WATER SERVICES CORPORATION ACT

WATER SERVICES CORPORATION

CHAPTER 355

WATER SERVICES CORPORATION ACT

To provide for the establishment of a body corporate to be known as the Water Services

Corporation, and for the exercise and performance by or on behalf of the Corporation of

functions related to the acquisition, transformation, manufacture, distribution and sale of

potable and non-potable water, and, as appropriate, to the treatment and disposal or re-use of

sewage and waste water, and re-use of stormwater run-off, to provide for the transfer to the

Corporation of certain installations, equipment or other property, and to make provision in

respect of matters ancillary thereto or connected therewith.

20th January, 1992

1st August, 1992

1st September, 1997

1st December, 1997

1st October, 2003

ACT XXIII of 1991 as amended by Legal Notice 129 of 1992 ; Acts XV of 1995 , XVI of

1997 , XXV of 2000 and XXVII of 2007 ; Legal Notices 425 of 2007 and 42 of 2010 ; and

Acts XXXIV of 2014 and XXV of 2015 .

The short title of this Act is the Water Services Corporation

Act.

(1)

In this Act, unless the context otherwise requires -

"apparatus" includes vehicles, all machines, devices and fittings

used in the pumping, desalination, treatment or transport of water

and waste water;

"appointed day", in relation to the provisions of Part IV of this

Act, means the day or days on which article 32 comes into force *

with respect to such public undertakings as may be transferred by

virtue of that article;

"Board" means the Board of the Corporation established by

article 5;

"Chairman", "Deputy Chairman" and "Member" mean the

Chairman, the Deputy Chairman and a member of the Board

respectively;

"Chief Executive" means the Chief Executive of the Corporation

appointed in accordance with article 5(5);

"cistern" means any reservoir, tank (excluding roof tank), pond,

or other receptacle, used or intended to be used for collecting or

storing water, whether situated or constructed above or below

ground, covered or uncovered;

"collecting area" means that surface or area of lands, roads, sites,

or buildings, the rain falling upon which causes or contributes to

any stream or deposit of surface water;

"conduit" means any channel, ditch, gutter, pipe or aqueduct,

made or intended for the conveyance of water which is to be

collected, stored, or in any way utilized;

"consumer" means the person or body corporate to whom

services are rendered by the Corporation;

"Corporation" means the Water Services Corporation established

by this Act;

"director" means a director of the Corporation under this Act;

"domestic sewage" means the contents of lavatories and water

which has been used for cooking or washing, and other waste water

ordinarily removed from domestic premises, but does not include

surface water removed from buildings and from land occupied

with, and appurtenant to, the building, nor any waste water other

than the contents of lavatories and other water used for personal

hygiene and similar purposes, removed from trade premises, or

from any laundry;

"domestic supply" means a supply of water made to a tenement

to meet the ordinary and reasonable requirements of the domestic

*20th January, 1992 - see Legal Notice 7 of 1992.

WATER SERVICES CORPORATION

life of the person or persons residing in the tenement;

"financial year" means the period of twelve months ending on the

thirty first day of December;

"irrigation area" means any area so declared by order of the

Minister responsible for agriculture;

"gallery" means an underground passage made in searching for a

spring, or for collecting the waters of a spring or through which the

waters of a spring may flow from one point to another, in the

context of groundwater exploitation;

"licence" means any permit or authority given in writing by the

Corporation mentioned in article 44 hereof;

"mains" means a pipe laid for the purpose of giving a general

supply of water as distinct from a supply to individual consumers

and includes any apparatus in connection with such pipe;

"Minister" means the Minister responsible for water and includes

any person authorised by such Minister in that behalf;

"officer" and "other employees" in relation to the Corporation

include any public officer detailed for duty with the Corporation;

"person" includes any body of persons or any body corporate

established by the law;

"public officer" has the same meaning as is assigned to it in

article 126 of the Constitution;

"public undertaking" means any undertaking or installation, and

any apparatus, instrument, device or plant and all things accessory

or ancillary thereto which, immediately before the appointed day * ,

were vested in or belonged to the Government by whatever title and

were operated by it for the purposes of producing, storing and

distributing water or collecting and disposing or treating of sewage,

waste water or stormwater run-off;

"premises" includes lands, buildings, houses and any other

structure whatsoever;

"prescribed" means prescribed by regulations, rules or orders

made under or kept in force by this Act;

"sea-craft" includes floating tanks for the supply of water to any

sea vessels;

"service" means a conduit made for the purpose of conveying

water from the water works to any tenement, for the exclusive use

of the owner or occupier thereof, or for any use or purpose within

the same tenement;

"spring" means water existing or flowing naturally underground,

continually or from time to time, whether the said water escapes or

flows on the surface or not;

"stormwater run-off" shall include rainwater which is not

absorbed by the ground or which does not evaporate and which is

*20th January, 1992 - see Legal Notice 7 of 1992.

