Consolidated Water Strengthens Position with New Concession in Cayman
New Water Production Concession Secured by Consolidated Water
Consolidated Water Co. Ltd. (NASDAQ: CWCO), renowned for its innovative water supply solutions, has successfully obtained a new concession from the Cayman Islands government. This critical development grants its subsidiary, Cayman Water Company, exclusive rights to produce and supply potable water within its existing service territory on Grand Cayman, which is the largest island in the Cayman Islands.
Operational Capability of Cayman Water
With a robust capacity, Cayman Water Company operates three seawater reverse osmosis desalination plants that collectively generate around four million gallons of clean drinking water daily. This facility plays an essential role in meeting the demands of both residents and businesses on the island, especially as populations continue to grow. Recent reports from the company indicate an uptick in retail water sales, underscoring the ongoing business and demographic expansion in the area.
Regulatory Changes and Concession Requirements
In a significant shift, the Cayman Islands implemented new regulations for water utilities in 2018. This framework mandates that Cayman Water secure a concession prior to acquiring or renewing its operating license. Following the concession grant, the company plans to begin discussions with the Cayman Islands utility regulator, OfReg, to achieve the necessary licensing. This new license is likely to involve revisions to the previous terms and conditions under which the company operated.
CEO's Perspective on the New Concession
Rick McTaggart, the president and CEO of Consolidated Water, expressed that the concession grant is a vital advancement in the process of negotiating a new operating license. The presence of OfReg's representatives during the concession signing was regarded as a positive indication of forthcoming negotiations. McTaggart stated, “We are eager to collaborate closely with OfReg to ensure that clean and safe drinking water continues to be available for the communities we serve.”
Current Operating License Status
The existing operating license, which dates back to 1990, will remain effective until a new license is finalized and issued by OfReg. This transition is crucial as it will shape the future operations of the Cayman Water Company.
About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. specializes in the development and management of advanced water supply and treatment infrastructures. They design, build, and operate seawater desalination facilities across multiple locations, including the Cayman Islands, The Bahamas, and the British Virgin Islands, while also providing services in the United States. Recently, the company expanded its footprint in the U.S. market with a contract aimed at establishing a seawater desalination plant in Hawaii.
Comprehensive Service Offerings
Beyond its water production capabilities, Consolidated Water provides a diverse array of services that include manufacturing and servicing water production and treatment products. Their expertise spans design, engineering, management, and operational services tailored for both commercial and municipal water systems, as well as industrial wastewater treatment solutions.
Frequently Asked Questions
What is the significance of the new concession for Consolidated Water?
The new concession allows Consolidated Water to maintain exclusive rights to supply and produce potable water, ensuring it can continue to serve its customers effectively.
How much potable water does Cayman Water currently produce?
Cayman Water Company produces approximately four million gallons of drinking water each day through its desalination plants.
What will happen to the existing operating license?
The current operating license will remain valid until a new license is issued by the regulator, OfReg.
In which locations does Consolidated Water operate?
Consolidated Water operates in the Cayman Islands, The Bahamas, and the British Virgin Islands, and has recently expanded into the U.S. desalination market.
What are the future plans for Cayman Water after securing the concession?
Cayman Water plans to start negotiations with OfReg to define the terms of a new operating license, which is necessary for its continued operations in the region.
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