Press release
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
About this update from Consolidated Water Co. Ltd.
[{"type":"text","content":"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.\n\n \n \n\n \nThe 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.\nThe 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.\n\"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.\"\nBaja 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.\nDecreto #37 was published in the Official newspaper of Baja California o...