WATER SERVICES CORPORATION

not collected in cisterns;

"tenement" includes any part of a tenement provided with a

constant supply, normally metered separately;

"trade effluent" means any liquid (either with or without particles

of matter in suspension or dissolved in it) other than surface water

and domestic sewage, which is discharged from premises used for

carrying on any commercial or industrial activity;

"trade premises" means any land or building, used partly or in

whole for the purpose of undertaking any commercial or industrial

activity. For the purpose of this definition, it also means any

premises wholly or mainly used (whether for profit or not) for

agriculture or horticultural purposes or for scientific research or

experiment;

"watercourse" means any ditch, valley, ravine, gutter, channel or

pipe, through or along which spring or surface-water flows

continually or from time to time;

"water fittings" includes pipes other than mains, taps, cocks,

valves, ferrules, meters, cisterns, baths, water closets, and other

similar apparatus used in connection with the supply and use of

water;

"water pump" means any mechanical device for the purpose of

raising, boosting and/or circulating water from any source or place

whatsoever; and a water pump shall be deemed to have been

installed on a site when its component parts have been assembled

as to be reasonably deemed to be in a condition to raise, boost, and/

or circulate water from any source or place whatsoever and

"installation" shall be construed accordingly;

"water resources" means water which for the time being is

(a) contained in any mains or service;

(b) inland water as is situated therein such as ponds or

reservoirs; and

(c) any underground strata, including water for the time

being contained in a well, borehole or similar work or

in any excavation into underground strata where the

level of water in the excavation depends wholly or

mainly on water entering it from those strata;

"waterworks" means all collecting areas, conduits (except all

such conduits as are "services" within the meaning of this Act),

cisterns, wells, galleries, dams, weirs, machines, pumps, valves,

sluices, and other appliances which are used or intended to be used

for obtaining, pumping, raising, collecting, processing,

desalination, polishing, storing or conveying water which is to be

supplied or distributed; and includes those works in which water is

received or contained or by which water is conveyed, supplied or

distributed;

"wholesome water" means water the quality of which is in

accordance with standards set by the Department of Health in the

light of circumstances prevailing at the time.

WATER SERVICES CORPORATION

(2) Any reference in this Act to regulations, rules or orders

made under this Act shall include a reference to regulations, rules

or orders kept in force by this Act.

PART II

Constitution, Functions and Composition of the

Water Services Corporation

(1) There is hereby established a corporation to be known

as the Water Services Corporation.

(2) Subject to the provisions of this Act and to any requirement

provided under any other law, the Corporation may -

(a) to acquire, produce, keep, distribute, sell, export or

otherwise dispose of water for domestic, commercial,

industrial or other purposes;

(b) to conserve, augment and operate water resources and

sources of water supply;

(c) to undertake and perform such other functions relating

to water conservation, supply and distribution as it

may deem appropriate;

(d) to provide for the treatment and for the disposal or re-

use, as appropriate, of sewage and waste water;

(e) to provide as appropriate for the use of stormwater

run-off from urban and rural areas;

(f) to generate new forms and services of revenue, even if

not directly or indirectly related to the use of water for

domestic, commercial, industrial or other purposes.

(3) Subject to the provisions of this Act, and to any

requirement provided under any other law, it shall be the duty of

the Corporation -

(a) to develop, maintain and promote a safe and efficient

production and distribution system in order to satisfy,

as economically as possible, all reasonable demands

for water;

(b) to determine the short-term and long-term objectives

of the Corporation in relation to water supply, disposal

and re-use and to develop the necessary strategy and

policies to reach these objectives;

(c)

(i) to provide, improve and extend such a system of

public sewers and to cleanse and maintain these

sewers so as to ensure that the drainage system

operates and continues to operate safely and

effectively;

(ii) to make provisions for the operation of these

sewers and such further provisions as are

necessary from time to time for effectively

dealing with the contents of these sewers by

means of sewage treatment and disposal works

WATER SERVICES CORPORATION

or otherwise;

(d) to have regard in performing its duty under this

subarticle of the need to provide for the treatment and

disposal or otherwise of trade effluent;

(e) to promote the proper disposal of waste water and

stormwater run-off;

(f) to advise the Minister on any matter relating to any of

its functions under this Act;

(g) to manage and operate all undertakings and other

installations and all property, transferred to and vested

in the Corporation by virtue of this Act or otherwise

acquired by the Board for the purposes of any of its

functions;

(h) to hold and administer and, if and when it thinks fit, to

realise any assets it may hold from time to time;

(i) to promote the reasonable use of water and encourage

the conservation and appropriate re-use of water

resources;

(j) to carry out tests relating to water fittings for the

purpose of preventing the waste, undue consumption,

misuse, erroneous measurement or contamination of

water;

(k) to provide training courses and other schemes in

connection with the furthering of the science and

technology of water management;

(l) to collaborate with other local organisations in placing

and coordinating services including water purification,

electrical power, telecommunications, road services,

agriculture and industry; and

(m) to promote and undertake alone or in collaboration

with other institutions, the research and development

of new technology and new ideas in the production and

treatment of water, in distribution and disposal

networks, water desalination and polishing, sewage

treatment disposal and re-use, plant, transport and

equipment, water resources management and water

catchment management.

(4) For the purpose of any of its functions, the Corporation

may, subject to the provisions of this Act -

(a) acquire, construct, reconstruct, maintain and operate

any installation;

(b) acquire any property which the Corporation considers

necessary or expedient for the purposes of

constructing, extending or maintaining any installation

or otherwise carrying out its functions under this Act;

(c) do all acts and things necessary for the purpose of

carrying out its functions under this Act: provided that

the opening and breaking up of the surface of any

WATER SERVICES CORPORATION

street for any of the purposes aforesaid shall not be

undertaken without the approval of the Authority for

Transport in Malta;

(d)

carry on, whether as principal or as agent or as a

contractor, or in collaboration with any other person or

persons, all such other activities as may appear to the

Corporation requisite, advantageous or convenient to

be carried out for or in connection with the

performance of any of its functions under this Act or in

order to make the best use of the assets of the

Corporation;

(e)

exercise, perform, discharge and delegate all such

rights powers, duties and functions as are by or under

this Act vested in or assigned to the Corporation;

(f)

do all such acts as may be necessary or conducive for

the proper performance or attainment of its functions;

(g)

do all such other acts as are incidental to or

consequential upon the exercise, performance and

discharge of its powers, duties and functions under this

Act or for the attainment of the functions of the

Corporation;

(h)

hold and administer and, if and when it thinks fit,

realize any assets it may hold from time to time.

