September 25, 2020

Grand Cayman based Consolidated Water Co. Ltd. to expand retail water operations with Bahamas Joint Venture

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Consolidated Water Co. Ltd. (NASDAQ: CWCO), which develops and operates seawater desalination plants and water distribution systems in areas of the world where naturally occurring supplies of potable water are scarce or nonexistent, today announced 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.

Consolidated Water has agreed to purchase 50% of the ownership in the JV for $ 7 million Bahamian dollars. 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, Chief Executive Officer of Consolidated Water Co. Ltd. “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 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 Water will be contracted to provide management and engineering services for the JV, including the construction of a new water treatment plant that incorporates ultra-filtration, brackish water reverse osmosis (“RO”) 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 Mr. McTaggart.

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