| AGREEMENT OF BOT PROJECT|
This Agreement is made and entered into by and between
The government of_____________(hereinafter called "B") represented
by________(hereinafter called "A")
__________Corporation, a company duly organized and existing under the
laws of the People's Republic of China with its principal office
at___________(hereinafter called "C").
Whereas, A and C concluded the Memorandum Concerning __________Project
on the ____________and C had been given Exclusive Right from B to carry
out investigation and implement ____________Project (hereinafter called
"the Project") by way of joint financing between C and B (so called BOT).
Whereas, the loan agreement, guarantee agreement, letter of guarantee,
etc. shall constitute integral components of this Agreement. The Project's
installed capacity is __________.
Now therefore, the parties hereby agree as follows:
1. Definition and Interpretation
"Project" means the planning, feasibility study, design and
engineering, construction, equipping, completion, testing, commissioning
and operation of the infrastructure project.
"Project Cost" means the cost specified in Clause 3.
"Operation Period" means the period specified in Clause 10.1 from the
starting date of commercial operation of the infrastructure project.
"Completion Date" means the day upon which C certifies that the
infrastructure project has successfully completed its testing and can
start Operation Period.
"Force Majeure" shall have the meaning specified in Clause 16.
"Project Scope" means the scope of supply and services of C in
connection with the execution of the Project as described in Annex 2.
"Site" means the site for the infrastructure project including
___________, special roads, and other areas for construction as specified
in Annex 2.
"Transfer Date" means the day following the last day of the Operation
"New Company" means the Company to be established between C and
________entity as specified in Clause 5.
"Investment Agreement" means the Agreement on Mutual Encouragement and
Protection of Investment between the Government of the People's Republic
of China and the Government of the ___________.
"Exclusive Right" means the special power granted to C or New Company
in the Memorandum, Agreement and its annex.
"Day" means the solar calendar day.
2. The Project
2.1 The Project shall be named as "________".
2.2 The infrastructure project is intended to be located at
__________. The exact location of the infrastructure project may be
adjusted at the stage of detailed design in consideration of the site
2.3 The Project shall be implemented on Building, Operation and
2.4 The Project shall be composed of ____________________, _________,
_________, the details of which shall be as attached Annex 2 - Scope of
2.5 The final feasibility study report and detailed design after
acceptance of B and C shall form basis for the development and completion
of the Project.
3. The Project Cost
3.1 The project cost is $______, interest of the construction period
is $______, the total project cost is $__________, and the details of
which are shown in Annex 3 - Project Cost.
3.2 The total project cost shall comprise but not limited to the
following costs and the details of the project cost shall be as attached
Annex 3 - Project Cost:
1) Cost for feasibility study, design and engineering and other
2) Cost for construction and installation;
3) Cost for purchasing equipment and materials;
4) Cost for administration including overseas expenses;
5) Overhead and miscellaneous expenses;
7) Interest during the construction period (__________% per annum plus
8) Premium for construction insurance and export credit insurance.
3.3 The Project Cost shall be based on the feasibility study report
and in case of a substantial variation in investment arising from geologic
reasons, the additional part to the Project Cost shall be approved by B.
An additional investment agreement or contract should be concluded between
B and C.
4. Responsibilities for Project Execution
4.1 C shall be responsible for the following provided that if and
after New Company is established, responsibilities shall be transferred to
New Company and be shared by the members of New Company:
1) the design and engineering, procurement, construction and
commissioning of the Project;
2) all costs in connection with the building of the infrastructure
project and the arrangement of all necessary funding;
3) operation of the infrastructure project;
4) transfer of the infrastructure project to B on the Transfer Date;
4.2 B shall be responsible for:
1) the arrangement of:
the provision of all necessary development approvals, permits,
consents, site leases, access and other rights for C or New Company
together with the fulfillment of essential requirements such as company
registration, import license and exemption of customs duties and the like;
the provision of all necessary or desirable aids for C to obtain the
loan; obtaining of all regulatory, statutory and other consents, approvals,
authorizations, tax concessions and investment incentives as described
hereinafter which are necessary or desirable for the implementation of the
Project; obtaining of all necessary permits and approvals from the relevant
_____________authorities for C or New Company to repatriate capital and
dividends in US Dollars from ______; obtaining of resident visas, work permits and other necessaryapprovals from the relevant authorities for C or New Company's personnel,
design, manufacturing, installation and construction personnel as well as
their direct relatives including the travel in ___________; the provision of all necessary approvals and permits relating toextension of the infrastructure project and the Project facilities inorder to increase _________________production if C or New Company intends
to do so; the provision of all necessary security measures for construction and
operation personnel and Project facilities till the Transfer Date; the provision of communications and transport facilities of theProject construction and the operation of the infrastructure project;
2) the assistance in the operation of the infrastructure project.
