Section 8Part 3 — PROVISION OF WATER SUPPLY OR WASTE WATER SERVICES TO THIRD PARTIES
Renewal of service provider licence
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A service provider licence shall be granted for such term as may be specified in the service provider licence, but the term of the service provider licence shall not exceed the term of the concession pursuant to which it was granted.
The Office may consent to an application for the renewal of a service provider licence subject to the terms set out in the concession.
Where the service provider licensee applies for renewal of a service provider licence under subsection (2), the Office may, in writing, refuse to renew that service provider licence for reasonable cause including whether the service provider licensee is or has engaged in conduct that contravenes this Law or any other relevant Law, or is or has been otherwise in fundamental or persistent breach of that service provider licence.
The service provider licensee referred to under subsection (3) shall have three months, from the date of receipt of the said notice, to make written submissions to the Office in respect of the refusal and showing cause why it ought to have its service provider licence renewed.
The Office shall consider any written submissions made under subsection (4), and shall inform the service provider licensee of its decision on the matter and provide written reasons for its decision within two months of the receipt of the said submissions.
Where the Office refuses to give its consent, it shall give reasons in writing for such refusal to the service provider licensee that requested the consent.
Unless otherwise provided for in a concession, before renewing a service provider licence, the Office shall be guided by —
any negotiated modifications;
whether the service provider licence has not been abandoned or surrendered by the service provider licensee; or
whether written notice of non-renewal for reasonable cause is given by the Office under subsection (3) at least four years prior to the expiry of the service provider licence and whether, within two years of service of the said notice given by the Office or the date provided in the service provider licence for the service provider licensee to give notice for renewal of the service provider licence, whichever is later, reasonable cause has not been shown to the Office's satisfaction that the licence should be renewed.
Upon the expiry or revocation of a service provider licence wherein all rights of appeal of the service provider licensee have been exhausted or forfeited, the Cabinet, on the advice of the Office, may compel compulsory divestiture of the assets of the service provider licensee at a value equal to the average of the values determined by a valuation panel.
The valuation panel shall be comprised of three qualified valuators with experience in valuing water and wastewater assets, of whom —
one member shall be chosen by the Office;
one member shall be chosen by the service provider licensee; and
one member (who shall be chairman of the panel) shall be chosen by the other two members.
The valuation panel shall value the assets of the licensee at the fair market value.
Explicit provisions for the mechanism for, and the associated terms where, compulsory divestment of assets is to be instituted shall be provided in regulations made under this Law.
Defined Terms
service provider licencereasonable cause