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<SEC-DOCUMENT>0000950144-02-011767.txt : 20021114
<SEC-HEADER>0000950144-02-011767.hdr.sgml : 20021114
<ACCEPTANCE-DATETIME>20021114102835
ACCESSION NUMBER:		0000950144-02-011767
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20020930
FILED AS OF DATE:		20021114

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CONSOLIDATED WATER CO LTD
		CENTRAL INDEX KEY:			0000928340
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER SUPPLY [4941]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			E6
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25248
		FILM NUMBER:		02822355

	BUSINESS ADDRESS:	
		STREET 1:		TRAFALGAR PL
		STREET 2:		WEST BAY RD
		CITY:			GRAND CAYMAN BWI CAY
		STATE:			E9
		ZIP:			00000
		BUSINESS PHONE:		8099474277

	MAIL ADDRESS:	
		STREET 1:		TRAFALGAR PLACE, WEST BAY ROAD, P.O. BOX
		STREET 2:		GRAND CAYMAN, CAYMAN ISLANDS, BWI

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CAYMAN WATER CO LTD
		DATE OF NAME CHANGE:	19941212
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>g78273e10vq.htm
<DESCRIPTION>CONSOLIDATED WATER CO. LTD. FORM 10-Q 9-30-2002
<TEXT>
<HTML>
<HEAD>
<TITLE>e10vq</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><FONT size="2"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, DC 20549</B></FONT>

<P align="center"><FONT size="2"><B>FORM 10-Q</B></FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="15%">&nbsp;</TD>
        <TD width="10%">&nbsp;</TD>
        <TD width="75%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align="center"><FONT size="1"><B>(Mark One)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2"><B>&#091;X&#093;</B></FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
<B>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B></FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
For the quarterly period ended <B>September&nbsp;30, 2002</B></FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD colspan="3" align="center" valign="top"><FONT size="2"><B>OR</B></FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2"><B>&#091;&nbsp;&nbsp;&#093;</B></FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
<B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B></FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
For the transaction period from ______________ to ______________</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">Commission File Number: <B>0-25248</B></FONT>

<P align="center"><FONT size="2"><B>CONSOLIDATED WATER CO. LTD.</B></FONT>
<div align="center">
<HR width="40%" align="center" size="1" noshade>
<FONT size="2">(Exact name of Registrant as specified in its charter)</FONT>
</div>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="45%">&nbsp;</TD>
        <TD width="10%">&nbsp;</TD>
        <TD width="45%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2"><B>CAYMAN ISLANDS</B></FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">
<B>N/A</B></FONT></TD>
</TR>
<TR>
        <TD valign="top"><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
<HR size="1" noshade></FONT></TD>
</TR>
<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2">(State or other jurisdiction of<BR>
incorporation or organization)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">(I.R.S. Employer<BR>
Identification No.)</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2"><B>Trafalgar Place, West Bay Road,<BR>
P.O. Box 1114 GT, Grand Cayman, B.W.I</B></FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="bottom"><FONT size="2"><B>N/A</B></FONT></TD>
</TR>
<TR>
        <TD valign="top"><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
<HR size="1" noshade></FONT></TD>
</TR>
<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2">(Address of principal executive offices)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">(Zip Code)</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2">Registrant&#146;s Telephone number, including area code: <B>(345)&nbsp;945-4277</B>
</FONT>
<P align="left"><FONT size="2">Indicate by check mark whether the registrant (1)&nbsp;has filed all reports
required to be filed by Section&nbsp;13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12&nbsp;months (or for such shorter period that the
registrant was required to file such reports), and (2)&nbsp;has been subject to such
filing requirements for the past 90&nbsp;days.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes &#091;<B>X</B>&#093; No &#091;&nbsp;&nbsp;&#093;
</FONT>
<P align="left"><FONT size="2">As at September&nbsp;30, 2002<B><I>, </I></B>there were 3,987,363 of the registrant&#146;s ordinary
shares of common stock, with CI$ 1.00 par value, outstanding.
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>


<P align="left"><FONT size="2"><B>EXCHANGE RATES</B></FONT>

<P align="left"><FONT size="2">Unless otherwise indicated, all dollar amounts are in United States Dollars and
references to &#147;$&#148;, &#147;U.S.&#148;, or &#147;U.S. $&#148; are to United States Dollars.
</FONT>
<P align="left"><FONT size="2">The official fixed exchange rate for conversion of CI$ into U.S.$, as
determined by the Cayman Islands Monetary Authority, has been fixed since April
1974 at U.S. $1.20 per CI$1.00.
</FONT>
<P align="left"><FONT size="2">The official fixed exchange rate for conversion of BZE$ into U.S.$, as
determined by the Central Bank of Belize, has been fixed since 1976 at U.S.$
0.50 per BZE$ 1.00.
</FONT>
<P align="left"><FONT size="2">The official fixed exchange rate for conversion of BAH$ into U.S.$, as
determined by the Central Bank of The Bahamas, has been fixed since 1973 at
U.S. $1.00 per BAH $1.00.
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>


<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">PART I &#151; FINANCIAL INFORMATION</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Item&nbsp; 1.&nbsp;&nbsp; Financial Statements</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#002">CONDENSED CONSOLIDATED BALANCE SHEETS</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#003"> CONDENSED CONSOLIDATED STATEMENTS OF INCOME</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#004"> CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#005">NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#006">Item&nbsp; 2.&nbsp;&nbsp; Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#007">Item&nbsp;3.&nbsp;&nbsp;Quantitative and Qualitative Disclosures about Market Risk</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#008">Item&nbsp;4.&nbsp;&nbsp;Controls and Procedures</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">PART II &#151; OTHER INFORMATION</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#010">Item&nbsp;2.&nbsp;&nbsp;Changes in Securities and Use of Proceeds</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#011">Item&nbsp;5.&nbsp;&nbsp;Other Information</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#012">Item&nbsp;6&nbsp;&nbsp;Exhibits and Reports on Form&nbsp;8-K</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013">SIGNATURE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014">CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED<BR> PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</A></TD></TR>
<TR><TD colspan="9"><A HREF="g78273exv2w1.txt">SHARE SALE AGREEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="g78273exv2w2.txt">SHARE SALE AGREEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="g78273exv2w3.txt">AGREEMENT DATED 10/08/02</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><FONT size="2"><B>TABLE OF CONTENTS</B></FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="10%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="76%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center" colspan="2"><FONT size="1"><B>Section</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Description</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Page</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">PART I</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">FINANCIAL INFORMATION</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Item&nbsp;1</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">Financial Statements</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">Condensed Consolidated Balance Sheets as at September 30, 2002</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">and December 31, 2001</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">Condensed Consolidated Statements of Income for each of the</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">Three and Nine months ended September 30, 2002 and 2001</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">Condensed Consolidated Statements of Cash Flows for each of the</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">Nine months ended September 30, 2002 and 2001</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">Notes to Condensed Consolidated Financial Statements</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Item&nbsp;2</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">Management's Discussions and Analysis of Financial Condition</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">and Results of Operations</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">8</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Item&nbsp;3</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">Quantitative and Qualitative Disclosures about Market Risk</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">14</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Item&nbsp;4</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">Controls and Procedures</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">15</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">PART II</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">OTHER INFORMATION</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Item&nbsp;2</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">Changes in Securities and Use of Proceeds</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">15</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Item&nbsp;5</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">Other Information</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">15</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Item&nbsp;6</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">Exhibits and Reports on Form 8-K</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">18</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">SIGNATURE</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">19</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">CERTIFICATION</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" align="left"><FONT size="2">Section 302 Certifications </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">20</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2"><B>Forward-Looking Statements</B></FONT>

<P align="left"><FONT size="2">This Form&nbsp;10-Q for Consolidated Water Co. Ltd. (the &#147;Company&#148;) includes
statements that may constitute &#147;forward-looking&#148; statements, usually containing
the words &#147;believe,&#148; &#147;estimate,&#148; &#147;project,&#148; &#147;intend,&#148; &#147;expect&#148; or similar
expressions. These statements are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements inherently involve risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements. Factors that
would cause or contribute to such differences include, but are not limited to,
completion of the transactions described in this Form&nbsp;10-Q as well as the
financing required therefore, the ability to secure replacement financing, the
terms of the financing, the ability of the Company to repay the debt incurred
to complete the transactions described in this Form&nbsp;10-Q, continued acceptance
of the Company&#146;s products and services in the marketplace, changes in its
relationship with the governments of the jurisdictions in which it operates,
the ability to successfully secure contracts for water projects in other
countries, the ability to develop and operate such projects profitably, and
other risks detailed in the Company&#146;s other periodic report filings with the
Securities and Exchange Commission. By making these forward-looking statements,
the Company undertakes no obligation to update these statements for revisions
or changes after the date of this Form&nbsp;10-Q.
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "PART I &#151; FINANCIAL INFORMATION" -->
<DIV align="left"><A NAME="000"></A></DIV>
<P align="center"><FONT size="2"><B>PART I &#151; FINANCIAL INFORMATION</B></FONT>

<!-- link2 "Item&nbsp; 1.&nbsp;&nbsp; Financial Statements" -->
<DIV align="left"><A NAME="001"></A></DIV>
<P align="left"><FONT size="2"><B>Item</B>&nbsp; <B>1.</B>&nbsp;&nbsp; <B>Financial Statements</B></FONT>

<P align="center"><FONT size="2"><B>CONSOLIDATED WATER CO.
LTD.</B></FONT>

<!-- link3 "CONDENSED CONSOLIDATED BALANCE SHEETS" -->
<DIV align="left"><A NAME="002"></A></DIV>
<DIV align="center"><FONT size="2"><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B><BR>
<BR>
(Expressed in United States Dollars)</FONT></DIV>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%">
<TR valign="bottom">
        <TD width="5%">&nbsp;</TD>
        <TD width="57%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="6%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="7%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="6%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="7%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>September 30,</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>December 31,</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD align="center" colspan="3"><FONT size="1"><B>(Unaudited)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>ASSETS</B></FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Current assets</B></FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Cash and cash equivalents</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,883,113</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>


        <TD align="right"><FONT size="2">516,446</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Accounts receivable</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,161,080</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,323,156</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Spares inventory</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">386,612</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">271,134</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Inventory of water</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">56,422</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">48,377</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Prepaid expenses and other assets</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">285,993</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">319,900</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Deferred expenditures</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">595,815</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&#151;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total current assets</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,369,035</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,479,013</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Property, plant and equipment</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">19,505,106</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">18,414,935</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Intangible asset</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,668,599</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,814,780</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Investments</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">12,450</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">12,450</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total assets</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">25,555,190</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">22,721,178</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B></FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Current liabilities</B></FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Dividends payable</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">490,337</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">499,383</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Accounts payable and other liabilities</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,157,575</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,087,470</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Stock compensation liability</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">139,380</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">210,324</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Current portion of long term debt</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">511,670</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">355,840</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total current liabilities</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,298,962</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,153,017</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Long term debt</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,294,004</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,213,804</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Security deposit</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">102,763</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">52,763</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Advances in aid of construction</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">35,275</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">37,494</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total liabilities</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,731,004</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,457,078</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Stockholders&#146; equity</B></FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Common stock</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,784,836</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,704,077</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Additional paid-in capital</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">7,296,865</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">6,896,753</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Vested redeemable preferred stock</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,351</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,841</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Non-vested redeemable preferred stock</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">20,337</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">27,393</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Retained earnings</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">8,718,797</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">7,633,036</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total stockholders&#146; equity</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">20,824,186</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">19,264,100</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total liabilities and stockholders&#146; equity</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">25,555,190</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">22,721,178</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">The accompanying information and notes are an<BR>
integral part of these condensed consolidated financial statements.
</FONT>
<P align="center"><FONT size="2">1</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<!-- link3 " CONDENSED CONSOLIDATED STATEMENTS OF INCOME" -->
<DIV align="left"><A NAME="003"></A></DIV>
<P align="center"><FONT size="2"><B>CONSOLIDATED WATER CO. LTD.<BR>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME<BR>
(Unaudited)</B></FONT>

<P align="center"><FONT size="2">(Expressed in United States Dollars)</FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="37%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="6%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="6%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="6%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="6%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>Three Months Ended</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>Nine Months Ended</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>September 30,</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>September 30,</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Water sales</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,854,206</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,648,336</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">9,195,725</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">8,506,406</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Cost of water sales</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(1,713,947</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(1,524,293</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(5,177,533</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(4,622,651</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Gross profit</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,140,259</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,124,043</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,018,192</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,883,755</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Indirect expenses</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(600,465</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(611,996</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(1,889,722</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(1,873,824</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income from operations</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">539,794</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">512,047</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,128,470</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,009,931</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other income:</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Interest income</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&#151;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">25,376</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">6,040</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">26,188</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other income</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">64,975</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">108,830</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">208,018</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">316,355</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">64,975</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">134,206</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">214,058</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">342,543</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">604,769</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">646,253</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">2,342,528</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">2,352,474</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Basic earnings per share (Note 6)</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>

        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0.15</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0.17</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0.59</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0.60</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Diluted earnings per common share
(Note 6)</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0.15</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0.16</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0.57</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0.59</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Dividends declared per share</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0.105</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0.10</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0.315</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0.30</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Weighted average number of common
shares used in the determination
of:</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Basic earnings per share (Note 6)</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,983,072</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,899,858</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,961,922</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,880,952</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Diluted earnings per share (Note 6)</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,095,369</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,019,269</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,081,489</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,000,804</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">The accompanying information and notes are an<BR>
integral part of these condensed consolidated financial statements.
</FONT>
<P align="center"><FONT size="2">2</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<!-- link3 " CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS" -->
<DIV align="left"><A NAME="004"></A></DIV>
<P align="center"><FONT size="2"><B>CONSOLIDATED WATER CO. LTD.<BR>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<BR>
(Unaudited)</B></FONT>

<P align="center"><FONT size="2">(Expressed in United States Dollars)</FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="61%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="7%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="7%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="7%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="7%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Nine Months</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Nine Months</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Ended</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Ended</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>September 30,</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>September 30,</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Net cash flows provided by operating activities</B></FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,685,757</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,408,328</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Cash flows provided by (used in) investing
activities</B></FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Deferred expenditures &#150; pending acquisition</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(306,694</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&#151;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Purchase of property, plant and equipment</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(2,036,900</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(1,598,388</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Purchase of investments</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&#151;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(12,450</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Proceeds from sale of equipment</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&#151;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,200</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net cash used in investing activities</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(2,343,594</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(1,606,638</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Cash flows provided by (used in) financing
activities</B></FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Deferred expenditures &#150; pending share issue</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(289,121</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&#151;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Dividends paid</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(1,233,550</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(1,177,717</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Drawdown of new credit facility</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,500,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">500,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Principal payments of long term debt</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(263,970</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(108,213</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net proceeds from issuance of common stock</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">347,855</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">150,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Repurchase of common stock</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(32,869</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&#151;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Repurchase of redeemable preferred stock</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(3,841</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&#151;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Drawdown (repayment)&nbsp;of bank indebtedness</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&#151;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(401,766</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net cash provided by (used in) financing activities</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">24,504</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(1,037,696</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Net increase in cash and cash equivalents</B></FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,366,667</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">763,994</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Cash and cash equivalents at beginning of period</B></FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">516,446</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">250,837</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Cash and cash equivalents at end of period</B></FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">1,883,113</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">1,014,831</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">The accompanying information and notes are an<BR>
integral part of these condensed consolidated financial statements.
</FONT>
<P align="center"><FONT size="2">3</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<!-- link3 "NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS" -->
<DIV align="left"><A NAME="005"></A></DIV>
<P align="center"><FONT size="2"><B>CONSOLIDATED WATER CO. LTD.<BR>
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
(Unaudited)</B></FONT>

<P align="left"><FONT size="2">The accompanying financial statements should be read in conjunction with the
2001 Annual Report for the Company on Form&nbsp;10-K. The interim condensed
consolidated financial statements are unaudited, but in the opinion of
management, reflect all adjustments necessary for a fair presentation of
results for such periods. All adjustments are of a normal recurring nature.
</FONT>
<P align="left"><FONT size="2"><B>1.</B>&nbsp;&nbsp; <B>Principal Activity and Status</B></FONT>

<P align="left"><FONT size="2">Consolidated Water Co. Ltd. (the &#147;Company&#148;) and its wholly-owned subsidiaries
(together the &#147;Group&#148;) use reverse osmosis technology to produce fresh water
from seawater. The Group processes and supplies water to its customers in
Grand Cayman, Cayman Islands; Ambergris Caye, Belize; and South Bimini,
Bahamas. The Company&#146;s exclusive license in Grand Cayman allows it to process
and supply water in certain areas of Grand Cayman for a period of twenty years
from July&nbsp;11, 1990 in addition to having a right of first refusal on the
extension or renewal thereof. The Group also has a contract with Belize Water
Services Ltd. (&#147;BWSL&#148;) of Belize, formally known as Water and Sewerage
Authority of Belize, to supply water to BWSL in Ambergris Caye expiring in
2011. At the expiry of the contract, BWSL may at its option extend the term of
the agreement or purchase the plant outright. In addition, on July&nbsp;11, 2001
the Company commenced supplying water under a ten year agreement to South
Bimini International Ltd., a Bahamian company that owns and operates resort
properties on South Bimini Island, Bahamas. The base price of water supplied
by the Group, and adjustments thereto, are determined by the terms of the
license and contracts, which provide for adjustments based upon the movement in
the government price indices specified in the license and contracts
respectively, as well as monthly adjustments for changes in the cost of energy.
</FONT>
<P align="left"><FONT size="2"><B>2.</B>&nbsp;&nbsp; <B>Purchase of Assets</B></FONT>

<P align="left"><FONT size="2">On February&nbsp;1, 2002, the Company acquired the reverse osmosis plant that was
previously owned and operated by Cayman Hotel and Golf Inc., a company which
owns and operates the Hyatt Hotel and Britannia Golf Course and developed the
Britannia condominiums and villas. The acquisition has been accounted for by
the purchase method. The total purchase price of $1,500,000 was paid in cash.
The fair value of assets acquired was $1,500,000 which comprised solely of
property, plant and equipment representing the reverse osmosis plant.
</FONT>
<P align="left"><FONT size="2"><B>3.</B>&nbsp;&nbsp; <B>Segment Information</B></FONT>

