Consolidated Water conducts operations in the Cayman Islands, The Bahamas, the British Virgin Islands, Indonesia, and the United States through the following operating subsidiaries and affiliates:
Cayman Water Company Limited
Cayman Water operates under an exclusive retail license granted by the Cayman Islands government to provide water to customers within a prescribed service area on Grand Cayman that includes the Seven Mile Beach and West Bay areas, two of the three most populated areas in the Cayman Islands. The only non-government owned public water utility on Grand Cayman is Cayman Water which owns and operates four desalination plants.
This subsidiary, a United States company, provides financial, engineering and supply chain management support services to our subsidiaries and affiliates.
Consolidated Water (Bahamas) Limited
We own a 90.9% equity interest in CW-Bahamas, which provides bulk water under long-term contracts to the Water and Sewerage Corporation of The Bahamas, a government agency. CW-Bahamas owns and operates our largest desalination plant and two other desalination
Ocean Conversion (Cayman) Limited
OC-Cayman provides bulk water under various licenses and agreements to the Water Authority-Cayman, a government-owned utility and regulatory agency, which distributes the water to properties located outside our exclusive retail license service area in Grand Cayman. OC-Cayman operates three desalination plants owned by the Water Authority-Cayman.
Aerex Industries Inc.
“Aerex Industries Inc.”
CWCI acquired 51% of the ownership of Aerex Industries, Inc. (“Aerex”), effective February 11, 2016. Aerex is an original equipment manufacturer and service provider of a wide range of products and services applicable to municipal water treatment and industrial water and wastewater treatment. The company’s products include membrane separation equipment, filtration equipment, piping systems, vessels and custom fabricated components. Aerex also provides engineering, design, consulting, inspection, training and equipment maintenance services. Aerex is an American Society of Mechanical Engineers (ASME) code accredited manufacturer and maintains the ASME U and S and the National Board NB and R Certificates of Authorization. The company’s corporate offices and manufacturing facilities are located in Fort Pierce, Florida.
Consolidated Water (Bermuda) Limited
In January 2007, our affiliate, Consolidated Water (Bermuda) Limited (“Bermuda”) entered into a design, build, sale and operating agreement with the Government of Bermuda for a desalination plant to be built in two phases at Tynes Bay along the northern coast of Bermuda. Under the agreement, CW-Bermuda constructed and operated the plant from the second quarter of 2009 through the expiration of the agreement on June 30, 2011. We do not expect to receive any future fees or revenues from CW-Bermuda.
A Cayman Islands company, DesalCo provides management, engineering and construction services for desalination projects.
Ocean Conversion (BVI) Ltd.
We own 50% of the voting stock of our affiliate, OC-BVI, a British Virgin Islands company, which sells bulk water to the Government of the British Virgin Islands Water and Sewerage Department. We own an overall 43.5% equity interest in OC-BVI’s profits and certain profit sharing rights that raise our effective interest in OC-BVI’s profits to approximately 45%. OC-BVI also pays our subsidiary DesalCo Limited fees for certain engineering and administrative services. We account for our investment in OC-BVI under the equity method of accounting.