GEORGE TOWN, Cayman Islands, 09 Feb. 18, 2022 (GLOBE NEWSWIRE) — Consolidated Water Coöperatief, UA (“CW Coop”), the Dutch subsidiary of Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a leading developer and operator of advanced water supply and treatment plants, has filed for arbitration with the International Center for Settlement of Investment Disputes (“ ICSID”) seeking to recover over US$51 million plus MXN$137 million from the Mexican government (with exact amount to be quantified in the proceeding), plus pre- and post-award fees, costs and interest , related to CW Coop’s investment in a seawater desalination project in Playas de Rosarito, Mexico.

The dispute relates to investments made by CW Coop and its Mexican subsidiaries, NSC Agua, SA de CV and Aguas de Rosarito, SAPI de CV (“AdR”), in the development of a seawater desalination plant in 100 million gallons per day and associated pipelines in Playas de Rosarito, Baja California, Mexico (“Project”). The project was designed to provide drinking water to an area of ​​Mexico that continues to face water shortages.

In August 2016, AdR signed a Public-Private Partnership Agreement (“PPA Agreement”) with several Mexican state entities, including the State of Baja California, Mexico (“State Entities”) for the development, financing, construction and operation of the project.

In June 2020, the state entities terminated the APP contract on grounds disputed by CW Coop. In August 2020, AdR submitted a request for reimbursement of expenses and investments incurred in connection with the Project, in accordance with the APP Agreement and Mexican law. AdR presented proof of project investments and expenses totaling approximately US$51 million plus MXN$137 million. To date, no reimbursement has been made to the AdR.

“We invested nearly $60 million in the project over several years, investments that were justified given the decision by state entities to award us the APP contract and the pressing water shortage in Lower California, Mexico,” commented Rick McTaggart, CEO of Consolidated Water Co. Ltd and director of CW Coop. “This project, when completed, would have ensured a safe and drought-resistant water supply for the people of northwestern Mexico for several decades. However, the project was terminated by the client in June 2020 for reasons that , in our opinion, are not legally founded.Although we are entitled, at a minimum, to the reimbursement of our expenses and investments, after more than 18 months, we have not been paid.

“We will continue to vigorously pursue all legal means to obtain compensation for the benefit of our shareholders and believe that referring this dispute to ICSID is the most effective way to do so,” McTaggart concluded.

CW Coop intends to vigorously pursue the relief sought in the arbitration, in addition to pursuing all other legal remedies and avenues of action available under applicable contracts and applicable law with respect to its rights, damages, costs and expenses. The Company cannot guarantee that CW Coop will be able to obtain the relief sought in the arbitration and will incur legal and other related costs that could be material to the Company’s consolidated results of operations.

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, operations and other services applicable to the production, supply and treatment of commercial and municipal water, as well as the treatment of industrial water and wastewater. For more information, visit www.cwco.com.

Caution Regarding Forward-Looking Statements
This press release contains statements that may constitute “forward-looking” statements, generally containing the words “believe”, “estimate”, “project”, “intend”, “expect”, “should”. , “go” 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. Factors that would cause or contribute to such differences include, but are not limited to (i) continued market acceptance of the Company’s products and services; (ii) changes in its relationship with the governments of the jurisdictions in which it operates; (iii) the outcome of its negotiations with the Cayman government regarding a new retail license agreement; (iv) the collection of its overdue accounts receivable in the Bahamas; (v) the potential negative impact of the COVID-19 virus on the Company’s business; and (vi) various other risks, as detailed in the company’s periodic reports filed with the Securities and Exchange Commission (“SEC”). For further information on the 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 filings. by the company with the SEC, 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 Secretary at the office Company Executive or on 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 publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Company Contact:
David W. Sasnett
Executive Vice President and Chief Financial Officer
Tel (954) 509-8200
[email protected]

Contact with Investor Relations:
Ron Both or Justin Lumley
CMA
Tel (949) 432-7566
Contact us by email

Media Contact:
Tim Randall
CMA
Tel (949) 432-7572
Contact us by email