Consolidated Water has signed a definitive agreement with the Water Authority for its planned seawater reverse osmosis plant in George Town.
The company will design, construct and commission the plant over approximately the next 18 months and then sell the facility to the authority.
Consolidated Water will then operate and maintain the plant and produce water for 10 years after commissioning.
The new plant will produce up to 2.64 million gallons of potable water per day using two independent reverse osmosis trains, the company said in a press release.
Over the 11.5-year term of the contract, Consolidated Water expects revenues of about US$20 million, based on January 2022 values.
The majority of the revenue is expected to be generated by the construction and sale of the plant during the first 18 months. The construction fee is subject to an inflation adjustment on 1 Jan. 2023, with operating fees adjusted annually for inflation over the term of the engagement.
When the plant is completed as expected in the fourth quarter of 2023, it will be the ninth seawater reverse osmosis desalination plant that Consolidated Water has constructed on Grand Cayman.
The seven plants currently operated by Consolidated Water produce most of the piped drinking water on Grand Cayman.
“This major win was the result of our many years of experience designing, building and operating some of the most energy-efficient seawater desalination plants in the world,” said Consolidated Water CEO Rick McTaggart. “Since 1973, our cost-effective water supply solutions have supported the growth and development of Grand Cayman by supplying safe and affordable potable water to residents and visitors.”
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