Our Business

Introduction

What We Do

Cayman Islands Consolidated Water

OUR BUSINESS

Consolidated Water Company Ltd. (the “Company”) designs, builds, operates, and in some cases finances seawater reverse osmosis (SWRO) desalination plants and water distribution systems in several Caribbean countries, where the supply of drinking water is scarce and the use SWRO is economically feasible.

The Company was established in 1973 as a private water utility in Grand Cayman, the largest island in the Cayman Islands group, and obtained its first public utility license in the Cayman Islands in 1979. The Company was listed on the Nasdaq stock market in 1995.

Over the past 10 years, the Company has grown from a small Cayman Islands based utility business with revenues of less than $10 million dollars per year to a regional water provider with 2008 revenues in excess of $65 million dollars.

We accomplished this growth by capitalizing on our exclusive water utility franchise in Grand Cayman, as well as acquiring a number of other established businesses in the region and leveraging these acquisitions, using our technical expertise and regional knowledge, to obtain contract extensions and new projects.

We supply water to a variety of customers including residences, hotels and resort properties, and government-owned utility companies. We currently operate 14 desalination plants of various capacities in 5 countries – the Cayman Islands, the Bahamas, Bermuda, the British Virgin Islands and Belize.

The Company installed its first SWRO plant in 1989 and, therefore, has more than 20 years of design insight and operational experience with this technology. SWRO is used in all the Group's operations. Our largest SWRO plant, which was commissioned in July 2006, is the Blue Hill plant in Nassau, Bahamas with a production capacity of 7.2 million US gallons per day.

Our water production and distribution business model was first introduced the Cayman Islands in 1990, and is now used throughout the Company's operations. The base selling price of water is specified in the franchise or supply contract and is adjusted monthly for changes in the cost of energy and annually for changes in inflation.

In the Cayman Islands, the Company operates as Cayman Water Company Limited and Ocean Conversion (Cayman) Limited which, together, operate seven plants to produce all the piped drinking water on Grand Cayman.

In July 2000, Consolidated Water acquired Consolidated Water (Belize) Limited, which supplies up to 550,000 US gallons of water per day to the operator of the distribution system on Ambergris Caye, Belize, Central America.

Consolidated Water moved into the Bahamian market in July of 2001 by supplying and operating a plant under a 10-year agreement to produce up to 115,000 US gallons per day for the Bimini Sands marina and resort development in South Bimini. The Company also supplies water to the Water & Sewerage Corporation of the Bahamas from time to time when its regular supply is unavailable on South Bimini.

Through the acquisition of five companies in February 2003, Consolidated Water commenced operations in Barbados, obtained affiliate operations in the British Virgin Islands and expanded its operations in the Cayman Islands and the Bahamas.

In Barbados, through June 2007, the Company operated a plant that provided up to 1.3 million US gallons of irrigation water per day for the three golf courses of the prestigious Sandy Lane Resort.

In BVI, the Company has an equity investment in and an Engineering and Management Services Agreements with its affiliate Ocean Conversion (BVI) Ltd. (“OCBVI”). OCBVI operates SWRO plants on Tortola and Jost van Dyke, which supply water to the government of the British Virgin Islands for distribution.

Consolidated Water (Bahamas) Ltd. produces and supplies up to 10 million US gallons per day of water to the Water & Sewerage Corporation of the Government of the Bahamas for distribution to Nassau and the remainder of New Providence Island.

In 2006 , the Company formed a Bermudan affiliate, Consolidated Water (Bermuda) Limited, with two other shareholders and in early 2007 was awarded a contract by the Government of Bermuda to construct and operate a 1.2 million US gallon per day seawater desalination plant on the north coast of Bermuda at Tynes Bay.

The Caribbean basin is one of the fastest growing SWRO markets in the world and Consolidated Water continues to actively pursue water projects and acquisition opportunities, primarily in that area and Central America but will consider profitable ventures that arise elsewhere in the world.