<P align="left"><FONT size="2">Under FAS 131 &#145;Disclosure about Segments of an Enterprise and Related
Information&#146;, the operations to supply water to the Cayman Islands, Belize and
the Bahamas are considered by management as separate business segments. The
basis of measurement of segment information is the same as that adopted for the
condensed financial statements.
</FONT>
<P align="center"><FONT size="2">4</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><FONT size="2"><B>CONSOLIDATED WATER CO. LTD.<BR>
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
(Unaudited)</B></FONT>

<P align="left"><FONT size="2"><B>3.</B>&nbsp;&nbsp; <B>Segment Information (Continued)</B></FONT>

<P align="left"><FONT size="2"><B>As at September&nbsp;30 and for the three months then ended</B></FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="16%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>Cayman Islands</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>Belize</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>Bahamas (*)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>Total</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Water sales</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,423,247</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,351,105</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">391,109</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">285,809</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">39,850</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">11,422</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,854,206</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,648,336</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other income</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">64,975</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">108,387</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&#151;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">25,376</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&#151;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">443</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">64,975</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">134,206</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Cost of water sales</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,430,031</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,295,935</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">246,395</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">206,994</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">37,521</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">21,364</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,713,947</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,524,293</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Indirect expenses</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">550,766</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">566,398</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">48,182</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">43,101</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,517</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,497</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">600,465</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">611,996</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income (loss)</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">507,425</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">597,160</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">96,532</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">61,090</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">812</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(11,997</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">604,769</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">646,253</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Property, plant and
equipment</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">16,963,769</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">15,784,807</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,435,774</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,564,025</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,105,563</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,085,759</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">19,505,106</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">18,434,591</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2"><B>As at September&nbsp;30 and for the nine months then ended</B></FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="16%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>Cayman Islands</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>Belize</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>Bahamas (*)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>Total</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Water sales</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">7,995,436</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">7,541,546</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,111,817</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">953,438</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">88,472</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">11,422</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">9,195,725</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">8,506,406</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other income</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">210,639</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">315,942</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,415</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">26,158</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">443</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">214,058</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">342,543</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Cost of water sales</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,420,233</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,036,965</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">647,711</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">564,322</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">109,589</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">21,364</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">5,177,533</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,622,651</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Indirect expenses</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,742,261</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,749,142</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">140,021</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">122,185</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">7,440</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,497</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,889,722</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,873,824</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income (loss)</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,043,581</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,071,382</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">327,500</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">293,089</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(28,553</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(11,997</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,342,528</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2,352,474</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Property, plant and
equipment</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">16,963,769</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">15,784,807</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,435,774</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,564,025</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,105,563</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1,085,759</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">19,505,106</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">18,434,591</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>
<HR size="1" width="18%" align="left" noshade>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(*)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">On December&nbsp;18, 2000, the Company entered into the agreement with South Bimini
International Ltd., and began operations in the Bahamas on July&nbsp;11, 2001.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">5</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>


<P align="center"><FONT size="2"><B>CONSOLIDATED WATER CO. LTD.<BR>
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
(Unaudited)</B></FONT>

<P align="left"><FONT size="2"><B>4.</B>&nbsp;&nbsp; <B>Contingencies</B></FONT>

<P align="left"><FONT size="2">The license that the Company has with the government of the Cayman Islands (the
&#147;Government&#148;) requires it to obtain approval from the Government for an
issuance or transfer of shares which (a)&nbsp;exceeds 5% of the issued shares of our
company, or (b)&nbsp;would, upon registration, result in any shareholder owning more
than 5% of the issued share capital of the Company.
</FONT>
<P align="left"><FONT size="2">By letter dated May&nbsp;3, 2002, the Government advised the Company that the 5%
ownership and transfer restrictions imposed in the licence will be removed.
</FONT>
<P align="left"><FONT size="2">Under the provisions of the Land Holding Companies Share Transfer Tax Law of
the Cayman Islands, tax is payable on the transfer of shares in the Company.
Prior to becoming quoted on NASDAQ, the Company paid this tax on private share
transfers. The Company has never paid tax on transfers of its publicly traded
shares. Management believes that the likelihood that Government will seek to
collect this tax on transfers of the Company&#146;s publicly traded shares is
remote. Management, therefore, has not provided for a share transfer tax
liability in these financial statements.
</FONT>
<P align="left"><FONT size="2"><B>5.</B>&nbsp;&nbsp; <B>Impact of Recent Accounting Pronouncements</B></FONT>

<P align="left"><FONT size="2">During the three months ended September&nbsp;30, 2002, the Financial Accounting
Standards Board issued one standard. A summary of this standard is given below:
</FONT>
<P align="left"><FONT size="2">Statement of Financial Accounting Standard No.&nbsp;147, &#147;Acquisitions of Certain
Financial Institutions &#150; an amendment of FASB Statements No.&nbsp;72 and 144 and
FASB Interpretation No.&nbsp;9&#148; (FAS 147) removes acquisitions of financial
institution from the scope of both Statement 72 and interpretation 9 and
requires that those transactions be accounted for in accordance with FASB
statements No.&nbsp;141, &#147;Business Combinations&#148;, and No.&nbsp;142, &#147;Goodwill and Other
Intangible Assets&#148;. In addition, this Statement amends FASB Statement No.&nbsp;144,
&#147;Accounting for the Impairment or Disposal of Long-Lived Assets&#148;, to include in
its scope long-term customer-relationships intangible assets of financial
institutions such as depositor- and borrower-relationship intangible assets and
credit cardholder intangible assets. FAS 147 is effective from October&nbsp;1,
2002. The Company does not believe the adoption of the Standard will have an
impact on its financial position or results of operations.
</FONT>
<P align="center"><FONT size="2">6</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="center"><FONT size="2"><B>CONSOLIDATED WATER CO. LTD.<BR>
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
(Unaudited)</B></FONT>

<P align="left"><FONT size="2"><B>6.</B>&nbsp;&nbsp; <B>Earnings Per Share</B></FONT>

<P align="left"><FONT size="2">Basic earnings per share is calculated by dividing the net profit attributable
to stockholders by the weighted average number of ordinary shares of common
stock in issue during the relevant period.
</FONT>
<P align="left"><FONT size="2">The net income and weighted average number of ordinary shares of common stock
and potential ordinary shares figures used in the determination of the basic
and diluted earnings per ordinary share of common stock are summarized as
follows:
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
        <TD width="44%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>Three Months Ended</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>Nine Months Ended</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>September 30,</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="7"><FONT size="1"><B>September 30,</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="7"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income used in determination of
diluted earnings per ordinary share
of common stock</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">604,769</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">646,253</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">2,342,528</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">2,352,474</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Less:</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Dividends paid on non-vested
redeemable preferred stock</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(1,780</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(2,283</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(5,339</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(6,848</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Earnings attributable to vested
redeemable preferred stock</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(422</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(387</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(1,636</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">(1,409</FONT></TD>
        <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income available to holders of
ordinary shares of common stock in
the determination of basic earnings
per ordinary share of common stock</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">602,567</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">643,583</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">2,335,553</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">2,344,217</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Weighted average number of ordinary
shares of common stock in the determination of basic earnings per
ordinary share of common stock</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,983,072</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,899,858</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,961,922</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,880,952</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Plus:</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Weighted average number of
redeemable preferred stock
outstanding during the year</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">24,221</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">33,634</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">25,169</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">33,634</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Potential dilutive effect of
unexercised options</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">88,076</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">85,777</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">94,398</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">86,218</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>

        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Weighted average number of shares
used for determining diluted earnings
per ordinary share of common stock</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,095,369</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,019,269</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,081,489</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">4,000,804</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><HR size="4" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">7</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link2 "Item&nbsp; 2.&nbsp;&nbsp; Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations" -->
<DIV align="left"><A NAME="006"></A></DIV>
<P align="left"><FONT size="2"><B>Item</B>&nbsp; <B>2</B>.&nbsp;&nbsp; <B>Management&#146;s Discussion and Analysis of Financial Condition and
Results of Operations</B></FONT>

<P align="center"><FONT size="2"><B>Pending Acquisitions</B></FONT>

<P align="left"><FONT size="2">On October&nbsp;4 and October&nbsp;8, 2002, we entered into definitive agreements to
acquire interests in several companies that would expand our water operations
into the British Virgin Islands and Barbados and increase our presence in the
Cayman Islands. We are also in negotiations to acquire another
company which operates a desalination plant in Nassau, the
Commonwealth of the Bahamas. The aggregate purchase
price for the proposed acquisitions approximates $34&nbsp;million
(subject to certain adjustments) and 185,714 of our ordinary shares.
</FONT>
<P align="left"><FONT size="2">We have obtained a commitment from a bank to provide the financing required to
complete the acquisitions. Management intends to replace a portion of the bank
financing in the future with debt, equity or hybrid financing. We presently do
not have any agreements for such financing. The completion of the proposed
acquisitions is subject to the satisfaction of certain conditions, including
the receipt of certain governmental approvals. As a result, we can provide no
assurances that the proposed acquisitions will be completed.
</FONT>
<P align="left"><FONT size="2">The total production capacity of the water plants being acquired approximates
8.0&nbsp;million U.S. gallons per day (USGPD), which would bring our total
production capacity to 10.9&nbsp;million USGPD. Combined revenues of the five
companies being acquired, after elimination of inter-company sales, totaled
$9.4&nbsp;million for the year ended December&nbsp;31, 2001 and $4.1&nbsp;million for the six
months ended June&nbsp;30, 2002. Based on the historical operating results of the
companies we will be acquiring, we expect these acquisitions to increase our
earnings per share immediately after the transactions are completed.
</FONT>
<P align="left"><FONT size="2">On a pro-forma basis, our combined revenues, including the revenues of the
companies being acquired, would have approximated $20.4&nbsp;million for the year
ended December&nbsp;31, 2001 and $10.5&nbsp;million for the six months ended June&nbsp;30,
2002. The combined revenues would represent an 85.4% increase over our
consolidated revenues for the year ended December&nbsp;31, 2001 and a 64.8% increase
over our consolidated revenues for the six months ended June&nbsp;30, 2002, while
increasing our water production capacity by approximately 275.8%.
</FONT>
<P align="left"><FONT size="2">For a more detailed discussion of these acquisitions, see Part II, Item&nbsp;5 of
this Report.
</FONT>
<P align="left"><FONT size="2"><B>Results of Operations</B></FONT>

<P align="left"><FONT size="2"><B>Three and Nine Months Ended September&nbsp;30, 2002 Compared to Three and Nine
Months Ended September&nbsp;30, 2001</B>
</FONT>
<P align="left"><FONT size="2"><B>Total Income</B></FONT>

<P align="left"><FONT size="2">Total income increased by 4.9% from $2,782,542 to $2,919,181 for the three
months ended September&nbsp;30, 2001 and 2002, respectively, and by 6.3% from
$8,848,949 to $9,409,783 for the nine months ended September&nbsp;30, 2001 and 2002,
respectively. Total income is comprised of water sales and other income.
</FONT>
<P align="left"><FONT size="2">The Cayman operations increased total income by $28,730 for the three months
ended September&nbsp;30, 2002 and by $348,587 for the nine months ended September
30, 2002, which is an increase of 1.2% and 4.4%, respectively, over the same
periods in the prior year and represents 21.0% and 62.1%, respectively, of the
total increase of total income.
</FONT>
<P align="center"><FONT size="2">8</FONT>
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<P align="left"><FONT size="2">The Belize operations increased total income by $79,924 for the three months
ended September&nbsp;30, 2002 and by $135,636 for the nine months ended September
30, 2002, which is an increase of 25.7% and 13.8%, respectively, over the same
periods in the prior year and represents 58.5% and 24.2%, respectively, of the
total increase of total income.
</FONT>
<P align="left"><FONT size="2">Finally, the addition of the Bahamas operations as of July&nbsp;11, 2001 increased
total income by $27,985 for the three months ended September&nbsp;30, 2002
representing 20.5% of the increase, and by $76,611 for the nine months ended
September&nbsp;30, 2002, which is an increase of 236% and 646%, respectively, over
the same periods in the prior year and represents 20.5% and 13.7% of the total
increase of total income.
</FONT>
<P align="left"><FONT size="2">Sales in Cayman are made within our license area to approximately 3,100
customers. All sales in Belize are to one customer, Belize Water Services
Ltd., a private company that acquired the assets of Belize Water and Sewerage
Authority, which was previously a government statutory corporation. The terms
of our contract have not changed as a result of the privatization of Belize
Water and Sewerage Authority. Currently in the Bahamas, all sales are to one
customer, South Bimini International Ltd. known as Bimini Sands Resort and
Marina, which uses water at their hotel, condominiums and full service marina.
</FONT>
<P align="left"><FONT size="2">The largest change to operations during the nine months ended September&nbsp;30,
2002 occurred in Cayman and resulted from the purchase of the Britannia reverse
osmosis seawater conversion plant on February&nbsp;1, 2002. This plant was
previously owned and operated by Cayman Hotel and Golf Inc. In conjunction
with our purchase of the Britannia plant, the Hyatt Hotel and Britannia Golf
Course entered into a 25-year water supply agreement, and we now supply water
to the Britannia condominiums and villas under our standard customer contracts.
At the same time, the existing dispute settlement agreement with Cayman Hotel
and Golf Inc. was terminated.
</FONT>
<P align="left"><FONT size="2"><B>Water Sales</B></FONT>

<P align="left"><FONT size="2">Total water sales increased by 7.8% from $2,648,336 to $2,854,206 for the three
months ended September&nbsp;30, 2001 and 2002, respectively, and by 8.1% from
$8,506,406 to $9,195,725 for the nine months ended September&nbsp;30, 2001 and 2002,
respectively. Total water sales increased as a result of several factors
detailed below.
</FONT>
<P align="left"><FONT size="2">Our Cayman operation added $72,142 to water sales for the three months ended
September&nbsp;30, 2002 and $453,890 for the nine months ended September&nbsp;30, 2002,
which is an increase of 3.1% and 6.0%, respectively, over the same periods in
the prior year, and represents 35.0% and 65.8%, respectively, of the total
increase of water sales. While the number of US gallons we sold during the
three months ended September&nbsp;30, 2002 was approximately equal to that sold
during the same period in the prior year, we sold a greater percentage to our
higher rate customers. The number of US gallons we sold during the nine months
ended September&nbsp;30, 2002 increased by 10.3% over the same period in the prior
year. This is the result of supplying water to the Hyatt Hotel and the
Britannia golf course. Our water sales to customers other than the Hyatt Hotel
and Britannia Golf Course were essentially flat, in spite of a 12.5% reduction
in tourist air arrivals to the Cayman Islands during the nine month period
ended September&nbsp;30, 2002 when compared to the same period in 2001 because of
continued air travel concerns and the downturn of the US economy.
</FONT>
<P align="left"><FONT size="2">Our Belize operation added $105,300 to water sales for the three months ended
September&nbsp;30, 2002 and $158,379 for the nine months ended September&nbsp;30, 2002,
which is an increase of 36.8% and 16.6%, respectively, over the same periods in
the prior year, and represents 51.2% and 23.0%, respectively, of the total
increase of water sales. In June 2002, the automatic inflation adjustment
decreased our Belize water rates by an average of 0.08%. This was more than
offset by a 40.3% and 17.2% increase in the number of US gallons sold for the
three months ended September&nbsp;30, 2002 and the nine months ended September&nbsp;30,
2002, respectively, over the same periods in the prior year. These increases
occurred because (i)&nbsp;during the three months ended September&nbsp;30, 2001, we
experienced equipment malfunctions which temporarily reduced the production
capacity of our plant by 50%, and (ii)&nbsp;the number of US gallons we sold during
the nine months ended September&nbsp;30, 2002, excluding sales in months during
which we experienced these equipment malfunctions, increased by 7.8% when
compared to the same period in 2001.
</FONT>

<P align="center"><FONT size="2">9</FONT>



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<P><FONT size="2">Finally, the addition of the Bahamas operations as of July&nbsp;11, 2001 increased
water sales by $28,428 for the three months ended September&nbsp;30, 2002 and
$77,050 for the nine months ended September&nbsp;30, 2002, which is an increase of
248.9% and 674.6%, respectively, over the same periods in the prior year, and
represents 13.8% and 11.2%, respectively, of the total increase of water sales.
This was the result of a 237.3% and 648.9% increase in the number of US
gallons sold for the three months ended September&nbsp;30, 2002 and the nine months
ended September&nbsp;30, 2002, respectively, over the same periods in the prior
year. Currently, we provide water to 54 condominiums, half of a developing
150-slip marina and a 40-room hotel. By the end of 2002, we anticipate that we
will be providing water to 18 additional condominiums.
</FONT>
<P align="left"><FONT size="2"><B>Other Income</B></FONT>

<P><FONT size="2">Other income consists of dispute settlement fees, meter rental fees, equipment
rental fees, connection fees, reconnection fees, and interest income. Other
income decreased by 51.6% from $134,206 to $64,975 for the three months ended
September&nbsp;30, 2001 and 2002, respectively, and decreased 37.5% from $342,543 to
$214,058 for the nine months ended September&nbsp;30, 2001 and 2002, respectively.
These decreases were a result of the February&nbsp;1, 2002 termination of the
dispute settlement agreement with Cayman Hotel and Golf Inc. as discussed
above. Dispute settlement fees were included as other income in the prior year
and in the first month of the current year. No interest income was earned
during the three months ended September&nbsp;30, 2002. During the same period in
the prior year the interest was earned on delayed payment by our Belize
Customer.
</FONT>
<P align="left"><FONT size="2"><B>Cost of Water Sales</B></FONT>

