CAP. 59 MOLLEJON HYDROELECTRIC PROJECT (EXEMPTION FROM TAXES AND DUTIES) ACT BELIZE

MOLLEJON HYDROELECTRIC PROJECT

(EXEMPTION FROM TAXES AND DUTIES)ACT

CHAPTER 59

REVISED EDITION 2000

SHOWING THE LAW AS AT 31ST DECEMBER, 2000.

This is a revised edition of the law, prepared by the Law Revision Commissioner

under the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,

Revised Edition 1980 - 1990.

This edition contains a consolidation of the following laws - Page

ARRANGEMENT OF SECTIONS 3

MOLLEJON HYDROELECTRIC PROJECT

(EXEMPTION FROM TAXES AND DUTIES) ACT 3 Amendments in force as at 31st December, 2000.

BELIZE

MOLLEJON HYDROELECTRIC PROJECT

(EXEMPTION FROM TAXES AND DUTIES)ACT

CHAPTER 59

REVISED EDITION 2000

SHOWING THE LAW AS AT 31ST DECEMBER, 2000.

This is a revised edition of the law, prepared by the Law Revision Commissioner

under the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,

Revised Edition 1980 - 1990.

This edition contains a consolidation of the following laws - Page

ARRANGEMENT OF SECTIONS 3

MOLLEJON HYDROELECTRIC PROJECT

(EXEMPTION FROM TAXES AND DUTIES) ACT 3 Amendments in force as at 31st December, 2000.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000

Printed by the Government Printer

No. 1 Power Lane,

Belmopan, by the authority of

the Government of Belize.

Mollejon Hydroelectric Project

(Exemption from Taxes and Duties) [CAP. 59 3

[ ]

CHAPTER 59

MOLLEJON HYDROELECTRIC PROJECT

(EXEMPTION FROM TAXES AND DUTIES)

1. Short title.

2. Interpretation.

3. Exemption from taxes and duties.

4. Extent of exemptions.

SCHEDULE

CHAPTER 59

MOLLEJON HYDROELECTRIC PROJECT

(EXEMPTION FROM TAXES AND DUTIES)

[12th August, 1994]

1. This Act may be cited as the Mollejon Hydroelectric Project (Exemption

from Taxes and Duties) Act.

2. In this Act, unless the context otherwise requires -

“Agreement” means the Franchise Agreement dated 19th April, 1991, be-

tween the Government of Belize, the Belize Electricity Board, the International

Energy Equities, Inc., and Dominion Energy, Inc., as subsequently amended;

Short title.

Interpretation.

21 of 1994.

Mollejon Hydroelectric Project

(Exemption from Taxes and Duties) CAP. 59]

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000

Printed by the Government Printer

No. 1 Power Lane,

Belmopan, by the authority of

the Government of Belize. [ ]

4

“Producer” means the Belize Electric Company Limited, a company incorpo-

rated under the laws of Belize, and its successors and permitted assigns;

“Project” means the hydroelectric project to be developed, constructed, op-

erated and maintained by the Producer on the Macal River at its confluence

with Mollejon Creek, in the Cayo District and all structures and facilities re-

lated to such generating units including but not limited to, penstocks, diversion

structures, the power canal and tunnel and the powerhouse.

3. Notwithstanding anything to the contrary contained in the Income Tax

Act, the Customs and Excise Duties Act, the Customs Regulation Act, the

Exchange Control Regulation Act and Regulations made thereunder, or any

other law, rule, regulation, order or instrument whatsoever, the exemptions

from taxes and duties set out in the Schedule hereto shall have effect in Belize

commencing from the date of the Agreement and continuing for so long as the

Agreement remains in force.

4. The exemptions from taxes and duties granted by section 3 of this Act

shall apply only to such activities of the Producer as relate directly to the

Project.

SCHEDULE

[Section 3]

EXTENT OF EXEMPTIONS

FROM TAXES AND DUTIES

1. The Producer shall be exempt from all taxes measured by or imposed on

receipts, revenues, income or profits and payroll and other employment taxes

payable to the Government of Belize, its agencies, departments and political

subdivisions, as well as all local, regional or municipal governments. This

Extent of exemp-

tions.

Exemption from

taxes and duties.

CAP. 55.

CAP. 48.

CAP. 49.

CAP. 52.

Schedule.

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000

Printed by the Government Printer

No. 1 Power Lane,

Belmopan, by the authority of

the Government of Belize.

Mollejon Hydroelectric Project

(Exemption from Taxes and Duties) [CAP. 59 5

[ ]

exemption shall apply to all officers and employees of the Producer not citizens

or permanent residents of Belize. In addition, the Producer shall be exempt

from all income withholding and other taxes payable to the Government of

Belize, its agencies, departments and political subdivisions, as well as all local,

regional and municipal governments for (i) all dividends, distributions, interest,

and other payments paid by the Producer to its owners (“the Partners”), (ii) all

dividends, distributions, interest and other payments paid by any Partner to its

shareholder(s), partner(s) or other owners, and (iii) all interest and other pay-

ments paid by the Producer or any Partner to any lender or foreign creditor

with respect to any loan(s) or other indebtedness incurred in connection with

the acquisition, construction and mobilization of the Project or any portion thereof,

including any further loan(s) incurred to refinance such loan(s).

2. The Producer shall be exempt from Excise Taxes, Ad Valorem Taxes, taxes

or fees on the conversion of currency, and Sales Taxes, payable to the Govern-

ment of Belize, its agencies, departments and political subdivisions.

3. The Producer shall be exempt from Import Duties, Import Taxes, and Im-

port Assessments and Use Taxes, payable to the Government of Belize, its

agencies, departments and political subdivisions, as to any property, equipment

or assets, brought into or imported into Belize, and utilized in the Project or on

behalf thereof.