Consolidated Water’s Cayman Islands Water Utility Receives New Water Production and Supply Concession from Cayman Islands Government
Consolidated Water's subsidiary, Cayman Water Company, has secured a new concession from the Cayman Islands government, maintaining exclusive rights to produce and supply potable water in its Grand Cayman service area. The company operates three seawater reverse osmosis desalination plants producing 4 million gallons per day of potable water and has reported increased retail water sales due to business and population growth.
Following Cayman Islands' 2018 regulatory framework changes, Cayman Water must first obtain a concession before securing an operating license. The company will now begin negotiations with OfReg, the utility regulator, for a new license expected to involve restructured operating terms. The existing 1990 license remains active until the new one is issued.
La sussidiaria di Consolidated Water, Cayman Water Company, ha ottenuto una nuova concessione dal governo delle Isole Cayman, mantenendo i diritti esclusivi per produrre e fornire acqua potabile nella sua area di servizio a Grand Cayman. L'azienda gestisce tre impianti di dissalazione ad osmosi inversa che producono 4 milioni di galloni al giorno di acqua potabile e ha riportato un aumento delle vendite al dettaglio di acqua grazie alla crescita degli affari e della popolazione.
In seguito alle modifiche al quadro normativo delle Isole Cayman nel 2018, Cayman Water deve prima ottenere una concessione prima di assicurarsi una licenza operativa. L'azienda inizierà ora le trattative con OfReg, il regolatore dei servizi pubblici, per una nuova licenza che si prevede coinvolgerà termini operativi ristrutturati. La licenza esistente del 1990 rimane attiva fino all'emissione della nuova.
La subsidiaria de Consolidated Water, Cayman Water Company, ha asegurado una nueva concesión del gobierno de las Islas Caimán, manteniendo los derechos exclusivos para producir y suministrar agua potable en su área de servicio de Grand Cayman. La empresa opera tres plantas de desalinización por ósmosis inversa que producen 4 millones de galones por día de agua potable y ha reportado un aumento en las ventas de agua al por menor debido al crecimiento empresarial y de la población.
Tras los cambios en el marco regulatorio de las Islas Caimán en 2018, Cayman Water debe obtener primero una concesión antes de asegurar una licencia operativa. La empresa comenzará ahora negociaciones con OfReg, el regulador de servicios públicos, para una nueva licencia que se espera que implique términos operativos reestructurados. La licencia existente de 1990 permanece activa hasta que se emita la nueva.
컨솔리데이트 워터의 자회사인 케이맨 워터 컴퍼니는 케이맨 제도 정부로부터 새로운 양허를 확보하여 그랜드 케이맨 서비스 지역에서 음용수 생산 및 공급에 대한 독점권을 유지하게 되었습니다. 이 회사는 하루 400만 갤런의 음용수를 생산하는 세 개의 해수 역삼투압 담수화 플랜트를 운영하며, 사업 및 인구 증가로 인해 소매수도 증가했다고 보고했습니다.
2018년 케이맨 제도의 규제 프레임워크 변경에 따라, 케이맨 워터는 운영 라이센스를 확보하기 전에 먼저 양허를 받아야 합니다. 이 회사는 이제 운영 조건을 재구성할 것으로 예상되는 새로운 라이센스를 위해 유틸리티 규제 기관인 OfReg와 협상에 들어갈 것입니다. 기존의 1990년 라이센스는 새로운 라이센스가 발급될 때까지 유효합니다.
La filiale de Consolidated Water, Cayman Water Company, a obtenu une nouvelle concession du gouvernement des îles Caïmans, maintenant les droits exclusifs de produire et de fournir de l'eau potable dans sa zone de service de Grand Cayman. L'entreprise exploite trois usines de dessalement par osmose inverse qui produisent 4 millions de gallons par jour d'eau potable et a signalé une augmentation des ventes d'eau au détail en raison de la croissance des affaires et de la population.
Suite aux changements du cadre réglementaire des îles Caïmans en 2018, Cayman Water doit d'abord obtenir une concession avant de sécuriser une licence d'exploitation. L'entreprise va maintenant commencer des négociations avec OfReg, le régulateur des services publics, pour une nouvelle licence qui devrait impliquer des conditions d'exploitation restructurées. La licence existante de 1990 reste active jusqu'à l'émission de la nouvelle.
Die Tochtergesellschaft von Consolidated Water, die Cayman Water Company, hat eine neue Konzession von der Regierung der Kaimaninseln erhalten und behält die exklusiven Rechte zur Produktion und Lieferung von Trinkwasser in ihrem Servicebereich Grand Cayman. Das Unternehmen betreibt drei Meerwasser-Umkehrosmose-Entsalzungsanlagen, die 4 Millionen Gallonen pro Tag Trinkwasser produzieren, und hat aufgrund des Wachstums von Wirtschaft und Bevölkerung einen Anstieg des Einzelhandelsverkaufs von Wasser gemeldet.
