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Consolidated Water Co. Ltd., which develops and operates seawater conversion plants and water distribution systems in areas where natural supplies of drinking (i.e., potable) water are scarce, announced that its contract with the Water Authority -- Cayman in respect to the Lower Valley Plant has been renewed for an additional seven years. The contract was originally scheduled to expire in March 2006.
Under the terms of the contract renewal agreement, the Water Authority -- Cayman has asked Consolidated to expand the water production capacity of the Lower Valley Plant by approximately 264,000 US gallons per day (USGPD). The Lower Valley Plant is a reverse osmosis facility that converts seawater to potable water for commercial and residential customers on Grand Cayman Island. It is one of six seawater conversion plants operated by the company on the island.
"We are pleased to announce the renewal of our Lower Valley Plant contract for an additional seven years on similar terms to the present contract," stated Rick McTaggart, CEO of Consolidated Water Co. Ltd. "The expansion of production capacity at the plant, when operational in late December this year, will increase Consolidated's total bulk water production capacity on Grand Cayman Island by approximately 9%, to 3.2 million USGPD. As with all of our contracts, we are able to 'pass through' to customers any increases in the cost of electricity or fuel that is used to operate our plant facilities and adjust our selling prices annually for changes in certain price indices."