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                                                                   Exhibit 10.17



                              EMPLOYMENT CONTRACT


THIS AGREEMENT is made the 19th day of August 1998
BETWEEN CAYMAN WATER COMPANY LIMITED, a Cayman Islands company having its
registered office at Trafalgar Place, West Bay Road, P.O. Box 1114, George Town,
Grand Cayman, B.W.I. ("the Company")

AND

GREGORY SCOTT MCTAGGART of P.O. Box 1114, George Town, Grand Cayman, B.W.I.
("The Vice President")

IT IS AGREED as follows:-

Employment

1        The Vice President is engaged as Vice President - Operations ("the
         Capacities") of the Company for three (3) years commencing on the 19
         August 1998 but subject to the extension provisions set out in clause
         19 and subject to the termination provisions set out in clauses 16, 17
         and 18.

Remuneration

2        The Vice President's salary is fixed until 31st. December, 1998 at
         CI$64,085 per annum, payable monthly in arrears, less deductions
         (other than for Medical Insurance) and other payments which the Company
         is by law entitled or required to deduct from an employee's
         remuneration.

3        The Vice President's salary will be reviewed as of each January 1st.
         by the Company's Board of Directors ("the Board") who may grant an
         increase but shall not reduce the Vice Presidents salary below the
         level set out in Clause 2 hereof.

4        Further, for each completed financial year, beginning with the
         financial year 1998, during which the Vice President serves in the
         Capacities, not later than 28th. February following the end of each
         financial year, the Vice President will be paid a bonus of:-

         (a)      2.5% of the amount by which the net profits of the Company,
                  determined as aforesaid, for that financial year exceed the
                  highest annual net profit determined in the same manner earned
                  by the Company in any prior financial year.

5        The Company will be obliged to maintain medical insurance coverage, as
         per the National Health Insurance Law, for the Vice President whilst he
         remains in the employ of the Company.

6        The Company will be obliged to make pension contributions, as per the
         Pensions Law, on behalf of the Vice President whilst he remains in the
         employ of the Company.



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Area

7        The Vice President's work will be performed mainly in West Bay, Grand
         Cayman. The Company reserves the right to transfer the Vice President
         to any other place of business which it may establish in the Cayman
         Islands.

Responsibilities

8        The Vice President must devote substantially the whole of his time to
         the Company's business and must use his best endeavours to promote the
         Company's interest and welfare. Except where such information is a
         matter of public record or when required to do so by law he must not
         either before or after this Agreement ends disclose to any person any
         information relating to the Company or its customers or any
         confidential information of which he becomes possessed while acting in
         the Capacities.

9        The Vice President must perform the duties commonly performed by Vice
         President-Operations and also the duties reasonably required of and
         assigned to him in his position as Vice President and must discharge
         his duties in accordance with the directions of the Board. The Vice
         President must perform his duties under this Agreement during normal
         business hours from Mondays to Fridays inclusive (save on bank
         holidays) but he accepts that his duties, which include travelling on
         the Company's business both within the Cayman Islands and abroad, may
         from time to time require work to be undertaken on Saturdays, Sundays
         and bank and public holidays. The Vice President must report to the
         President, diligently follow and implement all management policies and
         decisions which the President communicates to him, prepare and forward
         in a timely manner all reports and accountings the President requests.
         The Vice President will not directly or indirectly engage in any
         activities or work which are deemed by the Board to be detrimental to
         the best interests of the Company. Subject to any such directions and
         restrictions, the Vice President will be invested with the following
         powers and responsibilities:

         (a)      responsible for the oversight of all day to day operations of
                  the Company including water production, distribution, finished
                  water treatment, water quality monitoring, new service
                  installations, new pipe installations, water audit and leak
                  detection, scheduled maintenance, and emergency repairs;

         (b)      responsible for the administration of the West Bay Plant, the
                  Distribution Department, the New Works Department, the
                  Governors Harbour Plant, the Laboratory and the Water Audit
                  and Leak Detection Department;

         (c)      responsible for liaison with the Company's bulk water
                  suppliers on all day to day operational matters, including
                  demand / production coordination, scheduled and unschedules
                  plant down time and water quality issues;

         (d)      responsible for all Company engineering resources and tasks
                  including engineering support for all Operations Departments
                  and Administration, project coordination and management foe
                  all new works projects including pipeline additions and
                  improvements, water production capacity expansion, water
                  storage expansion and all ancillary Company equipment;

         (e)      responsible for the oversight of the production, maintenance
                  and revisions of all Company engineering drawings, including
                  buildings, site and Distribution System record drawings;



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         (f)      responsible for liaison with Administration on future demand
                  forecasting, budgeting and planning capital improvements for
                  production and distribution of water;

         (g)      responsible for monthly reporting to the Board through the
                  President on Operations and Engineering matters;

         (h)      responsible for all Company computer administration including
                  hardware maintenance, software maintenance, network
                  maintenance, hardware and software upgrades, back ups and
                  trouble shooting;

10       In case of inability to work due to illness or injury, the Vice
         President must notify the Company immediately and produce a medical
         certificate for any absence longer than ten working days. The Company
         may have the Vice President examined by a doctor approved by it. The
         Vice President agrees to submit to any medical examination which the
         Company requires.

