CUC announces 39.7 MW generation expansion project with BWSC & MAN Diesel & Turbo

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GRAND CAYMAN, Cayman Islands, Dec. 8, 2014 /CNW/ – Caribbean Utilities Company, Ltd. (TSX: CUP.U) (“CUC” or “the Company”) announced today that it has entered into a design-build contract agreement for the generation expansion project with the consortium of Burmeister & Wain Scandinavian Contractor A/S (“BWSC”) of Denmark and MAN Diesel & Turbo SE (“MAN”) of Germany. The agreement covers the purchase and turnkey installation of two 18.5 megaWatt (MW) V48/60 medium-speed diesel generating units, one 2.7 MW steam turbine, and associated auxiliary equipment. This contract is valued at approximately US$ 55 million; the total project cost is estimated at US$85 million to complete. The generating units will be housed in a new purpose built power house at the Company’s North Sound Plant and will be commissioned in June 2016.

Mr. Richard Hew, CUC President and Chief Executive Officer commented “The addition of this capacity enables us to continue to serve our customers reliably.” He added, “Our continued relationship with BWSC and MAN will facilitate the timely, efficient expansion and the longer term benefits of standardization of parts and service which allow us to minimize cost and maximize service reliability to our customers”.

MAN and BWSC have been strategic partners of CUC since 1998 and have designed and installed 68 MW of diesel generating units on a turnkey basis for the Company prior to this project.

CUC provides electricity to Grand Cayman, Cayman Islands, under a non-exclusive Electricity Generation Licence expiring in 2039 and an exclusive Electricity Transmission and Distribution Licence expiring in 2028. Further information is available at www.cuc-cayman.com.

Caribbean Utilities Company, Ltd. (“CUC” or “the Company”), on occasion, includes forward-looking statements in its media releases, Canadian securities regulatory authorities filings, shareholder reports and other communications. Forward-looking statements include statements that are predictive in nature, depend upon future events or conditions, or include words such as “expects”, “anticipates”, “plan”, “believes”, “estimates”, “intends”, “targets”, “projects”, “forecasts”, “schedule”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. Forward-looking statements are based on underlying assumptions and management’s beliefs, estimates and opinions, and are subject to certain risks and uncertainties surrounding future expectations generally that may cause actual results to vary from plans, targets and estimates. Such risks and uncertainties include but are not limited to operational, general economic, market and business conditions, regulatory developments and weather conditions. CUC cautions readers that actual results may vary significantly from those expected should certain risks or uncertainties materialize or should underlying assumptions prove incorrect. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

SOURCE Caribbean Utilities Company, Ltd.