<P><FONT size="2">Cost of water sales increased by 12.4% from $1,524,293 to $1,713,947 for the
three months ended September&nbsp;30, 2001 and 2002, respectively, and by 12.0% from
$4,622,651 to $5,177,533 for the nine months ended September&nbsp;30, 2001 and 2002,
respectively.
</FONT>
<P><FONT size="2">Our Cayman operations increased cost of water sales by $134,096 for the three
months ended September&nbsp;30, 2002 and by $383,268 for the nine months ended
September&nbsp;30, 2002, which is an increase of 10.3% and 9.5%, respectively, over
the same periods in the prior year, and represents 70.7% and 69.1%,
respectively, of the total increase of cost of water sales. The cost of water
sales increased as a result of direct costs incurred to operate the Britannia
plant, which was acquired on February&nbsp;1, 2002. These costs included salaries
and benefits for additional staff, equipment maintenance costs, electricity,
chemicals and insurance, which will continue forward now that we operate the
Britannia plant. Some of this increase was offset by a decrease in water
purchase costs, which decreased because we took less water from Ocean
Conversion (Cayman) Ltd. after the Britannia plant was purchased.
</FONT>
<P><FONT size="2">Our Belize operation increased cost of water sales by $39,401 for the three
months ended September&nbsp;30, 2002 and by $83,389 for the nine months ended
September&nbsp;30, 2002, which is an increase of 19.0% and 14.8%, respectively, over
the same periods in the prior year, and represents 20.8% and 15.0%,
respectively, of the total increase of cost of water sales. For the three
months ended September&nbsp;30, 2002, our Belize operation was more efficient than
during the same period in 2001 in respect of our cost of sales per unit of
water produced. This resulted because during the third quarter of 2002 (i)&nbsp;we
produced more water than during the same period in the prior year when we
experienced equipment malfunctions, and (ii)&nbsp;we were able to utilize our more
cost efficient diesel engines to power the plant. During the three months
ended September&nbsp;30, 2002 we completed rebuilding the second diesel engine, in
accordance with the engine manufacturer&#146;s preventative maintenance
recommendations, which increased our cost of water sales. During the nine
months ended September&nbsp;30, 2002, we also settled various claims for
compensation made by our customer in Belize in March 2002. These claims were
the result of our equipment failures that
occurred in August and September 2001 and a minor miscalculation in the annual
inflation adjustment formula in our contract. The miscalculation dated back to
November 1995, which was prior to our acquisition of Belize Water Limited, and
upon correction, reduced our unit rate for water to our customer by $0.09 per
1,000 US gallons.
</FONT>
<P><FONT size="2">Finally, the addition of the Bahamas operations as of July&nbsp;11, 2001 increased
cost of water sales by $16,157 for the three month period ended September&nbsp;30,
2002 and by $88,225 for the nine month period ended September&nbsp;30, 2002, which
is an increase of 75.6% and
</FONT>
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<P><FONT size="2">413.0%, respectively, over the same periods in the
prior year, and represents 8.5% and 15.9%, respectively, of the total increase
of cost of water sales.
</FONT>
<P align="left"><FONT size="2"><B>Gross Profit</B></FONT>

<P><FONT size="2">Gross profit margins decreased from 42.4% to 40.0% for the three months ended
September&nbsp;30, 2001 and 2002, respectively, and decreased from 45.7% to 43.7%
for the nine months ended September&nbsp;30, 2001 and 2002, respectively.
</FONT>
<P><FONT size="2">Gross profit margins for our Cayman operations decreased from 44.9% to 41.0%
for the three months ended September&nbsp;30, 2001 and 2002, respectively, and
decreased from 46.5% to 44.7% for the nine months ended September&nbsp;30, 2001 and
2002, respectively. The primary reasons for these decreases are (i)
approximately two thirds of the water produced by our Britannia plant was sold
to the Hyatt Hotel and Britannia Golf Course at a lower rate than our standard
commercial water rate and (ii)&nbsp;due to flat water sales we were only able to
utilize approximately 66% of the production capacity of the Britannia plant and
were not able to produce higher volumes of water for sale at higher gross
margins to customers other than the Hyatt hotel and Britannia Golf Course as a
result of the minimum water quantities required to be purchased from Ocean
Conversion (Cayman) Ltd.
</FONT>
<P><FONT size="2">Gross profit margins for our Belize operations increased from 27.6% to 37.0%
for the three months ended September&nbsp;30, 2001 and 2002, respectively, and
increased from 40.8% to 41.7% for the nine months ended September&nbsp;30, 2001 and
2002, respectively. The reason for the increases in the gross profit margins
is increased sales over prior year periods when production was restricted by
equipment malfunctions.
</FONT>
<P><FONT size="2">Gross profit margin for our Bahamas operations increased from a negative 87.0%
to a positive 5.8% for the three months ended September&nbsp;30, 2002 and increased
from a negative 87.0% compared to a negative 23.9% for the nine months ended
September&nbsp;30, 2002. This was our first quarter with a positive gross profit
margin. We anticipated that the Bahamas operation would generate net income
during the first quarter of 2003 and we are ahead of estimates by achieving it
this quarter. The low gross profit margins were due to low water sales and a
relatively higher proportion of fixed costs such as depreciation, which we
expected in the early phases of the Bimini Sands Resort development project.
Both of these are temporary factors and are not expected to continue in the
future.
</FONT>
<P align="center"><FONT size="2">11</FONT>
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<P align="left"><FONT size="2"><B>Indirect Expenses</B></FONT>

<P><FONT size="2">Indirect expenses decreased by 1.9% from $611,996 to $600,465 for the three
months ended September&nbsp;30, 2001 and 2002, respectively, and increased by 0.8%
from $1,873,824 to $1,889,722 for the nine months ended September&nbsp;30, 2001 and
2002, respectively.
</FONT>
<P><FONT size="2">Our Cayman operations decreased indirect expenses by $15,632 for the three
months ended September&nbsp;30, 2002 and by $6,881 for the nine months ended
September&nbsp;30, 2002, which is an decrease of 2.8% and 0.4%, respectively, over
the same periods in the prior year. We had a decrease in expenses related to
our banking and loan facilities, which was partially offset by increased
insurance premiums on our commercial and directors and officers insurance.
</FONT>
<P><FONT size="2">Our Belize operations increased indirect expenses by $5,081 for the three
months ended September&nbsp;30, 2002 and by $17,836 for the nine months ended
September&nbsp;30, 2002, which is an increase of 11.8% and 14.6%, respectively, over
the same periods in the prior year. During the three months ended September
30, 2002, we had additional travel costs relating to two additional trips made
by Cayman management to Belize. The nine months ended September&nbsp;30, 2002
increase was due to the additional travel, fees and exchange on repatriation of
US dollars to the Cayman Islands, and insurance premiums.
</FONT>
<P><FONT size="2">Finally, the addition of the Bahamas operations as of July&nbsp;11, 2001 decreased
indirect expenses by $980 for the three months ended September&nbsp;30, 2002 which
represents a decrease of 39.2% over the same period in the prior year and
increased indirect expenses by $4,943 for the nine month ended September&nbsp;30,
2002 which represents an increase of 198.0% over the same period in the prior
year. These costs relate to the administration of the Bahamas operations.
</FONT>
<P><FONT size="2">As a percentage of the total income, indirect expenses were at 22.0% and 20.6%
for the three months ended September&nbsp;30, 2001 and 2002, respectively, and at
21.2% and 20.1% for the nine months ended September&nbsp;30, 2001 and 2002,
respectively.
</FONT>
<P align="left"><FONT size="2"><B>Net Income</B></FONT>

<P><FONT size="2">Net income decreased by 6.4% from $646,253 to $604,769 for the three months
ended September&nbsp;30, 2001 and 2002, respectively, and decreased by 0.4% from
$2,352,474 to $2,342,528 for the nine months ended September&nbsp;30, 2001 and 2002,
respectively. These decreases were due to flat water sales in our Cayman
operations to customers other than the Hyatt Hotel and the Britannia golf
course, losses incurred by our Bimini operations during the first two quarters
of the year, lower interest income and lower other income from elimination of
the dispute settlement fees.
</FONT>
<P align="left"><FONT size="2"><B>Dividends</B></FONT>

<P><FONT size="2">In December 2001, we increased our per share interim dividend from $0.10 to
$0.105, payable on a quarterly basis. On April&nbsp;30, 2002, we paid a dividend of
$0.105 to shareholders of record on March&nbsp;31, 2002, on July&nbsp;31, 2002, we paid a
dividend of $0.105 to shareholders of record on June&nbsp;30, 2002, and on October
31, 2002 we paid a dividend of $0.105 to shareholders of record on September
30, 2002. We have consistently paid dividends to record owners of our ordinary
shares of common stock and redeemable preferred stock since we began declaring
dividends in 1985. Our payment of any future cash dividends is dependant upon
our earnings, financial condition, capital demand and other factors. However,
we expect to continue increasing our dividend as our earnings grow.
</FONT>
<P align="center"><FONT size="2">12</FONT>
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<P align="left"><FONT size="2"><B>Liquidity and Capital Resources</B></FONT>

<P align="left"><FONT size="2"><B>Overview</B></FONT>

<P><FONT size="2">We generate cash primarily from our operations in the Cayman Islands, Belize
and Bahamas, and to a lesser extent from the sale of our shares, and through
our loans and facilities obtained from two banks. Cash flow is impacted by
operating and maintenance expenses, the timeliness and adequacy of rate
increases (excluding automatic adjustments to our rates for inflation and
electricity costs), and various factors affecting tourism in the Cayman
Islands, Belize and Bahamas, such as weather conditions and the economy. Cash
is used to fund our operations in the Cayman Islands, Belize and Bahamas,
capital projects, payments under our operating agreement with Ocean Conversion
(Cayman) Ltd. (a Cayman Islands company which operates our Governor&#146;s Harbour
plant), expansions in our infrastructure, dividends, principal payments on our
loans, share repurchases and new investment opportunities which expand our
operations. Currently, 35.6% of our cash is denominated in Belize dollars. We
exchange a percentage of our Belize dollars earnings to United States dollars
and repatriate them to the Cayman Islands. In June and October, we repatriated
$300,000 and $150,000, respectively, from Belize.
</FONT>
<P align="left"><FONT size="2"><B>Operating Activities</B></FONT>

<P><FONT size="2">Cash from operating activities for the nine months ended September&nbsp;30, 2001 and
2002 was $3,408,328 and $3,685,757, respectively. We generated cash through
the utilization of our existing plants, equipment and resources in all three
segments of the business, minimization of water losses and efficiencies created
by a strong management team. In addition, during the three months ended
September&nbsp;30, 2002, our Bahamas operation generated positive cash flow of
$12,403. This investment is long-term, and we expect to consistently produce
positive cash flows starting from this quarter.
</FONT>
<P align="left"><FONT size="2"><B>Investing Activities</B></FONT>

<P><FONT size="2">Cash used in investing activities during the nine months ended September&nbsp;30,
2001 and 2002 was $1,606,638 and $2,343,594, respectively. During 2002, cash
was used in investing activities for expenditures for new property, plant and
equipment with the majority associated with the purchase of the Britannia RO
seawater desalination plant on February&nbsp;1, 2002. We also continued to expand
our water distribution system in the Cayman Islands by constructing pipelines
to service new developments within our franchise area. Also during the nine
months ended September&nbsp;30, 2002, we accumulated deferred expenditures for costs
relating to the pending acquisitions, which will be applied against goodwill on
completion of the acquisitions. During 2001, our investing activities
consisted primarily of construction costs relating to our new water production
and distribution system in Bimini, Bahamas and costs of constructing pipelines
to service several new developments within our Cayman Islands franchise area.
</FONT>
<P align="left"><FONT size="2"><B>Financing Activities</B></FONT>

<P><FONT size="2">Cash used in financing activities for the nine months ended September&nbsp;30, 2001
was $1,037,696, compared to cash provided by financing activities of $24,504
for the nine months ended September&nbsp;30, 2002. During the nine months ended
September&nbsp;30, 2002, our primary financing activity was a draw down of our
credit facility for an additional $1,500,000 in order to finance the investment
in the Britannia RO seawater desalination plant. We also had proceeds from the
exercise of stock options by certain directors and officers. These amounts
were offset by accumulated deferred expenditures for costs relating to an
anticipated share issuance, which will be applied against shareholders&#146; equity
on issuance, the payment of our December&nbsp;31, 2001 interim quarterly dividend
totaling $0.10 per share, our March&nbsp;31, 2002 interim
quarterly dividend totaling $0.105 per share, our June&nbsp;30, 2002 interim
quarterly dividend totaling $0.105 per share, and principal payments on our
term loans. During the same period in 2001, the primary financing activity was
the payment of our December&nbsp;31, 2000 interim quarterly dividend totaling $0.10
per share, our March&nbsp;31, 2001 interim quarterly dividend totaling $0.10 per
share and our June&nbsp;30, 2001 interim quarterly dividend totaling $0.10 per
share. These amounts were offset by proceeds from the exercise of stock
options by a director and a net increase in our short-term bank overdraft to
cover a portion of the construction costs of our new water production
facilities in Bimini, Bahamas.
</FONT>
<P align="center"><FONT size="2">13</FONT>
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<P><FONT size="2">On September&nbsp;21, 2001, the Company reactivated its stock repurchase program,
which was originally approved by the board of directors in October 1998, and
may repurchase up to 10% of the outstanding ordinary shares of common stock in
the open market and private negotiated transactions. Depending upon market
conditions and other factors, purchases under this program may be commenced or
suspended at any time. No shares were repurchased during the three months
ended September&nbsp;30, 2001 and 2,184 were repurchased at that average price of
$15.05 during the three months ended September&nbsp;30, 2002.
</FONT>
<P align="left"><FONT size="2"><B>Material Commitments for Capital Expenditures and Contingencies</B></FONT>

<P><FONT size="2">As at September&nbsp;30, 2002, we had approximately $1.3&nbsp;million committed for
capital expenditures for the replacement of our potable water storage tanks at
our Governor&#146;s Harbour site in Grand Cayman. We intend to finance this project
using cash from operations.
</FONT>
<P align="left"><FONT size="2"><B>Impact of Inflation</B></FONT>

<P><FONT size="2">Under the terms of our Cayman Islands license, Belize Water Sales Agreement and
Bimini Water Sales Agreement, there is an automatic price adjustment for
inflation on an annual basis, subject to temporary exceptions. We, therefore,
believe that the impact of inflation on our net income, measured in consistent
dollars, will not be material.
</FONT>
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<P align="left"><FONT size="2"><B>Item</B>&nbsp;<B>3.</B>&nbsp;&nbsp;<B>Quantitative and Qualitative Disclosures about Market Risk</B></FONT>

<P align="left"><FONT size="2"><B>Credit Risk:</B></FONT>

<P><FONT size="2">Our main exposure to credit risk is from our Belize customer, which is billed
approximately $120,000 per month. As at September&nbsp;30, 2002, we had a
receivable balance of $128,473, which has been subsequently paid.
</FONT>

<P align="left"><FONT size="2"><B>Interest Rate Risk:</B></FONT>

<P><FONT size="2">As of September&nbsp;30, 2002, we had loans outstanding of $1,018,174 from the
European Investment Bank at fixed interest rates ranging from 3.0% to 4.25% and
$1,787,500 from the Royal Bank of Canada, bearing interest at LIBOR plus 1.5%.
We are subject to interest rate risk to the extent that LIBOR changes.
</FONT>

<P align="left"><FONT size="2"><B>Foreign Exchange Risk:</B></FONT>

<P><FONT size="2">All of our foreign currencies have fixed exchanged rates to the U.S. dollar as
detailed under the exchange rate section described earlier. If any of these
fixed exchange rates become a floating exchange rate, however, our results of
operations could be adversely affected.
</FONT>
<P align="center"><FONT size="2">14</FONT>
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<P align="left"><FONT size="2"><B>Item</B>&nbsp;<B>4.</B>&nbsp;&nbsp;<B>Controls and Procedures</B></FONT>

<P><FONT size="2">Our Chief Executive Officer and Chief Financial Officer (collectively, the
&#147;Certifying Officers&#148;) are responsible for establishing and maintaining
disclosure controls and procedures for us. Such officers have concluded (based
upon their evaluation of these controls and procedures as of a date within 90
days of the filing of this report) that our disclosure controls and procedures
are effective to ensure that information required to be disclosed by us in this
report is accumulated and communicated to management, including our principal
executive officers as appropriate, to allow timely decisions regarding required
disclosure.
</FONT>
<P><FONT size="2">The Certifying Officers also have indicated that there were no significant
changes in our internal controls or other factors that could significantly
affect such controls subsequent to the date of their evaluation, and there were
no corrective actions with regard to significant deficiencies and material
weaknesses.
</FONT>
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<P align="center"><FONT size="2"><B>PART II &#151; OTHER INFORMATION</B></FONT>

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<P align="left"><FONT size="2"><B>Item</B>&nbsp;<B>2.</B>&nbsp;&nbsp;<B>Changes in Securities and Use of Proceeds</B></FONT>

<P><FONT size="2">In August 2002, we converted 8,083 shares of vested redeemable preferred stock
for an equal number of ordinary shares of common stock under our Employee Share
Incentive Plan. The issuance of the ordinary shares of common stock was exempt
from registration under Regulation&nbsp;S promulgated under the Securities Act of
1933 (the &#147;1933 Act&#148;) because the ordinary shares of common stock were issued
outside of the United States to non-U.S. persons (as defined in Regulation&nbsp;S)
upon conversion of the redeemable preferred stock.
</FONT>
<P><FONT size="2">In October 2002, we issued 6,056 ordinary shares of common stock to seven of
our directors as compensation under the directors share grant plan. The
issuance of a portion of these shares was exempt from registration under
Regulation&nbsp;S promulgated under the 1933 Act because the shares were offered and
sold outside of the United States to non-US persons (as defined in Regulation
S) and the issuance of the balance of the shares was exempt under Section&nbsp;4(2)
of the 1933 Act because the individuals receiving the shares are sophisticated
investors who have knowledge of all material information about our company.
</FONT>
<!-- link2 "Item&nbsp;5.&nbsp;&nbsp;Other Information" -->
<DIV align="left"><A NAME="011"></A></DIV>
<P align="left"><FONT size="2"><B>Item</B>&nbsp;<B>5.</B>&nbsp;&nbsp;<B>Other Information</B></FONT>

<P align="center"><FONT size="2">Pending Acquisitions</FONT>

<P><FONT size="2">On October&nbsp;4 and October&nbsp;8, 2002, we entered into several agreements that
will enable us to expand our operations to the British Virgin Islands and
Barbados, and increase our presence in the Cayman Islands. Pursuant to these agreements, we have agreed to acquire equity
and other interests in three companies providing potable water services in Tortola, British Virgin Islands; Barbados and the Cayman
Islands and a fourth company providing management and engineering services to
these companies. We are also in negotiations to acquire another
company which operates a desalination plant in Nassau, the
Commonwealth of the Bahamas. The aggregate purchase price for the
pending acquisitions approximates $34&nbsp;million
(subject to certain adjustments) and 185,714 of our ordinary shares, which we
are required to register for resale.
Although we expect to complete these acquisitions before the end of
the year, there is no
assurance that the pending acquisitions will be consummated because the
closings of several of these acquisitions are contingent upon one another and
are contingent upon the receipt of certain governmental approvals and
satisfaction of certain closing conditions. We have obtained a
</FONT>
<P align="center"><FONT size="2">15</FONT>
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<P><FONT size="2">commitment
from a bank to provide the financing required to complete the pending
acquisitions. We intend to replace a portion of the bank financing in the
future with debt, equity or hybrid financing. We do not have any agreements
for such financing at the present time.
</FONT>
<P><FONT size="2">The following is a summary of the terms of each of
the transactions underlying the agreements that we have executed.
This summary is qualified in its entirety by reference to each of the
agreements attached hereto as Exhibits 2.1, 2.2 and 2.3, which are
incorporated herein by reference.
</FONT>
<P align="left"><FONT size="2"><B>DesalCo Limited &#150; Bermuda</B></FONT>