Nach den Änderungen des regulatorischen Rahmens der Kaimaninseln im Jahr 2018 muss Cayman Water zunächst eine Konzession erhalten, bevor eine Betriebslizenz gesichert werden kann. Das Unternehmen wird nun mit OfReg, dem Regulierer für Versorgungsunternehmen, Verhandlungen über eine neue Lizenz aufnehmen, von der erwartet wird, dass sie umstrukturierte Betriebsbedingungen umfasst. Die bestehende Lizenz aus dem Jahr 1990 bleibt bis zur Ausstellung der neuen Lizenz aktiv.
- Secured exclusive water production and supply rights in Grand Cayman service area
- Currently operates 3 desalination plants producing 4M gallons daily
- Experiencing increased retail water sales due to local growth
- Maintains operational continuity through existing 1990 license until new terms are established
- New license requires negotiation of restructured terms with regulator
- Additional regulatory requirements implemented since 2018 framework changes
Insights
The new water concession represents a important regulatory achievement that reinforces Consolidated Water's monopolistic position in Grand Cayman's water infrastructure. This exclusive right to operate in their service area effectively creates a natural monopoly, providing significant competitive advantages and predictable revenue streams. The company's three desalination plants, with a 4 million gallons daily capacity, are well-positioned to capitalize on the island's growing water demands.
The regulatory transition presents both opportunities and challenges. While the two-step process (concession followed by operating license) adds complexity, the presence of OfReg officials at the concession signing suggests constructive regulatory relationships. This is particularly important as the company navigates the upcoming license negotiations, which will determine important operating parameters and potentially impact profit margins.
The company's nearly 50-year operational history in the Cayman Islands, combined with recent reports of increasing retail water sales, indicates strong market fundamentals. As an essential infrastructure provider in a growing island economy, Consolidated Water benefits from several strategic advantages:
- High barriers to entry due to exclusive rights and capital-intensive infrastructure
- Stable, recurring revenue streams from essential service provision
- Natural hedge against inflation through regulated pricing mechanisms
- Strategic positioning in a market with growing water demands driven by population and business expansion
The upcoming license negotiations will be pivotal, as the restructuring of operating terms could impact operational flexibility and financial performance. However, the company's essential role in the island's infrastructure and strong track record since 1973 provide significant negotiating leverage.
GEORGE TOWN, Cayman Islands, Feb. 24, 2025 (GLOBE NEWSWIRE) -- Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a leading designer, builder and operator of advanced water supply and treatment plants, reported that its wholly owned subsidiary, Cayman Water Company, has received its new concession from the Cayman Islands government that grants it the continued exclusive rights to produce and supply potable water within its existing service area on Grand Cayman, the largest island of the Cayman Islands.
Cayman Water Company operates three sea water reverse osmosis desalination plants on Grand Cayman that produce approximately 4 million gallons per day of potable water for the island’s residences and businesses. The company recently reported increased retail water sales due to the continued business and population growth on the island.
In 2018, the Cayman Islands enacted changes to its regulatory framework governing water utilities. This new framework requires Cayman Water to first be granted a concession before obtaining or renewing the associated operating license. Cayman Water will next commence negotiations with the Cayman Islands utility regulator, OfReg, to secure the license. The new license is expected to involve a restructuring of the previous operating terms and conditions.
“Given the regulatory changes, the grant of the concession was a critical step towards completing the negotiations for the new operating license,” noted Consolidated Water’s president and CEO, Rick McTaggart. “We were fortunate to have OfReg representatives present during the signing of the grant of concession, which indicates to us that our negotiations for the new license should commence shortly. We look forward to working closely with OfReg in providing clean, safe potable water for the communities which we have had the privilege to serve since 1973.”
Cayman Water’s existing operating license that it received in 1990 will remain in force until the new license is issued by OfReg.
About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. develops and operates advanced water supply and treatment plants and water distribution systems. The company designs, constructs and operates seawater desalination facilities in the Cayman Islands, The Bahamas and the British Virgin Islands, and designs, constructs and operates water treatment and reuse facilities in the United States. The company recently entered the U.S. desalination market with a contract to design, construct, operate and maintain a seawater desalination plant in Hawaii.
The company also manufactures and services a wide range of products and provides design, engineering, management, operating and other services applicable to commercial and municipal water production, supply and treatment, and industrial water and wastewater treatment.
Cautionary Note Regarding Forward-Looking Statements
This press release contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995). These statements express the Company’s current expectation of future events or its future performance and do not relate directly to historical or current events. As such, the Company’s future actions and related results may vary from any expectations or goals expressed in, or implied by, the forward-looking statements included in this press release, possibly to a material degree. The Company can offer no assurance that the assumptions made in preparing any of the forward-looking statements will prove accurate or that any long-term goals will be realized. All forward-looking statements included in this press release speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise publicly any such forward-looking statements, whether as a result of new information, future events, or otherwise. The Company can offer no assurance that a new license will be granted to Cayman Water by OfReg or if such license is granted that it will be on terms acceptable or favorable to Cayman Water.
For more information, visit cwco.com.
Company Contact:
David W. Sasnett
Executive Vice President and CFO
Tel (954) 509-8200
Email Contact
Investor & Media Contact:
Ron Both or Grant Stude
CMA Investor & Media Relations
Tel (949) 432-7566
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FAQ
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