(5) For the purpose of its functions under this Act, and with the

written authority of the Minister, the Corporation may grant to any

third party of its choice the right to carry on or engage in or

perform, whether in whole or in part, and whether as operator,

concessionaire, manager, independent contractor or otherwise, any

functions, activities, operations, duties or transactions which the

Corporation is authorised and empowered or obliged to carry on or

engage in or perform under or in accordance with this Act

Provided that this subarticle shall not be interpreted as

exempting any person so authorized by the Corporation from

complying with the requirements of any other law.

(6)

In carrying out its functions at law, the Corporation shall

(a) ensure that it is in possession of any licences, permits

or authorizations, howsoever described, as it is

required to have at law and that it abides with any

conditions as may be imposed in any such licences,

permits or authorisations;

(b) be subject to and abide by any laws, orders, directives,

standards, and other legal requirements howsoever

described, as may be imposed by or under the

Regulator for Energy and Water Resources Act or any

other law;

(c) carry out such functions directly through its officials

or employees, or indirectly through contractors,

licencees or other agents, no matter how appointed as

long as they are properly authorized, and for such

WATER SERVICES CORPORATION

purpose the Corporation may issue such agents with

such licences or other authority as the Corporation

may deem necessary.

(1) The Corporation shall be a body corporate having a

distinct legal personality and shall be capable, subject to the

provisions of this Act, of entering into contracts, of acquiring,

holding and disposing of any kind of property or rights for the

purposes of its functions, of suing and being sued, and of doing all

such things and entering into all such transactions as are conducive

or incidental to the exercise or performance of its functions under

this Act.

(2) The legal representation of the Corporation shall vest in the

Chairman or in such other member or members of the Board of

Directors as the Board may by resolution designate. Any such

resolution shall be published in the Government Gazette as soon as

may be after approval and shall not have effect until it is so

published

Provided that the Board may delegate any of its powers to

any of its members or to any of its officers or servants and may

authorise any such person to appear on any contract, deed or other

instrument for or on behalf of the Corporation and to sign for or on

its behalf any such contract, deed or instrument, as well as any

other document, including cheques and bills of exchange and the

Board may also ratify and accept any thing done for and on its

behalf without such authority.

(1) There shall be a Board of the Corporation, hereinafter

referred to as the Board, which shall be responsible for the

formulation of the policy of the Corporation and to whom the Chief

Executive shall be responsible for the general administration of the

affairs and business of the Corporation.

(2) The Board shall consist of not more than nine members

appointed by the Minister. The Minister shall designate one of the

appointed members as chairman and another such member as

deputy chairman and such other member shall have all the powers

and perform all the functions of the chairman during his absence or

until a new chairman has been appointed following resignation,

termination of appointment or death of the chairman.

(3) The Minister shall designate one of the appointed members

as Chairman and another such member as Deputy Chairman. The

Deputy Chairman shall have all the powers and perform all the

functions of the Chairman during his absence or until a new

Chairman has been appointed following the resignation,

termination of appointment or death of the Chairman.

(4) The Chairman and all the other appointed members of the

Board shall be appointed by the Minister from amongst persons,

appearing to him to have had experience, and shown capacity, in

matters relating to water technology, or water or waste water

management, or the organisation of workers, or of finance or

administration, and after having taken regard of their experience

and familiarity with the requirements and circumstances of

WATER SERVICES CORPORATION

agriculture, industry, commerce and tourism and with matters

related to the conservation of the environment and the development

of public amenities.

The members shall receive out of the funds of the

Corporation such remuneration as the Minister may from time to

time determine.

(5) Subject to the provisions of this Act, and to any directions

of the Board, the executive conduct of the Corporation, its

administration and organization and the administrative control of

its officers and other employees shall be the responsibility of the

Chief Executive Officer of the Corporation who shall also have

such other powers as may from time to time be delegated to him by

the Board.

The Chief Executive Officer shall be responsible for the

implementation of the business plan and budget of the Corporation.

The Chief Executive Officer shall be responsible towards

the Board of Directors and may be invited to attend and be heard at

all meetings of the Board. He shall not, however, have a vote or be

counted for the purpose of constituting a quorum.

(6) The provisions of the Criminal Code in respect of public

officers or servants shall apply to the members of the Board, the

Chief Executive and all other officers and employees of the

Corporation.

A Works Council, in terms the Employee (Information and

Consultation) Regulations, shall be set up by the Corporation and

the Chief Executive Officer shall ensure that it meets at least once a

month.

Subject to the provisions of articles 8 and 10, the appointed

members of the Board shall hold office for such period and on such

terms and conditions as the Minister may deem appropriate; and a

m e m b e r s h a l l , o n c e a s i n g t o b e a m e m b e r, b e e l i g i b l e f o r

reappointment

Provided that the Minister may at any time terminate the

appointment of any appointed member of the Board if, in his

opinion, such member is unfit to continue in office or has become

incapable of properly performing his duties as a member of the

Board or fails to attend the meetings of the Board without

reasonable cause for at least three successive meetings.

A person shall be disqualified for appointment or for

remaining a member of, the Board if he -

(a) is a member of the House of Representatives, or

(b) is legally incapacitated, or

(c) under the law of any country has been adjudged

bankrupt or has made a composition or arrangement

with his creditors, or

(d) has been convicted of a crime affecting public trust or

theft or fraud or of knowingly receiving property

WATER SERVICES CORPORATION

obtained by theft or fraud, or

(e) has any financial or other interest in any enterprise or

activity as is likely to affect prejudicially the discharge

by him of his functions as a member of the Board.