<P><FONT size="2">We have entered into an agreement with William and Margaret Andrews to acquire
all of the issued and outstanding stock of DesalCo Limited, a Cayman Islands
company, operating in Bermuda. DesalCo Limited provides management and
engineering services to Ocean Conversion (Cayman) Limited, Ocean Conversion
(BVI)&nbsp;Ltd. and engineering services to Waterfields Company Limited. Such
services include all management support, including accounting, financial
reporting, audit coordination, personnel management, plant management and
maintenance. In addition to these management and engineering services, DesalCo
Limited also owns 100% of the non-voting stock of Ocean Conversion (Cayman)
Limited and Ocean Conversion (BVI)&nbsp;Ltd. as well as 12.7% of the voting stock of
Waterfields Company Limited. DesalCo Limited also owns all of the issued and
outstanding stock of DesalCo (Barbados) Ltd., a Barbados company, which
operates a desalination plant for and sells desalinated water to Sandy Lane
Properties Ltd. in St. James, Barbados. Under the terms of the operating
agreement between Sandy Lane Properties Ltd. and DesalCo Limited, DesalCo
Limited provides management, engineering, purchasing and other services for a
fixed monthly fee and receives a share of the revenues generated by the
desalination plant. DesalCo Limited has assigned its rights under this
agreement to its wholly-owned subsidiary, DesalCo (Barbados) Ltd.
</FONT>
<P><FONT size="2">In addition, DesalCo Limited has an exclusive seven-year distributorship
agreement for the Caribbean basin to provide the DWEER&#153; system produced by
DWEER Technology Limited for use in reverse osmosis seawater desalination
plants. Upon completion of the DesalCo acquisition, we will own 100% of
DesalCo.
</FONT>
<P align="left"><FONT size="2"><B>Ocean Conversion (Cayman) Limited &#150; Cayman Islands
Ocean Conversion (BVI)&nbsp;Ltd. &#150; British Virgin Islands</B></FONT>

<P><FONT size="2">We have entered into an agreement with Transcontinental Finance Corporation
Ltd. and North American Mortgage &#038; Finance Corporation to purchase all of the
voting stock and certain profit sharing rights relating to Ocean Conversion
(Cayman) Limited, a Cayman Islands company, and 50% of the issued and
outstanding voting stock and certain profit sharing rights relating to Ocean
Conversion (BVI)&nbsp;Ltd., a British Virgin Islands company.
</FONT>
<P><FONT size="2">Ocean Conversion (Cayman) Limited sells desalinated water under various
licenses and agreements to both us and the Water Authority-Cayman. The Water
Authority-Cayman in turn distributes the water to customers outside our
exclusive licensed area. All of the non-voting stock of Ocean Conversion
(Cayman) Limited is owned by DesalCo Limited and will be acquired by
us in the planned DesalCo transaction as previously discussed. Upon consummation of
these two transactions, we will own 100% of the voting and non-voting stock of
Ocean Conversion (Cayman) Limited.
</FONT>
<P><FONT size="2">Ocean Conversion (BVI)&nbsp;Ltd. sells desalinated seawater on the island of Tortola
to the Water and Sewage Department of the British Virgin Islands, which in turn
distributes the water to customers via pipeline. All of the non-voting stock
of Ocean Conversion (BVI)&nbsp;Limited is owned by DesalCo Limited. As a condition to completion of the Ocean Conversion (BVI)&nbsp;Ltd.
acquisition, we have agreed to surrender to Ocean Conversion (BVI)&nbsp;Ltd. 18.2%
of the profit sharing rights that we will acquire from Transcontinental Finance
Corporation Ltd. and North American Mortgage &#038; Finance Corporation in return
for the issuance to DesalCo Limited of an additional 45,000 non-voting shares
by Ocean Conversion (BVI)&nbsp;Ltd. DesalCo Limited will sell the 45,000 shares of
non-voting stock, in addition to, all of the shares of non-voting stock that it
currently holds to the remaining shareholder, Sage Water Holdings (BVI)&nbsp;Ltd.
</FONT>
<P align="center"><FONT size="2">16</FONT>
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<P><FONT size="2">Upon completion of these two transactions, we will share equal control of the
voting stock and the profit
sharing rights of Ocean Conversion (BVI)&nbsp;Ltd. with
Sage Water Holdings (BVI)&nbsp;Ltd., which will own all of the shares of non-voting
stock of Ocean Conversion (BVI)&nbsp;Ltd.
</FONT>

<P align="center"><FONT size="2">Section&nbsp;906 Certifications Under Sarbanes-Oxley Act</FONT>

<P><FONT size="2">Pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, our chief executive
officer and our chief financial officer have provided certain certifications
without any qualifications to the Securities and Exchange Commission. These
certifications accompanied this report when filed with the Securities
and Exchange Commission.
</FONT>
<P align="center"><FONT size="2">17</FONT>
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<!-- link2 "Item&nbsp;6&nbsp;&nbsp;Exhibits and Reports on Form&nbsp;8-K" -->
<DIV align="left"><A NAME="012"></A></DIV>
<P align="left"><FONT size="2"><B>Item</B>&nbsp;<B>6.</B>&nbsp;&nbsp;<B>Exhibits and Reports on Form&nbsp;8-K</B></FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">(a)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Exhibits</FONT></TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%">
<TR valign="bottom">
        <TD width="9%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="86%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><FONT size="1"><B>Exhibit</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><FONT size="1"><B>Number</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center"><FONT size="1"><B>Exhibit Description</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">2.1</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Share Sale Agreement dated October&nbsp;4, 2002 between the
Company and William T. Andrews and Margaret D. Andrews. (The
schedules to this agreement have been omitted pursuant to Item
601(b)(2) of Regulation&nbsp;S-K promulgated under the 1933 Act. Upon
the request of the Securities and Exchange Commission (the &#147;SEC&#148;),
the Company shall furnish supplementally to the SEC a copy of any of
such omitted schedules.)</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">2.2</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Share Sale Agreement dated October&nbsp;4, 2002 among the Company,
North-American Mortgage &#038; Finance Corporation and Transcontinental
Finance Corporation Limited. (The schedules to this agreement have
been omitted pursuant to Item&nbsp;601(b)(2) of Regulation&nbsp;S-K
promulgated under the 1933 Act. Upon the request of the SEC, the
Company shall furnish supplementally to the SEC a copy of any of
such omitted schedules.)</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">2.3</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Agreement dated October&nbsp;8, 2002 between the Company and Sage
Water Holdings (BVI Ltd.). (The schedules to this agreement have
been omitted pursuant to Item&nbsp;601(b)(2) of Regulation&nbsp;S-K
promulgated under the 1933 Act. Upon the request of the SEC, the
Company shall furnish supplementally to the SEC a copy of any of
such omitted schedules.)</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">*</FONT></TD>
        <TD width="96%"><FONT size="2">Portions of the Exhibits have been omitted pursuant to a request for confidential treatment.</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">(b)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Reports on Form&nbsp;8-K</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">On July&nbsp;5, 2002, the Company filed a Form&nbsp;8-K with respect to Item&nbsp;4
thereof, Changes in Registrant&#146;s Certifying Accountant, concerning the
dismissal of PricewaterhouseCoopers effective June&nbsp;27, 2002.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">On July&nbsp;10, 2002, the Company filed a Form&nbsp;8-K with respect to Item&nbsp;4
thereof, Changes in Registrant&#146;s Certifying Accountant, concerning the
appointment of KPMG as the Company&#146;s auditors effective July&nbsp;9, 2002.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">18</FONT>
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<!-- link1 "SIGNATURE" -->
<DIV align="left"><A NAME="013"></A></DIV>
<P align="center"><FONT size="2"><B>SIGNATURE</B></FONT>

<P><FONT size="2">Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%">
<TR valign="bottom">
        <TD width="15%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="72%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="3" valign="top" align="left"><FONT size="2"><B>CONSOLIDATED WATER CO. LTD.</B></FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
By:
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">/s/ Jeffrey M. Parker</FONT></TD>
</TR>
<TR>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Jeffrey M. Parker<BR>
Chairman of the Board of Directors and<BR>
Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2">Dated:&nbsp;&nbsp;November&nbsp;13, 2002</FONT>

<P align="center"><FONT size="2">19</FONT>
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<!-- link1 "CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED<BR> PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002" -->
<DIV align="left"><A NAME="014"></A></DIV>
<P align="center"><FONT size="2"><B>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED<BR>
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Quarterly Report of Consolidated Water Co. Ltd. on
Form&nbsp;10-Q for the quarter ended September&nbsp;30, 2002, as filed with the
Securities and Exchange Commission on the date hereof, I, Jeffrey M. Parker,
the Chief Executive Officer of the Company, certify, pursuant to and for
purposes of 18 U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;302 of the
Sarbanes-Oxley Act of 2002, that:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this quarterly report on Form&nbsp;10-Q of Consolidated
Water Co. Ltd.;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period covered by
this quarterly report;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&#146;s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act rules 13a-14 and 15d-14) for the registrant and we have:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly report
is being prepared;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) evaluated the effectiveness of the registrant&#146;s disclosure
controls and procedures as of a date within 90&nbsp;days prior to the filing date of this
quarterly report (the &#147;Evaluation Date&#148;); and</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&#146;s other certifying officer and I have disclosed, based
on our most recent evaluation, to the registrant&#146;s auditors and the audit
committee of the registrant&#146;s board of directors (or persons performing the
equivalent function):
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant&#146;s ability
to record, process, summarize and report financial data and have
identified for the registrant&#146;s auditors any material weakness in
internal controls; and</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant&#146;s internal
controls; and</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&#146;s other certifying officer and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date:&nbsp;&nbsp;November&nbsp;13, 2002
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
        <TD width="12%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="75%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
By:
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">/s/ Jeffrey M. Parker<BR>
Name:&nbsp;&nbsp;Jeffrey M. Parker<BR>
Title:&nbsp;&nbsp;Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">20</FONT>
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<P align="center"><FONT size="2"><B>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED<BR>
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Quarterly Report of Consolidated Water Co. Ltd. on
Form&nbsp;10-Q for the quarter ended September&nbsp;30, 2002, as filed with the
Securities and Exchange Commission on the date hereof, I, Frederick McTaggart,
the Chief Financial Officer of the Company, certify, pursuant to and for
purposes of 18 U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;302 of the
Sarbanes-Oxley Act of 2002, that:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this quarterly report on Form&nbsp;10-Q of Consolidated
Water Co. Ltd.;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period covered by
this quarterly report;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&#146;s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act rules 13a-14 and 15d-14) for the registrant and we have:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly report
is being prepared;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) evaluated the effectiveness of the registrant&#146;s disclosure
controls and procedures as of a date within 90&nbsp;days prior to the filing
date of this quarterly report (the &#147;Evaluation Date&#148;); and</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&#146;s other certifying officer and I have disclosed, based
on our most recent evaluation, to the registrant&#146;s auditors and the audit
committee of the registrant&#146;s board of directors (or persons performing the
equivalent function):
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant&#146;s ability
to record, process, summarize and report financial data and have
identified for the registrant&#146;s auditors any material weakness in
internal controls; and</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant&#146;s internal
controls; and</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&#146;s other certifying officer and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
</FONT>
<P align="left"><FONT size="2">Date:&nbsp;&nbsp;November&nbsp;13, 2002</FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
        <TD width="12%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="75%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
By:
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">/s/ Frederick McTaggart<BR>
Name:&nbsp;&nbsp;Frederick McTaggart<BR>
Title:&nbsp;&nbsp;Chief Financial Officer</FONT></TD>
</TR>
</TABLE>
</CENTER>

<P align="center"><FONT size="2">21</FONT>




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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.1
<SEQUENCE>3
<FILENAME>g78273exv2w1.txt
<DESCRIPTION>SHARE SALE AGREEMENT
<TEXT>
<PAGE>

                                                                     EXHIBIT 2.1

                            DATED: OCTOBER 4th, 2002




                              SHARE SALE AGREEMENT

                                     BETWEEN

                          CONSOLIDATED WATER CO. LTD.

                                       AND

                   WILLIAM T. ANDREWS AND MARGARET D. ANDREWS




                       CHARLES ADAMS, RITCHIE & DUCKWORTH
                                  ZEPHYR HOUSE
                                 P.O. BOX 709 GT
                                   MARY STREET
                                  GRAND CAYMAN
                                 CAYMAN ISLANDS


<PAGE>

                                       1

                              SHARE SALE AGREEMENT

THIS SHARE SALE AGREEMENT is made this 4th day of October 2002

BETWEEN:

(1)      CONSOLIDATED WATER CO. LTD., formerly Cayman Water Company Limited, of
         Trafalgar Place, West Bay Road, P.O. Box 1114 GT, Grand Cayman
         (hereinafter "the Purchaser") of the first part; and

(2)      WILLIAM T. ANDREWS and MARGARET D. ANDREWS of 12 Chapel Road, Paget, PG
         02, Bermuda (the "Vendors") of the second part.

WHEREAS:

The Purchaser wishes to acquire the entire issued share capital of DesalCo
Limited (which owns the entire issued share capital of DesalCo (Barbados) Ltd.)
from the Vendors on the terms of this Agreement.

NOW IT IS HEREBY AGREED as follows:-

1.       INTERPRETATION

         1.1.     In this Agreement the following words and expressions have the
                  following meanings (save where (1) expressly otherwise
                  provided or (2) the Agreement otherwise requires):

                  "Affiliates" means at any time with respect to a person,
                  another person that directly, or indirectly through one or
                  more intermediaries, controls, or is controlled by, or is
                  under common control with, such person;

                  "BACO" means Bacardi & Company Limited, a company incorporated
                  in Vaduz, Liechtenstein, with its principal offices at the
                  Bacardi plant situate at Millar Road, Nassau, Bahamas;

                  "Binder Volumes" means the files of documents referred to in
                  clause 5 of Schedule 2, the indexes of which have been marked
                  and initialed by way of confirmation of the contents of such
                  files;

                  "Business Day" means a day on which class A licensed banks are
                  open for business in the Cayman Islands;

                  "Business" means the business of the design, bidding,
                  supplying, installation, management and/or operation of
                  seawater desalination plants in the Caribbean Basin;

<PAGE>

                                       2

                  "Caribbean Basin" shall have the meaning as set out in
                  Schedule 5;

                  "Company" means DesalCo Limited, formerly Sea Conversion
                  Technology Ltd., the registered office of which is c/o
                  Campbell Corporate Services Limited, 4th floor, Scotiabank
                  Building, P.O. Box 884GT, Grand Cayman, Cayman Islands;

                  "Company's Auditors" means Deloitte & Touche, Bermuda;

                  "Completion" means completion of the sale and purchase of the
                  Shares;

                  "Deed of Release" means the deed in the form set out in
                  Schedule 3;

                  "DesalCo Group" means the Company and DesalCo (Barbados) Ltd.
                  together or, where the context requires, either of them
                  individually;

                  "Disclosure Letter" means the letter dated the date hereof
                  written by or on behalf of the Vendors to the Purchaser and
                  signed by the Vendors;

                  "DWEER Distributorship Agreement" means the Agreement the form
                  of which is attached as Schedule 6 dated 24th September, 2002
                  between the Company and DWEER-Tech;

                  "DWEER-Tech" means DWEER Technology Ltd., a Cayman Islands
                  exempted company, owned by the Vendors;

                  "DWEER Transfer Agreement" means the Agreement for the sale of
                  the business of designing, developing, manufacturing,
                  marketing and selling DWEER Products and the patents, patent
                  applications and other intellectual property relating to DWEER
                  products dated 11th April, 2002 between the Company and
                  DWEER-Tech, as amended and restated as the Amended and
                  Restated Agreement for the sale of the business of designing,
                  developing, manufacturing, marketing and selling DWEER
                  Products and the patents, patent applications and other
                  intellectual property relating to DWEER products and
                  Associated Technology on 24th September, 2002, the form of
                  which is attached hereto as Schedule 7;

                  "Engineering Services Agreement" means the agreement in the
                  form attached as Schedule 8 to be entered into by the Company
                  and DWEER Technology Ltd.;

                  "the LT Investments" means the amount of US$1,571,131
                  representing the value of the Company's investments in WCL,
                  OCC and OCBVI as set out in Schedule 1, and Note 5 of the Last
                  Accounts of the Company;

                  "the Licences" means A Licence to Produce Water from Seawater
                  provided to Ocean Conversion (Cayman) Limited by the
                  Government of


<PAGE>

                                       3

                  the Cayman Islands dated April 25, 1994, a Licence to Produce
                  and Supply Potable Water from Seawater provided to Ocean
                  Conversion (Cayman) Ltd. by the Government of the Cayman
                  Islands dated June 18, 1997 and a Licence to Produce and
                  Supply Water from Seawater provided to Ocean Conversion
                  (Cayman) Ltd. by the Government of the Cayman Islands dated
                  December 31, 2001, all as amended;

                  "TCF/NAMF Agreement" means the Share Sale Agreement between
                  the Purchaser and North-American Mortgage & Finance
                  Corporation (hereinafter "NAMF") and Transcontinental Finance
                  Corporation Limited (hereinafter "TCP") of even date, a copy
                  of which (excluding Schedule 5 thereto) is attached as
                  Schedule 9;

                  "Last Accounts" means the audited accounts of the DesalCo
                  Group as at June 30th, 2002;

                  "Last Accounts Date" means June 30th, 2002;

                  "Purchase Price" means the consideration payable by the
                  Purchaser to the Vendors as calculated pursuant to clause 3.1;

                  "Shares" means the issued shares of the Company held by the
                  Vendors as set out in Schedule 1;

                  "Warranties" means the warranties and representations by the
                  Vendors in clause 6;

                  "Water Supply Companies" means the companies listed in
                  Schedule 1 and "Water Supply Company" shall be construed
                  accordingly. With the exception of the Company, the individual
                  Water Supply Companies shall be referred to in this Agreement
                  by the initials appearing next to their names in Schedule 1;

                  "WCL JV Agreement" means the Joint Venture Agreement, dated
                  10th November, 1995, between the Company and BACO;

         1.2.     All references in this Agreement to a statutory provision
                  shall be construed as including references to:

                  1.2.1    Any statutory modification, consolidation or
                           re-enactment thereof being in force at Completion;

                  1.2.2.   All statutory instruments or orders made pursuant to
                           such statutory provision; and

                  1.2.3.   Any statutory provisions of which such statutory
                           provision is a consolidation, re-enactment or
                           modification.


