Interpretation

In these Byelaws, unless the context otherwise requiresCAP. 222. “Act” means the Water Industry Act; “Annual Tariff Period” means each of the twelve-month tariff period within a Full Tariff Period or Transitional Period; “Business Plan” means the business plan proposed by a licensee and approved by the PUC for the Transitional Period or for each Full Tariff Period; “change in law” means the introduction, amendment, modification or repeal, or change in the interpretation, in whole or in part, of laws, regulations, byelaws or any other legally binding requirement of Belize that has an impact on a licensee; “dividends” means the amount paid to shareholders as their reward for holding their equity share investment in a licensee company after deducting all tax liabilities in Belize whether paid or payable; Water Industry 135 “Consumer Price Index of the United States of America” means the index published from time to time by the United States Bureau of Labour Statistics called “Consumer Price Index - All Urban Consumers”, or such index that is generally recognised as replacing said index; “customer” means any person receiving services or entitled to receive services by a licensee; “Equity Contribution” means the par value of the cumulative equity share capital of the licensee, issued and fully paid; “Exceptional Circumstance” means any act, event or circumstance beyond the reasonable control of a licensee, which has a material effect on the financial position of the licensee including, but not limited to– (a) hurricane, cyclone, tornado, earthquake or other natural disaster or weather conditions, (b) civil disobedience, riot, strike, demonstration, commotion, or other similar events, (c) change in the exchange rate of the Belize dollar as against the US dollar, (d) change in law, (e) expropriation, (f) change in the rates of taxation, fees, licences or permits or the imposition of new taxes, fees, licences or permits (direct and indirect) in the water and sewerage sector in Belize, (g) change in the quality of service standards, (h) any other unforeseen circumstances; 136 Water Industry “exchange rate” means the rate of exchange prescribed by law or published by the Central Bank of Belize; “First Full Tariff Period” means the period of six years commencing on 1st April 2004; “Full Tariff Period” or “Subsequent Full Tariff Period” means each period of five years commencing on the expiry of the First Full Tariff Period; “Full Tariff Review Proceeding” means the review proceedings prior to each Full Tariff Period during which the PUC reviews, amends and approves the Business Plan proposed by the licensee and sets out Tariffs for the Full Tariff Period; “Initial Equity Contribution” means the par value of the cumulative equity share capital of the licensee, issued and fully paid, as at the Initial Equity Contribution Date converted from Belizean dollars to United States dollars at the prevailing rate of exchange on the Initial Equity Contribution Date; “Initial Equity Contribution Date” means the date on which the first transfer of majority ownership of the licensee from the Government of Belize to another investor or investors took place; “interested party” means any person, customer or entity having an interest or concern in the outcome of an application or proceeding before the PUC; “Interim Review Proceeding” means the review proceedings carried out by the PUC on its own initiative or at the request of the licensee on the sufficiency of Tariffs and based on the occurrence of an exceptional circumstance driving the Transitional Period or a Full Tariff Period; “licence” means a licence issued to a licensee by the PUC under section 15 of the Act; Water Industry 137 “licensee” means any legal person or entity licensed by the PUC under section 15 of the Act to produce, generate, store, transmit, sell, deliver, or supply water and sewerage services to or for the “Net Present Value” means the value obtained by discounting cash outflows and inflows attributable to a capital projector equity investment by a chosen discount rate; Schedule II. “New Property Development” means all those property developments not already within the scope of the capital expansion program in the relevant Business Plan or funded by the Water Industry (Infrastructure Charges) Order and approved by the PUC for the provision of water and sewerage services by the licensee, on the terms and conditions set out in Schedule; “notified items” means unavailable costs incurred by a licensee proved to the satisfaction of the PUC and are costs due to factors outside of a licensee’s control being one or a combination of bad debt costs, electricity rate costs, interest costs, or inflation; CAP. 223. “PUC” means the Public Utilities Commission established under the Public. Utilities Commission Act; “Regulated Rate of Return” means the rate of return as set out in Schedule 1; “Regulatory Model” means the model of the licensee’s business used by the PUC as the methodology for calculating Tariffs during Review Proceedings under these Byelaws; “Residual Value” means the value of the licensee company at the end of the initial licence period and shall be equivalent to the Initial Equity Contribution plus any additional equity capital subscribed for by shareholders, which are not entitled to alternate forms of return or interest, plus any shortfall in the value of the actual dividend payment over the initial, licence period as would be necessary, to ensure that the shareholders receive the entire Regulated Rate of Return; 138 Water Industry “Review Proceedings” mean either an Annual Review Proceeding or a Full Tariff Review Proceeding; “Schedules” means the Schedules to these Byelaws; “Tariffs” includes regulated rates, fees and charges; “Tariff Basket” means all of the individual Tariffs that can be levied by a licensee for the various services that it provides to all types of customers and which when aggregated and applied to the quantum of the particular services being provided produces the total operating revenues of the licensee; “Transitional Period” means the period from March 23, 2001 to March 31, 2004.