3) providing C and/or New Company with free use of the Site, including
but not limited to the area of construction site, access road,
transmission line right of way, __________and etc.
4) the negotiation and conclusion of service agreement with
___________Government or other countries' governments jointly with C or
new Company, the People's Insurance Company of China representatives,
whose presence in the negotiation B shall ensure, and whose approval B
5) the exportation of ________________percent of __________ produced
by the infrastructure project to __________or any third country;
6) the assignment of its representatives at Site and to the New
Company to assist C or New Company and make necessary coordination between
B and C or New Company.
4.3 B ensures that the Operation Period of the Project shall be not
less than _______years. However if IRR (Inter Rate of Return) does not
reach _______percent, both parties will discuss the proper extension of
the Operation Period until the year IRR reaches _______%.
4.4 Conditions Precedent
B shall be responsible for the provision of the following documents
for C to make available any part of this Agreement within _______months
from the date of signing this Agreement and such documents shall be valid
and effective to New Company:
1) a power guarantee issued by ___________________parliament
acceptable to C in the form defined in Annex 7, which shall be returned to
B on the Transfer Date;
2) warranty to be issued and loan agreement to be concluded with the
proposal made by B for bearing __________percent of the Project Cost, the
Bank of ______________as the loanee and __________Finance Ministry as the
guarantor and acceptable to the Bank of China and the People's Insurance
Company of China, and a letter of credit or letter of guarantee to be
issued as required by the Bank of China provided that the length of
maturity is__________ years including a _______year construction period
and loan interest is ________percent per annum; B may make earlier
3) loan guarantee and warranty for C's sharing __________% of the
Project Cost including interest of the construction period to be issued by
the Bank of _____________ and ______________Finance Ministry respectively,
acceptable to the People's Insurance Company of China and the Lending Bank
and valid until to the Transfer Date (__________), providing all necessary
assistance in enabling C to obtain the loan from international prime
4) the legal certificate issued by _____________President of Supreme
Court and the legal certificate issued by______________ Procurator
General, certifying that this Agreement shall be valid and enforceable
under the laws of _____________in every respect in the form defined in
Annex 8; the certificate of approval issued by the Government of
_____________, certifying that the Project is lawful and legitimate;
5) B shall permit the construction machinery, material and equipment
necessary for the Project to be transported into __________via
_____________by sea, and/or by road through __________as Well as by air,
ensuring facilities from the __________border control and customs
4.5 B warrants and undertakes that B shall not change or permit others
to change the environment of the Site which adversely affects the
construction or operation of the Project. Such change shall include, but
not limited to, _____________.
4.6 Buyer's Credit for B's sharing __________% of the Project Cost
shall be provided by the Chinese side, payment terms of which to C are as
1)________% of the credit shall be paid within _________days after the
date of the conclusion of this Agreement;
2)_______% of the credit shall be paid by ____________;
3)_______% of the credit shall be paid by ____________;
4.7 The parties shall provide each other sufficient information that
enables each party to have a clear understanding of the principal issues
that affect matters associated with the Project.
4.8 The parties hereto shall mutually collaborate with each other in
order to achieve the objectives of this Agreement and the performance by
each party of their respective obligations.
5. New Company
5.1 The parties agree to establish a New Company at the time when the
members of New Company are ready to invest their portions, but before the
completion of the Project and for this purpose B shall recommend and
designate a _______________entity which will be a member of New Company. C
having _____________ percent of equity, shall be the leading company and
shall appoint chairman of New Company. The remaining portion of equity
shall be shared by _______entity.
5.2 Design and Construction of the Project shall be executed by C. At
monthly intervals until ___________day (subject to postponement in case
of______) of each month, C shall execute a statement of a claim for
progress payment based on the prices for the construction works done in
the preceding month to B and such statement shall be the conclusive
evidence proving fairness of such claim except manifest calculation error.
5.3 B shall make its effort to assist in registering New Company at
authority concerned in __________and to obtain all required permits or
approvals from the relating authorities in ___________.