<PAGE>

                                       4

         1.3.     Any reference in this Agreement to the Vendors (or either of
                  them) includes their respective personal representatives.

         1.4.     In this Agreement any word or expression that imports any
                  gender shall include all genders and the singular shall
                  include the plural and vice versa.

         1.5.     Clause headings in this Agreement are for ease of reference
                  only and do not affect the construction of any provision.

         1.6.     The schedules hereto form part of this Agreement and shall
                  have effect as if set out herein. Any reference to this or the
                  "Agreement" (whether in this Agreement or in the schedules
                  hereto) shall include both this Agreement and the schedules
                  hereto.

2.       AGREEMENT FOR SALE

         Subject to the terms and conditions of this Agreement, the Vendors
         shall sell as beneficial owners and the Purchaser shall purchase the
         Shares, free from all liens, charges and encumbrances and with all
         rights attaching to them, with effect from Completion.

3.       PURCHASE CONSIDERATION

         3.1      The Purchase Price for the Shares shall be *, subject to
                  adjustment pursuant to clauses 3.2 to 3.5 inclusive in the
                  order that such clauses are set out below;

         3.2      The purchase price of * provided for in clause 3.1 shall be
                  adjusted (by increasing if the amount is positive or
                  decreasing if the amount is negative the same as necessary) by
                  an amount (if any) equal to "Total Current Assets of DesalCo
                  Group" minus "Total Current Liabilities of DesalCo Group" as
                  at the end of the calendar month immediately prior to
                  Completion. "Total Current Assets of DesalCo Group" and "Total
                  Current Liabilities of DesalCo Group" shall be determined from
                  the consolidated balance sheet of the DesalCo Group as at the
                  end of the calendar month immediately prior to Completion.
                  These amounts shall be as agreed by the parties and in the
                  absence of agreement reached five Business Days prior to
                  Completion shall be determined at the expense of the Purchaser
                  by the Company's Auditors.

         3.3      The purchase price of * provided for in clause 3.1 as adjusted
                  by clause 3.2 shall be further adjusted (by increasing if the
                  amount is positive or decreasing if the amount is negative the
                  same as necessary) by an amount equal to:

- ---------------
* Omitted pursuant to a request for confidential treatment.

<PAGE>

                                       5

                  (i)      9.09% of "Actual Gross Equity of OCC" minus
                           "Calculated Gross Equity of OCC" as at the end of the
                           calendar month immediately prior to Completion; and

                  (ii)     7.14% of "Actual Gross Equity of OCBVI" minus
                           "Calculated Gross Equity of OCBVI" as at the end of
                           the calendar month immediately prior to Completion.

                  "Actual Gross Equity of OCC", "Calculated Gross Equity of
                  OCC", "Actual Gross Equity of OCBVI" and "Calculated Gross
                  Equity of OCBVI" shall have the meanings as defined in the
                  TCF/NAMF Agreement.

         3.4      The parties agree that the purchase price of * provided for in
                  clause 3.1 as adjusted by clause 3.2 and clause 3.3 above is
                  based on the assumption that the business of the Water Supply
                  Companies (excluding for the purposes of this clause only,
                  WCL), shall, from the end of the calendar month immediately
                  prior to Completion until the date of Completion, be conducted
                  and operated in its usual and normal manner and that they do
                  not suffer or incur any extraordinary, non-recurring or
                  unusual losses or expenses or make any dividend payments. To
                  the extent that such losses or expenses are incurred or
                  dividends paid during the period aforementioned, the purchase
                  price of * provided for in clause 3.1 as adjusted by clause
                  3.2 and clause 3.3 above shall be decreased as follows:


                  (a)      to the full extent of the impact of such event on
                           shareholders' equity of the DesalCo Group during the
                           period aforementioned. Shareholders' equity of the
                           DesalCo Group shall be as agreed by the parties and
                           in the absence of agreement shall be determined in
                           accordance with the following provisions hereof; and

                  (b)      by 7.14% of the impact of such event on Actual Gross
                           Equity of OCBVI during the period aforementioned as
                           determined under the TCF/NAMF Agreement; and


                  (c)      by 9.09% of the impact of such event on Actual Gross
                           Equity of OCC during the period aforementioned as
                           determined under the TCF/NAMF Agreement.

                  In the absence of agreement under sub-clause (a) above or
                  determination of Actual Gross Equity of OCBVI or Actual Gross
                  Equity of OCC under the TCF/NAMF Agreement by or on Completion
                  the Purchaser may retain such amount of the Purchase Price as
                  is reasonable and following Completion the amount of the
                  decrease in the Purchase Price shall be determined as soon as
                  reasonably possible at the expense of the Purchaser (i) by the
                  Company's auditors (in the case of a reduction under
                  sub-clause


- ---------------
* Omitted pursuant to a request for confidential treatment.
<PAGE>

                                       6

                  (a) above) or (ii) under the TCF/NAMF Agreement (in the case
                  of a deduction pursuant to sub-clause (b) or (c) above).
                  Within five (5) working days of such determination, in the
                  event that the amount so retained exceeds the amount so
                  determined the difference shall be paid by the Purchaser to
                  the Vendors and in the event that the amount so retained is
                  less than the amount so determined the difference shall be
                  paid by the Vendors to the Purchaser.

         3.5      The Purchase Price of * as provided for in clause 3.1, as
                  adjusted by clauses 3.2 to 3.4 (inclusive) above shall be
                  further adjusted by increasing the same by a simple interest
                  factor calculated on the same at the rate of 10% per annum
                  (based on a 365 day year) calculated daily for the period of
                  July 1, 2002 until the date of Completion.

         3.6      The Purchase Price shall be paid, at the option of the
                  Vendors, by way of bankers draft drawn on a Cayman Islands
                  class A licensed bank or wire transfer to such account as the
                  Vendors may designate.

         3.7      In the event that the Purchaser completes the purchase of the
                  shares held by BACO in WCL within 180 days of Completion
                  hereunder, the Vendors agree that they will pay to the
                  Purchaser a sum equal to * minus any lesser amount payable to
                  BACO per share under such sale i.e. *. This clause shall
                  survive Completion.

4.       CONDITIONS PRECEDENT AND RESCISSION

         4.1      Completion is conditional on the following conditions
                  precedent, all of which are for the benefit of the Purchaser:

                  (a)      the contemporaneous completion of the TCF/NAMF
                           Agreement;

                  (b)      the execution and exchange of a share purchase
                           agreement between the Purchaser and BACO, in relation
                           to the shares held by BACO in WCL; and

                  (c)      the approval in writing of the Governor in Council of
                           the Cayman Islands to the purchase by the Purchaser
                           of the Shares pursuant to the Licences.

                  The Purchaser agrees to use its best efforts to negotiate,
                  execute and exchange a share purchase agreement between the
                  Purchaser and BACO in relation to the shares held by BACO in
                  WCL.

         4.2      If conditions precedent (b) and (c) above are not fulfilled
                  (or, at the option of the Purchaser, waived in writing) or if
                  the TCF/NAMF Agreement is validly rescinded in accordance with
                  the terms thereof by or on October


- ---------------
* Omitted pursuant to a request for confidential treatment.
<PAGE>

                                       7

                  31, 2002, (or such later date as the parties may in writing
                  agree) this Agreement shall cease to have effect and each
                  party shall have no further claim under it against the other.

         4.3      If condition precedent (a) above is not fulfilled by or on
                  October 31, 2002 (or such later date as the parties may agree
                  in writing) (1) the Purchaser may, provided the
                  non-fulfillment of such condition precedent is due to an act
                  or omission of the Vendors or TCP or NAMF and (2) the Vendors
                  may, provided the non-fulfillment of such condition precedent
                  is due to an act or omission of the Purchaser either:

                  (a)      defer Completion not more than 28 days after the due
                           date and the provisions of this clause 4.3, including
                           this sub-clause, shall apply to Completion as so
                           deferred; or

                  (b)      in the case of the Purchaser, waive condition
                           precedent (a) and pursue all remedies available to
                           it; or

                  (c)      in the case of the Vendors, proceed to Completion so
                           far as practicable (without prejudice to its rights
                           hereunder) and pursue all other remedies available to
                           it as if condition precedent (a) did not exist; or

                  (d)      rescind this Agreement in which case this Agreement
                           shall cease to have effect and each party shall have
                           no further claim under it against the other.

5.       COMPLETION

         5.1      Completion shall take place at the offices of the Purchaser's
                  attorneys, Charles Adams, Ritchie & Duckworth, 4th Floor
                  Zephyr House, Mary Street, George Town, Grand Cayman on
                  November 29th, 2002 at 10:00 in the forenoon or such earlier
                  date as the Purchaser may specify after giving five Business
                  Days notice to the Vendors.

         5.2      At Completion, the Vendors shall deliver (or procure the
                  delivery, as the case may be) to the Purchaser of the
                  following:

                  5.2.1    duly completed and signed transfers in favour of the
                           Purchaser of the Shares together with the relevant
                           share certificates;

                  5.2.2    the Deed of Release duly executed by the Vendors;

                  5.2.3    the resignations of all of the directors and officers
                           in the DesalCo Group with a written acknowledgement
                           in such form as the Purchaser may require that such
                           persons (other than the Vendors) have no claim
                           against any company in the DesalCo Group;


<PAGE>

                                       8

                  5.2.4    the resignation of the Vendors as employees in the
                           DesalCo Group;

                  5.2.5    duly completed and executed copies of the Engineering
                           Services Agreement (executed by both the Company and
                           DWEER-Tech) dated as of the day of Completion;

                  5.2.6    the resignation of William T. Andrews as a director
                           and officer of WCL, OCC, and OCBVI with written
                           acknowledgements in such form as the Purchaser may
                           require that he has no claim against WCL, OCC, or
                           OCBVI; and

                  5.2.7    the resignation of employment, or evidence of
                           termination of employment, of Derek M. Woolley as an
                           employee of the Company.

         5.3      At Completion or as soon as practicable thereafter the Vendors
                  shall deliver or make available to the Purchaser:

                  5.3.1    The seals, including any duplicates, and Certificates
                           of Incorporation of the DesalCo Group, and the
                           Certificate of Change of Name of the Company;

                  5.3.2    The statutory books, books of account and records of
                           the DesalCo Group, complete and up to date, all in a
                           method of transmittal reasonably satisfactory to the
                           Purchaser provided that the Vendors may retain and
                           keep copies of all records relating to the sale of
                           the Shares contemplated hereby;

                  5.3.3    The appropriate forms to amend the mandates given by
                           the DesalCo Group to its bankers; and

                  5.3.4    All equipment, furniture, supplies, drawings,
                           software, electronic data, intellectual property and
                           all other rights and assets owned by or under the
                           possession and control of the DesalCo Group whether
                           located at the offices of the Company at the
                           International Centre, 26 Bermudiana Road, Hamilton,
                           Bermuda or at the premises of DSB at Sandy Lane,
                           Barbados or elsewhere.

         5.4      At Completion the Vendors shall repay all monies then owing by
                  them to any of the Water Supply Companies, whether due for
                  payment or not.

         5.5      At or prior to Completion board meetings of the DesalCo Group
                  shall be held (or resolutions passed) at which:

                  5.5.1    Such persons as the Purchaser may nominate shall be
                           appointed additional directors and officers;


<PAGE>

                                       9

                  5.5.2    In relation to the Company, the transfers referred to
                           in clauses 5.2.1 shall be approved;

                  5.5.3    In relation to the Company, the Engineering Services
                           Agreement is approved and execution of the same is
                           authorised;

                  5.5.4    It is confirmed that the DWEER Distributorship
                           Agreement, and the DWEER Transfer Agreement, remain
                           in full force and effect at Completion, without
                           modification from what is attached to this Agreement;
                           and

                  5.5.3    The resignations referred to in clauses 5.2.3 and
                           5.2.4 shall be submitted and accepted.

         5.6      At or prior to Completion the Purchaser shall deliver to the
                  Vendors a copy of a resolution of the board of directors of
                  the Purchaser:

                  5.6.1    approving and authorizing the execution and delivery
                           of this Agreement and all documents related to the
                           transactions contemplated by this Agreement; and

                  5.6.2    appointing William T. Andrews as a director of the
                           Purchaser in Group 1 of its directors, whose current
                           term expires at the annual general meeting of the
                           Purchaser in 2004.

         5.7      On Completion the Purchaser will pay the Purchase Price, in
                  the manner as set out in clause 3.6.

6.       WARRANTIES

         6.1      Subject to all matters or things disclosed in the Disclosure
                  Letter, the Vendors jointly and severally warrant to the
                  Purchaser that, as at the date hereof and, again, as at
                  Completion, the Warranties set out in Schedule 2 are true and
                  accurate in all respects.

         6.2      Each of the Warranties is without prejudice to any other
                  warranty or undertaking and, except where expressly stated, no
                  clause contained in this Agreement governs or limits the
                  extent or application of any other clause.

         6.3      The rights and remedies of the Purchaser in respect of any
                  breach of the Warranties pursuant to clause 6.1, clause 6.6 or
                  clause 6.8 shall not be affected by Completion, by any failure
                  to exercise or delay in exercising any right or remedy or by
                  any other event or matter whatsoever, except a specific and
                  duly authorised written waiver or release.

         6.4      The information in and incorporated in the Disclosure Letter
                  shall be deemed to be disclosed again at Completion.


<PAGE>

                                       10

         6.5      The Vendors shall disclose in writing to the Purchaser any
                  matter or thing (other than those matters or things already
                  disclosed in the Disclosure Letter) which may to the knowledge
                  of the Vendors arise or, regardless of when they occurred,
                  become known to the Vendors after the date hereof and before
                  Completion which is inconsistent with any of the Warranties or
                  which might make any such Warranties inaccurate or misleading
                  at Completion.

         6.6      If the Vendors fail to disclose as required by clause 6.5, the
                  Purchaser's remedy shall be whatever remedies are available to
                  the Purchaser without limitation under this Agreement or
                  otherwise.

         6.7      In the event of any of such matters or things as are mentioned
                  in clause 6.5 above being disclosed to the Purchaser before
                  Completion then, if the aggregate effect of such matters or
                  things are such that the Business of the DesalCo Group is
                  materially and adversely affected, the Purchaser may, prior to
                  Completion, rescind this Agreement by notice in writing to the
                  Vendors. For the purposes of this clause 6.7, the Business of
                  the DesalCo Group shall be deemed to be materially and
                  adversely affected if the Purchaser, had it known of such
                  matters or things, might reasonably have been expected to
                  reduce the Purchase Price by * or more. Upon such rescission
                  this Agreement shall cease to have effect and each party shall
                  have no further claim under it against the other. Other than
                  as provided for in this Agreement, the Purchaser shall not be
                  entitled to rescind this Agreement.

         6.8      For the avoidance of doubt and notwithstanding the provisions
                  of clause 6.7 above, in the event of any such matters or
                  things as are mentioned in clause 6.5 being disclosed to the
                  Purchaser before Completion:

                  (i)      which do not give rise to the Purchaser's option of
                           recission pursuant to clause 6.7; or

                  (ii)     which do give rise to such option but the Purchaser
                           does not elect to exercise such option;

                  the Purchaser shall be entitled to claim damages for breach of
                  the terms of this Agreement.

         6.9      The Purchaser shall not be entitled to exercise its rights of
                  rescission under clause 6.7 without first giving the Vendors
                  seven days in which to remedy such matter or thing to the
                  reasonable satisfaction of the Purchaser and, if necessary,
                  the date set for Completion shall be deferred to such later
                  date (being no later than the later of (i) seven days from the
                  giving of notice by the Purchaser of his decision to rescind
                  and (ii) the date on which Completion would have taken place
                  had the right of rescission not arisen)


- ---------------
* Omitted pursuant to a request for confidential treatment.
<PAGE>

                                       11

                  as shall give the Vendors the opportunity to remedy the matter
                  or thing to the reasonable satisfaction of the Purchaser.

         6.10     The provisions of Schedule 4 shall operate to limit the
                  liability of the Vendors under and in respect of the
                  provisions of clauses 3.4 and 6 of this Agreement and the
                  Warranties set out in Schedule 2 of this Agreement; provided
                  that, such limitations shall in no way be exclusive
                  limitations and shall not prevent the Vendors or the Purchaser
                  from relying on any other provisions of this Agreement or any
                  legal principle with a view to limiting their liability
                  hereunder.

         6.11     The Purchaser hereby represents and warrants to the Vendors as
                  follows:

                  The Purchaser is a company duly organized, validly existing
                  and in good standing under the laws of the Cayman Islands. The
                  Purchaser has all requisite corporate power and authority to
                  enter into this Agreement, to perform its obligations
                  hereunder and thereunder and to consummate the transactions
                  contemplated hereby and thereby. All corporate acts and other
                  proceedings required to be taken by the Purchaser to authorize
                  the execution, delivery and performance of this Agreement and
                  the consummation of the transactions contemplated hereby have
                  been duly and properly taken. This Agreement has been duly
                  executed and delivered by the Purchaser and constitutes legal,
                  valid and binding obligations of the Purchaser, enforceable
                  against the Purchaser in accordance with its terms.

         6.12     The Purchaser acknowledges that it has not entered into this
                  Agreement in reliance upon any warranty, representation or
                  promise other than those set forth in this Agreement.

