Out Islands Utilities Act


Published: 1965-09-11

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Out Islands Utilities Act
OUT ISLANDS UTILITIES [CH.28 – 1


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

OUT ISLANDS UTILITIES
CHAPTER 28

OUT ISLANDS UTILITIES

ARRANGEMENT OF SECTIONS

SECTION

1. Short title.
2. Interpretation.
3. Application may be made to the Minister.
4. Minister may enter into agreement with developer.
5. Terms of agreement.
6. Minister to designate inspectors.
7. Minister may enter into agreement with developer for remodelling, etc.,

existing utility project.
8. How agreements are to be made.
9. Powers and duties of developers.
10. Projects needing sanction.
11. Penalty for false declaration.
12. Penalty for wrongful application of materials.
13. Proceedings to be taken summarily.
14. Saving of other Acts.



OUT ISLANDS UTILITIES [CH.28 – 3


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

CHAPTER 28

OUT ISLANDS UTILITIES
An Act to encourage the construction of water

supply and sewerage disposal systems on Out Islands by
providing for the refund of customs duties and certain
other concessions to the developer of such systems.

[Commencement 11th September, 1965]
1. This Act may be cited as the Out Islands Utilities

Act.
2. In this Act —
“customs duties” means the duties of customs levied

by the Tariff Act as well as any other duties or
taxes now or hereafter imposed upon or payable
in respect of goods imported into The Bahamas,
except stamp duties;

“developer” means a person prepared to undertake
the construction of an utility project for the use
of the public in any part of the Out Islands and
includes the operator of an existing utility
project;

“materials” means —
(a) well casing, pipework for use within well

fields, well field pumps and the attendant
electric motors, diesel or gasoline motors,
windmills and electricity generating
equipment;

(b) electrical distribution works including
poles and cables, electrical ancillary
equipment including controls, alarms, time
switches and relays;

(c) meters, gauges and other measuring
equipment;

(d) chlorinators, filters, sohn bridges and other
water treatment and testing equipment;

(e) fuel and lubricating oils;

52 of 1965
E.L.A.O., 1974
5 of 1987

Short title.

Interpretation.

Ch. 295.

CH.28 – 4] OUT ISLANDS UTILITIES





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(f) pumps, motors, tanks of all kinds, screens,
pipes, fittings, valves, pipe specials,
hydrants, standpipes, pre-made valve and
meter boxes, cocks, towers, trestles,
manhole frames and covers, scrapers and
other dosing treatment equipment, well-
drilling equipment, bricks, cement,
aggregate, timber, reinforcing steel and
other building materials,

required for or in connection with water
pumping stations, water distribution systems,
sewerage collection systems, sewerage pumping
stations or sewerage treatment plants:

Provided that the Minister may by Order —
(i) specify the types of fuel and lubricating

oils which shall be included in this
definition; and

(ii) add to or amend such definition;
“Minister” means the Minister responsible for Public

Works;
“sewerage system” means any public latrine, street

sewer, pumping station, pumping machinery,
deposit tank, outfall pipe and any appliance for
the conveyance or disposal of sewage;

“water supply system” means any reservoir, dam,
tank, well, tunnel, conduit, pipe fountain, sluice,
valve, pump or engine or any building, structure
or appliance used or constructed for the supply,
storage, conveyance or regulation of water;

“utility project” means any sewerage system or water
supply system.

3. Any developer who desires to construct an
utility project for the use of the public in any part of the
Out Islands may make application to the Minister for the
approval thereof. Every such application shall be in writing
and shall contain full particulars of the proposed utility
project and an estimate of the cost thereof and shall be
accompanied by a plan of the location of the same, by
plans and drawings of the project and by such other
information as the Minister may require.

E.L.A.O., 1974.

Application may
be made to the
Minister.

OUT ISLANDS UTILITIES [CH.28 – 5


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

4. The Minister may, if satisfied that the construction
and operation, or the continued operation of the utility project
in respect of which the application has been made will be in
the best interests of The Bahamas, enter into an agreement
with any developer making application under section 3 of this
Act, licensing him to construct, maintain and operate or
continue to operate an utility project in any part of the Out
Islands.

