Clearford Water Systems Inc. has substantially completed its long-term project debt financing, the company announced this week.
Sustainable Water Projects Inc. and Clearford have executed a loan agreement providing up to US$5.25 million to be invested by SWP, in tranches. Clearford has now received substantially all the funding available under this loan.
The funding will allow Clearford to continue to move forward on its projects and project opportunities in Ontario through the P4P program for municipalities as well as working with certain private developments which will be required to provide its own services under plans of subdivision within the municipalities. Clearford will remain focused on municipalities in the Southwestern Ontario corridor which anticipate higher than average population growth to meet the growing demand of affordable housing within commuting distance of Toronto.
"The Clearford One system and the Pay for Performance delivery model continues to gain traction in the Ontario market," said Kevin Loiselle, chief executive at Clearford. "We have seen significant interests in regions outside of Ontario as well and we believe this is a winning formula that has application worldwide. Our international efforts continue to move forward and we expect to commence construction of Phase 2 of the Cayunda project in Colombia in June 2017.”
Phase 2 of the Cayunda project is expected to generate revenue of $1.1 million dollars.
Clearford had a setback earlier this year when the Township of Adjala-Tosorontio in Ontario chose to cancel an request for proposal even though the company was the winning bidder. Clearford puts its Clearford One system up against a conventional wastewater collection system and came out on top with less expensive per connection costs. As well, the wastewater treatment is smaller.
The township’s council canceled the RFP because it believed both bids were too expensive.