5.4 New Company shall be granted the same privileged rights as those
granted to C specified in Clause 9.2 and C's obligations and
responsibilities specified in this Agreement shall be transferred to New
Company and be shared by the members of New Company.
The members of New Company shall describe the provisions on their
rights and responsibilities in the articles of incorporation to be made on
the basis of the provisions in this Agreement at the time of the
establishment of New Company.
5.5 If members of New Company do not reach an agreement about any
matters in relation with the Project, the opinion and decision of the
major shareholder shall be final and binding upon the other members of New
6. Construction of the infrastructure project
6.1 In pursuance of its obligations in relation with the construction
of the infrastructure project under clause 4.1, C shall do followings with
its full right in consultation with B:
1) to prepare detailed design and engineering in conformity with the
national standards of P.R.China in force;
2) to appoint consultants and professional advisers;
3) to purchase equipment and materials including construction
equipment, the specification of which and installation and testing shall
meet the national standards of P.R.China in force;
4) to appoint, organize and direct staff; manage and supervise the
5) to enter into contracts for the supply of equipment and materials
6) to do all other thins necessary or desirable for the completion of
the infrastructure project in accordance with the engineering standards;
7) to select subcontractors;
6.2 B shall be entitled at its own cost to monitor the progress and
quality of the construction and installation work and for this purpose C
1) ensure that B and any experts appointed by B in connection with the
Project are afforded reasonable access to the Site provided that such
access does not materially interfere with the works;
2) make available copies of plans and designs for inspection at the
3) after ________months of the completion of the Project, supply B
with ______sets of copies of "as built" drawings and other documents.
6.3 B shall ensure that all infrastructure requirements and utilities
necessary for the completion of the infrastructure project are made
available in a timely fashion and accordingly shall at its own cost,
1) give free possession of the Site to C during the construction
2) ensure that custom clearance system is available to C to import
equipment and materials for the Project without any delay and
3) ensure that C will use electricity for construction and
communication facilities in ________, the cost of the utilization of which
shall be for C's account at __________current________________ rate and
shall be included in the Project Cost as cost for construction or cost for
administration as stipulated in Clause 3.2; C shall pay
_____________charge to ______________authority every other months during
the construction period;
4) ensure that C will build transmission line from___________ or
another still nearer place to the Site for the use of _________in
construction, which will be used to transmit _____________ from the
infrastructure project after the completion of the Project;
5) jointly with C negotiate with _______________or other countries'
governments to take necessary actions for the ___________________to be
connected, received and supplied in those countries through the proper
transmission line without any interference at the time of completion of
6.4 B shall ensure that during construction period C shall be granted
the exemption of
1) customs duties, government taxes and local levies relating to the
importation of all kinds of equipment and materials such as generating
equipment, construction equipment, vehicles including cars, jeeps, etc.,
tools, construction materials and other goods for the construction of the
infrastructure project as well as accommodation facilities;
2) company sales tax, income tax and so on to be imposed on C
construction activities for the Project in _____________by the
7. Project Schedule
7.1 The parties shall work together in order to endeavour to achieve
the timely completion of the Project in accordance with the Project
Schedule as Annex 4 according to which the construction period shall be
_________years from the commencement date. However, C may extend the
construction period upon the agreement of B.
7.2 The commencement date shall be the ______day after _______months
from the Effective Date of this Agreement provided that C can start work
for access road, survey, investigation, clean-up work around the site,
etc. before the commencement date. However, if C commences construction
work in accordance with the provision of Clause 9.1, the commencement date
shall be the date where C materially starts the construction work, which
shall be notified to B by C.
7.3 Upon substantial completion of the infrastructure project, C may
request to New Company or its representative that the infrastructure
project has successfully completed its testing and that accordingly the
Completion Date has occurred.
7.4 If there is a variation to the Project and such variation affects
the construction time of the infrastructure project, then C shall get the
approval of B to extend the construction period, B shall not unreasonably
withhold its approval.
8.1 The parties shall meet and agree procedures and a programme for
the testing of the infrastructure project in accordance with the Chinese
8.2 C shall give to B ________days' notice of its intention to
commence any testing.
8.3 B and/or its experts shall be entitled to be present at testing
which is agreed upon by the parties.
