The proposed mechanism suffers of two weak points:
1). Water is not so strong acid that can protonate the oxirane ring.
2). Electron transfer from a single bond to the oxygen atom is not favorable.
However, oxirane can be hydrolyzed to the corresponding glycol in neutral conditions, though not easily.
So, try to write the same or a similar mechanism with the corresponding glycol (1,2-diol) or involving the preliminary hydrolysis of the ester group that is more easily hydrolyzed under neutral conditions and see which one fits better.
PS: Are you sure that there is not anything else present, e.g. a tertiary amine, an acid or a mineral salt?