As per the letter of intent signed with the Municipal Council of Santa Catarina, Blue Aquifer has agreed to supply desalinated sea water of 4,000 cubic meters per day as an initial requirement.
Santa Catarina president Francisco Fernandes Tavares said the nation plans to sign a 25-year deal assuming the commercially reasonable terms and a competitive price can be agreed.
Blue Aquifer will manage and operate the desalinated water facility, which will receive all equipment and and systems by WRG for a total sale price of about $10m.
WRG, which owns 49% stake in Blue Aquifer, will also earn 49% of the water sales for the 25-year contract term.
WRG expects to enter into formal agreements by October this year as the Municipality of Santa Catarina requires water to be supplied by September 2012
WRG has also completed the joint venture agreement with the 51% shareholders of Blue Aquifer.