8.4 Forthwith upon the completion of any testing, C shall request to
New Company or its representative whether or not the infrastructure
project has satisfied such test and shall provide B with a copy of such
9. Effective Date and Privileged Right
9.1 This Agreement shall become in full force and effect as of the
date of signing this Agreement provided that C has the right of reserving
the fulfillment of its obligations until the fulfillment of the following
1) Handing over the Site to C free from rental charge and issuing by B
of the letter to that effect valid till the expiration of BOT;
2) Fulfillment of the provisions of Clause 4.4.
Upon execution and signing of this Agreement, B's right to terminate
the Exclusive. Right provided in the Memorandum mentioned in the preamble
of this Agreement shall Lapse.
9.2 C shall be given following privileged rights in written document
from the authorities concerned by the arrangement of B thereof and the
same privileged rights shall be transferred to or enjoyed concurrently by
New Company as the case may be, when it is established.
1) Approved by the Bank of the __________________and the
_________Finance Ministry for:
the repatriation of C's investment including, but not limited to, the
profits of such investment in US Dollars.
2) The Government of _______________approval of the employment of
foreign nationals in supervisory, technical and advisory positions and for
the positions of chairman, treasurer and general manager or their
equivalent until the Transfer Date.
3) Other national and local approvals as may be necessary to proceed
with the Project.
4) Approval of tax exemption as below by the authorities concerned in
Full exemption of customs duties and other levies (if any) throughout
BOT period for the importation of equipment, materials, construction
machinery and other goods for the Project;
_____________percent exemption of profit tax, additional tax, local
tax, and business tax for ______years starting from the first
profit-making year and _________percent profit tax exemption for the
5) Free remittance of investment including, but not limited to, the
profits of such investment in US Dollars and/or receipt of payments or
sales proceeds in US Dollars, without withholding tax, remittance tax or
any other taxes leviable under________ laws.
6) The approval by the relevant _________________Government agencies
for the immediate importation into _____________of all equipment for the
7) C shall register its subsidiary or affiliated or associated
companies in _____________. A certificate of Registration issued by the B
in relation to the Project, confirming that C including its subsidiary or
affiliated or associated companies is a registered enterprise under the
Law on Foreign Investment in the __________.
8) Free remittance abroad of the remuneration in US Dollars with
exemption from individual income tax, remittance tax or any other taxes
10. Operation of the infrastructure project
10.1 New Company shall be responsible for the management, operation,
maintenance, repair and overhaul of the infrastructure project during the
Operation Period, namely ______years from the starting date of commercial
operation of the infrastructure project and shall use its best endeavours
to ensure the infrastructure project is in good condition and capable of
producing _______in a safe and stable manner. The extension of the above
mentioned Operation Period shall be discussed by both parties if the____
percent IRR is not accomplished within __________years' Operation Period.
10.2 In order to undertake necessary overhaul, maintenance, inspection
and repair, New Company shall perform downtime each year from the
10.3 In pursuance of its obligation under Clause 10.1, New company
shall have full right to:
1) enter into contracts for the supply of material and services
including purchase of replacement equipment and participate in
negotiations on operation and service agreement conclusion;
2) appoint, organize and direct staff; manage and supervise the
3) establish and maintain regular inspection, maintenance and overhaul
4) do all other things necessary or desirable for the operation of the
10.4 B and New Company shall, from time to time, meet and discuss and
agree safety guidelines for the operation of the infrastructure project.
10.5 New Company shall operate the infrastructure project in
accordance with all __________and local laws and regulations in force at
the date of signing this Agreement.
If any changes or new legislations of laws and regulations would:
1) result in the infrastructure project being unable to operate in
2) result in the interest of New Company being materially reduced,
prejudiced or otherwise adversely affected;
Then the parties shall meet and endeavour to agree on amendments to
10.6 B shall be entitled to appoint and allocate its experts agencies
to monitor the operation of the infrastructure project by New Company at
B's cost and expense. The monitoring shall not interfere the ordinary
operation of the infrastructure project by New Company.
11. Supply of Service offered by the Infrastructure project
11.1 New Company shall supply the produced _________________to
___________or other countries as stipulated therein. In case that the
power purchaser is other country than _____________, a service agreement
shall be concluded.
11.2 If B intends to distribute part of the produced_________ to local
market on demand, B shall use such ______________as royalty stipulated in
Clause 12.4 and if B needs more _____________than that of royalty portion
it shall be agreed upon by New Company to that effect provided that, in
such case, _______________charge shall be paid to New Company in US
Dollars as stipulated in Clause 12.