7.       RESTRICTIVE AGREEMENTS

         7.1      For the purpose of assuring to the Purchaser the full benefit
                  of the businesses and goodwill of the Company, each of the
                  Vendors undertakes by way of further consideration for the
                  obligations of the Purchaser under this Agreement as a
                  separate and independent agreement (which shall survive
                  Completion) that they will not, unless performing or required
                  under the Engineering Services Agreement or the DWEER
                  Distributorship Agreement, or acting as a director of the
                  Purchaser or otherwise with the consent of the Purchaser:

                  7.1.1    at any time after Completion disclose to any person,
                           and, where the same is in his possession or control,
                           shall use his best endeavours to prevent the
                           publication or disclosure, without the prior written
                           consent of the Purchaser, such consent not to be
                           unreasonably withheld, of any information concerning
                           the business, accounts or finances of any Water
                           Supply Company or any of its clients' or


<PAGE>

                                       12

                           customers' transactions or affairs, which may, or may
                           have, come to his knowledge;

                  7.1.2    for a period of seven years after Completion either
                           on his own account or for any other person directly
                           or indirectly endeavour to entice away from
                           employment with any Water Supply Company or the
                           Purchaser any person who to his knowledge is now or
                           has preceding the date of this Agreement been an
                           employee of any Water Supply Company or the Purchaser
                           save for Donna Stamper and Tina DeSilva whom the
                           Vendors may employ from a date no earlier than 6
                           months after Completion or such earlier date as the
                           Purchaser may agree to in writing;

                  7.1.3    for a period of seven years after Completion, without
                           the Purchaser's prior written consent, either alone
                           or jointly with or as manager, agent for or employee
                           of or consultant to any person, directly or
                           indirectly carry on or be engaged or concerned or
                           interested in the Business (other than as a holder of
                           (1) less than 5 percent of any class of shares or
                           debentures of any person listed on any stock exchange
                           which is directly or indirectly engaged or concerned
                           or interested in the Business or (2) any interest in
                           any pooled investment vehicle over which Vendors do
                           not exercise control).

8.       DWEER TECHNOLOGY

         After Completion the Purchaser agrees that it will cause the Company to
         maintain the DWEER Transfer Agreement in full force and effect, and
         undertakes to ensure that the Company completes the transfer of
         technology and fulfils its other obligations as set out therein. The
         Purchaser agrees that this Share Sale Agreement creates no relationship
         with DWEER-Tech and does not allow the Purchaser to make any claims
         against DWEER-Tech under this Share Sale Agreement.

9.       GENERAL

         9.1      Subject to the terms of any confidentiality agreements binding
                  on the Purchaser, except as provided herein, and where
                  necessary for Completion by disclosing the minimum amount of
                  information necessary, no announcement of any kind shall be
                  made with respect to the subject matter of this Agreement
                  unless specifically agreed in writing between the parties.
                  Subject to the terms of any confidentiality agreements binding
                  on the Purchaser the Vendors agree that the Purchaser may,
                  without any prior notice or consultation with the Vendors,
                  make such announcements and disclosures as may be required
                  pursuant to the relevant laws, rules or regulations relating
                  to the listing or offering of the Purchaser's shares on the
                  NASDAQ Exchange. This clause shall survive Completion.


<PAGE>

                                       13

         9.2      If this Agreement ceases to have effect the Purchaser will
                  release and return to the Vendors all documents provided to
                  the Purchaser or its advisers in connection with this
                  Agreement and will not use, disclose or make available to any
                  other person any information which it or its advisers have
                  been given in respect of any DesalCo Group company and which
                  is not in the public domain.

         9.3      This Agreement shall be binding upon each party's successors
                  and assigns and personal representatives (as the case may be)
                  but, none of the rights of the parties under this Agreement or
                  the Warranties may be assigned or transferred. Notwithstanding
                  the aforesaid, the Vendors agree that, if they are requested
                  to do so by the Purchaser, they will procure that the Company
                  take title, at the expense of the Purchaser, to the shares
                  held by NAMF in OCBVI pursuant to the terms of the TCF/NAMF
                  Agreement, provided that the Company shall not incur any
                  liability from doing so and, in so far as the Company does
                  incur any liability from doing so, the Purchaser shall fully
                  and effectively indemnify the Company in respect of such
                  liability for so long as the Company is owned by the Vendors.

         9.4      Save as otherwise agreed in writing or provided herein, all
                  expenses incurred by or on behalf of the parties, including
                  all fees of agents, representatives, solicitors, accountants
                  and actuaries employed by any of them in connection with the
                  negotiation, preparation or execution of this Agreement shall
                  be borne solely by the party who incurred the liability.

         9.5      Time shall be of the essence of this Agreement, both as
                  regards the dates and periods specifically mentioned and as to
                  any dates and periods which may by agreement in writing
                  between or on behalf of the Vendors and the Purchaser be
                  substituted for them.

         9.6      All notices or other communications required or permitted to
                  be given hereunder shall be in writing and shall be served by
                  delivering the same by hand or by sending the same by
                  facsimile or reputable courier service and shall be deemed
                  given, if sent by hand, when delivered, if sent by facsimile,
                  upon the date stated in the transmission report or, if sent by
                  courier service, on delivery by the relevant courier service,
                  in each case, to the address set out below or such other
                  address as is notified by the relevant person from time to
                  time, provided that a notice given in accordance with the
                  above but received on a non-working day or after business
                  hours in the place of receipt shall only be deemed to be given
                  on the next working day in that place:

                  (a)      if to the Purchaser,

                           Consolidated Water Co. Ltd.
                           Trafalgar Place
                           West Bay Road


<PAGE>

                                       14

                           P.O. Box 1114 GT
                           Grand Cayman
                           Facsimile:+1 (345) 949-2947

                  (b)      if to the Vendors,

                           William T. Andrews and Margaret D. Andrews
                           12 Chapel Road
                           Paget, PG 02
                           Bermuda
                           Facsimile No: +1 (441) 236-0647

         9.7      If any of the provisions of this Agreement is found by any
                  Court or any other competent authority to be void or
                  unenforceable, that provision shall be deemed to be deleted
                  from this Agreement and the remaining provisions of this
                  Agreement shall continue in full force and effect.
                  Notwithstanding the foregoing, the parties shall thereupon
                  negotiate in good faith in order to agree the terms of a
                  mutually satisfactory provision to be substituted for the
                  provision so found to be void or unenforceable.

         9.8      This Agreement contains the entire agreement between the
                  parties with respect to the subject matter hereof, supersedes
                  all previous agreements and understandings between the parties
                  with respect hereto, and may not be modified except by an
                  instrument in writing signed by the duly authorised
                  representatives of the parties.

         9.9      Each party acknowledges that in entering into this Agreement
                  it does not do so on the basis of, and does not rely on, any
                  representation, warranty or other provision except as
                  expressly provided herein, and all conditions, warranties, or
                  other terms implied by statute or common law are hereby
                  excluded to the fullest extent permitted by law.

         9.10     This Agreement may be entered into in any number of
                  counterparts and by the parties to it on separate
                  counterparts, each of which when so executed and delivered
                  shall be an original, but all the counterparts shall together
                  constitute one and the same instrument.

10.      GOVERNING LAW AND JURISDICTION

         10.1     This Agreement is governed by and shall be construed in
                  accordance with the laws of the Cayman Islands.

         10.2     The parties hereto agree that the Courts of the Cayman Islands
                  shall have the jurisdiction to settle any disputes that may
                  arise in connection with this Agreement and that any judgement
                  or order of a Cayman Islands Court in connection with this
                  Agreement is conclusive and binding on them and may be
                  enforced against them in the courts of any other jurisdiction.
                  This clause shall not limit the right of either party hereto
                  to bring proceedings


<PAGE>

                                       15

                  against the other party in connection with this Agreement in
                  any other court of competent jurisdiction or concurrently in
                  more than one jurisdiction.

         10.3     The parties hereto waive any objection which they may have to
                  the courts of the Cayman Islands on the grounds of venue or
                  forum non-conveniens or any similar grounds as regards
                  proceedings in connection with this Agreement and they consent
                  to service of process by mail or by any other manner permitted
                  by the relevant law.

         10.4     Without prejudice of the rights of the Purchaser to employ any
                  method of service permitted by Cayman Islands Law, the Vendors
                  hereby irrevocably appoint Campbells, Attorneys-at-Law, as
                  their authorised agent for service of process in the Cayman
                  Islands. Any claim, form, writ, summons, judgement or other
                  notice of legal process shall be sufficiently served on the
                  Vendors if delivered to that agent at its address for the time
                  being. The Vendors shall not revoke the authority of that
                  agent. If for any reason that such agent no longer serves as
                  agent of the Vendors to receive service of process, the
                  Vendors shall promptly appoint another such agent and
                  immediately advise the Purchaser of that appointment.

AS WITNESS WHEREOF the parties hereto have set their hands the date first above
written.

SIGNED for and on behalf of            )
Consolidated Water Co. Ltd.            )
by                                     )
in the presence of:                    )
                                       )
                                       )
/s/ Richard L. Finlay                  )   /s/ Jeffrey M. Parker
- ------------------------------------   )   ------------------------------------
Witness



SIGNED by the Vendors                  )   /s/ W. T. Andrews
in the presence of:                    )   ------------------------------------
                                       )   William T. Andrews
                                       )
                                       )
                                       )
/s/ Donna Stamper                      )   /s/ Margaret D. Andrews
- ------------------------------------   )   ------------------------------------
Witness                                    Margaret D. Andrews

         95 South Road
         Page 1 - PG03
         Bermuda

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.2
<SEQUENCE>4
<FILENAME>g78273exv2w2.txt
<DESCRIPTION>SHARE SALE AGREEMENT
<TEXT>
<PAGE>
                                                                     EXHIBIT 2.2

                           DATED: OCTOBER 4TH , 2002


                              SHARE SALE AGREEMENT

                                    BETWEEN

                          CONSOLIDATED WATER CO. LTD.

                                       AND

                 NORTH-AMERICAN MORTGAGE & FINANCE CORPORATION

                                       AND

                  TRANSCONTINENTAL FINANCE CORPORATION LIMITED


                       CHARLES ADAMS, RITCHIE & DUCKWORTH
                                  ZEPHYR HOUSE
                                 P.O. BOX 709 GT
                                   MARY STREET
                                  GRAND CAYMAN
                                 CAYMAN ISLANDS

<PAGE>

                                       2


                             SHARE SALE AGREEMENT

THIS SHARE SALE AGREEMENT is made this 4th day of October 2002,

BETWEEN:

1.       CONSOLIDATED WATER CO. LTD., formerly Cayman Water Company Limited, of
         Trafalgar Place, West Bay Road, P.O. Box 1114 GT, Grand Cayman
         (hereinafter "the Purchaser") of the first part; and

2.       NORTH-AMERICAN MORTGAGE & FINANCE CORPORATION of Elizabethan Square,
         George Town, Grand Cayman (hereinafter "NAMF") and TRANSCONTINENTAL
         FINANCE CORPORATION LIMITED, of Elizabethan Square, George Town, Grand
         Cayman, (hereinafter "TCF") (together the "Vendors") of the second
         part.

WHEREAS:

The Purchaser wishes to acquire, inter alia, the issued share capital of Ocean
Conversion (Cayman) Limited and Ocean Conversion (BVI) Ltd. owned by the Vendors
from the Vendors on the terms of this Agreement.

NOW IT IS HEREBY AGREED as follows:-

1.       INTERPRETATION

         1.1.     In this Agreement the following words and expressions have the
                  following meanings (save where (1) expressly otherwise
                  provided or (2) the Agreement otherwise requires):

                  "Andrews" means William T. Andrews and Margaret D. Andrews;

                  "Andrews Agreement" means the Share Sale Agreement between the
                  Purchaser and William T. Andrews and Margaret D. Andrews of
                  even date a copy of which (excluding Schedule 9 thereto), is
                  attached as Schedule 5;

                  "Affiliates" means at any time with respect to a person,
                  another person that directly, or indirectly through one or
                  more intermediaries, controls, or is controlled by, or is
                  under common control with, such person;

                  "Assignments" means the assignment by NAMF to the Purchaser of
                  its interest in the Profit Sharing Agreement dated December
                  3rd 1993 (as amended) made between OCBVI and NAMF and the
                  assignment by EGL to the Purchaser of its interest in the
                  Profit Sharing Agreement dated December 3rd 1993 (as amended)
                  made between OCBVI and EGL both in the form set out in
                  Schedule 8 hereto.

                  "Binder Volumes" means the files of documents referred to in
                  clause 9 of Schedule 2, the indexes of which have been marked
                  and initialed by way of confirmation of the contents of such
                  files;

<PAGE>

                                       3


                  "Business" means the business of the supplying, installation,
                  management and operation of seawater desalination plants, as
                  carried out by the Companies on the date of this Agreement;

                  "Business Day" means a day on which class A licensed banks are
                  open for business in the Cayman Islands;

                  "BVI Water Agreement" means An Agreement to Produce Potable
                  Water from Seawater between The Government of the British
                  Virgin Islands and Reliable Water Company, Inc., dated 9 May
                  1990, as amended by a Supplemental Agreement, dated 14 March
                  1991, and a Supplemental Agreement #2, dated 24 January 1992;

                  "Cash Consideration" shall mean the cash consideration payable
                  by the Purchaser to the Vendors as calculated pursuant to
                  clause 3.1.1;

                  "Companies" means the companies listed in Schedule 1 in which
                  the Vendors hold issued shares as set out in Schedule 1 or,
                  where the context requires, either of them individually and
                  "Company" shall be construed accordingly. The individual
                  Companies shall be referred to in this Agreement by the
                  initials appearing next to their names in Schedule 1.

                  "Consideration Shares" has the meaning assigned thereto in
                  clause 3.1.2;

                  "Completion" means completion of the sale and purchase of the
                  Shares;

                  "Deed of Termination" means the Deed of Termination of the
                  Profit Sharing Agreement dated July 13th 1993 between EGL and
                  OCC by EGL in favour of OCC in the form attached at Schedule
                  10;

                  "Disclosure Letters" means the OCC Disclosure Letter and the
                  OCBVI Disclosure Letter or, where the context requires, either
                  of them;

                  "EGL" means Edmund Gibbons Limited, a Bermuda company;

                  "EGL Indemnity" means the indemnity to be given to EGL by the
                  Purchaser in the form attached as Schedule 12 hereto;

                  "Guarantees" means the guarantees given to persons other than
                  the Purchaser in respect of the Companies by the Vendors and
                  EGL, listed at Schedule 6 hereto or, where the context
                  requires, each of such guarantees individually and "Guarantee"
                  shall be construed accordingly;

                  "the Licences" means A Licence to Produce Water from Seawater
                  provided to Ocean Conversion (Cayman) Limited by the
                  Government of the Cayman Islands dated April 25, 1994, a
                  Licence to Produce and Supply Potable Water from Seawater
                  provided to Ocean Conversion (Cayman) Ltd. by the Government
                  of the Cayman Islands dated June 18, 1997 and a Licence to
                  Produce and Supply Water from Seawater provided to Ocean
                  Conversion (Cayman) Ltd. by the Government of the Cayman
                  Islands dated December 31, 2001, all as amended;

<PAGE>

                                       4


                  "Last Accounts" means the audited accounts of the Companies as
                  at June 30th, 2002;

                  "Last Accounts Date" means June 30th, 2002;

                  "Lock up Letter" means a letter related to the Consideration
                  Shares to be delivered by NAMF to the Purchaser in the form
                  attached at Schedule 11 hereto;

                  "NAMF Deed of Release" means the deed of release by NAMF in
                  the form set out in Schedule 3.

                  "NAMF Indemnity" means the indemnity to be given to NAMF by
                  the Purchaser in the form attached as Schedule 12 hereto;

                  "NSD Licence" means a Licence to Produce and Supply Water from
                  Seawater provided to Ocean Conversion (Cayman) Ltd. by the
                  Government of the Cayman Islands dated December 31, 2001;

                  "OCBVI's Auditors" means Deloitte & Touche, British Virgin
                  Islands;

                  "OCC's Auditors" means Deloitte & Touche, Cayman Islands;

                  "OCBVI Shares" means the shares of OCBVI held by the Vendors
                  as set out in Schedule 1;

                  "OCBVI Disclosure Letter" means the letter dated the date
                  hereof written by or on behalf of the Vendors to the Purchaser
                  and signed by the Vendors, relating to OCBVI;

                  "OCC Disclosure Letter" means the letter dated the date hereof
                  written by or on behalf of the Vendors to the Purchaser and
                  signed by the Vendors, relating to OCC;

                  "OCC Shares" means the shares of OCC held by the Vendors as
                  set out in Schedule 1;

                  "Purchase Price" means the consideration payable and the
                  shares of the Purchaser to be allotted and issued by the
                  Purchaser to the Vendors as provided in clause 3.1;

                  "Registration Rights Agreement" means the Registration Rights
                  Agreement in the form attached at Schedule 11 hereto;

                  "RGT Licence" means A Licence to Produce Water from Seawater
                  provided to Ocean Conversion (Cayman) Limited by the
                  Government of the Cayman Islands dated April 25, 1994, as
                  amended by an Amendment to a Licence and a Supplemental
                  Licence to a Licence between the same parties both dated 29
                  February 1996 and further amended by an Amendment to a Licence
                  between the same parties dated 30 January 2001;

<PAGE>

                                       5


                  "Shares" means the OCBVI Shares and the OCC Shares;

                  "Side Letter" means the Side Letter in the form attached at
                  Schedule 11 hereto;

                  "TCF Deed of Release" means the deed of release by TCF in the
                  form set out in Schedule 3;

                  "Warranties" means the warranties and representations by the
                  Vendors in clause 6;

         1.2.     All references in this Agreement to a statutory provision
                  shall be construed as including references to:

                  1.2.1.   Any statutory modification, consolidation or
                           re-enactment thereof being in force at Completion;

                  1.2.2.   All statutory instruments or orders made pursuant to
                           such statutory provision; and

                  1.2.3.   Any statutory provisions of which such statutory
                           provision is a consolidation, re-enactment or
                           modification.

         1.3.     In this Agreement any word or expression that imports any
                  gender shall include all genders and the singular shall
                  include the plural and vice versa.

         1.4.     Clause headings in this Agreement are for ease of reference
                  only and do not affect the construction of any provision.

         1.5.     The schedules hereto form part of this Agreement and shall
                  have effect as if set out herein. Any reference to this
                  "Agreement" (whether in this Agreement or in the schedules
                  hereto) shall include both this Agreement and the schedules
                  hereto.

2.       AGREEMENT FOR SALE

         Subject to the terms and conditions of this Agreement, the Vendors
         shall sell as beneficial owners and the Purchaser shall purchase the
         Shares, free from all liens, charges and encumbrances and with all
         rights attaching to them, with effect from Completion and the Vendors
         shall execute the Assignments and the Deed of Termination.