Any member who has a direct or indirect interest in any

contract made or proposed to be made by the Corporation, not

being an interest which disqualifies such member from remaining a

member, shall disclose the nature of his interest at the first meeting

of the Board after the relevant facts have come to his knowledge,

and after the disclosure has been recorded in the minutes of the

Board, that member shall withdraw from any meeting at which such

contract is discussed or decided on by the Board.

(1) A member of the Board may resign his office by letter

addressed to the Minister.

(2) The appointment of any person as member of the Board and

the termination of office of any such member shall be notified in

the Government Gazette.

(1)(a) The Board shall meet as often as may be necessary or

expedient, but in no case less frequently than once

every three months. The meetings of the Board shall

be called by the Chairman either on his own initiative

or at the request of any two of the other members.

(b) Without prejudice to the other requirements of this Act

no decision shall be valid which is not supported by at

least two members of the Board or which is taken at a

meeting of the Board at which the Chairman, or in his

absence the Deputy Chairman, is not present.

(2) Half the number of members for the time being constituting

the Board shall form a quorum at any meeting. Decisions shall be

adopted by a simple majority of the votes of members present. In

the event of an equality of votes, the Chairman, or in his absence

the Deputy Chairman, shall have and exercise a second or casting

vote.

(3) Minutes must be kept of the proceedings of the Board and

of any committee thereof.

(4) Subject to the provisions of this Act, the Board may

regulate its own procedure.

(1) Subject to the provisions of article 11, no act or

proceeding of the Board shall be invalidated merely by reason of

any vacancy among the members.

(2) All acts done by any person acting in good faith as a

member of the Board shall be valid as if he were a member,

notwithstanding that some defect in his appointment or

qualification be afterwards discovered. No act or proceeding of the

Board shall be questioned on the ground of the contravention by a

member of the provisions of article 9.

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Subject to the provisions of the Constitution and of any

other enactment applicable thereto, and without prejudice to the

other provisions of this Act, the appointment of officials and other

employees of the Corporation shall be made in accordance with

such directives as may be established from time to time by the

Minister after consulting the Minister responsible for finance.

The Corporation shall make provision for improving the

skill of persons employed by it and in doing so shall comply with

any scheme for training and education in force under paragraph (k)

of article 3(3).

The Minister may in relation to matters that appear to him

to affect the public interest, from time to time give to the Board

directions in writing of a general character, not inconsistent with

the provisions of this Act, on the policy to be followed in the

carrying out of the functions vested in the Corporation by or under

this Act, and the Board shall give effect to all such directions as

soon as practicable.

The Board shall afford to the Minister facilities for

obtaining information with respect to the property and activities or

prospective activities of the Corporation and furnish him with

returns, accounts and other information with respect thereto, and

afford him facilities for the verification of information furnished, in

such manner and at such times as he may reasonably require.

(deleted by XXVII. 2007.35.).

(1) Subject to the provisions of this Act and to any

requirement under any other law, the Corporation may -

(a) supply water to such persons, in such manner and

under such conditions as may be authorised by the

Regulator for Energy and Water Resources;

(b) ensure the sufficiency, pressure and wholesomeness of

water supplies;

(c) in so far as it is able to do so, augment water resources

and for such purpose to treat salt water by any process

for removing salt or other impurities, or make use of

the most appropriate technology for supplementing the

natural water resources;

(d) to the extent that it is so authorised to do, survey any

land, to inspect any well and to cause the sinking of

bores or other works for the purpose of ascertaining

the nature of the subsoil or the presence, quality or

quantity of underground water in it and to cause the

sinking of shafts and the driving of subterranean

galleries.

(2) The Corporation may provide technical assistance to other

persons desirous of sinking wells, driving galleries, constructing

conducts or otherwise to improve their water supply.

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Subject to the provisions of this Act and of any other law,

the Corporation may, in so far as it is able so to do -

(a) provide a public sewer system to be used for the

drainage of domestic sewage;

(b) take such steps from time to time as may be necessary

for ascertaining the cleanliness, safety and efficiency

of such services;

(c) take all actions as it may from time to time consider

necessary or expedient for augmenting and improving

the means of disposal and the ways of treating the

contents of such services;

(d) take such steps from time to time as may be necessary

for ensuring the safe discharge, reception, treatment

and disposal of trade effluent;

(e) take all actions as it may from time to time consider

necessary to encourage the re-use of treated effluent;

(f) to carry out tests and to make regulations relating to

waste and sewage connections for the purpose of

ensuring the proper and fit disposal of waste water and

sewage;

(g) take all actions necessary or expedient to re-use

stormwater run-off as appropriate.

(1) Where written complaint is made to the Minister that

the Corporation has failed -

(a) to give an adequate supply of water, either as respects

quantity or quality, or to give any supply which it has

been lawfully required to give; or

(b) to take such steps as are reasonably practicable for the

purpose of remedying any such failure; or

(c) to do anything which it is required to do by or under

this Act;

and where the Minister is of the opinion that an investigation

should be made as to whether the Corporation has failed in any of

these matters, he may cause an inquiry to be held into the matter.

(2) If after such an inquiry has been held it appears to the

Minister that there has been such a failure, as is referred to in

subarticle (1), he may make an order declaring the Corporation to

be in default and directing it to remedy the default and to discharge

such of its functions in such manner and within such time or times

as may be specified in the order.

(1) The Corporation shall not be liable for any damage to

any person or any property relating to installation of the supply of

water which may be due to unavoidable accident, fair wear and tear

or to unauthorised connection of water fittings or to defects in any

installation not provided by the Corporation.

(2) Without prejudice to the provisions of article 18(2), the

Corporation is not liable, in the absence of negligence and subject

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to the provisions of this Act, for any nuisance or any damage

attributable to the performance of a duty imposed by this Act.

