renewal of the agreement. Under the terms of the
new contract, Consolidated's wholly-owned subsidiary, Belize Water
Limited, will be the exclusive provider of water to Belize Water Services
Ltd., the government-designated water distribution company for the entire
island of Ambergris Caye. The Government of Belize has also agreed to
extend the company's tax holiday, duty concessions, and land lease for
the term of the new agreement.
"The extended term of the new agreement will allow us
to justify capital expenditures to improve the reliability and operating
efficiency of our seawater reverse osmosis desalination plant on
Ambergris Caye," stated Rick McTaggart, President and Chief Operating
Officer of Consolidated Water Co. Ltd. "Included in the plant upgrade
will be the installation of an improved energy recovery system, which
will increase the efficiency of the plant, in line with our other water
production facilities in the Caribbean region. We will also increase
water storage capacities in Belize, thus allowing us to better plan for
the periodic plant shutdowns that are required for repairs and
maintenance activities - particularly preventive maintenance."
"The new contract includes an improved rate adjustment
mechanism that protects us from energy cost fluctuation and retains the
inflation adjustment mechanism that was presented in the previous
agreement," continued McTaggart.
"We believe the long-term return on our investment in
existing and upgraded plant facilities will improve under the auspices of
this new agreement, while at the same time we are able to reduce the
price per gallon of water sold to Belize Water Services Ltd."