Common use of Condition of Project Clause in Contracts

Condition of Project. (a) Upon service of a Termination Notice or three (3) years prior to the expiry of the Concession Period, the Project Company and the Responsible Government Authorities shall form a Decommissioning Committee, which shall be responsible for conducting a survey of the Project to ascertain the condition thereof, prepare an inventory of the Project’s Immovable Assets and Movable Assets and verify compliance by the Project Company under this Agreement. (b) In the event the Decommissioning Committee becomes aware that any part of the Project has not been operated and maintained in accordance with this Agreement, Authorizations, Government directives or Lao PDR Laws (normal wear and tear excepted), the committee shall direct the Project Company, at its own cost and expense, to take all necessary steps to put the same in good working condition, in accordance with an implementation schedule, to ensure the Project is handed over in good condition on the Transfer Date. (c) Notwithstanding anything else contained in this Section, six (6) months prior to the expiry of the Concession Period, the Project Company shall send notice to MONRE to request inspection and evaluation of performance of the Project Company’s environmental and social obligations under this Agreement. MONRE shall direct the Project Company shall take all steps necessary to ensure restoration and rehabilitation of the Concession Area (as applicable), in compliance with this Agreement and the procedures and obligations contained in Annex IV (Standard Environmental and Social Obligations). Upon completion of such restoration measures to the satisfaction of MONRE, MONRE shall issue the Project Company with a letter certifying that the Project Company is discharged from any environmental and social liabilities related to the Project.