A water company has signed a contract to build a new seawater desalination plant in Bermuda.

Cayman-based bottled water producer Consolidated Water Company will create the project, which will be able to produce 600,000 gallons of drinking water every day near Tynes Bay.

The scheme will also include a standby electrical power plant and 1.27 miles of water delivery pipelines, while the production capacity of the plant will expand to 1.2 million gallons per day at a later date.

It is hoped the initiative will increase the supply of water to residents by tapping into unlimited ocean reserves while cutting reliance on the Island?s well system.

Under the terms of the contract, Consolidated Water Company?s affiliate ? Consolidated Water Bermuda ? will construct and commission the plant and pipeline within 11 months.

It will operate the facility for at least 12 months, after which the Government will take over its management. Consolidation Water Company develop and operates seawater desalination plants and water distribution systems in areas of the world where naturally occurring supplies of potable water are scarce of non-existent.

It has similar facilities in the Cayman Islands, Barbados, Belize and the British Virgin Islands.

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