(3) The Corporation is not liable in particular for any nuisance

or damage caused by flooding arising from the action of naturally

occurring storms, groundwater or the action of the sea.

(Deleted by Act XXXIV. 2014.28.)

PART III

Financial provisions

(1) The Corporation may, with the approval in writing of

the Minister given after consultation with the Minister responsible

f o r f i n a n c e , b o r r o w, s e c u r e o r r a i s e m o n e y b y d e b e n t u r e s ,

debenture stock, or other security, for any one or more of the

following purposes of the Corporation

(a) the provision of working capital;

(b) the carrying out of the functions of the Corporation

under this Act;

(c) the provision of capital for the expansion of and

addition to the fixed assets of the Corporation;

(d) the redemption of any debentures or debenture stock or

other security that the Corporation is required or

entitled to redeem;

(e) any other expenditure properly chargeable to capital

account.

(2) The Corporation may, from time to time, borrow by way of

overdraft or otherwise, for periods not exceeding twelve months,

such sums as the Board may require for carrying out its functions

under this Act

Provided that for any amount in excess of two million and

three hundred and twenty-nine thousand and three hundred and

seventy-three euro and thirty-three cents (2,329,373.33), there shall

be required the approval in writing of the Minister.

(1) Whenever it may be necessary for the Corporation to

borrow by way of advances from the Government any sums which

may be required for carrying out any of the functions of the

Corporation under this Act, the Minister responsible for finance

after consultation with the Minister may, by warrant under his hand

and without further appropriation other than this Act, authorise the

Accountant General to make advances to the Corporation either out

of the proceeds of any loan contracted or raised for the purpose or

out of the Consolidated Fund; and such advances shall be made on

such terms and conditions as the Minister responsible for finance

may direct.

(2) The Minister responsible for finance may, for any of the

requirements of the Corporation of a capital nature, contract or

raise loans, or incur liabilities, for such periods and on such terms

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and conditions as he may deem appropriate; and any sum due in

respect of or in connection with any such loan or liability shall be a

charge on the Consolidated Fund.

(3) Notice of any loans, liabilities or advances made or

incurred under the foregoing provisions of this article shall be

given to the House of Representatives as soon as practicable.

(4) Pending the raising of any such loan as is mentioned in

subarticle (2) or for the purposes of providing the Corporation with

working capital the Minister responsible for finance may, by

warrant under his hand and without further appropriation other than

this Act, authorise the Accountant General to make advances out of

the Treasury Clearance Fund to the Corporation under such terms

as shall be specified by the said Minister upon the making thereof.

(5) Sums received by the Accountant General from the

Corporation in respect of advances made to the Corporation under

subarticle (4) shall be paid, as respects amounts received by way of

repayment into the Treasury Clearance Fund, and, as respects

amounts received by way of interest, into the Consolidated Fund.

(1) The revenue of the Corporation for any financial year

shall be applied in defraying the following charges

(a) the remuneration, fees and allowances of the members

of the Board;

(b) the salaries or wages, fees, remuneration, pensions,

superannuation allowances, gratuities and other

allowances of the officers, employees, agents and

technical or other advisers of the Corporation, and

payments for the maintenance of any pension scheme

or other scheme established under the provisions of

this Act, and any payment to the Government on

account of pensions or gratuities under article 39 or

40;

(c) the establishment and working expenses and

expenditure on, or the provision for, the maintenance

of any of the installations of the Corporation, and the

discharge of the functions of the Corporation properly

chargeable to revenue account;

(d) interest on any debentures, debenture stock or other

security issued, interest on any overdraft and on any

loan raised, or advances received by the Corporation;

(e) sums required to be transferred to a sinking fund or

otherwise set aside for the purpose of making

provision for the redemption of debentures or

debenture stock or other security or for the repayment

of other borrowed money;

(f) such sums as may be deemed appropriate to be set

aside in respect of depreciation on the property of the

Corporation having regard to the amount set aside out

of revenue under paragraph (e);

(g) the payment of any other expenditure approved by the

WATER SERVICES CORPORATION

Board and properly chargeable to revenue account.

(2) Subject to such directions as the Minister, after consultation

with the Minister responsible for finance, may from time to time

give, any excess of revenue over expenditure shall be applied by

the Corporation to the creation of reserve funds to finance future

expansion of the Corporation; and without prejudice to the

generality of the powers given to the Minister by this subarticle,

any direction given by the Minister as aforesaid, any part of such

excess may be transferred to the Government, or may be applied in

such manner as may be specified in the direction.

Any funds of the Corporation not immediately required to

be expended in the meeting of any obligations or the carrying out of

any functions of the Corporation may be invested from time to time

in such manner as may be approved by the Minister responsible for

finance.

(1) The prices to be charged by the Corporation for any

service or facility provided by it under this Act shall be in

accordance with such tariffs as may, from time to time, be

prescribed by the Corporation following the written approval by the

Regulator for Energy and Water Resources.

(2) Nothing in subarticle (1) or in any such tariff as aforesaid

shall prevent the Corporation from charging other prices by special

agreement, provided that these are lower than those established by

tariff.

(3) In prescribing tariffs, the Corporation shall ensure that the

prices charged are adequate to provide sufficient revenue to the

Corporation in any financial year -

(a) to cover operating expenses, including taxes, if any,

and to make provision for adequate maintenance, for

depreciation, for interest payments on borrowings and

for other interest payments;

(b) to meet periodic repayments on long term

indebtedness to the extent that any such repayment

exceed the provisions for depreciation;

(c) to create reserves to finance a reasonable part of the

cost of future expansion, being expenses, repayments

and reserves incurred or made by the Corporation in

the exercise of its functions; and

(d) to provide a reasonable return on investment and

expenditure.

