Press release
Consolidated Water Reports the State Congress of Baja California, Mexico Passes Key Legislation to Advance Water Desalination Project
GEORGE TOWN, Cayman Islands, April 25, 2019 /PRNewswire/ -- Consolidated Water Co. Ltd. (Nasdaq Global Select Market: CWCO), a leading developer and operator
About this update from Consolidated Water Co. Ltd.
[{"type":"text","content":"GEORGE TOWN, Cayman Islands, April 25, 2019 /PRNewswire/ -- Consolidated Water Co. Ltd. (Nasdaq Global Select Market: CWCO), a leading developer and operator of seawater desalination plants, reported that the Congress of the State of Baja California, Mexico has renewed key authorizations required for the company's planned Rosarito Beach desalination plant. \n\n \nThe plant is expected to be the largest of its kind in the Western Hemisphere, designed to provide drinking water to the northwestern coastal region of Baja California for at least 37 years.\nThe project involves the construction of seawater reverse osmosis desalination plant with a capacity of 100 million gallons per day, and to be implemented in two phases of 50 million gallons each. The first phase includes the installation of a pipeline infrastructure to deliver potable water to Mexico's water system. \nConsolidated Water has secured a minority ownership in the company that will own the facility. It will also own 50% of the company that will operate the plant and pipeline during the term provided in the public-private partnership agreement between Consolidated Water and certain State entities. \nDuring the congressional session held at the end of March, the State congress passed Decreto #335, which renewed authorizations for various payment trusts, guaranties and bank credit lines to be established for the project by the State entities. The trusts, guaranties and credit lines are required under the public-private partnership agreement.\n\"This authorization renewal represents another key milestone toward the completion of this major freshwater project and confirms the importance of this project to the region,\" commented Consolidated Water CEO, Rick McTaggart. \"We can now proceed to several important steps remaining before beginning the construction phase, including obtaining the remaining debt financing required for the project and acquiring the remaining aqueduct right-of-ways.\"\nThe company earlier reported that it had secured a bank credit facility for up to $200 million to be used for construction and project development. This represents a substantial portion of the financing required to complete the first phase, and the company expects the remaining to follow according to schedule.\nThe need for additional potable water has increased significantly over the p...