12. Service Charge and Income Distribution
12.1 In order to accomplish the purposes specified in Clauses 4.2.4),
4.2.5), 6.3.4) and 11.1, B shall undertake responsibility for the
negotiation with ________Government and the conclusion of service
agreement. B shall provide such information and data as useful and
necessary for the negotiation and appoint a person to cooperate with the
representatives from C or New Company and the People's Insurance Company
of China in charge of the negotiation.
The persons in charge shall do their duty according to the procedures
1) to submit basic concept and overall plan of the Project within
_______days from the date of singing this Agreement;
2) to start detailed technical negotiation and discussion on the rate
of service charge within _________days from the date of signing this
3) to conclude relevant matters and enter into service agreement
within _______months from the date of signing this Agreement.
C or New Company shall fully assist and support B and provide all
technical data, information and materials, etc. necessary for the
negotiation. In case that the parties send a delegation to negotiate with
a service purchaser, they should appoint the person or persons who are
competent for the delegation at all points in score and specialty.
12.2 B and C or New Company agree as a negotiation point that payment
for _________export shall be received on monthly basis and directly to New
Company's bank account in_________ denominated by New Company in US
Dollars without any withholding taxes or fees.
12.3 Income from sales of _______shall be distributed by C, the
leading company of New Company, in the following order of priority:
1) Royalty to B stipulated in Clause 12.4;
2) Operation and maintenance cost;
3) Loan principal and interest to construct the infrastructure
4) Dividend to the members of New Company.
The parties agree and acknowledge to cause New Company not to make any
deduction of depreciation or establishment of any reserves and to ensure
payment of principal and interest to construct the infrastructure project
after the payment of the items specified in Clauses I) and 2).
The People's Insurance Company of China will act as the undertaker of
the export credit insurance and treasurer of the New Company during the
repayment period to ensure the reimbursement of the loan principal and
12.4 The amount of income to be distributed to B and the members of
New Company shall be calculated by using as reference the Basic Case-Annex
The proportion of the amount payable to B as royalty shall be as below
and readjusted based on the service agreement and the Project Cost:
___________percent during the first __________years of the Operation
____________percent during the remaining years of the Operation
The above mentioned royalty to B covers, but not limited to, B's
provision of C or New Company's free use of the Site, technical
assistance, administrative arrangement and support and other assistance
and support specified in this Agreement.
12.5 In case that main equipment should be replaced, the members of
New Company shall agree to increase their investment amount in the
proportion of their share to New Company for the procurement and
installation of that replacing equipment. Cost for replacement parts and
equipment of which durable year, determined by the internationally
accepted accounting principle, exceeds Transfer Date, shall be shared
between B and New Company in proportion of the years beyond Transfer Date
and the years falling within Transfer Date.
13. Transfer of Ownership
13.1 Before the establishment of New Company, C and B shall be the
proprietary owners of the infrastructure project or any part thereof
during the construction period and/or the Operation Period and shall
possess and exercise all rights, privileges, titles to and interests in
the infrastructure project. Such ownership shall be shared by the members
of New Company until the Transfer Date in proportion of the percentage of
their share of equity when New Company is established.
B acknowledges such ownership and guarantees that such ownership shall
be respected and protected by B under the laws of ___________and B shall
make resolutions, issue orders or execute any action which is required to
protect such ownership. B guarantees that under any circumstance or for
any cause, the ownership of the infrastructure project and other assets of
C or New Company, during construction or after Completion Date, shall not
be condemned, confiscated, nationalized or restricted by B unless C or New
Company abandons the Project.
Abandonment in this Clause means that i) C or New Company notifies B
of their definite intent to neglect the infrastructure project and ii) C
or New Company's neglect of the infrastructure project lasts more than
_____________months without cause.
During the construction period and/or operation period, C or New
Company shall at its own discretion and necessity cause a lien or
encumbrance to be created on the infrastructure project and other
facilities forming the Project, and B shall not raise any objection
13.2 On the Transfer Date New Company shall transfer to B, free from
any lien or encumbrance created by New Company and without the payment of
any compensation, all its right, title to and interest in the
infrastructure project, unless otherwise specified in the Agreement or any
13.3 __________year prior to the Transfer Date, B and New Company
shall discuss the necessary procedure for the transfer of the
infrastructure project and ______months prior to the Transfer Date, B and
New Company shall meet and agree the inventories involved and the
mechanics of transfer.
