CONSOLIDATED WATER (BERMUDA)
LIMITED
(“CW-BERMUDA”)
In January 2007, our affiliate, Consolidated Water (Bermuda) Limited (“CW-Bermuda”) entered into a design, build and sale agreement with the Government of Bermuda for a desalination plant to be built in two phases at Tynes Bay along the northern coast of Bermuda.
Under the agreement, CW-Bermuda, will construct the plant and operate it for a minimum of 12 months after its commissioning. We have entered into a management services agreement with CW-Bermuda for the design, construction and operation of the Tynes Bay plant, under which we receive fees for direct services, purchasing activities and proprietary technology.
We are loaning CW-Bermuda the funds to construct the plant and we will manage the plant’s operations on its behalf. The first phase of the construction of the Tynes Bay plant was completed in late 2008 and we expect the second phase to be completed by mid 2009. Although we own only 40% of the common shares of CW-Bermuda, we consolidate its results in our consolidated financial statements as we are its primary financial beneficiary.
Our Bulk Water desalination plant in Bermuda is located at:
