Consolidated Water Co. Ltd. (NASDAQ: CWCO) recently announced (http://nnw.fm/o8Yno) that the State of Baja and Aguas de Rosarito S.A.P.I. de C.V. (“AdR”) have signed a public-private partnership contract, also known as the APP contract, involving the design, building, financing, and operating of a seawater desalination plant in Playas de Rosarito, Baja California, Mexico.
CWCO designs, builds, manages and occasionally finances, seawater reverse osmosis (SWRO) desalination plants and water distribution systems in countries where potable water is hard to come by. AdR is a purpose project company owned by NuWater S.A.P.I. de C.V. and N.S.C. Agua S.A. de C.V., one of CWCO’s subsidiary companies.
“The execution of a definitive agreement to design, construct, finance and operate the 100 million gallons per day Rosarito Seawater Desalination plant in Baja California, Mexico is the culmination of more than six years of development work by the Company and its partners,” Rick McTaggart, CEO of CWCO, stated in the news release.
The APP contract requires AdR to construct a plant that has a 100 million-gallon-per-day capacity. The project will take place in two phases, each of which will offer a 50 million-gallon-a-day capacity, as well as an aqueduct providing drinkable water in two delivery points in Tijuana. The first phase of the project is expected to be ready within the next three years and the second one by the end of 2024. As part of the contract, AdR is expected to maintain the plant and aqueducts for 37 years from the moment the project becomes operational. Later, CEA will take over maintenance responsibilities.
“We are obviously very pleased that the Government of Baja California has the placed its confidence and trust in our team to execute this project which will eventually supply drinking water to millions of people in northwest Mexico. We would also like to acknowledge the initiative and efforts of the Governor of Baja California and his staff that made this project a reality — a project that will ensure that the State has a reliable and drought-proof source of drinking water for its citizens for the next 40 years,” said McTaggart.
The cost of the project is expected to be around 9 billion Mexican pesos equating to approximately $490 million, and is expected to make approximately 1.02 billion Mexican pesos or $55.5 million a year. AdR guarantees a level of energy efficiency; therefore, the CEA has agreed to treat energy costs as pass-through charges.
For more information, visit the company’s website at www.cwco.com
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