Desalination Plant Project by the State of Baja California, Mexico

Consortium comprised of N.S.C. Agua, S.A. de C.V., NuWater S.A.P.I. de C.V. and Degremont S.A. de C.V. won the Government of Baja California, Mexico bidding process for the financing, construction and operation of a seawater desalination plant in Playas de Rosarito, Baja California, Mexico

Consolidated Water Co (NASDAQ:CWCO), a company that develops and operates seawater desalination plants and distribution systems, said late Thursday that a consortium comprised of the company’s subsidiary, N.S.C. Agua, S.A. de C.V., NuWater S.A.P.I. de C.V. and Degremont S.A. de C.V. won the Government of Baja California, Mexico bidding process for the financing, construction and operation of a seawater desalination plant in Playas de Rosarito, Baja California, Mexico. The consortium expects to finalize a definitive public-private partnership agreement with the state within the next 60 days, which is the time period allotted by the state. After execution of this definitive agreement, the consortium will finance, design, construct, operate and maintain the desalination plant and an accompanying pipeline to deliver drinking water from the desalination plant to the Mexican potable water system in two phases.

In the first phase, which is expected to be operational by the end of 2019, the desalination plant will have a production capacity of 50 million gallons of drinking water per day. In the second phase of the project, the company and its partners will double the desalination plant’s production capacity to 100 million gallons per day by 2024 and extend the drinking water delivery pipeline. At the end of the 37 year operating period, both phases of the plant and pipeline will be handed over to the state. CWCO shares were up 1.2% at $12.53 in the after hours session.

The stock increased 2.31% or $0.28 during the last trading session, hitting $12.38. About 117,586 shares traded hands or 60.82% up from the average. Consolidated Water Co. Ltd. (NASDAQ:CWCO) has risen 9.46% since November 10, 2015 and is uptrending. It has outperformed by 9.64% the S&P500.

Consolidated Water Co. Ltd., together with its subsidiaries, develops and operates seawater desalination plants and water distribution systems in the Cayman Islands, The Bahamas, Belize, the British Virgin Islands, and Indonesia. The company uses reverse osmosis technology to produce potable water from seawater. It operates through three segments: Retail Water Operations, Bulk Water Operations, and Services Operations.

The Retail Water Operations segment produces and supplies water to end-users, including residential, commercial, and government customers. The Bulk Water Operations segment produces and sells potable water to government-owned distributors and private customers. The Services Operations segment provides engineering and management services for desalination projects, which include the design and construction of desalination plants, and management and operation of desalination plants owned by other companies. Consolidated Water Co. Ltd. was founded in 1973 and is based in Grand Cayman, the Cayman Islands.

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Source: Sonoran Weekly Review