13.4 The infrastructure project and all other equipment transferred
pursuant to Clause 13 shall be transferred on an "as is" basis and after
the Transfer Date New Company shall be under no liability whatsoever to B
in respect of the operation of the infrastructure project by B or a person
designated by B.
13.5 B shall be responsible for all costs and expenses ( including
legal fees and taxes or duties) incurred in connection with the transfer
referred in Clause 13 and shall at its own cost obtain or effect all
governmental and other approvals, licenses, registrations and filings and
take such other actions as may be necessary for the transfer contemplated
in Clause 13, and reimburse New Company on demand for all such costs and
expenses incurred by New Company in respect of such transfer.
14.1 C or New Company shall be under no responsibility or liability to
compensate any damages except direct damages incurred due to material
breach of its obligations under this Agreement.
14.2 In circumstance provided above in Clause 14.1 C or New Company
shall, at its sole option and discretion, be entitled to transfer to B all
or part of C or New Company's proprietary rights and ownership of the
infrastructure project, under construction or after Completion Date, as
liquidated damages, in lieu of computing and compensating the actual
damages provided that such transfer shall be conducted of C's own free
will or rendered in the arbitration award as stipulated in clause 23.
However, any transfer shall be subject to the confirmation and approval of
the People's Insurance Company of China and the lending bank.
In above case, C or New Company's liability to B shall be limited to
transfer of the proprietary right and ownership of the infrastructure
project and B's claim against C or New Company demanding the damages shall
be extinguished and nullified.
15. Documents and Patents
15.1 Nothing contained in this Agreement shall be construed as
transferring any patent or copyright in equipment covered by the Agreement
and all such rights are hereby expressly reserved to the true and lawful
owners thereof. C or New Company shall retain all rights with respect to
the specifications, plans, drawings and other documents and B undertakes
not to disclose the same or divulge any information contained therein to
any third country without the prior written consent of C or New Company.
15.2 All commercial and technical documents such as agreements and
proposals pertinent to the Project shall be kept confidential. B
undertakes not to disclose the same or divulge any information contained
therein to any third country or party without prior written consent of C
or New Company.
16. Force Majeure
16.1 No failure or omission to carry out or observe any or the terms,
provisions or conditions of this Agreement shall be deemed to be breach of
this Agreement if the same is caused by or arises out of Acts of God or
any conditions of similar nature beyond reasonable control of C or New
Company, including, but not limited to, the following:
a. war, hostilities (whether war be declared or not), invasion, act of
b. rebellion, revolution, insurrection, or military or usurped power,
or civil war;
c. ionizing radiation, or contamination by radio-activity from any
nuclear fuel, or from any nuclear waste from the combustion of nuclear
fuel, radio-active toxic explosive, or other hazardous properties of any
explosive nuclear assembly or nuclear component thereof;
d. pressure waves caused by aircraft or other aerial devices traveling
at sonic or supersonic speeds;
e. riot, commotion, disorder, strike, sabotage, lockout or any other
industrial action by employees affecting C or New Company or their
f. export or import restrictions by any governmental authorities,
closing of harbours, docks, canals;
g. fire, unusual flood, earthquake, mud avalanche, collapse,
landslide, storm, lightning or any other unreasonably severe weather;
h. accidents of navigation or breakdown or injury of vessels;
i. epidemic, quarantine;
j. shortage of raw materials, unforeseen shut-down of major sources of
k. unreasonable delay of more than _________days in unloading ships
and clearing systems;
l. concealed conditions encountered below the surface of the Site.
16.2 Notwithstanding Clause 16.1, B shall not be entitled to claim for
itself in respect of any Force Majeure in Clause 16.1.
16.3 The party invoking Force Majeure shall:
a. notify the other parties as soon as possible in writing the nature
of the Force Majeure and the extent to which the Force Majeure suspends
the affected party's obligations under this Agreement; and
b. resume performance of its obligations as soon as possible after the
Force Majeure condition no longer exists.
16.4 If the Force Majeure applies prior to the Completion Date, the
parties will meet to discuss a revised timetable for the completion of the
16.5 If the Force Majeure applies during the Operation Period, the
Operation Period shall be extended by a period equal to that during which
the effect of the Force Majeure applies.
16.6 Notwithstanding Clauses 16.4 and 16.5, if the Force Majeure lasts
for a period in excess of ____________days, the parties hereto will meet
to discuss the basis and terms upon which this Agreement can be continued
and if the parties conclude that this Agreement cannot be continued, then
the parties shall discuss the solution to reduce their loss.
