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Consolidated Water Co. Ltd., which develops and operates seawater desalination plants and water distribution systems, has signed a PPP contract with Aguas de Rosarito S.A.P.I. de C.V. (AdR), the special purpose project company owned by NuWater S.A.P.I. de C.V. and N.S.C. Agua, S.A. de C.V.  for the design, build, financing, operation, and maintenance (DBFOM) of a seawater desalination plant in Playas de Rosarito, Baja California, Mexico. 

Degremont S.A. de C.V., a subsidiary of Suez Environmental of France has been selected by AdR to design and construct the Project.

The PPP contract was executed between AdR, the State Water Commission of Baja California (CEA), the Government of Baja California represented by the Secretary of Planning and Finance (SPF), and the Public Utilities Commission of Tijuana. 

The concession contract requires AdR to design, construct, finance and operate a seawater desalination plant (and accompanying aqueducts) with a capacity of up to 100 million gallons per day in two phases: the first with a capacity of 50 million gallons per day and an aqueduct to the Mexican potable water system in Tijuana, Baja California; and the second phase with a capacity of 50 million gallons per day and an aqueduct to a second delivery point in Tijuana. 

The first phase must be operational within 36 months of commencing construction, and the second phase must be operational by the end of 2024.  The PPP contract further requires AdR to operate and maintain the plant and aqueducts for a period of 37 years starting from the commencement of operation of the first phase.  At the end of the operating period the plant and aqueducts will be transferred to CEA.

The total project cost is expected to be approximately MXN9 billion (US$484 million). AdR expects to raise Mexican peso denominated debt financing through a consortium led by the North American Development Bank, which also provided financial advisory services to the company and its partners through the bidding process and contract negotiations.

Rick McTaggart, Consolidated Water Co. Ltd. Executive Officer, said:

"The execution of a definitive agreement to design, construct, finance and operate the 100 million gallon per day Rosarito Seawater Desalination plant in Baja California, Mexico is the culmination of more than six years of development work by the Company and its partners. 

We are obviously very pleased that the Government of Baja California has the placed its confidence and trust in our team to execute this project which will eventually supply drinking water to millions of people in northwest Mexico.  We would also like to acknowledge the initiative and efforts of the Governor of Baja California and his staff that made this project a reality - a project that will ensure that the State has a reliable and drought-proof source of drinking water for its citizens for the next 40 years."