Consolidated Water and Subsidiary, PERC Water, Win $204 Million Contract to Design, Build, Operate and Maintain a Seawater Desalination Plant in Hawaii
06 Junho 2023 - 6:27PM
Consolidated Water Co. Ltd. (NASDAQ Global Select Market:
CWCO), a leading developer and operator of advanced water supply
and treatment plants, announced its indirect subsidiary, Kalaeloa
Desalco LLC (which is jointly owned by the company’s wholly owned
subsidiaries PERC Water Corporation and Consolidated Water U.S.
Holdings, Inc.), has signed a definitive agreement (DBOM Agreement)
with the Honolulu Board of Water Supply (BWS) to design, build,
operate and maintain a seawater reverse osmosis desalination plant.
Consolidated Water has separately guaranteed the performance of
Kalaeloa Desalco to BWS for the term of the DBOM Agreement.
The plant will be located in the Kalaeloa Regional Park District
on the Island of O’ahu in Hawaii and situated on the site of the
former Barbers Point U.S. Naval Air Station.
Kalaeloa Desalco will develop, permit, pilot, design and
construct the facility during the first 44 months of the DBOM
Agreement. The plant will be capable of producing potable water
from saline source water derived from seawater wells. Kalaeloa
Desalco has guaranteed to deliver 1.7 million gallons of potable
water per day to BWS’s water system on a 24/7 basis. After
commissioning, Kalaeloa Desalco will operate and maintain the plant
for the following 20 years and potentially during two five-year
optional extensions.
The company expects revenue generated over the approximate
24-year base term of the contract to total about $204 million in
current dollars. Approximately $149.6 million of the revenue is
expected to be generated during the development, permitting,
piloting, design and construction phase over the first 44 months of
the DBOM Agreement. The construction fee is subject to a cost
adjustment based on changes in certain material and labor cost
indices at the time that pilot testing, permitting and design are
complete and construction commences.
Operating fees to be earned by the company are estimated to be
approximately $2.7 million annually in current dollars and will be
adjusted annually for changes in certain other materials and labor
indices over the 20-year term of the operating phase of the DBOM
Agreement. These estimated revenues may change based on the outcome
of the development, piloting, permitting and design phases of the
project, as well as the values of the above-mentioned materials and
labor cost indices at the time that construction and operations
commence.
This plant will be the 24th seawater reverse osmosis
desalination plant that Consolidated Water has constructed and the
first in the U.S.
“As our first desalination plant in the U.S. that is also under
our longest-term contract, this milestone win represents a
significant affirmation of the world-class design, construction and
operational services that Consolidated Water provides,” stated
company CEO, Rick McTaggart. “We believe winning this contract was
due to our 50 years of experience designing, building and operating
some of the world’s most energy-efficient seawater desalination
plants, as well as the exceptional project track record that our
team was able to demonstrate to BWS. Key members of the project
team include Nordic PCL Construction, Pacific Advanced Civil
Engineering, and Bowers + Kubota Consulting.
“We also believe this entrance into the U.S. desalination plant
market positions us well for the additional opportunities we are
pursuing in the Western U.S., a region that continues to experience
unprecedented drought conditions.”
In the surrounding area where the plant will be located, potable
water demand is expected to increase from about 24 million gallons
per day in 2019 to nearly 27 million gallons per day by 2030,
according to O’ahu’s Water Master Plan published by the Board of
Water Supply. The new Kalaeloa desalination plant is expected to
help meet this anticipated growing demand for potable water.
About Consolidated Water Co. Ltd.Consolidated
Water Co. Ltd. develops and operates advanced water supply and
treatment plants and water distribution systems. The company
designs, builds and operates seawater desalination facilities in
the Cayman Islands, The Bahamas and the British Virgin Islands, and
designs, builds and operates water treatment and reuse 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
StatementsThis 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) the
collection of its delinquent accounts receivable in the Bahamas;
and (v) 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. SasnettExecutive Vice President and
CFOTel (954) 509-8200Email ContactInvestor Relations
ContactRon Both or Grant StudeCMATel (949) 432-7566Email
ContactMedia Contact:Tim RandallCMATel (949)
432-7572Email Contact
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