• Company reports no damage from Hurricane Gustav
GEORGE TOWN, Grand Cayman, Cayman Islands, Sept. 2, 2008 -- Consolidated Water Co. Ltd. announced that it has been notified by its customer, Water Authority - Cayman, that the Company's contract to operate the Red Gate Seawater Desalination Plant on Grand Cayman Island will be extended for a seven-year period. The extension includes an upgrade of the Red Gate Plant, which was originally constructed in 1989.
"We are pleased to announce that the Water Authority - Cayman has accepted our proposal to upgrade the Red Gate plant and to operate the plant for a further seven years in exchange for an approximately 20% reduction in the current unit cost of water delivered from this plant," stated Rick McTaggart, Chief Executive Officer of Consolidated Water Co. Ltd. "This marks the third such contract extension involving our operation of water desalination plants on Grand Cayman that we have received from Water Authority - Cayman during the past three years, and we believe it demonstrates the Cayman Island Government's continued satisfaction with our service and pricing. The Red Gate contract was set to expire in November of this year, and we expect the new contract to take effect prior to such expiration date, in order to ensure no disruptions in water production at the plant."
"Under the terms of the new agreement, our Ocean Conversion (Cayman) Limited (OCC) subsidiary will make capital improvements to the Red Gate Plant in order to extend the useful life of the plant for at least a further seven years," continued Mr. McTaggart. "The Red Gate Plant, with a production capacity of approximately 1.3 million US gallons of potable water per day, is one of three plants we presently operate for Water Authority - Cayman, and we are currently constructing a fourth plant with a production capacity of 2.4 million US gallons per day which is expected to be operational in early 2009."
The Company also reported that its Cayman Islands operations suffered no damage or service interruptions from the passage of Hurricane Gustav last week, and all facilities on Grand Cayman Island are operating normally.
Consolidated Water Co. Ltd. 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.
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