Concession Agreement

Concession Agreement Summary (PDF file ~100KB)
Concession Agreement, Section 29: Dam Safety Issues (PDF file ~110KB)
Concession Agreement, Section 30: Environmental & Social Issues (PDF file ~213 KB)
Concession Agreement, Schedule 4, Part 1: Social Component (English / Lao ~1MB) New!
Concession Agreement, Schedule 4, Part 2: Environmental Component (English / Lao ~0.5MB)New!
Concession Agreement, Schedule 4, Part 3: Nam Theun 2 Watershed Area Component(English / Lao~0.2MB)New!
Concession Agreement, Schedule 4, Part 4: Social Component (English / Lao ~0.2MB) New!
Concession Agreement, Schedule 7, Part 4: Resettlement Obligations in Case of Termination (PDF file~130KB)

The Concession Agreement (“CA”) that NTPC signed with the Government of the Lao PDR on October 3, 2002 is the pavestone on the basis of which the private Sponsors of the Project establish a fair and robust relationship with Laos for the further implementation of the Project. By signing the CA, the Government granted NTPC a concession to develop, own, finance, construct, operate the Project and transfer it to the Government at the end of the concession period. The CA is for a period of 25 years from the date of commercial operations under the EGAT PPA and includes provisions detailing the rights and obligations of both the Government and NTPC, including the performance obligations of the Government and NTPC, Government and NTPC Events of Default, Force Major Events and Termination. Of particular notice in the CA are the Section 30 and Schedule 4, which define in detail the environmental and social obligations of both Parties with respect to the Project impacts and related mitigation measures and compensations.

Under the proposed financial and contractual structure, the Project's electrical energy will be sold under long-term “Take-or-Pay” Power Purchase Agreements with both the Electricity Generating Authority of Thailand (“EGAT”) and Electricité du Laos (“EDL”) supplying intermediate peaking electricity at different tariff categories according to the time of the day it is supplied. The Project's cashflow stability is predicated upon:

The prudent design, construction, operation and maintenance of the Project;
The contractual mechanisms and protection within the EGAT PPA, which represents approximately 96% of the forecast revenue of the Project; and
The hydrological regime of the Nam Theun River.

Furthermore, as the ability of NTPC to supply energy to EGAT depends on, inter alia, hydrological conditions, the PPA has been negotiated to establish a mechanism that stabilizes NTPC's cash flow by dampening the effects of hydrological variation.