Attached files
| file | filename |
|---|---|
| 8-K - Consolidated Water Co. Ltd. | v210070_8k.htm |
| EX-10.1 - Consolidated Water Co. Ltd. | v210070_ex10-1.htm |
| EX-10.2 - Consolidated Water Co. Ltd. | v210070_ex10-2.htm |
EXHIBIT
10.3
Portions
of this document have been omitted
pursuant
to a request for confidential treatment. The
omitted
portions are marked ***** and have been
filed
separately with the Commission.
December
8, 2010
Mr. Glen
Laville
General
Manager
Water and
Sewerage Corporation
87
Thompson Blvd.
P.O. Box
N-3905
Nassau,
Bahamas
SUBJECT TO
CONTRACT
Dear
Glen,
|
RE:
|
Proposal
to Expand the Blue Hills Seawater Desalination Plant, New Providence,
Bahamas
|
Thank you
for considering Consolidated Water Bahamas Ltd. (CWCO) to further assist the
Water and Sewerage Corporation (WSC). We understand the sense-of-urgency with
the water supply situation and have compiled a staged solution that we are
confident will satisfy your requirements. Additionally, the CWCO
solution provides additional water supply in close proximity to the island’s
main demand area, thereby possibly reducing non-revenue water (NRW) over an
alternate supply significantly removed from the main demand area.
The
Consolidated Water Bahamas solution will resolve the Arawak Cay barging problem
with an additional 6.0-MIGD production at the Blue Hills
facility. 2.7-MIGD of the 6.0-MIGD will replace the Arawak Cay
barging operation. * * * * *. The immediate benefit to WSC
of a Blue Hills expansion is to eliminate the need to relocate the Arawak Cay
facility. The associated savings are estimated to be $7,000,000.00. The
WSC water rate will also be reduced resulting in the savings estimated in the
table below.
WSC
Water Savings
*
* * * *
Executive Offices, P.O. Box
1114, Grand Cayman, KY1-1102, Cayman Islands, T: (345) 945-4277, F (345)
949-2957, Email: info@cwco.com
CONFIDENTIAL
Portions
of this document have been omitted
pursuant
to a request for confidential treatment. The
omitted
portions are marked ***** and have been
filed
separately with the Commission.
* * * *
*
This
proposal is subject to finalization in the form of a suitable amendment to the
existing New Providence Seawater Reverse Osmosis Plant Contract dated May 2005
(“the Original Contract”). Please consider the information within this proposal
confidential.
Subject
to execution of a suitable amendment to the Original Contract, that incorporates
an extension of the term to at least twenty
(20)
years from the end of the existing contract term, Consolidated Water is prepared
to provide the Corporation with additional desalinated water on the following
terms and conditions;
Consolidated
Water scope of supply includes;
|
|
1.
|
Within
eight (8) months of contract amendment execution and the Corporation’s
written Authorization to Proceed, design, procure, fabricate, ship,
assemble, install and commission a modification of and expansion to the
existing Blue Hills seawater reverse osmosis desalination plant. The total
capacity of the plant will become 12.0 million Imperial gallons of water
per day, with a daily guaranteed delivery to WSC of 10.3 million Imperial
gallons of water per day (or 10.0 million Imperial gallons of water per
day, with a daily guaranteed delivery to WSC of 8.5 million Imperial
gallons of water per day depending on the selected Expanded Plant size).
The expansion shall be comprised of the existing plant, plus additional
desalination units, seawater extraction wells, brine injection wells, and
product transfer system (“the Expanded Plant”). The product transfer
system shall include all tanks, pumps and associated pipe work up to the
existing tariff meter, plus an upgraded product transfer pipeline between
the tariff meter and the Corporation’s reservoirs. The product transfer
system would not include any additional reservoirs. The Expanded Plant
will be enclosed in a suitably constructed building that meets all local
building codes;
|
Deliver
water with a chloride content of less than 250 mg/l. The water quality
parameters and the post-treatment system of the Expanded Plant would include pH
adjustment and chlorination only.
|
|
2.
|
Finance
the design and construction of the Plant Expansion for twenty (20)
years;
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|
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3.
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Operate
and maintain the Expanded Plant, and shall meet all costs of and
associated with its operation and
maintenance;
|
Executive Offices, P.O. Box
1114, Grand Cayman, KY1-1102, Cayman Islands, T: (345) 945-4277, F (345)
949-2957, Email: info@cwco.com
CONFIDENTIAL
|
|
4.
|
Provide
all chemicals, filters, replacement membrane elements, replacement parts
and other consumables for the Plant, and maintain an adequate supply of
spare parts to ensure the reliable operation of the Expanded
Plant;
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|
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5.
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Make
every effort to supply the demand of the Customer at all times up to the
design capacity of the expanded plant, and shall guarantee to provide not
less than 72.1 million Imp. gallons (or 59.5 million IG depending on the
selected size of the Expanded Plant) of water to the Customer each and
every week during the term of the extended
agreement;
|
The Water
and Sewerage Corporation scope of supply includes;
|
|
1.
|
Provide
all Bahamas government licenses, permits and other approvals relating to
the Expanded Plant for the proposed land use, abstraction of seawater from
the ground, injection of concentrated brine into the ground, and operation
of the Expanded Plant;
|
|
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2.
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Provide
a site, acceptable to Consolidated Water, for the seawater extraction
wells and brine injection wells. The feed water extraction boreholes and
brine injection boreholes shall be no farther than 350 ft. from the
Expanded Plant;
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3.
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Provide
a site, acceptable to Consolidated Water, for the Expanded Plant no
farther than 200 ft. from the existing Blue Hills
plant;
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|
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4.
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Pay
all customs import duties (if any) on materials and equipment imported
into the Bahamas and used to construct and operate the Expanded Plant
throughout the term of the extended
agreement;
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|
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5.
|
Pay
all invoices issued by Consolidated Water after commissioning of the
Expanded Plant in accordance to the new unit
rate.
|
Additional
Conditions
|
|
1.
|
Consolidated
Water has not provided in this price for a Construction Performance Bond
during the construction period of the Expanded
Plant;
|
|
|
2.
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Diesel
engine emissions from the Expanded Plant would be the same as those agreed
for the Blue Hills Plant, and not as per the Original
Contract;
|
Executive Offices, P.O. Box
1114, Grand Cayman, KY1-1102, Cayman Islands, T: (345) 945-4277, F (345)
949-2957, Email: info@cwco.com
CONFIDENTIAL
|
|
3.
|
The
unit rate below does not include an additional environmental assessment of
the site for the expanded operation. If these additional works were
required, we reserve the right to adjust our proposed rates to reflect
those additional costs.
|
This
proposal is valid for 90 days, after which period we reserve the right to adjust
the rates to reflect any changes in our costs.
I look
forward to meeting with you in Nassau on Tuesday December 7th, 2010
to discuss the details and execution of this proposal. Please do not
hesitate to contact me before Tuesday if you have any questions. I believe that
Consolidated Water has demonstrated the very highest level of commitment to the
Corporation and to the Bahamas over the past thirteen years, and I hope that you
will find this proposal acceptable.
I look
forward to talking with you soon.
Yours
sincerely,
/s/ Brent
Brodie
Brent
Brodie
Director
of Sales & Marketing
Executive Offices, P.O. Box
1114, Grand Cayman, KY1-1102, Cayman Islands, T: (345) 945-4277, F (345)
949-2957, Email: info@cwco.com
CONFIDENTIAL