Consolidated Water’s PERC Water Wins 10-Year, $49.2 Million Contract from Water Replenishment District of Southern California
Consolidated Water Co. Ltd. (CWCO) has secured a contract extension valued at $49.2 million to operate and maintain two advanced water treatment facilities in Southern California, beginning in 2023. The contract, held by its subsidiary PERC Water Corporation, extends for 10 years with two optional 5-year extensions. The facilities include the Albert Robles Center and the Leo J. Vander Lans Facility, which purify nearly 15 million and 8 million gallons per day, respectively. This milestone is expected to bolster CWCO's growth amid ongoing drought conditions in the region.
- Contract extension valued at $49.2 million enhances revenue stability over the next 10 years.
- Increased scope of work includes asset management, compliance monitoring, and plant optimization.
- Facility operations support regional water supply amid unprecedented drought conditions.
- None.
GEORGE TOWN, Grand Cayman, Oct. 24, 2022 (GLOBE NEWSWIRE) -- Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a leading developer and operator of advanced water supply and treatment plants, has been awarded an expanded contract to operate and maintain two advanced water treatment facilities in Southern California.
The contract was secured by the company’s California-based subsidiary, PERC Water Corporation, which develops, designs, builds, operates and manages water infrastructure facilities in the Southwestern U.S. The new contract includes the Albert Robles Center for Water Recycling & Environmental Learning (ARC) in Pico Rivera, California, and the Leo J. Vander Lans Advanced Water Treatment Facility (LVL) in Long Beach, California.
PERC currently operates the two facilities under an agreement that expires at the end of the year. The new contract increases the scope of work to include asset management, increased compliance monitoring and plant optimization. The new contract begins at the start of 2023 and continues for 10 years with two optional 5-year extensions. The first 10 years of the contract is valued at
“This major win resulted from the tremendous work and dedication of our entire operating team over the last several years,” stated PERC Water’s president, Nathan Owen. “We will continue to provide our client and the communities serviced by these facilities the highest level of water quality.”
PERC was a member of the design-build team for ARC in 2018, and then continued to operate and maintain the plant which purifies nearly 15 million gallons per day. ARC is owned by the Water Replenishment District of Southern California. The facility features a fully advanced treatment process of ultrafiltration, reverse osmosis and ultraviolet advanced oxidation process (UVAOP) that purifies water for regional groundwater replenishment.
PERC began operating the LVL facility in April 2020. It is designed to produce over 8 million gallons per day of treated water through a fully advanced treated process consisting of microfiltration, reverse osmosis and UV advanced oxidation
According to Consolidated Water CEO, Rick McTaggart: “This milestone win is PERC’s longest-term contract and represents a significant affirmation of the world-class operation services and asset management that PERC provides. As such, we anticipate this win will support our plans to continue growing this area of our business in the Western U.S., which is currently experiencing unprecedented drought conditions.”
About Albert Robles Center for Water Recycling & Environmental Learning
The Albert Robles Center for Water Recycling & Environmental Learning purifies 10,000 acre-feet of water per year which is used for regional groundwater replenishment. The treatment facility, which became operational in 2019, uses an advanced treatment three-step process of ultrafiltration, reverse osmosis, and ultraviolet light with advanced oxidation to purify up to 14.8 million gallons per day of tertiary treated water sourced from the Los Angeles County Sanitation Districts’ San Jose Creek Water Reclamation Plant.
Reclaimed water, which would have otherwise been discharged to the ocean, is further purified at ARC and is utilized for groundwater replenishment along with other reclaimed sources at the L.A. County owned and operated Montebello Forebay Spreading Grounds. This solution reduces the regional strain on imported water supplies and prevents excessive loss of freshwater to the ocean. To learn more about ARC, visit wrd.org/ARC.
About Leo J. Vander Lans Advanced Water Treatment Facility
Located in the City of Long Beach, the Leo J. Vander Lans Advanced Water Treatment Facility was built in 2003 and expanded in 2014. This facility is designed to produces 8 million gallons per day of advanced-treated water through a three-stage treatment process consisting of microfiltration, reverse osmosis and disinfection with advanced oxidation. It provides advanced treated water for the Alamitos Barrier in Long Beach and plays a vital role in the Central Groundwater Basin. To learn more, go to wrd.org.
About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. develops and operates advanced water supply and treatment plants and water distribution systems. The company operates water production facilities in the Cayman Islands, The Bahamas and the British Virgin Islands and operates water treatment facilities in the United States. 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. For more information, visit www.cwco.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "intend", "expect", "should", "will" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Except for statements of historical fact, the information contained herein constitutes forward-looking statements and includes, but is not limited to, (i) the expected performance of the Company under, and successful completion of, the contract, (ii) the projected revenues to be received by the Company in connection with the contract. For more information about risks and uncertainties associated with the company’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the company’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting the company’s Secretary at the company’s executive offices or at the “Investors – SEC Filings” page of the company’s website at http://ir.cwco.com/docs. Except as otherwise required by law, the company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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