NASSAU, BAHAMAS- Chief Justice Sir Ian Winder has ruled to extend an injunction initially granted in January to the Water and Sewerage Corporation (WSC), restraining Aqua Designs Bahamas Ltd. from ceasing operations at its San Salvador desalination plant and six other facilities across the country.
The injunction was initially granted following Aqua Designs’ formal notice to WSC on January 27, 2025, stating its intention to shut down operations at the San Salvador plant effective January 30. Aqua cited serious safety risks and inadequate support for necessary upgrades as the basis for its decision, claiming that continued operation would jeopardize the safety of its staff.
The facilities affected by the legal dispute include desalination plants in Cockburn Town, San Salvador; George Town, Exuma; Matthew Town, Inagua; Bogue, Eleuthera; Tarpum Bay, Eleuthera; Naval Base, Eleuthera; and Waterford, Eleuthera.
The Chief Justice ruled that while Aqua Designs raised legitimate safety and contractual concerns, the matter presented a serious issue to be tried. He emphasized that the formal sub-agreements between the parties may have expired, but the continued supply of desalinated water and monthly payments indicated an ongoing contractual relationship.
“In the circumstances of this case, I am satisfied that there is a serious issue to be tried,” Justice Winder stated in his decision. “It is expected that, during the holdover period, all of the terms continued to operate as they did under the original contract, save for the duration of the contract.”
The original master agreement between WSC and Aqua Designs was signed on August 12, 2011, for the supply of desalinated water to Family Island communities. Subsequent sub-agreements governed operations at specific plants. The sub-agreement for the San Salvador plant expired on May 22, 2022, and was extended to December 17, 2022. However, Aqua continued to supply water thereafter, and WSC continued to remit payment, suggesting a tacit continuation of contractual obligations.
Aqua Designs contended that it had repeatedly advised WSC since 2022 of the need for critical upgrades at the San Salvador plant to maintain operational safety. The company argued that it would undertake the upgrades only under a new long-term financing arrangement. WSC, however, maintained that Aqua was contractually obligated to bear maintenance costs and insisted on uninterrupted service.
Negotiations between the parties continued into late 2024. At a meeting on December 17, 2024, hosted by the Ministry of Finance, Aqua was advised that the government was prepared to finalize a new agreement for continued operation through June 30, 2025, followed by the potential purchase of the plant by WSC. Despite these discussions, Aqua maintained that no meaningful agreement was reached and proceeded to issue its notice of termination in January 2025.
In seeking to discharge the injunction, Aqua argued that damages would not be an adequate remedy. The company claimed that being forced to operate the plant against its will exposed it to legal liability and safety hazards. Aqua also accused WSC of withholding key safety information from the court during the initial injunction proceedings.
Justice Winder, however, found no evidence that WSC had deliberately misled the court. He noted that while WSC may have omitted certain details, the information provided included Aqua’s own stated safety concerns.
Still, the Chief Justice emphasized that the injunction could not be indefinite. “Any injunction granted ought not to survive beyond an appropriate notice period, which has been suggested at six to nine months. Anything else would be unfair to Aqua,” he said.
Accordingly, the court ruled that the injunction is to remain in effect for a further seven months.
