Water Resources Group (ASX: WRG) has expended its licence relationship with Mandala Water to include The Republic of Mauritius, where growth in water desalination is poised to explode.
Mauritius, an island of about 1.3 million people in the South West Indian Ocean, had in April legislated that all hotels and major hospitality centres be equipped with water desalination plants.
This is part of a major water management reform program designed to help the Mauritius Government achieve its goal of a constant supply of clean water for the population.
WRG believes that Mandala is well placed to secure water supply contracts in Mauritius.
It added that market research & consulting firm TechSci Research had reported that due to governmental support and increases in demand, the Indian water desalination market is set to register a compound annual growth rate of 22% over the next five years.
This is expected to occur within the large coastline states of Tamil Nadu and Gujurat.
WRG expects to work with Mandala to build several demonstration scale plants in the region later this year with a view to completing equipment sales within the next 12 months.
The company recently converted its joint venture with Mandala to a licence agreement that allowed it certain rights to participate in up to 49% of any project developed within the scope of the licence and its applicable territories.
This also allows for Mandala to fund early stage projects independently and without financial commitments from WRG.
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