The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

BISX-listed Consolidated Water yesterday said that for 2013 to-date its Blue Hills reverse osmosis plant had supplied the Water & Sewerage Corporation with water volumes 17 per cent above what its contract required.

Rick McTaggart, Consolidated Water’s chief executive, told a conference call with Wall Street analysts that the 67 per cent expansion of Blue Hills to 12 million gallons per day had driven the 32 per cent increase in water volumes sold by its ‘bulk’ supply operations.

In turn, this had driven a 33 per cent rise in Consolidated Water’s bulk revenues for 2012 to $40.8 million.

“This increase in volume resulted from the expansion of the Blue Hills plant in Nassau, which was expanded by 67 per cent in November 2011,” Mr McTaggart said. “Bulk gross profit compared to revenues remained consistent with 2011 at 22 per cent.”

And he added: “The expansion of the Blue Hills plant continues to operate better than we expected, and so far this year we have delivered almost 17 per cent more water than the contract guarantees.”

Mr McTaggart also confirmed Tribune Business’s revelations that Consolidated Water was seeking a five-year extension of its supply agreement with the Water & Sewerage Corporation for the Windsor plant, which expires in May 2013.

“Also in the Bahamas, the Windsor contract is set to expire in mid-May when we reach the contracted delivery volume of 10.75 billion imperial gallons of water over the last 15 years,” Mr McTaggart told analysts.

“We’ve submitted a proposal to the Corporation in October last year to extend the contract for an additional five years, and we’re awaiting its decision.

“In the event the Corporation decides not to extend the contract, then we would enter into negotiations to sell the plant and equipment to the Corporation, and lacking any agreement on the sale we would remove the plant and the equipment from the site.”

Tribune Business revealed earlier this week that Consolidated Water faced competition for the Windsor supply agreement from a Bahamian investor group headed by former Water & Sewerage Corporation chairman, Don Demeritte.

Water & Sewerage Corporation chairman, Bradley Roberts, said of the situation: “The position is this. The contract with Consolidated Water is coming to an end. Therefore, it is the Corporation’s position to decide whether to renew or give it to someone else.”

And he added: “We’ve already received one expression of interest” in reference to Mr Demeritte and his group.