Cayman Islands Consolidated Water

CAYMAN WATER COMPANY LIMITED ("CAYMAN WATER")

Consolidated Water Co. Ltd. sells water through our retail operations to a variety of residential and commercial customers through our wholly owned subsidiary Cayman Water, which operates under an exclusive license issued to us by the Cayman Islands Government under the Water Production and Supply Law of 1979.  Established in 1998, Cayman Water supplies water to end-users, including residential, commercial and Government customers.

Pursuant to the license, we have the exclusive right to produce potable water and distribute it by pipeline to our licensed service area, which includes the Seven Mile Beach and West Bay areas of Grand Cayman, two of the three most populated areas in the Cayman Islands.  The only non-government owned public water utility on Grand Cayman, Cayman Water owns and operates three seawater reverse osmosis desalination plants to supply its retail customers within its licensed service area on Grand Cayman.

Our Cayman Islands Retail Water desalination plants are located at:

Since the Governor's Harbour and West Bay plants began production of water and the Britannia plant was rebuilt, these plants have consistently been capable of operating at, or near, their rated capacity.

Electricity to our plants is supplied by Caribbean Utilities Co. Ltd. (“CUC”), a publicly traded utility company. We maintain diesel driven, standby generators at all three plant sites from which we supply water to our distribution pipelines.  During any temporary interruptions in electricity supply, these generators provide sufficient capacity to operate our distribution pumps and other essential equipment, but not our reverse osmosis desalination equipment.

Feed water for the reverse osmosis units is drawn from deep wells with associated pumps on the properties. Reject water is discharged into brine wells on the properties at a deeper level than the feed water intakes.

In the event of an emergency, our distribution system is connected to the distribution system of the Water Authority-Cayman.

Our pipeline system in the Cayman Islands covers the Seven Mile Beach and West Bay areas of Grand Cayman and consists of approximately 71 miles of PVC pipeline. We extend our distribution system periodically as property developments are completed. We have a main pipe loop covering a major part of the Seven Mile Beach area. We place extensions of smaller diameter pipe off our main pipe to service new developments in our service area. This system of building branches from the main pipe keeps construction costs low and allows us to provide service to new areas in a timely manner. During 2007 and 2008, we completed a number of small pipeline extensions into newly developed properties within our distribution system. Developers are responsible for laying the pipeline within their developments at their own cost, but in accordance with our specifications. When a development is completed, the developer then transfers operation and maintenance of the pipeline to us.

We have a comprehensive layout of our pipeline system, superimposed upon digital aerial photographs, which is maintained using a computer aided design system. This system is interconnected with a computer generated hydraulic model, which allows us to accurately locate pipes and equipment in need of repair and maintenance. It also helps us to plan extensions and upgrades.

Visit our Retail website at www.caymanwater.ky for more information on our retail customer services.