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EX-10.4
3
g75127ex10-4.txt
AMENDMENT TO LICENSE TO PRODUCE PORTABLE WATER
Exhibit 10.4
An amendment To A License To Produce Potable Water From Seawater
Provided to
Consolidated Water Co. Ltd.
(Formerly Cayman Water Company Limited)
by
The Government of The Cayman Islands
The Water (Production and Supply) Law (Law No 15 of 1979)
(1996 Revision)
IT IS AGREED AND DECLARED by and between the parties hereto that Schedules Three
and Five of the License, signed by the parties on eleventh day of July 1990, are
deleted with effect from the date hereof and replaced by the Schedule Three and
Schedule five hereto attached.
Dated 15th August 2001
IN WITNESS WHEREOF this amendment has been made on the date above written.
FOR THE GOVERNMENT OF THE CAYMAN ISLANDS
THE PUBLIC SEAL OF THE GOVERNMENT
Of the Cayman Islands was affixed in the presence of: -
/s/ PETER SMITH
-------------------------------------------------------
HIS EXCELLENCY THE GOVERNOR PETER SMITH C.B.E.
FOR CONSOLIDATED WATER CO. LTD.
(Formerly CAYMAN WATER COMPANY LIMITED)
/s/ JEFFREY M. PARKER
-------------------------------------------------------
Mr. Jeffrey M. Parker, Chairman
/s/ FREDERICK W. MCTAGGART
-------------------------------------------------------
Mr. Frederick W. McTaggart, President and COO
FOR THE WATER AUTHORITY- CAYMAN ISLANDS
/s/ BRAINARD WALTER
-------------------------------------------------------
Mr. Brainard Watler, Chairman
/s/ OTTO WALTER
-------------------------------------------------------
Mr. Otto Watler, Director
SCHEDULE THREE
PRICES
In accordance with clauses 6.1, 6.4 and 6.5 the following prices shall
apply: -
1. BASE PRICE OF WATER
The Base Price of Water sold to any customer by means of the Company's
pressurized pipeline in the Revoked License Area shall be as follows: -
Residential consumer first 3,000 CI$ 17.45 per 1,000 gallons Gallons
supplied in any one month Residential consumer any amount CI$ 18.32 per
1,000 gallons over 3,000 Gallons supplied in any one-month Commercial
consumer CI$ 18.32 per 1,000 gallons Public Authority consumer CI$ 17.45
per 1,000 gallons
The Base Price of Water sold to the category of customer as described
below in the Additional Area shall be as follows: -
Residential consumer first 3,000 CI$ 15.27 per 1,000 gallons Gallons
supplied in any one month Residential consumer any amount CI$ 18.32 per
1,000 gallons over 3,000 gallons supplied in any one month Commercial
consumer CI$ 18.32 per 1,000 gallons Public Authority consumer CI$ 16.57
per 1,000 gallons
2. WATER METER RENTAL
A monthly meter rental fee shall be levied at the following rates for the
various sizes of meter: -
20 mm CI$ 3.50
25mm CI$ 5.00
38mm CI$ 7.50
50mm CI$ 10.00
75mm CI$ 15.00
100mm CI$ 25.00
150mm CI$ 40.00
3. FEE FOR RECONNECTION OF SUPPLY
A Water supply that has been disconnected for non-payment or by request of
the customer shall be reconnected on payment of the following fees which
fee shall depend on the size of the meter: -
20 mm CI$ 50.00
25mm CI$ 75.00
38mm CI$ 110.00
50mm CI$ 150.00
75mm CI$ 225.00
100mm CI$ 300.00
150mm CI$ 350.00
4. FEES FOR FIRE HYDRANTS
CI$ 20.00 per hydrant per month
SCHEDULE FIVE
INFLATION
In accordance with clause 6.3, the Base Rate shall be annually adjusted to
take into account the effects of inflation, by subtracting there from an
amount equal to fifty five percentum thereof and adding to the resulting
sum an amount equal to: -
(20BP X CI CURRENT) + (35BP X US CURRENT)
------------------- -------------------
(100 CI BASE) (100 US BASE)
Where: -
BP is the Base Price
CI CURRENT and CI BASE are the Cayman Islands Consumer Price Indexes
at September 30 immediately preceding the Adjustment Date and at
September 30,1999 respectively;
USCURRENT and US BASE are the United States Producer Price Indexes
at September 30 immediately preceding the Adjustment Date and at
September 30, 1999 respectively
PROVIDED that in the event that the Cayman Islands Government fails to
publish a Consumer Price Index at September 30, then the United States
Producer Price Index shall be used.
For the avoidance of doubt the intent of the above formula is to provide
that twenty percentum of the Base Price is adjusted to accommodate any
changes in the Cayman Islands Consumer Price Index, thirty five percentum
of the Base Price is adjusted to accommodate any changes in the United
States Producer Price Index and forty five percentum of the Base Price
remains constant.
If at any time the parties hereto agree that the formula for calculating
the inflation is no longer appropriate to the operation of the Company,
the formula shall be changed by an amendment to the License.