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Agreement in Xayaburi hydropower project in Lao PDR

Finance & Trade Watch Austria et al. and ANDRITZ HYDRO GmbH

agreed to continue their cooperation after closing of the mediation proceedings before the Austrian NCP in July 2017. In the complaint procedure raised by a group of NGOs under the lead of Finance & Trade Watch Austria against ANDRITZ HYDRO GmbH, the parties were able to reach a consensus and signed a Joint Statement. The issues raised in the complaint referred to a potential breach of the OECD Guidelines for Multinational Enterprises (OECD Guidelines) with regards to human rights and environmental standards in connection with the construction of the Xayaburi hydropower project in Lao PDR by ANDRITZ HYDRO GmbH.

The agreement in the Joint Statement by the parties foresees the continuation of the efforts of both parties for improving the situation of the local communities in the Mekong region. The company acknowledges its obligation to respect international human rights and environmental standards, as laid down in particular in the OECD Guidelines, in its due diligence procedures for all future projects. ANDRITZ HYDRO GmbH has also committed to develop its policies and procedures in relation to the implementation of human rights and environmental standards in accordance with internationally recognised principles, such as the OECD Guidelines. The parties agreed on engaging in a follow-up process to continue the dialogue.

Conclusion and results of the follow-up process

As agreed in the Joint Statement, four bilateral follow-up meetings took place between February 2018 and June 2018. The Austrian NCP then received follow-up statements from both parties. On September 6, 2018 a follow-up meeting was held at the premises of the Austrian NCP. Both parties described the follow-up process as constructive and valuable. The implementation of the recommendations of the Austrian NCP from the Joint Statement of June 2017 were discussed during the follow-up meeting. Both parties stated that they would be willing to continue the constructive dialogue. The Austrian NCP commends both parties on the achieved progress. The Austrian NCP particularly supports the parties' intentions to continue the dialogue. The Austrian NCP remains at the disposal of both parties to contribute its expertise to the further work of the parties.

Additional Information

Contact Information

Mario Micelli
Austrian NCP for the OECD Guidelines for Multinational Enterprises
Federal Ministry for Digital and Economic Affairs
Telephone: (+43) 1 711 00-805240 or 805050
Fax: (+43) 1 711 00-8045050