(1) The Corporation shall in every financial year cause to

be prepared, and shall not later than four weeks before the end of

each such year adopt, estimates of the incomes and expenditure of

the Water Services Corporation for the next following financial

year.

(2) The estimates shall be made out in such form and shall

contain such information and such comparisons with previous years

as the Minister shall direct.

WATER SERVICES CORPORATION

(3) A copy of the estimates of the Corporation shall upon their

adoption by the Board be sent forthwith by the Board to the

appropriate Minister together with a report of the activities of the

Corporation during the previous financial year.

(4) The Minister shall within eight weeks from receipt of a

copy of the estimates, or if at any time during the period the House

of Representatives is not in session, within eighth weeks from the

beginning of the next following session, cause such estimates to be

laid on the Table of the House of Representatives together with a

motion that the House approve the said estimates. Not more than

two sittings shall be allotted for the debate in the House on such a

motion and both the motion and the approval of the estimates by

the House may be with or without amendments to the estimates.

(5) No expenditure shall be made or incurred by the

Corporation that has not been approved by the House of

Representatives

Provided that -

(a) until the expiration of six months from the beginning

of a financial year or until the approval of the

estimates for that year by the House, whichever is the

earlier date, the Corporation may make or incur

expenditure for carrying on its functions under this Act

not exceeding in the aggregate one-half of the amount

approved for the preceding financial year;

(b) expenditure approved in respect of a head or subhead

of the estimates may, with the approval of the Minister,

be incurred in respect of another head or subhead of

the estimates;

(c) if in respect of any financial year it is found that the

amount approved by the House is not sufficient or a

need has arisen for expenditure for a purpose not

provided for in the estimates, the Board may adopt

supplementary estimates for approval by the House,

and pending such approval may in special

circumstances and with the approval of the Minister,

incur the relative expenditure; moreover in such case

the provisions of this Act applicable to the estimates

shall as soon as practicable apply to the supplementary

estimates

Provided further that in respect of the first financial year of

the Corporation this article shall apply as if it required the Board to

adopt estimates for that year not later than twelve weeks from the

appointed day * , and as if, until the approval of the estimates for

that year by the House, and subject to the total expenditure for that

year not exceeding the amount approved by the House, no limits

were placed on the power of the Corporation to make or incur

expenditure.

(6)

All estimates and supplementary estimates approved by the

*20th January, 1992 - see Legal Notice 7 of 1992.

WATER SERVICES CORPORATION

House shall, as soon as practicable, be published in the

Government Gazette.

(7) This article shall apply to the first and subsequent financial

years.

(1) The Corporation shall cause to be kept proper accounts

and other records in respect of its operations.

(2) The accounts of the Corporation shall be audited by an

auditor or auditors to be appointed by it and approved by the

Minister

Provided that the Minister may require the books and

accounts of the Corporation to be audited or examined by the

Auditor General who shall for this purpose have power to carry out

such physical checking and other verifications as he may deem

necessary.

(3) A copy of the audited accounts of the Corporation shall,

upon their adoption, be sent forthwith by the Board to the Minister

together with a report by the Board detailing the activities of the

Corporation in that year.

(4) The Minister shall, at the earliest opportunity and not later

than the first sitting of the House after four weeks from the receipt

of the copy of the audit and report of the Corporation referred to in

subarticle (3), cause such audit and report to be laid before the

House of Representatives, together with the motions laid before the

House under article 28.

(1) All moneys of the Corporation accruing from any

operations under this Act shall be paid into a bank or banks

appointed by resolution of the Board. Such money shall as far as

practicable, be paid into that bank from day to day, except for such

sum as the Board may authorise to be retained to meet petty

disbursements and immediate payments.

(2) All payments out of the funds of the Corporation, except

petty disbursements not exceeding a sum to be fixed by the Board,

shall be made by such officer or officers of the Corporation as the

Board shall appoint or designate for that purpose.

(3) Cheques against or withdrawals from any bank account of

the Corporation shall be signed by such officer of the Corporation

as may be designated by the Board for that purpose and shall be

countersigned by the Chairman or such other member of the Board

or other officer of the Corporation as may have been authorised by

the Board for that purpose.

(4) The Corporation shall also provide for all matters necessary

for the proper keeping and control of its accounts and books and for

control of its finances.

The Board shall, not later than six weeks before the end of

each financial year, make and transmit to the Minister a report

dealing generally with the activities of the Corporation during that

year and containing such information relating to the proceedings

WATER SERVICES CORPORATION

and policy of the Corporation as the Minister may from time to

time require. Such report shall be transmitted to the Minister and

laid before the House as provided in article 28.

PART IV

Transfer to the Corporation of Government Undertakings

(1) With effect from the appointed day * all public

undertakings shall, by virtue of this Act, and without further

assurance, be transferred to, and shall vest in, the Corporation

under the same title by which they were held by the Government

immediately before that day.

(2) Such transfer shall extend to the whole of such public

undertakings and shall include all plant, lands, works and other

property movable or immovable, assets, powers, rights, privileges

and causes of action held or enjoyed in connection therewith or

appertaining thereto.

Subject to the provisions of this Act, all laws, rules,

regulations, orders, judgements, documents, warrants and working

arrangements, subsisting immediately before the appointed day † ,

affecting any of the transferred undertakings shall have full force

and effect against or in favour of the Corporation and shall be

e n f o r c e a b l e a s f u l l y a n d e ff e c t u a l l y a s i f , i n s t e a d o f t h e

Government, the Corporation had been named therein or had been a

party thereto, as the case may be.

(1) Where anything has been commenced by or under the

authority of the Government prior to the appointed day * and such

thing is in relation to any of the transferred undertakings or any

right or liability transferred by or under this Act, such thing may be

carried on and completed by or under the authority of the

Corporation.

