Consolidated Water has purchased of two parcels of land required for a proposed desalination plant in Mexico.
The company, which develops and operates seawater desalination plants and water distribution systems, completed the purchase through its Mexican subsidiary N.S.C. Agua S.A de C.V.
The planned project encompasses the construction and operation of a 100 million gallon per day seawater reverse osmosis desalination plant in Rosarito Beach, Baja California, Mexico, and an accompanying pipeline to deliver water to the Mexican potable water system and the U.S. border.
NSC had entered into purchase contracts in 2011 and 2013 with unrelated parties over the 20-acre and 29.6-acre parcels and paid $1 million and $2 million, respectively. The purchase was completed on May 15 following the payments of the remaining balances of $6.98 million and $10 million.
“These land purchases represent a significant milestone in the progress of our proposed Mexico desalination project,” said Rick McTaggart, the company’s chief executive officer.
“We believe the site we have acquired represents the best possible location for a northern Baja, California, desalination plant as it is adjacent to a pre-existing source of feed water for the plant and is of sufficient size to accommodate a 100 million gallon per day facility. The total purchase price we paid of just over $20 million for this site demonstrates our confidence in the viability of the project and our commitment to its completion,” he added.
If NSC is successful in obtaining the water purchase and other required agreements and approvals and can complete the project, the company expects to retain a minority ownership in the project and participate in the operation of the plant and pipeline system.
Consolidated Water believes that the acquisition represents all the land that is needed to complete the project.