3.       PURCHASE CONSIDERATION

         3.1.     The Purchase Price for the Shares and the Assignments shall
                  be:-

                  3.1.1.   the cash portion of *, subject to adjustment pursuant
                           to clauses 3.2 to 3.5 inclusive in the order that
                           such clauses are set out below; and

- ---------------
* Omitted pursuant to a request for confidential treatment.
<PAGE>

                                       6


                  3.1.2.   the allotment and issue at Completion to NAMF of
                           185,714 fully paid ordinary shares of a nominal or
                           par value of CI$1.00 each in the capital of the
                           Purchaser, credited as fully paid and nonassessable
                           ("the Consideration Shares") which Consideration
                           Shares shall entitle NAMF to the benefit of the
                           Registration Rights Agreement.

         3.2.     The cash portion of * provided for in clause 3.1.1 shall be
                  adjusted (by increasing if the amount is positive or
                  decreasing if the amount is negative the same as necessary) by
                  an amount equal to:

                  3.2.1.   90.91% of the difference between "Actual Gross Equity
                           of OCC" and "Calculated Gross Equity of OCC"; and

                  3.2.2.   47.77% of the difference between "Actual Gross Equity
                           of OCBVI" and "Calculated Gross Equity of OCBVI".

                  "Actual Gross Equity of OCC" is the sum of "Shareholders'
                  Equity" and the "Profit Sharing Agreement Provision" as they
                  appear on the balance sheet of OCC, as at the end of the
                  calendar month immediately prior to Completion. This amount
                  shall be agreed by the parties and in the absence of agreement
                  reached five Business Days prior to Completion shall be
                  determined at the expense of the Purchaser by OCC's Auditors.

                  "Actual Gross Equity of OCBVI" is the sum of "Shareholders'
                  Equity" and the "Profit Sharing Provision" as they appear on
                  the balance sheet of OCBVI, as at the end of the calendar
                  month immediately prior to Completion. This amount shall be
                  agreed by the parties and in the absence of agreement reached
                  five Business Days prior to Completion shall be determined at
                  the expense of the Purchaser by OCBVI's Auditors.

         3.3.     For the purposes of clause 3.2:

                  3.3.1.   "Calculated Gross Equity of OCC" shall mean:

                           3.3.1.1. * if Completion is on or between 1st and
                                    31st October, 2002.

                           3.3.1.2. * if Completion is on or between 1st and
                                    30th November, 2002.

                  3.3.2.   "Calculated Gross Equity of OCBVI" shall mean:

                           3.3.2.1. * if Completion is on or between 1st and
                                    31st of October, 2002.

                           3.3.2.2. * if Completion is on or between 1st and
                                    30th November, 2002.

         3.4.     The parties agree that the cash portion of * provided for in
                  clause 3.1.1 as adjusted by clause 3.2 (and applying the
                  provisions of

- ---------------
* Omitted pursuant to a request for confidential treatment.
<PAGE>

                                       7


                  clause 3.3) is based on the assumption that the business of
                  the Companies, shall, from the end of the calendar month
                  immediately prior to Completion until the date of Completion,
                  be conducted and operated in its usual and normal manner and
                  that they do not suffer or incur any extraordinary,
                  nonrecurring or unusual losses or expenses or make any
                  dividend payments. To the extent that such losses or expenses
                  are incurred or dividends paid during the period
                  aforementioned, the cash portion of * provided for in clause
                  3.1.1 as adjusted by clause 3.2 (and applying the provisions
                  of clause 3.3) shall be decreased as follows:

                  3.4.1.   in relation to OCBVI, by 47.77% of the impact of
                           such events on Actual Gross Equity of OCBVI during
                           the period aforementioned; and

                  3.4.2.   in relation to OCC, by 90.91% of the impact of such
                           events on Actual Gross Equity of OCC during the
                           period aforementioned.

                  The parties shall agree the amount of any decrease under
                  clauses 3.4.1 and/or 3.4.2; provided that in the absence of
                  agreement as to the amount of such decrease by or on
                  Completion the Purchaser may retain such amount of the
                  Purchase Price as is reasonable and following Completion the
                  amount of the decrease in the Purchase Price shall be
                  determined as soon as reasonably possible at the expense of
                  the Purchaser by the relevant Company's Auditors. Within five
                  (5) working days of such determination, in the event that the
                  amount so retained exceeds the amount so determined the
                  difference shall be paid by the Purchaser to the Vendors and
                  in the event that the amount so retained is less than the
                  amount so determined the difference shall be paid by the
                  Vendors to the Purchaser.

         3.5.     The cash portion of * as provided for in clause 3.1.1, as
                  adjusted by clauses 3.2 to 3.4 (inclusive) above shall be
                  further adjusted by increasing the same by a simple interest
                  factor calculated on the same at the rate of 12.5% per annum
                  (based on a 365 day year) calculated daily for the period of
                  July 1, 2002 until the date of Completion.

         3.6.     The Cash Consideration shall be paid, at the option of TCF, by
                  way of bankers draft drawn on a Cayman Islands class A
                  licensed bank or wire transfer to TCF and receipt thereof by
                  TCF shall be a good and final discharge of the Purchaser's
                  obligation to make such payment to the Vendors.

4.       CONDITIONS PRECEDENT, RESCISSION AND OTHER PRE-COMPLETION MATTERS

         4.1.     Completion is conditional on the following conditions
                  precedent, all of which are for the benefit of the Purchaser:

                  4.1.1.   the contemporaneous completion of the Andrews
                           Agreement;

- ---------------
* Omitted pursuant to a request for confidential treatment.
<PAGE>

                                       8


                  4.1.2.   the approval in writing of the Governor in Council of
                           the Cayman Islands to the purchase by the Purchaser
                           of the OCC Shares pursuant to the Licences;

                  4.1.3.   the approval in writing of the Government of the
                           British Virgin Islands for the Purchaser to be a
                           member of OCBVI pursuant to the BVI Water Agreement.
                           NAMF agrees that it shall cause OCBVI to use its best
                           efforts to obtain such approval. The Purchaser agrees
                           that it shall use its best efforts to assist OCBVI in
                           obtaining such approval; and

                  4.1.4.   The approvals and acceptance of resignations
                           described in clause 7.1 below being obtained.

         4.2.     If either of the condition precedents 4.1.2 or 4.1.3 above is
                  not fulfilled (or, at the option of the Purchaser, waived in
                  writing) or if the Andrews Agreement is validly rescinded in
                  accordance with the terms thereof by or on October 31, 2002,
                  (or such later date as the parties may in writing agree) this
                  Agreement shall cease to have effect and each party shall have
                  no further claim under it against the other.

         4.3.     If condition precedent 4.1.1 above is not fulfilled by or on
                  October 31, 2002 (or such later date as the parties may agree
                  in writing) (1) the Purchaser may, provided the
                  non-fulfillment of such condition precedent is due to an act
                  or omission of the Vendors or the Andrews and (2) the Vendors
                  may, provided the non-fulfillment of such condition precedent
                  is due to an act or omission of the Purchaser either:

                  4.3.1.   defer Completion not more than 28 days after the due
                           date and the provisions of this clause 4.3, including
                           this sub-clause, shall apply to Completion as so
                           deferred; or

                  4.3.2.   in the case of the Purchaser, waive condition
                           precedent 4.1.1 and pursue all remedies available to
                           it; or

                  4.3.3.   in the case of the Vendors, proceed to Completion so
                           far as practicable (without prejudice to its rights
                           hereunder) and pursue all other remedies available to
                           it as if condition precedent 4.1.1 did not exist; or

                  4.3.4.   rescind this Agreement in which case this Agreement
                           shall cease to have effect and each party shall have
                           no further claim under it against the other.

5.       COMPLETION

         5.1.     Completion shall take place at the offices of the Purchaser's
                  attorneys, Charles Adams, Ritchie & Duckworth, 4th Floor
                  Zephyr House, Mary Street, George Town, Grand Cayman
                  on November 29, 2002 at 10:00 in

<PAGE>

                                       9


                  the forenoon or such earlier date as the Purchaser may specify
                  after giving five Business Days notice to the Vendors.

         5.2.     At Completion, with regard to OCC, the Vendors shall deliver
                  (or procure the delivery, as the case may be) to the Purchaser
                  of the following:

                  5.2.1.   duly completed and signed transfers in favour of the
                           Purchaser of the OCC Shares together with the
                           relevant share certificates;

                  5.2.2.   the TCF Deed of Release duly executed by TCF;

                  5.2.3.   the resignations of all of the directors and officers
                           of OCC (other than William T. Andrews) with a written
                           acknowledgement in such form as the Purchaser may
                           require that such persons have no claim against OCC;

                  5.2.4.   the Deed of Termination duly executed by EGL and OCC;
                           and

                  5.2.5.   the opinion of TCF's counsel, Campbell's
                           Attorneys-at-Law, in relation to TCF in the form set
                           out in Schedule 9.

         5.3.     At Completion, with regard to OCBVI, the Vendors shall deliver
                  (or procure the delivery, as the case may be) to the Purchaser
                  of the following:

                  5.3.1.   duly completed and signed transfers in favour of the
                           Purchaser or, if so required by clause 8.3 below, in
                           favour of DesalCo Limited, of the OCBVI Shares
                           together with the relevant share certificates;

                  5.3.2.   the NAMF Deed of Release duly executed by NAMF;

                  5.3.3.   the resignations of all of the directors of OCBVI
                           appointed by NAMF and the resignations of Sir David
                           Gibbons, James L. Gibbons, Lt. Col. David Gibbons and
                           Peter Harty from any position they have as officers
                           of OCBVI with a written acknowledgement in such form
                           as the Purchaser may require that such persons have
                           no claim against OCBVI;

                  5.3.4.   the duly executed Assignments; and

                  5.3.5.   the opinion of NAMF's counsel, Campbell's
                           Attorneys-at-Law, in relation to NAMF in the form set
                           out in Schedule 9.

         5.4.     At Completion or as soon as practicable thereafter, with
                  regard to OCC, the Vendors shall deliver or make available to
                  the Purchaser:

                  5.4.1.   The seals, including any duplicates, and Certificates
                           of Incorporation of the OCC, and the Certificate of
                           Change of Name of OCC;

                  5.4.2.   The statutory books, books of account and records of
                           OCC, complete and up to date, all in a method of
                           transmittal reasonably

<PAGE>

                                           10


                           satisfactory to the Purchaser provided that the
                           Vendors may retain and keep copies of all records
                           relating to the sale of the Shares contemplated
                           hereby; and

                  5.4.3.   The appropriate forms to amend the mandates given by
                           the Companies to their bankers.

         5.5.     At Completion:

                  5.5.1    NAMF shall execute, date and deliver to the Purchaser
                           the Lock-up Letter, the Side Letter and the
                           Registration Rights Agreement; and

                  5.5.2    the Vendors shall repay all monies then owing by them
                           to the Companies, whether due for payment or not.


         5.6.     At or prior to Completion board meetings of OCC shall be held
                  (or resolutions passed) at which:

                  5.6.1.   Such persons as the Purchaser may nominate shall be
                           appointed additional directors and officers;

                  5.6.2.   the transfers of the OCC Shares referred to in clause
                           5.2.1 shall be approved; and

                  5.6.3.   The resignations referred to in clause 5.2.3 shall be
                           submitted and accepted.

         5.7.     At or prior to Completion board meetings of OCBVI shall be
                  held (or resolutions passed) at which:

                  5.7.1.   the transfers of the OCBVI Shares referred to in
                           clause 5.3.1 shall be approved;

                  5.7.2.   the resignations referred to in clause 5.3.3 shall be
                           accepted; and

                  5.7.3.   the Assignments shall be approved.

         5.8.     At or prior to Completion the Purchaser shall deliver to the
                  Vendors a copy of a resolution of the board of directors of
                  the Purchaser approving and authorizing the execution and
                  delivery of this Agreement and all documents related to the
                  transactions contemplated by this Agreement and the allotment
                  and issue of the Consideration Shares as fully paid and non-
                  assessable.

         5.9.     On Completion the Purchaser shall:

                  5.9.1.   pay the Cash Consideration, in the manner as set out
                           in clause 3.6;

                  5.9.2.   deliver to the Vendors a duly executed release of the
                           guarantee by EGL in respect of the obligations of OCC
                           in favour of the

<PAGE>

                                       11


                           Purchaser dated 7th November 1994 in the form
                           attached as Schedule 7;

                  5.9.3.   allot and issue to NAMF the Consideration Shares as
                           fully paid and non-assessable and deliver to NAMF or
                           its representative at Completion a duly issued share
                           certificate in respect of the Consideration Shares;

                  5.9.4.   duly execute and deliver to the Vendors the ELG
                           Indemnity and the NAMF Indemnity; and

                  5.9.5.   deliver to NAMF the duly executed Registration Rights
                           Agreement.

6.       WARRANTIES

         6.1.     Subject to all matters or things disclosed in the Disclosure
                  Letters, the Vendors jointly and severally warrant to the
                  Purchaser that, as at the date hereof and, again, as at
                  Completion, the Warranties set out in Schedule 2 are true and
                  accurate in all respects.

         6.2.     Each of the Warranties is without prejudice to any other
                  warranty or undertaking and, except where expressly stated, no
                  clause contained in this Agreement governs or limits the
                  extent or application of any other clause.

         6.3.     The rights and remedies of the Purchaser in respect of any
                  breach of the Warranties pursuant to clause 6.1, clause 6.6 or
                  clause 6.8 shall not be affected by Completion, by any failure
                  to exercise or delay in exercising any right or remedy or by
                  any other event or matter whatsoever, except a specific and
                  duly authorised written waiver or release.

         6.4.     The information in and incorporated in the Disclosure Letters
                  shall be deemed to be disclosed again at Completion.

         6.5.     The Vendors shall disclose in writing to the Purchaser any
                  matter or thing (other than those matters or things already
                  disclosed in the Disclosure Letters) which may to the
                  knowledge of the Vendors arise or, regardless of when they
                  occurred, become known to the Vendors after the date hereof
                  and before Completion which is inconsistent with any of the
                  Warranties or which might make any such Warranties inaccurate
                  or misleading at Completion.

         6.6.     If the Vendors fail to disclose as required by clause 6.5, the
                  Purchaser's remedy shall be whatever remedies are available to
                  the Purchaser without limitation under this Agreement or
                  otherwise.

         6.7.     In the event of any of such matters or things as are mentioned
                  in clause 6.5 above being disclosed to the Purchaser before
                  Completion then:

                  (a)      if such matter or thing relates to item 3.1.2 of the
                  OCC Disclosure Letter or item 3.10.1 of the OCBVI Disclosure
                  Letter; or

<PAGE>

                                       12


                  (b)      if the aggregate effect of such matters or things are
                           such that the Business is materially and adversely
                           affected;

                  the Purchaser may, prior to Completion, rescind this Agreement
                  by notice in writing to the Vendors.

                  For the purposes of clause 6.7(b), the Business shall be
                  deemed to be materially and adversely affected if the
                  Purchaser, had it known of such matters or things, might
                  reasonably have been expected to reduce the Purchase Price by
                  * or more.

                  Other than as provided for in this Agreement, the Purchaser
                  shall not be entitled to rescind this Agreement. Upon such
                  rescission this Agreement shall cease to have effect and each
                  party shall have no further claim under it against the other.

         6.8      For the avoidance of doubt and notwithstanding the provisions
                  of clause 6.7 above, in the event of any such matters or
                  things as are mentioned in clause 6.5 being disclosed to the
                  Purchaser before Completion:

                  (i)      which do not give rise to the Purchaser's option of
                           recission pursuant to clause 6.7; or

                  (ii)     which do give rise to such option but the Purchaser
                           does not elect to exercise such option;

                  the Purchaser shall be entitled to claim damages for breach of
                  the terms of this Agreement.

         6.9      The Purchaser shall not be entitled to exercise its rights of
                  rescission under clause 6.7 without first giving the Vendors
                  seven days in which to remedy such matter or thing to the
                  reasonable satisfaction of the Purchaser and, if necessary,
                  the date set for Completion shall be deferred to such later
                  date (being no later than the later of (i) seven days from the
                  giving of notice by the Purchaser of his decision to rescind
                  and (ii) the date on which Completion would have taken place
                  had the right of rescission not arisen) as shall give the
                  Vendors the opportunity to remedy the matter or thing to the
                  reasonable satisfaction of the Purchaser.

         6.10     The provisions of Schedule 4 shall operate to limit the
                  liability of the Vendors under and in respect of the
                  provisions of clauses 3.4 and 6 of this Agreement and the
                  Warranties set out in Schedule 2 of this Agreement; provided
                  that such limitations shall in no way be exclusive limitations
                  and shall not prevent the Vendors or the Purchaser from
                  relying on any other provisions of this Agreement or any legal
                  principle with a view to limiting their liability hereunder.

         6.11     The Purchaser hereby represents and warrants to the Vendors as
                  follows:

- ---------------
* Omitted pursuant to a request for confidential treatment.
<PAGE>

                                       13


                  The Purchaser is a company duly organized, validly existing
                  and in good standing under the laws of the Cayman Islands. The
                  Purchaser has all requisite corporate power and authority to
                  enter into this Agreement, to perform its obligations
                  hereunder and thereunder and to consummate the transactions
                  contemplated hereby and thereby. All corporate acts and other
                  proceedings required to be taken by the Purchaser to authorize
                  the execution, delivery and performance of this Agreement and
                  the consummation of the transactions contemplated hereby have
                  been duly and properly taken. This Agreement has been duly
                  executed and delivered by the Purchaser and constitutes legal,
                  valid and binding obligations of the Purchaser, enforceable
                  against the Purchaser in accordance with its terms.

         6.12     The Purchaser acknowledges that it has not entered into this
                  Agreement in reliance upon any warranty, representation or
                  promise other than those set forth in this Agreement.

7.       COVENANTS BY THE PURCHASER

         7.1.     It is acknowledged and agreed by the parties that the approval
                  of the board of directors of OCBVI is required for the
                  transfer of the OCBVI Shares held by NAMF to the Purchaser
                  hereunder and for the approval of the Assignments referred to
                  in clause 5.7 above and for the acceptance of the resignations
                  of the directors and officers referred to in clause 5.7 above.
                  The Purchaser agrees to use its best efforts at its own
                  expense to conclude and execute an agreement satisfactory to
                  it substantially in the form contained in an email addressed
                  to Glenn Harrigan dated September 18th 2002 with Sage Water
                  Holdings (BVI) Ltd., or other such agreement as is
                  satisfactory to the Purchaser to obtain such approvals and
                  acceptance. Subject to execution of such agreement, the
                  Purchaser agrees to use its best endeavors to cause Sage Water
                  Holdings (BVI) Ltd. to cooperate in the holding of a board
                  meeting or the passing of directors' resolutions (as the case
                  may be) prior to Completion at which the resolutions and
                  matters described at clause 5.7 above are passed, accepted and
                  approved.

