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                                                                   EXHIBIT 10.16

                              ENGAGEMENT AGREEMENT


THIS AGREEMENT is made the 5th day of December 2003


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

AND               JEFFREY M. PARKER
                  of 81 Drake Quay, Governors Harbour,
                  P. O. Box 30749 SMB, Grand Cayman, B.W.I.
                  ("the Chairman")


IT IS HEREBY AGREED:-

ENGAGEMENT

1.       Subject to satisfaction of the condition precedent in Clause 11 on or
         before December 31, 2003, the Chairman is engaged as Chairman of the
         Company for three (3) years commencing on the 1st day of January, 2004
         subject to the termination provisions set out in Clauses 17 and 18
         hereof and to the extension provisions set out in Clause 19 hereof.

REMUNERATION

2.       The Chairman's remuneration will be US$165,000.00 per annum, payable
         monthly in arrears.

3.       In addition, during the term of this Agreement, the Company will pay
         the full cost of providing medical insurance, as generally provided for
         the Company's employees from time to time, for the Chairman and his
         spouse.

4.       In addition, during the term of this Agreement, the Company will make
         contributions to a pension scheme, of the Chairman's choice but
         approved pursuant to the National Pensions Law (1998 Revision) of the
         Cayman Islands, in the same manner and on the same basis as it makes
         contributions, from time to time, in respect of its other employees
         pursuant to the National Pensions Law.



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

6.       Further, for each completed financial year beginning with the financial
         year 2004, not later than 28th February following the end of each
         financial year, the Chairman will be paid a bonus calculated as
         follows;

         (a)      PERFORMANCE BONUS

                  1.5% of the net profit of the Company (calculated before
                  charging this bonus and before charging dividends or crediting
                  any amount accruing from the re-valuation of the Company's
                  assets) to a maximum of 40% of the remuneration set out in
                  Clause 2 (as adjusted by Clause 5); and

         (b)      INCREMENTAL BONUS

                  15% of the amount, if any, by which the net profits
                  (calculated as in clause 6(a)) of the Company for that
                  financial year exceeds the highest annual net profit earned by
                  the Company in any prior financial year.

         The aggregate of the Performance Bonus and the Incremental Bonus, if
         any, calculated aforesaid shall be paid as to 75% in cash and, subject
         to approval of the members of the Company at the Company's next annual
         general meeting, as to 25% in ordinary shares of the Company valued at
         the market price at the close of trading of the same on December 31st
         of the relevant financial year (or if such day is not a trading day, at
         the close of trading on the preceding trading day). If such approval is
         not obtained, the aggregate of the Performance Bonus and the
         Incremental Bonus shall be paid entirely in cash.

RESPONSIBILITIES

7.       The Chairman shall use his best endeavors to promote the Company's
         interests and welfare.

8.       The Chairman shall perform the duties commonly performed by a Chairman
         of a publicly listed company and also the duties reasonably required of
         and assigned to him by the Board including, without limiting the
         generality of the foregoing, management of corporate governance issues,
         financial public relations and identification and initial investigation
         of new projects.




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         The Chairman shall discharge his duties in accordance with the
         directions of the Board. The Chairman accepts that his duties, which
         include traveling 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, bank and public holidays. The Chairman shall
         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. The Board hereby consents to the Chairman's continued
         involvement with Moore Stephens, Chartered Accountants.

9.       In case of inability to work due to illness or injury, the Chairman
         shall notify the Company immediately and produce a medical certificate
         for any absence longer than ten working days.

10.      The Chairman is entitled to up to ten (10) days sick leave per year
         without a medical certificate.

11.      This Agreement is conditional upon the Chairman undergoing a medical
         examination in such form as is usual and customary in the Cayman
         Islands, the results of which demonstrate to the Board's satisfaction
         that the Chairman is capable of performing the responsibilities set
         forth in Clauses 7 and 8.

HOLIDAYS

12.      The Chairman is entitled, during every calendar year to the following
         holidays during which his remuneration will continue to be payable:-

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

         (b)      five (5) weeks vacation to be taken at a time to be approved
                  by the Board.

REIMBURSEMENT OF EXPENSES/FEES

13.      (a)      All expenses for which the Chairman claims reimbursement
                  shall be in accordance with any policies established by the
                  Board from time to time and shall be within the operating
                  budgets approved by the Board. The Company shall reimburse the
                  Chairman for the costs incurred by the Chairman in his
                  performance of the Capacity on production of the necessary
                  vouchers or, if he is unable to produce vouchers, on the
                  Chairman proving, to the Board's satisfaction, the amount he
                  has spent for those purposes.

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         (b)      All fees and payments received by the Chairman for or in
                  relation to acting as director or officer of a subsidiary or
                  affiliate of the Company shall be retained by the Chairman who
                  shall not be required to account to the Company for the same.

