A Grand Cayman company will design and build the new seawater osmosis plant near Tynes Bay, Government confirmed yesterday.

Bottled water producer Consolidated Water Company (CWC) has been awarded the contract for the site by the Ministry of Works and Engineering and Housing.

The new plant, which will be able to churn out 500,000 gallons of drinking water each day, aims to increase the supply of water to residents by tapping into unlimited ocean reserves while cutting reliance on the Island's well system.

The Ministry said CWC was a "highly experienced" designer, builder and operator of reverse osmosis plants ? with facilities in the Bahamas, Grand Cayman, British Virgin Islands, Belize and Barbados.

The company will work with several local firms to complete the project, commencing in early 2007.

The project is pencilled in for completion in late 2007.

CWC will also provide a one-year training period for Government staff who will operate the plant.

No price was given for the contract, but it is understood reverse osmosis plants cost upwards of $5 million to build.

"We are very pleased to have been selected by the Government of Bermuda for this project, which will expand to six the number of countries where Consolidated is producing potable or non-potable water from the sea," stated Rick McTaggart, Chief Executive Officer of CWC.

"While the initial operating contract for Tynes Bay will cover a period of only 12 months following the plant's commissioning, we are optimistic that our operation of the plant with experienced personnel will lead to an expanded relationship with the Government of Bermuda."