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Section 9 - Contract Forms 9-27

Operating Licence
(draft version)

(on letterhead paper of NWSDBJ


Licence to Operate a Desalination Plant at Jaffna


1) The National Water Supply and Drainage Board (NWSDB) is responsible for providing piped potable
water services in Democratic Socialist Republic of Sri Lanka; and

2) The NWSDB intends to build and operate a sea water reverse osmosis plant and associated
transmission pipelines at [xxxxx] to increase supplies of potable water to the Jaffna region; and

3) The NWSDB has identified a site at [xxxxxx] (the "Site") for the proposed plant and associated
transmission pipeline and hereby warrants that it is the owner of the Site; and

4) The NWSDB has conducted a public tender to select a Contractor to design, build and operate a new

SWRO plant at the Site under a long term contract (hereinafter the "DBO Agreement"); and

5) The NWSDB has awarded the DBO Contract to [name of contractor] hereinafter the Contractor; and

6) Under the terms of the DBO Agreement the CMC is required to issue an Operating Licence to the

Contractor which shall form part of the DBO Agreement.

Terms of the Operating Licence:

1) The Contractor is hereby authorized, subject to the terms of any applicable environmental laws and

licenses, to operate and maintain the SWRO treatment plant and associated transmission pipeline as set
out in the DBO Agreement.

2) In consideration of the Contractor's performance of the activities set out in the DBO Agreement, but only
to the extent provided for in the DBO Agreement, the NWSDB grants the Contractor for the term the
DBO Agreement, the exclusive right, license and authority to occupy, use ancj enjoy the Site free of

charge and free and clear of all claims ..

3) Notwithstanding its grant of rights set forth herein, the Contractor shall have no right of property or
ownership over the Site and of the Works .

This Licence shall come into full force and effect upon the issue of the Commissioning Certificate required.
under GCC Clause 11.7 of the DBO Agreement and shall remain in force during the Operation Service .

Period as defined in GCC Clause 1.1.58, unless terminated earlier pursuant to GCC Clause 15 of the DBO
The terms and expressions in this licence shall have the meanings ascribed to them in the DBO Agreement.

: .
For the National Water Supply and Drainage Board