EXHIBIT 10.2

Portions of this document have been omitted
pursuant to a request for confidential treatment.  The
omitted portions are marked ***** and have been
filed separately with the Commission.

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WATER AND SEWERAGE CORPORATION
87 Thompson Blvd.
P.O. Box N-3905, Nassau, Bahamas
www.wsc.com.bs
 
“Committed to Growth, Committed to Quality”
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LETTER OF ACCEPTANCE
 
Our Ref:  WSC 236/13
Date:  January 25, 2011

CONSOLIDATED WATER CO. LTD.
Trafalgar Place
P.O. Box 1114 GT
George Town, Grand Cayman
Cayman Islands
 
ATTN.: 
MR. FREDERICK McTAGGART

PRESIDENT & CEO
 
Dear Sir,
 
BLUE HILLS SEAWATER REVERSE OSMOSIS PLANT EXPANSION
 
The Water and Sewerage Corporation (“WSC”) hereby accepts Consolidated Water Co.
Ltd. (“CWCO”) Proposal dated December 8, 2010, for the expansion of the existing
Blue Hills Seawater Reverse Osmosis (BHRO) Plant on a Build Own, and Operate
(BOO).
 
The expansion shall have an installed production capacity of 4.0 Migd.  The WSC
will guarantee to purchase 3.5 Migd at a price of * * * * */1000imperial gallons
from the expansion plant in accordance with the attached rate sheet.  It is
agreed that discussions are ongoing regarding combining the rate sheets for the
expansion and existing plant however these discussions must not and will not
delay the commencement of construction.
 
The expansion plant is to be commissioned no later than eight (8) months from
the date of issue of this Letter of Acceptance which also serves as an
Authorization to Proceed.  Terms and conditions will remain as per the existing
contract.
 
CONFIDENTIAL

 
 

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BLUE HILLS SWRO EXPANSION
25-JAN-2011
LETTER OF ACCEPTANCE
 

 
Until a formal Amendment to the existing contract is executed, this Letter of
Acceptance, together with your Proposal, will constitute a full and binding
agreement between CONSOLIDATED WATER CO. LTD. and the WATER AND SEWERAGE
CORPORATION.
 
Please acknowledge receipt and acceptance of the above conditions by signing and
returning the enclosed copy of this letter.
 
Yours faithfully,
 
WATER AND SEWERAGE CORPORATION
   
Signature: 
/s/ Glen F. Laville
 
  Glen F. Laville

Title: 
General Manager

 
Acknowledged and Accepted on behalf of:

CONSOLIDATED WATER CO. LTD.
 
Signature: 
/s/ Frederick W. McTaggart
 
  Frederick W. McTaggart

Title: 
President & CEO
   
Date:
January 31, 2011

CONFIDENTIAL
 

 
 

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Portions of this document have been omitted
pursuant to a request for confidential treatment.  The
omitted portions are marked ***** and have been
filed separately with the Commission.

Blue Hills Expansion
4 MIGPD expanded capacity
3.5 MIGPD Guarantee
Plant Production Rate, IGPD
3,500,000
Availability Factor
1.0000
Annual Prod. kgal/yr
1,277,500
Annual Interest Rate
*****
Plant Capital Cost
*****
Number of Years
20
Production Costs (Annual)
Annual Cost
B$/kigal
FIXED COSTS
 
Total
Fixed Charges – Capital Repayment
*****
*****
General & Administrative (Note 1)
*****
*****
Operation & Maintenance Labor
*****
*****
Overhead & Profit on Labor
*****
*****
SUBTOTAL FIXED COSTS
*****
*****
Note 1:  includes allowance for bonding and insurance
   
CONSUMABLES
B$/US gal
US gal/klgal
   
Diesel Fuel
2.350
*****
*****
*****
Electricity
B$/kwh
kwh/klgal
   
Power Consumption
0.2720
*****
*****
*****
 
B$/kVA/yr
Max. kVA
   
Demand Charge
136.32
*****
*****
*****
 
B$/lb
Ib/klgal
   
Total Chemical Consumables
   
*****
*****
   
-
*****
Spare Parts & Equipment Consumables
*****
*****
 
*****
*****
Subtotal Consumables-less Profit
*****
*****
Overhead & Profit on Consumables
*****
*****
SUBTOTAL CONSUMABLES
*****
*****
TOTAL PRICE:
*****
*****

 
CONFIDENTIAL

 
 

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