(2) Where at the appointed day * any legal proceeding is

pending to which the Government is a party or is entitled to be a

party and such proceeding has reference to any of the transferred

undertakings or any right or liability transferred by or under this

Act, the Corporation shall be substituted in such proceeding for the

Government or shall be entitled to be so substituted.

(3) The Minister may by order make such incidental,

consequential and supplemental provisions as may be necessary or

expedient for the purpose of securing and giving full effect to the

transfer of any undertaking or any, right or liability to the

Corporation by or under this Act and may make such orders as may

be necessary to make any powers and duties exercised by the

Government, in relation to any of the transferred undertakings,

exercisable by and on behalf of the Corporation.

*20th January, 1992 - see Legal Notice 7 of 1992.

†20th January, 1992 - see Legal Notice 7 of 1992.

WATER SERVICES CORPORATION

(deleted by XXVII. 2007.41.).

PART V

Officers and Other Employees of the Corporation

The Corporation shall appoint and employ at such

remuneration and upon such terms and conditions as it may, in

accordance with article 13, determine, such officers and other

employees as may from time to time be necessary for the due and

efficient discharge of its functions

Provided that the Chief Executive shall be selected and

appointed with the approval of the Minister.

(1) Subject to the approval of the Minister, and so far as

consistent with the provisions of this Part relating to public officers

who accept permanent employment with the Corporation and to

other Government employees transferred to the service of the

Corporation, the Corporation may establish a scheme or schemes

for the payment of superannuation allowances, pensions or

gratuities to officers and employees of the Corporation who retire

from its service or otherwise cease to hold office with it by reason

of age, or of infirmity of body or mind, or of abolition of office.

(2) No assurance on the life of any contributor under any such

scheme, and no moneys or other benefits payable under any such

assurance, and no pension, gratuity or other allowance granted

under any such scheme to any person who has been employed by

the Corporation, shall be assignable or transferable, or liable to be

attached or seized for or in respect of any debt or claim whatsoever,

other than a debt due to the Corporation.

(1) Such public officers, employed in the Water Works

Department or such other departments of Government whose

functions are from time to time transferred to the Corporation,

immediately before the coming into force of this article in relation

to such department, as the Prime Minister shall direct, shall as from

the date specified in the direction, be detailed for duty with the

Corporation in such capacity as may be specified in the Prime

Minister’s direction.

(2) Any direction given by the Prime Minister before the date

of the coming into force of this article for the purpose of detailing

any such officers as aforesaid for duty with the Corporation as

aforesaid shall be of the same effect and validity as it would have

had, had such direction been given after such date.

(3) The Prime Minister may also, at the request of the

Corporation, from time to time direct that any public officer shall

be detailed for duty with the Corporation in such capacity and with

effect from such date as may be specified in the Prime Minister’s

direction.

(4) The period during which a direction given under the

preceding provisions of this article shall apply to any officer

specified therein, shall, unless the officer dies, or retires from the

WATER SERVICES CORPORATION

public service, or otherwise ceases to hold office at an earlier date,

or unless a different period is specified in such direction, end on the

happening of any of the following events, that is to say

(a) the acceptance by such officer of an offer of transfer to

the service of, and permanent employment with the

Corporation made in accordance with the provisions of

article 40; or

(b) the revocation of such direction by the Prime Minister,

in relation to such officer.

(5) Where a direction given by the Prime Minister under any of

the subarticles (1), (2) or (3) hereof is revoked by the Prime

Minister in relation to any officer, the Prime Minister may, by

further direction, detail such officer for duty with the Corporation

in such capacity and with effect from such date as may be specified

in the Prime Minister’s direction, and the provisions of subarticle

(4) shall thereupon apply to the period of duration of any such

further direction in relation to such officer.

(1) Where any officer is detailed for duty with the

Corporation by any direction given under the provisions of article

38, such officer shall, during the time in which such direction has

effect in relation to him be under the administrative authority and

control of the Corporation but he shall for all other intents and

purposes remain and be considered and treated as a public officer.

(2) Without prejudice to the generality of the foregoing, an

officer detailed for duty as aforesaid -

(a) shall not during the time in respect of which he is so

detailed

(i) be precluded from applying for a transfer to a

department of the Government in accordance

with the terms and conditions of service attached

to the appointment under the Government held

by him at a date on which he is so detailed for

duty; or

(ii) be so employed that his remuneration and

conditions of service are less favourable than

those which are attached to the appointment

under the Government held by him at the date

aforesaid or which would have become attached

to such appointment, during the said period, had

such officer not been detailed for duty with the

Corporation;

(b) shall be entitled to have his service with the

Corporation considered as service with the

Government for the purposes of any pension, gratuity

or benefit under the Pensions Ordinance and the

Widows’ and Orphans’ Pensions Act and of any other

right or privilege to which he would be entitled, and

liable to any liability to which he would be liable, but

for the fact of his being detailed for duty with the

Corporation.

WATER SERVICES CORPORATION

(3) Where an application is made as provided in subarticle

(2)(a)(i), the same consideration shall be given thereto as if the

applicant had not been detailed for service with the Corporation.

(4) The Corporation shall pay to the Government such

contributions as may from time to time be determined by the

Minister responsible for finance in respect of the cost of pensions

and gratuities earned by an officer detailed for duty with the

Corporation aforesaid during the period in which he is so detailed.

(1) The Corporation may, with the approval of the Prime

Minister and upon such terms and conditions in accordance with

a r t i c l e 1 3 , o ff e r t o a n y o ff i c e r d e t a i l e d f o r d u t y w i t h t h e

Corporation under any of the provisions of article 38 permanent

employment with the Corporation at a remuneration and on terms

and conditions not less favourable than those enjoyed by such

officer at the date of such offer.

