Regulations

(1) The Minister may make such regulations as may be necessary or expedient for giving full effect to the provisions of this Act, for carrying out the purposes of this Act or any provisions thereof, or for the further, better or more convenient implementation of the provisions of this Act. Schedule. (2) Without prejudice to the generality of sub-section (1), regulations may be made as necessary to implement and otherwise give full effect to the LPG Pricing Methodology set forth in the Schedule for determining the wholesale price for LPG sold by the Developer from time to time during the term of and in accordance with the Definitive Agreement. SCHEDULE [section 10] LPG Pricing Methodology 1. For the purposes of this Schedule“BBS” means the Belize Bureau of Standards; “Buyer” means the entity contracted by the Developer for supply of LPG to the Developer; “CIF (Buyer) Price” means the price of LPG supplied to the Developer by the Buyer at the Terminal comprised of the following amounts– (a) the FOB (Supplier) Price; (b) applicable freight and handling charges; (c) applicable insurance charges; and (d) applicable foreign exchange charges to convert from US currency to Belize currency; CAP. 64.01. “environmental tax” means the ad valorem tax levied and collected on goods imported into Belize as prescribed by the Environmental Tax Act; “financing fee” means the fee established to pay lenders, corporate bondholders and equity investors involved in financing the Project in accordance with paragraph 5; “FOB (Supplier) Price” means the price in US dollars of LPG sourced from the Supplier by the Buyer at the Supplier’s dock stated in the form of (MB) +/- (X) where X is the variant from the quoted MB price on the date of the Supplier’s invoice; National Liquefied Petroleum Gas Project [CAP. 60:02 11 “G&A fee” means the fee established to provide the Developer with funds necessary to carry out their general and administrative functions; “landed cost” in relation to LPG means the aggregate of the following amounts, namely– (a) the CIF (Buyer) Price; (b) port dues; (c) brokerage fees; (d) port throughput fee; and (e) any and all applicable duties and taxes; “Mont Belvieu” or “MB” means the location specified in either spot or future contracts for delivery of propane in Mont Belvieu, Texas, United States of America; “O&M fee” means the fee established to provide the funds necessary for operating and maintaining the Project Facility; CAP. 233. “port dues” means dues and charges levied by the Belize Port Authority as prescribed by the Belize Port Authority Act and the Belize Port Authority (Tariff) Regulations; “port throughput fee” means the fee charged by the Port of Big Creek for port services provided, lease of the property on which the Terminal is located, the grant of rights of way for pipelines and cables, and the use of the marine berth for unloading of LPG; “regulatory fee” means the fee established to provide the BBS with funds to assist in regulating the LPG industry in Belize; “Supplier” means the entity from whom the Buyer sources LPG; “wholesale” means the sale of LPG relating to the smallest quantity of LPG which is ordinarily sold by the Developer; and “wholesale price” means the aggregate of the following amounts– (a) landed cost; (b) financing fee; (c) regulatory fee; (d) G&A fee; and (e) O&M fee. 2. A wholesale price setting exercise will be conducted by the BBS and the Developer on the receipt by the Developer of each bulk delivery of LPG by the Buyer to the Terminal SAVE AND EXCEPT THAT in the case of the Commercial Operations Date, the wholesale price setting exercise shall be conducted not less than four days prior to the Commercial Operations Date. 3. The landed cost of LPG is a pass through cost in the price formulation and as such will vary on each price setting exercise depending on the value of the individual components comprising the landed cost at the time of the price setting exercise. 4. Subject to paragraph (9) below, the port throughput fee is fixed for the duration of the Definitive Agreement for the duration of the Project at BZ$0.05 per US gallon passing through the port facilities. 5.–(1) The financing fee is derived from and comprised ofNational Liquefied Petroleum Gas Project [CAP. 60:02 13 (a) all financing costs and principal or capital payments/repayments/returns associated with equity and debt financing of the Project including but not limited to principal and interest payment on loans and fees associated therewith; (b) coupon interest payment on the corporate bonds; (c) sinking fund for principal repayment of the corporate bonds; (d) annual dividends to shareholders; (e) sinking fund for recovery of the initial equity investment; and (f) returns on and of equity investments. (2) On the Commercial Operations Date, the financing fee shall be calculated by determining the total value of the sum of these components for the remainder of the relevant calendar year and dividing same by that certain pro rata portion of 11,500,000 gallons relative to the remainder of the calendar year after the Commercial Operations Date. (3) Immediately prior to the commencement of the first calendar year after the Commercial Operations Date, the financing fee shall be calculated by determining the annual value of the sum of these components for the upcoming calendar year and dividing same by 11,500,000 gallons. (4) For each year thereafter, the financing fee shall be calculated by determining the annual value of the sum of these components for the upcoming calendar year and dividing same by the prior year’s throughput volume in the Developer’s LPG sales. (5) The financing fee is thereupon expressed in units of BZ$/US gallon for the upcoming relevant period. 6. The regulatory fee is fixed for the duration of the Definitive Agreement at BZ$ 0.02 per US gallon of LPG passed through the Terminal which fee shall be paid by the Developer to the Government for purposes of testing of imported LPG at the Terminal by or on behalf of the Government. 7. Subject to paragraph (9) below, the G&A Fee is fixed for the duration of the Definitive Agreement at BZ$ 0.05 per US gallon of LPG passed through the Terminal. 8. Subject to paragraph (9) below, the O&M Fee is fixed for the duration of the Definitive Agreement at BZ$ 0.27 per US gallon of LPG passed through the Terminal. 9. The Port Throughput Fee, the G&A Fee and the O&M Fee are based on the installed storage capacity and associated equipment and infrastructure as of the Commercial Operations Date. These fees may need to be adjusted from time to time for any increase in installed capacity, associated equipment, infrastructure and inflation and other material changes in relevant laws, market conditions or other circumstances beyond the reasonable control of the Developer. 10. A wholesale price for each LPG product will be determined in accordance with this LPG Pricing Methodology at each price setting exercise.