GEORGE TOWN, Cayman Islands — Consolidated Water Co. Ltd, a leading developer and operator of seawater desalination plants, has clarified recent news reports from Belize that stated that the House of Representatives of Belize approved a sovereign guaranty for a proposed loan from the Caribbean Development Bank of BZ$17 million (US$8.5 million) to enable Belize Water Services Ltd to acquire all of the shares of Consolidated Water (Belize) Limited and to expand its water treatment plant, retrofit the San Pedro water and sewerage system and make other improvements to the country’s water distribution network.
One of these reports further stated that the “acting prime minister Patrick Faber introduced a motion in the house which will trigger the acquisition of the company (meaning CW-Belize)”.
Commenting on these reports, Rick McTaggart, president and CEO of the company, clarified that “while the company had signed a non-binding memorandum of understanding (MOU) with Belize Water Services Ltd earlier this year with respect to the potential sale of the CW-Belize shares, the parties have not negotiated nor executed any binding transaction documents. As an enticement to the company to enter into this proposed transaction, Belize Water Services Ltd promised in the MOU to facilitate the conversion to US$ and the repatriation of all cash that the company holds in Belize. Consequently, the company has been able to repatriate US$2.75 million in cash from Belize to its bank accounts in the Cayman Islands over the past three months, representing a marked increase in the amount of cash that the company has been able to transfer from its accounts in Belize in recent years.”
McTaggart further clarified that “the transaction contemplated in the MOU is contingent on several things, including but not limited to the successful negotiation of the binding transactions documents, Belize Water Services Ltd’s ability to obtain financing for the transaction, due diligence, governmental approvals, and the conversion to US$ and the repatriation of the company’s remaining cash balances in Belize.”
McTaggart concluded his comments by noting that “As disclosed in our various public filings, it has been increasingly difficult to repatriate the profits from our Belize operations in recent years due to Belize’s general economic situation. In the event that this transaction is completed, the company plans to use the proceeds to fund organic growth projects in our other existing markets, as well as new projects and potential acquisitions in new and developing markets.”
Consolidated Water, which is headquartered in the Cayman Islands, develops and operates seawater desalination plants and water distribution systems in areas of the world where naturally occurring supplies of potable water are scarce. The company operates water production and/or distribution facilities regionally in the Cayman Islands, Belize, the British Virgin Islands and The Bahamas.