CET Subsidiary Awarded Major Wastewater Treatment Privatization Contract
ENGLEWOOD, Colo., July 30 /PRNewswire/ -- CET Environmental Services, Inc. (Amex: ENV) today announced that its Water Quality Management Corporation (WQM) subsidiary has been awarded a contract to create a new wastewater system for two communities and a number of large agricultural users in the Texas Panhandle. The project, valued at approximately $30 million, includes the design, construction, and operation of a new wastewater treatment plant and is a joint privatization effort between city of Cactus, Texas, the town of Etter, Texas, and three major industrial facilities in an area north of Amarillo. The system jointly addresses the complex problems of agricultural/industrial waste management and limited water resources, and will include an innovative wetlands component that lies on the flyway of various water endangered birds.
Phase I of the project, slated to be performed over the next 8 months, is valued at approximately $3 million, and WQM expects to begin recognizing revenue from this phase in the current fiscal quarter. The balance of the design and construction work, including the development of a new wetlands habitat, is slated to be completed within two years.
"This award establishes WQM as a major player in the wastewater privatization business," said Steven H. Davis, CET President. "By focusing on the particular needs of the community, its resident industries and the environment, WQM continues to carve out an increasing market position and is poised to assist a growing number of municipalities and companies faced with an inadequate water treatment infrastructure."
Davis went on to comment, "The primary strategy at WQM is to pursue niche outsourcing and privatization opportunities -- targeting industry and smaller communities. This is where serious water treatment needs exist, but limited project size may not be of interest to our larger competitors."
WQM will provide interim project financing to purchase land for some of the improvements as well as necessary up-front engineering and construction requirements. The project includes design and construction of new anaerobic lagoons, sequencing batch reactors, constructed wetlands, and farm irrigation systems. Due to the high strength and volume of wastewater to be treated, the plant will service the equivalent of a town of 65,000 people. The project is scheduled to commence this month.
"One of the unique aspects of this project," said WQM General Manager Rick Tallman, "is the construction of an 87-acre wetland area that will actually be used as a final stage in the treatment process during warm-weather months. This treatment method will conserve energy and water resources and will assist in the development and maintenance of a new and substantial wildlife habitat." According to Tallman, this phase of the project will be conducted in cooperation with Ducks Unlimited, the Panhandle chapter of the National Audubon Society, the Texas Nature Conservancy and local industry. |
