Consolidated Water and Subsidiary, PERC Water, Win $204 Million Contract to Design, Build, Operate and Maintain a Seawater Desalination Plant in Hawaii

GEORGE TOWN, Grand Cayman, June 06, 2023 (GLOBE NEWSWIRE) -- Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a leading developer and operator of advanced water supply and treatment plants, announced its indirect subsidiary, Kalaeloa Desalco LLC (which is jointly owned by the company’s wholly owned subsidiaries PERC Water Corporation and Consolidated Water U.S. Holdings, Inc.), has signed a definitive agreement (DBOM Agreement) with the Honolulu Board of Water Supply (BWS) to design, build, operate and maintain a seawater reverse osmosis desalination plant. Consolidated Water has separately guaranteed the performance of Kalaeloa Desalco to BWS for the term of the DBOM Agreement.

The plant will be located in the Kalaeloa Regional Park District on the Island of O’ahu in Hawaii and situated on the site of the former Barbers Point U.S. Naval Air Station.

Kalaeloa Desalco will develop, permit, pilot, design and construct the facility during the first 44 months of the DBOM Agreement. The plant will be capable of producing potable water from saline source water derived from seawater wells. Kalaeloa Desalco has guaranteed to deliver 1.7 million gallons of potable water per day to BWS’s water system on a 24/7 basis. After commissioning, Kalaeloa Desalco will operate and maintain the plant for the following 20 years and potentially during two five-year optional extensions.

The company expects revenue generated over the approximate 24-year base term of the contract to total about $204 million in current dollars. Approximately $149.6 million of the revenue is expected to be generated during the development, permitting, piloting, design and construction phase over the first 44 months of the DBOM Agreement. The construction fee is subject to a cost adjustment based on changes in certain material and labor cost indices at the time that pilot testing, permitting and design are complete and construction commences.

Operating fees to be earned by the company are estimated to be approximately $2.7 million annually in current dollars and will be adjusted annually for changes in certain other materials and labor indices over the 20-year term of the operating phase of the DBOM Agreement. These estimated revenues may change based on the outcome of the development, piloting, permitting and design phases of the project, as well as the values of the above-mentioned materials and labor cost indices at the time that construction and operations commence.