16.7 The parties hereto will consult with each other and take all
reasonable steps to minimize the losses of either party resulting from the
16.8 If any event of the Force Majeure occurs which causes damage to
the Project or the infrastructure project, then C or New Company shall not
be obliged to reinstate the same, or, as the case may be, complete the
same, until the parties hereto have agreed upon the terms for such
reinstatement or completion.
C or New Company shall take out insurance required for the
construction or operation of the infrastructure project.
18. Change in Circumstances
In the event that as a result of any laws or regulations of
___________or any agency or other body under the control of the Government
of ____________or any regional or municipal authority thereof, coming into
effect after the date hereof or as a result of any such laws or
regulations (including any official interpretation thereof C has relied
upon in entering into this Agreement) in force at the date hereof being
amended, modified or repealed, the interest of C in the Site, the Project
or the infrastructure project and/or C's economic return on its investment
is materially reduced, prejudiced or otherwise adversely affected
(including, without limitation, any restriction on the ability to remit
funds in US Dollars outside of_____________) then the parties hereto shall
meet and endeavour to agree amendments to this Agreement.
Any notice to be given under this Agreement shall be in writing and
shall be delivered personally or sent by registered mail, telex or
facsimile transmission to the following:
Any party may change such address or attention by not less than
_______days' notice to the other party in accordance herewith and such
change shall take effect on receipt of such notice by the other party.
20. Dispute Resolution
20.1 Throughout the term of this Agreement representatives of the
parties shall meet regularly at not less than semi-yearly intervals to
discuss the progress of the Project and the operation of the
infrastructure project in order to ensure that the arrangement between the
parties hereto proceeds on a mutually satisfactory basis.
The operation of the infrastructure project in order to ensure that
the arrangement between the parties hereto proceeds on a mutually
20.2 The parties hereto agree that in the event that there is any
dispute or difference between them arising out of this Agreement or in the
interpretation of any of the provisions hereof they shall endeavour to
meet in an effort to resolve such dispute by discussion between them but
failing such resolution the representatives of parties shall meet to
resolve such dispute or difference and the joint decision by them shall be
binding upon the parties hereto and in the event that a settlement of any
such dispute or difference is not reached pursuant to this Clause then
provisions of Clause 23 shall apply.
20.3 In the event any dispute should arise between the parties as to
any technical matter in regard to the construction or operation of the
infrastructure project, design and production standards shall be provided
and the case shall forthwith be referred to the expert chosen by agreement
of both parties. Subject to arbitration, as hereinafter provided, such
decision shall be final and binding upon the parties.
if the expert fails to render his decision within such_________ days
or if either of the parties is dissatisfied with any such decision, the
party may, within ______days after the expiration of the first-named
period of _______days or after receiving notice of such decision, as the
case may be, refer the dispute to arbitration as provided in Clause 23.
21. Waiver of Sovereign Immunity
B represents and warrants that this Agreement is the commercial rather
than public or governmental act and that B waives its right to claim
immunity from legal proceedings with respect to itself or any of its
assets on the ground of sovereignty or otherwise under any law or in any
jurisdiction whether an action may be brought for the enforcement of any
of the obligations arising under this Agreement.
22. Law and Language
This Agreement shall be governed by and construed in accordance with
the laws of ____________except technical specifications. This Agreement
has six (6) originals in ____________language and each party holds three
All disputes, controversies, or differences which may arise between
the parties, out of or in relation to or in connection with this
Agreement, or for the breach thereof shall be settled through amicable
consultation. If three occasions of consultation fail to settle, the
Agreement on Mutual Encouragement and Protection of Investment between the
Government of the People's Republic of China and the Government of
______________________shall apply. In case the issue remains to be
settled, it shall be finally settled by arbitration pursuant to the Rules
of Conciliation and Arbitration of the International Chamber of Commerce,
by three (3) arbitrators designated in accordance with the said Rules.
Arbitration shall be held in ______________and shall use the
The award rendered by arbitrators shall be final and binding upon the
In witness whereof, the parties hereto have caused their respective
duly authorized representatives to execute the Agreement on the ______day
of _______in the year of ________.
For and on behalf of the B For and on behalf of the C
Our Contract Template Database is complied in accordance with laws of P.R.China.This English document is translated according to its Chinese version. In case of discrepancy, the original version in Chinese shall prevail.