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                                                                   Exhibit 10.18

                   FIRST AMENDMENT OF THE EMPLOYMENT CONTRACT

THIS AGREEMENT made this 17 day of April, 2000

BETWEEN:     CONSOLIDATED WATER CO. LTD. (formerly Cayman Water
             Company Limited), a Cayman Islands company having its registered
             office at Trafalgar Place, West Bay Road, P.O. Box 1114GT, Grand
             Cayman, B.W.I. (the "Company")

AND:         GREGORY SCOTT McTAGGART of Ocean Club Condominiums, P.O.
             Box 1114GT, Grand Cayman, B.W.I. (the "Vice President")

WHEREAS:

A.       The Company and the Vice President entered into an employment contract
         dated the 19th August, 1998 (the "Employment Contract").

B.       The parties are desirous of amending the same in accordance with the
         terms of this Agreement.

NOW IN CONSIDERATION of the mutual covenants contained herein the parties agree
that the Employment Contract shall be amended and/or rectified as follows:

         1.       Renumbering existing Clause 4 as 4(A) and adding the following
                  as Clauses 4(B), 4(C), 4(D) and 4(E)

         4(B)     Further, commencing in the financial year 2000 and for each
                  year thereafter, subject to any approvals of Government which
                  may be necessary at the time at which the option is exercised,
                  the Vice President shall be granted an option to purchase, at
                  the "Exercise Price", payable in cash in full on the exercise
                  of the option, a number of Ordinary Shares equal to the number
                  of US$ which represents .75% of the net profit of the Company
                  calculated as aforesaid for that financial year.

         4(C)     The "Exercise Price" shall be the avenge of the closing market
                  price of the Company's Ordinary shares on each of the first
                  seven trading days in the month of October of that financial
                  year."

         4(D)     The options granted pursuant to Clause 4(B) may be exercised
                  by the Vice President at any time after they vest and before
                  the close of the Company's business the day before the third
                  anniversary of the date of the Auditors Report on the
                  Financial Statements for the relevant financial year.





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         4(E)     For the avoidance of doubt, it is hereby agreed that the Vice
                  President shall be entitled to participate in and to receive
                  Redeemable Preference Shares pursuant to his participation in
                  the Employee Share Incentive Plan, in respect of the financial
                  year 1999, during the calendar year 2000 but not thereafter.

2.       The parties have acknowledged that the Employment Contract shall remain
         binding and effective in accordance with its terms except as expressly
         amended hereby.

THE PARTIES HERETO have set their hands and seals the day and date first above
written.


SIGNED AND SEALED in the presence of:
                                     )
                                     )
                                     )
                                     )
                                     )
/s/ Peter D. Ribbins                 )      /s/  J.M. Parker
------------------------------------        ------------------------------------
witness                                     Consolidated Water Co. Ltd.



SIGNED AND SEALED in the presence of:
                                     )
                                     )
                                     )
                                     )
                                     )
/s/ Peter D. Ribbins                 )      /s/ Gregory Scott McTaggart
------------------------------------        ------------------------------------
witness                                     Gregory Scott McTaggart


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