5. (1) Every agreement made under section 4 of
this Act shall provide for the operation of the utility project
for the use of the general public in any part of the Out
Islands subject to such terms and conditions for the
protection of the interests of the public as the Minister may
deem necessary.

(2) Every such agreement may provide for the
following matters, or any of them, namely —

(a) for the operation and maintenance of an utility
project over or under any public street or public
lands in any part of the Out Islands;

(b) for the refund of all customs duties paid in
respect of all materials necessary for the
construction, maintenance and operation of the
utility project concerned which may be imported
into The Bahamas, purchased or taken out of
bond therein by the developer during such
periods as the Minister may determine;

(c) for such other matters and concessions as the
Minister may deem fit and proper having regard
to the nature and location of the utility project
concerned.

(3) Every such agreement shall contain such
covenants on the part of the developer for the construction,
maintenance and operation of the utility project and such
safeguards as the Minister may deem fit and proper having
regard to the nature and location of the same and shall be
subject to such terms and conditions as the Minister may
deem necessary for the protection of the revenue.

(4) Every such agreement shall contain mutual
covenants on the part of the Minister and the developer
providing for the following matters, namely —

(a) that nothing contained in the said agreement
shall be deemed to make the developer liable to
pay to the Government any payments in respect

Minister may
enter into
agreement with
developer.

Terms of
agreement.

CH.28 – 6] OUT ISLANDS UTILITIES





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

of any matter or thing done, executed or happening
prior to the date on which such agreement shall cease
in respect of which matter or thing payment is
waived thereby, or to refund or repay any customs
duties which have been refunded to the developer
under the concessions granted by such agreement
except in the circumstances specified in section 12 of
this Act;
(b) for the arbitration of all questions and differences

between the Minister and the developer; and
(c) for the interpretation of such agreement according

to the laws of The Bahamas.
6. The Minister shall designate public officers to

be inspectors for the purpose of this Act, and every
agreement entered into under the provisions of section 4 of
this Act shall provide for such safeguards as the Minister
may require as to inspection by any such inspector of the
site of the utility project concerned and of the buildings
and installations constructed thereon and of any storeroom,
warehouse, storage tank or other place under the control of
the developer in which materials intended for use in
connection with the utility project shall be stored, so as to
ensure that customs duties shall only be refunded in respect
of materials used, or which could reasonably be presumed
to have been used in the construction and equipping of the
project, and for such other safeguards and matters,
including the keeping of records, as the Minister shall
deem fit and proper in the circumstances.

7. (1) A developer of an existing utility project
desiring to remodel, equip, re-equip or extend the same
may from time to time submit to the Minister in writing for
approval full particulars of such remodelling, equipping,
re-equipping or extension together with an estimate of the
cost thereof, and shall supply to the Minister such other
information as the Minister may require. If the Minister
decides that the proposals, in whole or in part, set out in the
particulars amount to remodelling, equipping, re-equipping
or extension of the said utility project and that such
remodelling, equipping, re-equipping or extension will be
in the best interests of The Bahamas, the Minister may
enter into an agreement with the developer for the refund
of all customs duties in respect of all materials necessary
for the purpose of carrying out all or such part of the
proposals as the Minister has approved, which may be


Minister to
designate
inspectors.
E.L.A.O., 1974.

Minister may
enter into
agreement with
developer for
remodelling, etc.,
existing utility
project.

OUT ISLANDS UTILITIES [CH.28 – 7


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

imported into The Bahamas, purchased or taken out of
bond therein by the developer during such period as the
Minister may determine.

(2) A developer of an existing utility project may
make application to the Minister for the refund of all
customs duties paid in respect of all materials necessary for
the maintenance and operation of such utility project which
may be imported into The Bahamas, purchased or taken
out of bond therein by such developer. If he considers that
it will be in the best interests of The Bahamas the Minister
may enter into an agreement with the developer for the
refund of all such customs duties.