11       The Vice President will be entitled to up to ten (10) days sick leave
         per year without a medical certificate.

Holidays

12       The Vice President is entitled during every twelve (12) month period of
         employment to the following holidays during which his remuneration will
         continue to be payable:-

         (a)      all public holidays in the Cayman Islands, and

         (b)      four (4) weeks' vacation at a time to be approved by the
                  President.

Reimbursement of Expenses

13       All expenses for which the Vice President claims reimbursement must be
         within pre-approved budgets. Subject to this, the Company must
         reimburse the Vice President for the cost of entertaining the Company's
         customers and travelling on the Company's business on the production of
         the necessary vouchers or on the Vice President's proving to the
         Company's satisfaction the amount that he has spent for those purposes,
         even though he is unable to produce vouchers.

Non-Solicitation

14       The Vice President must not at any time while he is acting in the
         Capacities or afterwards either on his own account or for any other
         person, firm or company solicit, interfere with or endeavour to entice
         away from the Company any person, firm or company who at any time
         during or at the date when his employment ends were customers of or in
         the habit of dealing with the Company.


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Company Documents

15       All books, records, notes, files, memoranda, reports, customer lists,
         computer files and other documents, and all copies of them, relating to
         the Company's business which the Vice President keeps, prepares or
         conceives or which become known to him or which are delivered or
         disclosed to or by any means come into his possession, and all the
         Company's property and equipment are and will remain the Company's sole
         and exclusive property. If the Vice President's employment is
         terminated for any reason whether voluntarily or involuntarily, or if
         the Company at any time requests, he must promptly deliver to the
         Company the originals and all copies of all relevant documents that are
         in his possession, custody or control, and any other property belonging
         to the Company.

Termination

16       This Agreement will end and, except to the extent previously accrued,
         all rights and obligations under it of the Company and the Vice
         President shall cease if any of the following events occurs:-

         (a.)     The Vice President dies.

         (b.)     The Vice President is adjudicated bankrupt or makes any
                  composition with his creditors.

         (c.)     The Vice President gives three (3) months written notice to
                  the Company to terminate this Agreement.

17       The Company may by notice end this Agreement with immediate effect if:-

         (a.)     The Vice President conducts himself in a manner which would
                  justify immediate dismissal in accordance with the Labour Law.

         (b.)     through physical or mental illness the Vice President is
                  unable to discharge his duties for sixty (60) successive days,
                  as to which a certificate by any doctor appointed by the
                  Company shall be conclusive.

         (c)      If Company gives written notice to the Vice President and pays
                  to him a sum equal to the Vice President's annual salary as
                  described in clause 2 or as increased in accordance with
                  clause 3 , for the year in which such termination takes place.
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         (b)      the Company shall remain obliged to keep all benefits,
                  including but not limited to medical insurance and pension
                  contributions, to which the Vice President was entitled as at
                  the date of his termination paid and available to the Vice
                  President for a period of one year from the date of
                  termination.

Extension

19       In the absence of a written agreement to the contrary, on 1st. August
         of each year, the term of this Agreement shall be automatically
         extended upon the same terms by a period of one year.




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Notices

20       Any notice to be served under this Agreement must be in writing and
         will be deemed duly served if in the case of one addressed to the
         Company it is sent by registered post or left at the Company's
         registered office, or in the case of one sent to the Vice President it
         is handed to him personally or is delivered to his last known
         residential address in the Cayman Islands. A notice sent by post will
         be deemed to be served on the third day following the date on which it
         is posted.

Previous Agreements Superseded

21       This Agreement supersedes all prior contracts and understandings
         between the parties and may not be changed or terminated orally, and no
         change, termination or attempted waiver of any of its provisions will
         be binding unless in writing and signed by the party against whom it is
         sought to be enforced.

Clause Headings

22       The clause headings are included for convenience only and have no legal
         effect.

Applicable Law and Jurisdiction;

23       This Agreement will be construed and the legal relations between the
         parties determined in accordance with the laws of the Cayman Islands
         and the parties agree to submit to the jurisdiction of the Cayman
         Islands Courts. Whenever possible, each provision of this Agreement
         will be interpreted in such a manner as to be effective and valid, but
         if any provision of this Agreement or the application of it is
         prohibited or held to be invalid, that prohibition or invalidity will
         not affect any other provision, or the application of any other
         provision which can be given effect without the invalid provision or
         application, and to this end the provisions of this Agreement are
         declared to be severable.


EXECUTED by and on behalf of                CAYMAN WATER COMPANY
CAYMAN WATER COMPANY LIMITED                LIMITED
by
in the presence of:-


/s/ Alexander Stephen Bodden                Per: /s/ Peter D. Ribbins
---------------------------------                -------------------------------
Witness

EXECUTED by GREGORY SCOTT MCTAGGART
in the presence of :



/s/ Alexander Stephen Bodden                 /s/ Gregory S. McTaggart
---------------------------------            -----------------------------------
Witness                                          Gregory S. McTaggart