         7.2.     The Purchaser shall on or as soon as possible after Completion
                  secure the full and final release of the Vendors and EGL from
                  the Guarantees (and the Purchaser shall offer its own
                  guarantees upon the same terms as the Guarantees in
                  substitution therefor if necessary to secure such release) and
                  shall procure that the Guarantees are returned to the Vendors
                  or to EGL and the Purchaser shall, pending such release, fully
                  and effectively indemnify the Vendors and EGL and each of them
                  and keep them indemnified against any and all liability, cost
                  or expense of the Vendors and EGL and each of them under or in
                  respect of the Guarantees. In this regard, the Purchaser shall
                  duly execute and deliver to the Vendors the EGL Indemnity and
                  the NAMF Indemnity. The release of EGL from the Guarantee in
                  favour of the Governor of the Cayman Islands shall be in the
                  form set out at Schedule 7 or, in the event that a release in
                  such form cannot be obtained, in such other form as is agreed
                  with or is reasonably acceptable to the Vendors. The releases
                  of the Guarantees in favour of the

<PAGE>

                                       14


                  Bank of N.T. Butterfield & Son Limited shall be in such form
                  as is reasonably acceptable to the Vendors.

         7.3.     The Purchaser shall, on Completion, release EGL from its
                  guarantee in respect to the obligations of OCC in favour of
                  the Purchaser dated 7th November 1994 by duly executing and
                  delivering to the Vendors a release from such guarantee in the
                  form set out in Schedule 7.

8.        GENERAL

         8.1.     Subject to the terms and conditions of any confidentiality
                  agreements binding on the Purchaser, except as provided
                  herein, and where necessary for Completion by disclosing the
                  minimum amount of information necessary, no announcement of
                  any kind shall be made with respect to the subject matter of
                  this Agreement unless specifically agreed in writing between
                  the parties. Subject to the terms and conditions of any
                  confidentiality agreements binding on the Purchaser, the
                  Vendors agree that the Purchaser may, without any prior notice
                  or consultation with the Vendors, make such announcements and
                  disclosures as may be required pursuant to the relevant laws,
                  rules or regulations relating to the listing or offering of
                  the Purchaser's shares on the NASDAQ Exchange. This clause
                  shall survive Completion.

         8.2.     If this Agreement ceases to have effect the Purchaser will
                  release and return to the Vendors all documents provided to
                  the Purchaser or its advisers by the Vendors in connection
                  with this Agreement and will not use, disclose or make
                  available to any other person any information which it or its
                  advisers have been given in respect of the Companies and which
                  is not in the public domain.

         8.3.     This Agreement shall be binding upon each party's successors
                  and assigns but, none of the rights of the parties under this
                  Agreement or the Warranties may be assigned or transferred.
                  Notwithstanding the aforesaid, the Vendors agree that the
                  Purchaser may, at its option, assign the right to take title
                  to the OCBVI Shares held by NAMF to DesalCo Limited and such
                  assignment shall be effected by written notice delivered to
                  NAMF by the Purchaser.

         8.4.     Save as otherwise agreed in writing or provided herein, all
                  expenses incurred by or on behalf of the parties, including
                  all fees of agents, representatives, solicitors, accountants
                  and actuaries employed by any of them in connection with the
                  negotiation, preparation or execution of this Agreement shall
                  be borne solely by the party who incurred the liability.

         8.5.     Time shall be of the essence of this Agreement, both as
                  regards the dates and periods specifically mentioned and as to
                  any dates and periods which may by agreement in writing
                  between or on behalf of the Vendors and the Purchaser be
                  substituted for them.

<PAGE>

                                       15


         8.6.     All notices or other communications required or permitted to
                  be given hereunder shall be in writing and shall be served by
                  delivering the same by hand or by sending the same by
                  facsimile or reputable courier service and shall be deemed
                  given, if sent by hand, when delivered, if sent by facsimile,
                  upon the date stated in the transmission report or, if sent by
                  courier service, on delivery by the relevant courier service,
                  in each case, to the address set out below or such other
                  address as is notified by the relevant person from time to
                  time, provided that a notice given in accordance with the
                  above but received on a non-working day or after business
                  hours in the place of receipt shall only be deemed to be given
                  on the next working day in that place:


                  (a)      if to the Purchaser,

                           Consolidated Water Co. Ltd.

                           Trafalgar Place
                           West Bay Road
                           P.O. Box 1114 GT
                           Grand Cayman
                           Facsimile:+l (345) 949-2947


                  (b)      if to the Vendors,

                           North-American Mortgage & Finance Corporation
                           Transcontinental or Finance Corporation Limited

                           21 Reid Street
                           Hamilton HM11
                           Bermuda
                           Facsimile:+l 441 295 1040

         8.7.     If any of the provisions of this Agreement is found by any
                  Court or any other competent authority to be void or
                  unenforceable, that provision shall be deemed to be deleted
                  from this Agreement and the remaining provisions of this
                  Agreement shall continue in full force and effect.
                  Notwithstanding the foregoing, the parties shall thereupon
                  negotiate in good faith in order to agree the terms of a
                  mutually satisfactory provision to be substituted for the
                  provision so found to be void or unenforceable.

         8.8.     This Agreement contains the entire agreement between the
                  parties with respect to the subject matter hereof, supersedes
                  all previous agreements and understandings between the parties
                  with respect hereto, and may not be modified except by an
                  instrument in writing signed by the duly authorised
                  representatives of the parties.

         8.9.     Each party acknowledges that in entering into this Agreement
                  it does not do so on the basis of, and does not rely on, any
                  representation, warranty or

<PAGE>

                                       16


                  other provision except as expressly provided herein, and all
                  conditions, warranties, or other terms implied by statute or
                  common law are hereby excluded to the fullest extent permitted
                  by law.

         8.10.    This Agreement may be entered into in any number of
                  counterparts and by the parties to it on separate
                  counterparts, each of which when so executed and delivered
                  shall be an original, but all the counterparts shall together
                  constitute one and the same instrument.

9.       GOVERNING LAW AND JURISDICTION

         9.1.     This Agreement is governed by and shall be construed in
                  accordance with the laws of the Cayman Islands.

         9.2.     The parties hereto agree that the Courts of the Cayman Islands
                  shall have the jurisdiction to settle any disputes that may
                  arise in connection with this Agreement and that any judgment
                  or order of a Cayman Islands Court in connection with this
                  Agreement is conclusive and binding on them and may be
                  enforced against them in the courts of any other jurisdiction.
                  This clause shall not limit the right of either party hereto
                  to bring proceedings against the other party in connection
                  with this Agreement in any other court of competent
                  jurisdiction or concurrently in more than one jurisdiction.

         9.3.     The parties hereto waive any objection which they may have to
                  the courts of the Cayman Islands on the grounds of venue or
                  forum non-conveniens or any similar grounds as regards
                  proceedings in connection with this Agreement and they consent
                  to service of process by mail or by any other manner permitted
                  by the relevant law.
<PAGE>

                                       17


AS WITNESS WHEREOF the parties hereto have set their hands and date first above
written.


SIGNED for and on behalf of
Consolidated Water Co. Ltd
by Jeffrey M. Parker                     )
duly authorised and in the presence of:  )    /s/ Jeffrey M. Parker
                                              ----------------------------------
                                              Jeffrey M. Parker, Chairman of the
                                              Board and Chief Executive Officer


/s/ Richard L. Finlay
- ----------------------------------------
Witness
Witness name: Richard L. Finlay
Address: P.O. Box 709 GT Cayman Islands
Occupation: Attorney-at-Law

SIGNED for and on behalf of             )
North-American Mortgage & Finance       )
Corporation by Campbell Securities      )
Limited                                 )
duly authorised and in the presence of: )     /s/ John Wolf
                                              ----------------------------------
                                              John Wolf, Director of Campbell
                                              Securities Limited
                                              attorney-in-fact


/s/ Richard L. Finlay
- ----------------------------------------
Witness
Witness name: Richard L. Finlay
Address: P.O. Box 709 GT Cayman Islands
Occupation: Attorney-at-Law

SIGNED for and on behalf of             )
Transcontinental Finance Corporation    )
Limited by Campbell Securities Limited  )
duly authorised and in the presence of: )     /s/ John Wolf
                                              ----------------------------------
                                              John Wolf, Director of Campbell
                                              Securities Limited
                                              attorney-in-fact


/s/ Richard L. Finlay
- ----------------------------------------
Witness
Witness name: Richard L. Finlay
Address: P.O. Box 709 GT Cayman Islands
Occupation: Attorney-at-Law

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.3
<SEQUENCE>5
<FILENAME>g78273exv2w3.txt
<DESCRIPTION>AGREEMENT DATED 10/08/02
<TEXT>
<PAGE>
                                                                     EXHIBIT 2.3



                             DATED: OCTOBER 8, 2002





                                   AGREEMENT

                                    BETWEEN

                          CONSOLIDATED WATER CO. LTD.

                                      AND

                         SAGE WATER HOLDINGS (BVI) LTD.












                       CHARLES ADAMS, RITCHIE & DUCKWORTH
                                  ZEPHYR HOUSE
                                P.O. BOX 709 GT
                                  MARY STREET
                                  GRAND CAYMAN
                                 CAYMAN ISLANDS
<PAGE>
                                       2


                   AGREEMENT RE: OCEAN CONVERSION (BVI) LTD.

BETWEEN:

(1)      Consolidated Water Co. Ltd. of P.O. Box 1114 GT, Grand Cayman
         (hereinafter called "Consolidated") of the first part; and

(2)      Sage Water Holdings (BVI) Ltd. of P.O. Box 681, Road Town, Tortola, BVI
         (hereinafter called "Sage") of the second part.

WHEREAS:

(a)      Sage is the holder of 555,000 Class B voting shares of Ocean Conversion
         (BVI) Ltd. ("OCBVI") ("the Company") and holds a 45% profit sharing
         interest pursuant to Deeds of Assignment made between Sage and Edmund
         Gibbons Limited ("EOL") and North America Mortgage and Finance
         Corporation ("NAMF") respectively dated June 30th, 1997;

(b)      NAMF is the holder of 535,000 Class A voting shares of the Company
         ("the NAMF shares") and together with EGL holds a 55% profit sharing
         interest pursuant to Share Repurchase and Profit Sharing Agreements
         dated December 3rd, 1993 (as amended) (the "PSAs");

(c)      DesalCo Limited ("DesalCo") is the holder of 120,000 Class C non-voting
         shares of the Company ("the DesalCo shares"). Consolidated intends to
         acquire the entire issued share capital of DesalCo.

(d)      Consolidated intends to acquire the NAMF shares and take an assignment
         and novation of the PSAs following which Consolidated and Sage, with
         the consent of the Company, intend to release their interests under the
         PSAs and enter into a new amended and restated profit sharing agreement
         with the Company;

(e)      Under the Articles of Association of the Company the approval of the
         Board of Directors is required to the proposed transfer of the NAMF
         shares to Consolidated. Under the PSAs, the consent of the Company,
         Sage and others is required to the proposed assignment and novation of
         the PSAs to Consolidated;

(f)      Sage has agreed to approve, and to cause the Company to approve, the
         share transfers and assignment and novation as aforesaid on the terms
         hereof.

Now, therefore, for and in consideration of the promises herein and other good
and valuable consideration, the sufficiency of which is hereby acknowledged the
parties hereto agree as follows:


<PAGE>
                                       3


1.       CONDITIONS PRECEDENT


         The obligations of the parties hereunder are conditional on the
         following conditions precedent, all of which are for the benefit of
         Consolidated:

         (a)         the Completion of a purchase of shares by Consolidated
                     under a Share Sale Agreement with North-American Mortgage &
                     Finance Corporation and Transcontinental Finance
                     Corporation Ltd. dated October 4, 2002.

         (b)         the Completion of the purchase of shares by Consolidated
                     under a Share Sale Agreement with William T. and Margaret
                     D. Andrews dated October 4, 2002.

         If any of the above conditions precedent is not fulfilled (or at the
         option of Consolidated, waived in writing) by November 29, 2002 (or
         such later date as the parties may agree in writing) this Agreement
         shall cease to be in effect and neither party shall have any claim
         arising from it against the other.

2.       COVENANTS OF THE PARTIES

         Subject to the satisfaction of the conditions precedent in paragraph 1,
         the parties agree that Completion shall take place at the offices of
         the Purchaser's attorneys, Charles Adams, Ritchie & Duckworth, 4th
         Floor Zephyr House, Mary Street, George Town, Grand Cayman on November
         29, 2002 at ten a.m. or such earlier date as Consolidated may specify
         after giving 5 business days notice to Sage:

         (a)         Sage will cause the Company to adopt the resolutions
                     attached as Schedule 1 as and when requested by
                     Consolidated;

         (b)         Sage will provide its consent to and execute the proposed
                     assignment and novation of the PSAs, which assignment and
                     novation shall be in the form attached as Schedule 2, as
                     and when requested by Consolidated;

         (c)         Consolidated and Sage will enter into an amendment to the
                     PSAs with the Company in the form attached as Schedule 3;

         (d)         Consolidated will cause DesalCo to enter into an amendment
                     to the Management Services Contract between the Company and
                     DesalCo dated September 30th, 1992 (as amended) in the form
                     attached as Schedule 4; and

         (e)         Sage will and Consolidated will cause DesalCo to enter into
                     the Share Sale Agreement on the terms of Schedule 5.

3.   GENERAL












<PAGE>
                                       4


3.1      Except as provided herein, no announcement of any kind shall be made
         with respect to the subject matter of this Agreement unless
         specifically agreed between the parties. Sage agrees that Consolidated
         may, without any prior notice or consultation with Sage, make such
         announcements and disclosures as may be required pursuant to the
         relevant laws, rules or regulations relating to the listing or offering
         of the Consolidated's Shares on the NASDAQ Exchange.

3.2      If this Agreement ceases to have effect Consolidated will release and
         return to Sage all documents provided to Consolidated or its advisers
         in connection with this Agreement and will not use or make available to
         any other person any information which it or its advisers have been
         given in respect of the Company and which is not in the public domain.

3.3      This agreement shall be binding upon each party's successors and
         assigns and personal representatives (as the case may be) but, except
         as provided herein, none of the rights of the parties under this
         Agreement may be assigned to transferred.

3.4      All expenses incurred, including all fees of solicitors, accountants
         and other professionals required to effect the transactions referred to
         in paragraph 2 above shall be for the account of Consolidated.
         Otherwise, the expenses incurred by the parties in the negotiation
         preparation or execution of this Agreement shall be borne solely by the
         party who incurred the liability.

3.5      Time shall be of the essence of this agreement.

3.6      Any notice required to be given under this Agreement shall either be
         delivered personally or sent by first class recorded delivery post
         (air mail if overseas) or telex or full rate telegram or telecopy. The
         address for service of each party shall be its registered office for
         the time being and shall be his address stated above or any other
         address for service previously notified to the other party or (in the
         absence of any such notification) his last known place of residence. A
         notice shall be deemed to have been served as follows:

3.6.1    if personally delivered, at the time of delivery:

3.6.2    if posted by inland mail, at the expiration of 48 hours or (in the case
         of air mail) 7 days after the envelope containing the same was
         delivered into the custody of the postal authorities; and

3.6.3    if sent by telex, or telecopy at the time of transmission.

<PAGE>
                                       5


                  in proving such service it shall be sufficient to prove that
                  personal delivery was made, or that the envelope containing
                  such notice was properly addressed and delivered into the
                  custody of the postal authority as a prepaid first class
                  recorded delivery or air mail letter (as appropriate) or that
                  the telex or telecopy was transmitted as the case may be.

4.       GOVERNING LAW AND JURISDICTION

         4.1      This Agreement is governed by and shall be construed in
                  accordance with the laws of the British Virgin Islands.

         4.2      The parties hereto agree that the Courts of the British Virgin
                  Islands shall have the exclusive jurisdiction to settle any
                  disputes that may arise in connection with this Agreement and
                  that any judgment or order of a British Virgin Islands Court
                  in connection with this Agreement is conclusive and binding on
                  them and may be enforced against them in the courts of any
                  other jurisdiction. This clause is for the benefit of
                  Consolidated only and shall not limit the right of
                  Consolidated to bring proceedings against the other parties in
                  connection with this Agreement in any other court of competent
                  jurisdiction or concurrently in more than one jurisdiction.

         4.3      Sage and the Company waive any objection which they may have
                  to the courts of the British Virgin Islands on the grounds of
                  venue or forum non conveniens or any similar grounds as
                  regards proceedings in connection with this Agreement and the
                  consents to service of process by mail or by any other manner
                  permitted by the relevant law.

         4.4      Without prejudice of the rights of Consolidated to employ any
                  method of service permitted by British Virgin Islands law,
                  Sage and the Company hereby irrevocably appoint Farara
                  George-Creque & Kerins, 125 Main Street, P.O. Box 144, Road
                  Town, Tortola as their authorised agent for service of process
                  in the British Virgin Islands. Any claim, form, writ, summons,
                  judgment or other notice of legal process shall be
                  sufficiently served on them if delivered to that agent at its
                  address for the time being. They shall not revoke the
                  authority of that agent. If for any reason such agent no
                  longer serves as agent of theirs to receive service of
                  process, they shall promptly appoint another such agent and
                  immediately advise the Consolidated of that appointment.


IN WITNESS WHEREOF the parties hereto have set their hands and seals the day
and date first above written.

<PAGE>
                                       6


SIGNED for and on behalf of
Consolidated Water Co. Ltd.
in the presence of:
Frederick N. McTaggart                   /s/ Jeffrey M. Parker
                                            ----------------------


/s/ Frederick N. McTaggart
- --------------------------
Witness


SIGNED for and on behalf of
Sage Water Holdings (BVI) Ltd.
in the presence of:
Zinmavo Byett Ryan                       /s/ Glenn Harrigan
                                            ----------------------


/s/ Zinmavo Byett Ryan
- ----------------------
Witness

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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