(3) Every agreement entered into pursuant to the
provisions of this section shall contain such covenants on
the part of the developer and such safeguards as the
Minister may deem fit and proper in the circumstances and
shall be subject to such terms and conditions as the
Minister may deem necessary for the protection of the
revenue and for ensuring that the rates and charges to be
made by the developer in connection with the operation of
the utility project are reasonable having regard to the
overall cost of such operation.

8. Every agreement made under this Act shall be
expressed to be made by and between the Minister acting
for and on behalf of the Government of The Bahamas of
the one part and the developer of the other part and shall be
executed by the Minister under his hand and seal, and shall
be executed by the developer, if a person, under his hand
and seal, or, if a company, under its common seal.

9. Where any developer is authorized under the
provisions of section 4 to construct, maintain and operate
an utility project, the Minister may by order provide that
the developer shall within the area covered by his licence
have such of the powers, duties and responsibilities as
appertain to the Minister under the Water Supplies (Out
Islands) Act, subject to such modifications or exceptions as
the Minister may prescribe in the order and thereupon the
provisions of the said Act shall apply mutatis mutandis to
the developer, his utility project and the consumers within
such area.

How agreements
are to be made.

Powers and
duties of
developers.

Ch. 197.

CH.28 – 8] OUT ISLANDS UTILITIES





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

10. (1) Subject to the provisions of section 14 of this
Act, no utility project shall be constructed or operated for
the purpose of serving the public in any part of the Out
Islands without the authority of the Minister.

(2) Every person who contravenes the provisions of
this section shall be guilty of an offence against this Act
and shall be liable on summary conviction to a fine not
exceeding four hundred dollars and in the case of a
continuing offence, to a further fine not exceeding forty
dollars or to imprisonment for a term not exceeding seven
days for each day during which the offence continues.

11. Every person knowingly making a false
declaration for the purpose of obtaining a refund of
customs duties pursuant to the provisions of any agreement
made under the authority of this Act shall be guilty of an
offence against this Act, and shall be liable on summary
conviction to a fine not exceeding two thousand dollars, or
to imprisonment for a term not exceeding one year, or to
both such fine and imprisonment.

12. (1) No materials, in respect of which customs
duties shall have been refunded pursuant to the provisions
of any agreement made under the authority of this Act,
shall be applied for any purpose other than for the purposes
specified in such agreement:

Provided that materials which are being replaced may
be used or disposed of for other purposes with the consent
of the Minister and on payment of customs duties thereon
based on the value of such materials at the time of such use
or disposal.

(2) Every person who contravenes the provisions of
this section shall be guilty of an offence against this Act
and shall be liable on summary conviction to a fine not
exceeding two thousand dollars, or to imprisonment for a
term not exceeding one year, or to both such fine and
imprisonment and if such person shall be the developer, or
if the developer is a company, a director thereof, such
agreement may be cancelled by the Minister, in which case
all customs duties refunded to the developer pursuant to the
provisions of any agreement made under the authority of
this Act may be recovered as liquidated damages.

Projects needing
sanction.

5 of 1987, s. 2.

Penalty for false
declaration.

5 of 1987, s. 2.

Penalty for
wrongful
application of
materials.

5 of 1987, s. 2.

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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

13. (1) All proceedings for offences against this Act
and for the recovery of any penalties under this Act shall
be before a magistrate having jurisdiction in the place
where the offence was committed, and the magistrate shall
dispose thereof summarily.

(2) All such proceedings may be prosecuted in the
name of the Minister or the Commissioner of Police, or by
a revenue officer or peace officer.

14. Nothing in this Act shall be construed as
derogating from or abridging any provision of the
Hawksbill Creek, Grand Bahama (Deep Water Harbour
and Industrial Area) Act or of the Hawksbill Creek, Grand
Bahama (Deep Water Harbour and Industrial Area)
(Amendment of Agreement) Act whereby special provision
is made with respect to the construction, operation and
maintenance of utilities and the importation into the
Bahamas, purchasing or taking out of bond therein free of
customs duties of certain classes of materials and supplies
mentioned in such Acts.



Proceedings to be
taken summarily.

How proceedings
to be prosecuted.

Saving of other
Acts.
Ch. 261.

Ch. 262.