Consolidated Water's Rosarito, Mexico Desalination Project Receives Congressional Extension of Key Financing Authorizations
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.
