Consolidated Water Co. Ltd. (CWCO), a leading developer and operator of advanced water supply and treatment plants, has announced a significant milestone in its operations.
Its indirect subsidiary, Kalaeloa Desalco LLC, has signed a definitive agreement with the Honolulu Board of Water Supply (BWS) to design, build, operate, and maintain a seawater reverse osmosis desalination plant. This venture marks Consolidated Water's first seawater reverse osmosis desalination facility in the United States and represents a major achievement for the company.
The plant will be constructed on the premises of the former Barbers Point U.S. Naval Air Station in the Kalaeloa Regional Park District on the island of Oahu.
Kalaeloa Desalco, jointly owned by CWCO's wholly owned subsidiaries, PERC Water Corporation, and Consolidated Water U.S. Holdings, Inc., will undertake the development, permitting, pilot testing, design, and construction of the facility within the first 44 months of the agreement.
Once completed, the plant will have the capacity to deliver 1.7 million gallons of potable water to the BWS around the clock. Under the terms of the agreement, Kalaeloa Desalco will also manage and maintain the facility for a period of 20 years, with the potential for two additional five-year extensions.
The corporation estimates that the contract's 24-year base period will generate revenue of approximately $204 million in current dollars. During the initial 44-month phase, revenue is projected to reach $149.6 million from various activities, including development, permitting, piloting, design, and construction.
It is worth noting that construction charges may be subject to fluctuations in material and labor cost indices during the pilot testing, permitting, and design stages.
Throughout the 20-year operational phase, Consolidated Water expects to earn approximately $2.7 million annually in current dollars through operation fees, which will be adjusted annually based on changes in material and labor indices.
It is important to consider that the project's revenues may be influenced by factors such as the development process, piloting, permitting, design, and fluctuations in material and labor cost indices at the start of construction and operations.
Rick McTaggart, CEO of Consolidated Water, expressed his enthusiasm for this landmark achievement, emphasizing the company's world-class design, construction, and operational services. With over 50 years of experience in the field, Consolidated Water has established a strong reputation for designing and operating energy-efficient seawater desalination plants.
The company's exceptional track record played a crucial role in securing this contract, along with the expertise of key project members including Nordic PCL Construction, Pacific Advanced Civil Engineering, and Bowers + Kubota Consulting.
McTaggart also highlighted the strategic significance of entering the U.S. desalination plant market, particularly in light of the ongoing drought conditions in the Western United States.
The project aligns with the Board of Water Supply's O'ahu Water Master Plan, which predicts rising demand for potable water in the region. It is estimated that potable water consumption will increase from 24 million gallons per day in 2019 to approximately 27 million gallons by 2030.
Furthermore, the Kalaeloa desalination facility will play a crucial role in meeting this growing demand for clean drinking water. Consolidated Water's foray into the U.S. desalination plant market sets the stage for additional opportunities in the Western U.S.
The company's extensive expertise and proven track record position it well to address the pressing need for sustainable water supply solutions in regions grappling with water scarcity.
