Boston, MA 10/02/2014 (wallstreetpr) – According to reports, Middlesex Water Company (NASDAQ:MSEX) has announced that its subsidiary has begun operations of water production and distribution system in Dover Air Force Base. As per the information, Tidewater Utilities, Inc, located in Delaware is a wholly owned subsidiary of MSEX.
Insights of the matter:
The final decision of operating in Dover Air Force Base has been taken after a significant consideration by V. U.S. Department of Defense and Tidewater Utilities Inc. reached to an agreement almost an year back in September, 2013 in order to privatize the entire water distribution system in the area. As soon as the agreement was signed, an extensive bid and U.S. Air Force water privatization study was conducted by the authorized agencies. Initially the Diver Air force Base was conveyed as the owner of the complete system following a joint inventory of all the assets.
Terms and conditions of agreement:
As per the information, Tidewater Utilities Inc. will be offering potable water service to DAFB under an agreement that lasts for fifty years. In return to its top notched services, it will keep all the water utility assets of DAFB and take necessary actions to generate revenues and increase its profitability over time. Tidewater Utilities will be responsible for consistent and top notched services. Management of the company as well as the local authorities are excited about this agreement and think that it will surely resolve the water problem in the area.
According to Dennis W. Doll, President and CEO Middlesex Water Company (NASDAQ:MSEX), it is an honor for the company to reach an agreement with premier U.S. military facility DAFB. It will help the company to establish itself as one of the most reliable and competitive contender for privatized water systems across the country. It’s just a start, if everything goes fine, then many more such decisions will be taken in near future.
