Law No. (10) of 2003
Establishing the Emirates
Central Cooling Systems
Corporation [1]
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We, Maktoum bin Rashid Al
Maktoum, Ruler of Dubai,
After perusal of:
Law No. (1) of 2000 Establishing
the Dubai Technology and Media Free Zone; and
Decree No. (1) of 1992
Establishing Dubai Electricity and Water Authority,
Do hereby issue this Law.
This Law will be cited as
“Law No. (10) of 2003 Establishing the Emirates Central Cooling Systems
Corporation”.
The following words and expressions will have the meaning indicated
opposite each of them unless the context implies otherwise:
UAE:
|
The
United Arab Emirates. |
Emirate:
|
The
Emirate of Dubai. |
Free
Zone: |
The
Dubai Technology and Media Free Zone. |
Authority:
|
The
Free Zone Authority. |
DEWA:
|
The
Dubai Electricity and Water Authority. |
Municipality:
|
The
Dubai Municipality. |
Empower:
|
The
Emirates Central Cooling Systems Corporation. |
Board:
|
The
Board of Directors of Empower. |
Network:
|
Empower’s
Central District Cooling Network. |
Person:
|
Any
natural or legal person. |
Article (3)
Pursuant to this Law, a corporation
named the “Emirates Central Cooling Systems Corporation” is established and equally
co-owned by the Authority and DEWA. Empower will have legal personality and
financial and administrative autonomy, and will conduct its business on a commercial
basis. Empower will enter into contracts and undertake all acts and dispositions
that ensure the achievement of its objectives. It will sue and be sued in its
own name, and may appoint any person for this purpose as its representative in
legal proceedings.
Article (4)
Empower will have its head
office in the Emirate and may establish other branches within or outside of the
UAE as permitted by law.
Article (5)
Empower will have the
following objectives and goals:
1. to produce, in return for
fees, chilled water and any other related derivatives for air-conditioning
systems in commercial, residential and industrial buildings and any other
facilities;
2. to own, manage, operate and maintain central cooling systems and
all relevant transmission and distribution networks;
3. to carry out joint projects with any other parties to achieve the
objectives set forth in the two preceding sub-paragraphs; and
4. to contribute
to the preservation of natural resources, to the protection of the environment,
and to adding value to development efforts in the Emirate.
Article (6)
The share capital of Empower
is five hundred million dirhams (AED 500,000,000) paid by the Authority and
DEWA in equal shares.
Article (7)
In managing
its accounts and records, Empower will apply the rules and principles of financial
accounting in accordance with recognised international standards. The financial
year of Empower will commence on 1 January and will end on the 31 December of
each year. The first financial year will commence on the day on which this Law
comes into force and will end on 31 December of the following year.
Article (8)
The net profits of Empower
will be equally distributed to the Authority and DEWA after deduction of all
expenses and costs and allocation of ten percent (10%) of profits to the
statutory reserve. Allocation of profits to the statutory reserve will cease
once the statutory reserve reaches fifty percent (50%) of the share capital and
must resume where it goes down below this percentage.
Article (9)
The Financial Audit
Department will audit the accounts of Empower in accordance with the law
establishing the Financial Audit Department.
Article (10)
For the purposes of this
Law, the Authority and DEWA will be represented by their respective directors general.
Article (11)
Empower
will be managed by a board of directors formed of six (6) members, including
the Chairman, of whom three (3) members are appointed by the Director General
of the Authority and the other three (3) members are appointed by the Director
General of DEWA. The chairmanship of the Board will be rotated between the
Authority and DEWA. The term of membership of the Board will be three (3) years,
renewable upon expiry.
Article (12)
The Board will manage Empower
and administer its affairs. It will undertake, without limitation, the
following duties:
1. to lay down the general policy of Empower and approve the plans and
projects necessary for achieving its objectives;
2. to approve the draft budget;
3. to obtain loans from any entity
and provide all guarantees for such purpose;
4. to issue and supervise
implementation of the regulations that govern the administrative, financial and
technical affairs of Empower;
5. to approve the financial
statements of Empower within a period not exceeding four (4) months from the
end of each financial year;
6. to appoint the Director
General and determine his powers and remuneration; and
7. to appoint the auditors and
determine their powers and remuneration.
Article (13)
1. The Board will be convened by the Chairman at least once every two (2)
months. The presence of four (4) members will constitute a quorum, provided that the Chairman is in
attendance.
2. The Board resolutions will be passed
by majority vote of the attending members. In case of a tie, the Chairman will
have a casting vote. The Board resolutions will be recorded in minutes signed
by the chair of the meeting and attending members.
Article (14)
The Board may form
executive committees to assist in discharging its duties, and will determine
the functions and powers of such committees. The Board may delegate some of its
powers to any such committees or to any other person as it deems appropriate.
Article (15)
In the course of managing Empower
and its operations by the Board, neither the Board nor its Chairman nor its members
will be liable towards third parties for any act or omission in relation to
such management. Empower will be solely liable for any such act or omission.
Article (16)
The Dubai Municipality and
all relevant Government departments and entities must, free of charges, secure
designated service passageways for the Network on the Emirate’s roads and
streets, in addition to all other facilities and services necessary or required
for enabling Empower to achieve the objectives referred to in Article (5) of
this Law, including the allocation of land and
routes for the installation of central cooling plants and laying of the Network
pipes.
Article (17)
Pursuant to this Law, Empower
is exempted, to the extent permitted by the legislation applicable in the UAE,
from taxes and customs duties on all imports, purchases, and other materials
necessary for its operations and for the achievement of its objectives.
Article (18)
This Law will be published
in the Official Gazette and will come into force on the day on which it is
published.
Maktoum
bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 23 November
2003
Corresponding to 28 Ramadan 1424 A.H.
© 2014 The Supreme
Legislation Committee in the Emirate of Dubai
[1] Every effort has been made to
produce an accurate and complete English version of this legislation. However, for the purpose of its
interpretation and application, reference must be made to the original Arabic
text. In case of conflict the Arabic
text will prevail.