NON-COMPETITION

14.      Providing that the Chairman may make investments in quoted companies
         not exceeding 1% of the issued share capital thereof, the Chairman
         agrees, as a separate and independent agreement, that he will not,
         during any period for which he has been remunerated hereunder, whether
         for his own account or for the account of any other person, either
         alone or jointly with or as manager, agent for or employee of or as
         consultant to any person, company or firm, directly or indirectly,
         carry on or be engaged or concerned or interested in any person firm or
         entity who conducts business identical to or similar to that conducted
         by the Company in any jurisdiction in which the Company carries on
         business (whether directly or indirectly).

COMPANY INFORMATION, DOCUMENTS, CONFIDENTIALITY AND NON-SOLICITATION

15.      (a)      All information, documents, books, records, notes, files,
                  memoranda, reports, customer lists and other documents, and
                  all copies of them, relating to the Company's business or
                  opportunities which the Chairman keeps, prepares or conceives
                  or which become known to him or which are delivered or
                  disclosed to him or which, 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 both
                  during the term of this Agreement and after the termination or
                  expiration hereof;

         (b)      If this Agreement is terminated for any reason, or if the
                  Company at any time requests, the Chairman must promptly
                  deliver to the Company the originals and all copies of all
                  relevant documents that are in his possession, custody or
                  control together with any other property belonging to the
                  Company.

         (c)      The Chairman shall not, at any time during the term of this
                  Agreement or after it's termination or expiration, either for
                  his own account or for the account of any other person, firm
                  or company, solicit or endeavor to entice away from the
                  Company any person, firm or company who, at any time during
                  the currency of this Agreement were employees, customers or
                  suppliers of or were in the habit of dealing with the Company.

16.      Except where such information is a matter of public record or when
         required to do so by law, the Chairman must not, either before or after


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         this Agreement ends, disclose to any person any information relating to
         the Company or its customers of which he becomes possessed while acting
         as Chairman.

TERMINATION

17.      This Agreement shall terminate and, except to the extent previously
         accrued, all rights and obligations of both parties under it shall
         cease if any of the following events occurs:-

         (a)      The Chairman dies.

         (b)      The Chairman is adjudicated bankrupt or makes any arrangement
                  or composition with his creditors.

         (c)      In any year, the company does not extend the term of this
                  Agreement in accordance with Clause 19 hereof.

         (d)      The Chairman gives six (6) months written notice of
                  termination to the Company.

18.      (a)      The Company may, by written notice, terminate this Agreement
                  with immediate effect if the Chairman conducts himself in a
                  manner that would justify immediate dismissal of an employee
                  in accordance with the Labour Law and, except to the extent
                  previously accrued, all rights and obligations of both parties
                  under this Agreement shall cease.

         (b)      If through physical or mental illness, the Chairman 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, the Chairman shall be relieved of his
                  duties and his salary shall be reduced to US$1,000.00 per
                  annum and his bonus entitlement suspended, and the Company
                  shall continue to pay the full cost of providing medical
                  insurance for the Chairman and his immediate family together
                  with pension contributions (such contributions to be based on
                  the pension contribution made on behalf of the Chairman for
                  the previous financial year of the Company) for a period of
                  two years at which time his employment shall be terminated.

Extension

19.      On or before June 30th of each year during the term of this Agreement
         (or any extension thereof), the Board shall determine whether to extend
         the term of this Agreement, and if the Board so determines the term of


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         this Agreement shall be extended such that the term shall be for three
         years from January 1st of the next following year.

         In the event that the Board determines not to extend the Agreement in
         any year, the term of the Agreement shall expire on December 31stof
         that year and the Company, on that date, shall pay to the Chairman, in
         cash, twice the annual remuneration as set out in Clause 2 as adjusted
         by Clause 5 hereof.

NOTICES

20.      Any notice to be served under this Agreement must be in writing and
         shall be deemed to be duly served if it is handed personally to the
         Secretary of the Company or to the Chairman as the case may be, or if
         it is sent by registered post to the address at the head of this
         Agreement. A notice sent by post shall be deemed to be served on the
         third day following the date on which it was posted.

PREVIOUS AGREEMENTS SUPERCEDED

21.      This Agreement supersedes all prior contracts and understandings
         between the parties save that benefits earned or accrued under prior
         contracts shall not be extinguished or affected except to the extent
         that the words `each of the first seven trading days in the month of
         October' in clause 8(b)(ii) of the Second Amendment of Engagement
         Agreement dated March 21, 2000 shall be deleted and replaced with the
         words `December 31st' as they relate only to the options granted in
         respect of the calendar year 2003.

         No change or attempted waiver of any of the provisions hereof shall be
         binding unless in writing and signed by the party against whom it is
         sought to be enforced.

HEADINGS

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

APPLICABLE LAW AND JURISDICTION

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




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EXECUTED FOR AND ON BEHALF OF             CONSOLIDATED WATER CO.
CONSOLIDATED WATER CO LTD.                LTD.
BY:
IN THE PRESENCE OF:

/s/ illegible                              /s/ Richard Finlay
-----------------------------              -----------------------------------
WITNESS


EXECUTED BY JEFFREY M. PARKER
IN THE PRESENCE OF:


/s/ illegible                              /s/ Jeffrey Parker
-----------------------------              -----------------------------------
WITNESS                                    JEFFREY M. PARKER




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