(2) The terms and conditions comprised in any offer made as

aforesaid shall not be deemed to be less favourable merely because

they are not in all respects identical with or superior to those

enjoyed by the officer concerned at the date of such offer, if such

terms and conditions, taken as a whole, in the opinion of the Prime

Minister, offer substantially equivalent or greater benefits.

(3) Every officer who accepts permanent employment with the

Corporation offered to him under the provisions of subarticle (1)

shall, for all purposes other than those of the Pensions Ordinance

and of the Widows’ and Orphans’ Pensions Act, be deemed to have

ceased to be in service with the Government and to have entered

into service with the Corporation on the date of his acceptance, and

for the purposes of the said Ordinance and of the said Act, so far as

applicable to him, service with the Corporation shall be deemed to

be service with the Government within the meanings thereof

respectively.

(4) Every such officer as aforesaid who, immediately before

accepting permanent employment with the Corporation was a

contributor under the Widows’ and Orphans’ Pensions Act shall

continue to benefit thereunder to all intents as if his service with

the Corporation were service with the Government.

(5) The Corporation shall pay to the Government such

contributions as may from time to time be determined by the

Minister responsible for finance in respect of the cost of pensions

and gratuities earned by an officer who has accepted permanent

employment with the Corporation as aforesaid during the period

commencing on the date of such officer’s acceptance.

WATER SERVICES CORPORATION

PART VI

Contracts and Power to Acquire or Dispose of Property

The Corporation shall only enter into contracts for the

procurement of goods, services or materials, other than petroleum,

or for the execution of works, in accordance with the Public

Procurement of Entities operating in the Water, Energy, Transport

and Postal Services Sectors Regulations

Provided that the Minister

may

further

limit

the

Corporation’s procurement procedures.

(1) Subject to the provisions of the last preceding article

the Corporation may for the purpose of the due and efficient

discharge of its functions under this Act -

(a) purchase or otherwise acquire and hold any movable

property and dispose of any such property; and

(b) purchase or otherwise acquire and hold any lands or

other immovable property or interest therein and take

any such property on lease or on any other title

whatsoever.

(2) The Corporation may, subject to the requirement of any

other law and with the written consent of the Minister, dispose,

hypotecate, or alienate or encumber under any title and subject to

any conditions whatsoever, any movable or immovable property,

right, undertaking, installation or other asset or interest vested in

the Corporation by this Act or as otherwise required by the

Corporation

Provided that for the purpose of any alienation, disposal or

grant of any immovable property or any interest therein, the

Corporation shall observe the provisions stipulated in any one of

paragraphs (a) to (f) of article 3(1) of the Disposal of Government

Land Act, in respect of that immovable property or any interest

therein.

PART VII

Miscellaneous Provisions

(deleted by XXV.2000.36).

(deleted by XXV.2000.36).

(deleted by XXV.2000.36).

WATER SERVICES CORPORATION

Any order made under article 22 or under article 34(3)

shall be published in the Government Gazette.

(deleted by XXV.2000.36).

(deleted by XXV.2000.36).

Any officer of the Corporation duly authorised by the

Board may, at all reasonable times, enter into any premises -

(a) to inspect, alter or repair any water fittings or service,

apparatus, installation, instrument, plant or accessories

belonging to the Corporation, whenever any service by

the Corporation is no longer required or where the

Corporation is authorised by or under this Act or any

other law;

(b) to inspect, alter or repair any part of the sewers, waste

water or stormwater run-off systems owned by the

Corporation

Provided that the Corporation shall repair all damage

caused by any such entry, alteration or repair.

(1) The execution of all work in connection with the

services given by the Corporation shall be carried out in such a

manner as may be prescribed under this Act or as may be required

by or under the provision of any other law.

(2) Any person who contravenes or fails to comply with the

provisions of this article shall be guilty of an offence under this

Act.

(1) No person shall use any water or any installation,

apparatus, fittings, instrument or their accessories, supplied by the

Corporation, or any water supplied for sale or disposal by or on

behalf of the Corporation, whether directly or indirectly, for

purposes other than that for which it is supplied; and any

declaration or clear indication by the Corporation as to the purpose

for which any thing as aforesaid has been supplied, shall be

conclusive evidence of such purpose.

(2) Any person who contravenes the provision of this article

shall be guilty of an offence against this Act.

Any person who -

(a) obstructs or impedes any member of the Board or any

officer, agent or servant of the Corporation in the

exercise of his duties under this Act or under any

regulations made under this Act; or

(b) contravenes or fails to comply with any of the

provisions of this Act or of any such regulations as

aforesaid or any order lawfully given under the

provisions of this Act or of such regulations,

shall be guilty of an offence against this Act.

WATER SERVICES CORPORATION

* (1) All regulations, rules or orders and all licences made

under, or kept in force under the Water Supply Ordinance † , the

Irrigation Ordinance † and the Underground Water Ordinance †

immediately before their repeal shall, with the necessary

modifications, adaptations and limitations, and all regulations,

rules or orders made under or kept in force by the Water Supply

Regulations, 1948, and in so far as these are not inconsistent with

the provisions of this Act, continue in force and have effect as if

they had been made or granted under this Act and may be revoked

or amended accordingly.

(2) Any licence, permit or other authority granted under any

enactment, or any provision thereof, repealed by this Act, and still

in force immediately before such repeal, shall continue in force

thereafter as if it were a licence issued under this Act, or, as the

case may require, and any such licence, permit or authority as

aforesaid shall be treated and dealt with accordingly.

*This article originally consisted of five subarticles; the original subarticles (1), (2)

and (4) have been omitted under the Statute Law Revision Act, 1980.

†Repealed by this Act.