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Energy Charter Model Agreements

The Energy Charter Conference welcomed the work of the Energy Charter Secretariat, with the valuable assistance of the Legal Advisory Task Force in preparing and updating Model Agreements as a set of non-legally-binding guidelines for the negotiation of cross-border projects.

These have been developed with a view to providing interested parties to energy-related projects with a neutral and non-prescriptive starting point for negotiations, and thus, facilitating project-specific talks. This work was done with the help of a professional consultant and with the valuable assistance of the voluntary Legal Advisory Task Force. The Model Agreements were prepared based on best international practices and with the aim of reflecting as much as possible the interests of the different parties concerned.

This work began with the preparation of Model Agreements for Cross-Border Pipelines (Pipeline Model Agreements, or PMAs), which were released in 2004 following the approval of the Energy Charter Conference. Subsequently, the PMAs were revised and updated; this second edition was published in 2008.

The Secretariat then developed Model Agreements for Cross-Border Electricity Projects (Electricity Model Agreements, or EMAs) and, as a supplement to EMAs, the Market and System Inter-Operability Agreement Guidelines for Cross-Border Electricity Projects (Guidelines to Electricity Model Agreements, or GEMA).

Currently, the Secretariat is working on an Investment Model Agreements (IMAs).

Model Agreements for Cross-Border Pipelines

Model Agreements for Cross-Border Pipelines
Типовые соглашения для трансграничных трубопроводов

The Second Edition of Pipeline Model Agreements consists of:

  • an Intergovernmental Pipeline Model Agreement (IG-PMA) for state-to-state agreements; and
  • a Host Government Pipeline Model Agreement (HG-PMA) for agreements between an individual state and the project investors.

In 2004, the first edition of PMAs helped to provide a basis for negotiations between Kazakhstan and Azerbaijan on the trans-Caspian Aktau-Baku transport system, which would provide an additional export route for Kazakh energy resources through the Baku-Tbilisi-Ceyhan pipeline. This is an example of how PMAs could be of help to facilitate negotiations for cross-border pipeline projects.

The second edition of PMAs, welcomed by the Energy Charter Conference in December 2007 and released in 2008, includes an explanatory note which gives a brief account of the purpose, nature and structure of both the IG-PMA and the HG-PMA.

The Second Edition of Pipeline Model Agreements is available in English and Russian.

Model Agreements for Cross-Border Electricity Projects

Model Agreements for Cross-Border Electricity Projects
Типовые соглашения для трансграничных электроэнергетических проектов

Electricity Model Agreements consist of:

  • an Intergovernmental Electricity Model Agreement (IG-EMA) for state-to-state agreements; and
  • a Host Government Electricity Model Agreement (HG-EMA) for agreements between an individual state and the project investors.

The EMAs, welcomed by the Energy Charter Conference in November 2008 and released in 2011, include an explanatory note which gives a brief account of the purpose, nature and structure of both the IG-EMA and the HG-EMA.

The Electricity Model Agreements are available in English and Russian.

Market and System Inter-Operability Agreement Guidelines for Cross-Border Electricity Projects

Market and System Inter-Operability Agreement Guidelines for Cross-Border Electricity Projects
Руководство к разработке типового соглашения по рыночному и системному взаимодействию для трансграничных электроэнергетических проектов

In the course of preparing the EMAs, a need was identified for a third document, namely, the Electricity Model Agreement Guidelines (GEMA), in order to deal with the operational issues specific to cross-border electricity projects. Therefore, the Secretariat has developed GEMA with the help of consultants and with the valuable assistance of the Legal Advisory Task Force.

GEMA, welcomed by the Energy Charter Conference in December 2009 and released in 2011, includes a section which explains its background and purpose.

The Market and System Inter-Operability Agreement Guidelines for Cross-Border Electricity Projects is available in English and Russian.

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