Consolidated Water has entered into a joint venture with The New Providence Development Company Limited in Nassau, Bahamas. The joint venture will own and operate a retail water utility that will provide potable water to some of the most prestigious areas in The Bahamas, including Lyford Cay and Old Fort Bay.
Consolidated Water, which develops and operates seawater desalination plants and water distribution systems, has agreed to purchase 50 per cent of the ownership in the joint venture for $7 million Bahamian dollars. NPDC is transferring its existing retail water utility business, which presently provides water to about 1,000 customers, to the joint venture for its 50 per cent ownership. The joint venture will operate pursuant to a 25-year exclusive water utility franchise granted by the Bahamas government for the western end of New Providence Island.
“We are pleased to have the opportunity with this joint venture to add a Bahamian retail water utility to our operations,” said Rick McTaggart, chief executive officer of Consolidated Water Co. Ltd. “The expertise we have acquired operating a retail water utility in Grand Cayman for more than 38 years, combined with NPDC’s operating experience in The Bahamas, which began the mid-1960s, will enable the JV to provide customers on the western end of New Providence Island with a world-class water supply.”
NPDC is transferring a business to the joint venture that collects groundwater from about 1,700 acres of land, treats that groundwater and distributes potable water to its customers. The JV will have a license to continue collecting this water for the term of the 25-year franchise. Consolidated Water will be contracted to provide management and engineering services for the JV, including the construction of a new water treatment plant that incorporates ultra-filtration, brackish water reverse osmosis and seawater reverse osmosis technologies. Construction of the plant should be completed by the end of 2012.
“We expect to close this transaction on or before 30 June, 2012, after which we will commence construction of the new plant improvements,” Mr. McTaggart said.