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Emission Reduction Purchase Agreement                                                                                               Page 1 of 17

Exhibit 10.16

EMISSION REDUCTION PURCHASE AGREEMENT

(ERPA)

between

(the "Purchaser")

ECOLOCAP SOLUTIONS (CANADA) INC (ECOLOCAP) .

740 St Maurice suite 102

Montreal, Qc H3C1L5

Canada

Tel : 5148763907

Fax: 5148764080

Email: trivutruong@ecolocap.com

President-CEO : Dr. Tri Vu Truong

and

(the " DAM’ BOR HYDRO POWER - CDM Project Proponent”)., henceforth 

“VIETNAM PROJECT PROPONENT”

(“Owner”)

BAO TAN HYDRO ELECTRIC JOINT-STOCK COMPANY

Address: No.3 Bis A, Co Giang st, Ward 9, Da Lat city, Lam Dong province 

Telephone: (084) 063-3824041

Fax: (084) 063-3550298 

Email: ctcpdienbaotan@yahoo.com

Account number: 64110000417879 Bank for Investment and Development of Vietnam 

(VIDV), Lam Dong branch Tax Code: 5800540645

President-CEO: Dinh Van Tung

Both parties have agreed to sign the Reduction Emission Purchase Agreement (Agreement) with the following terms and conditions:

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Emission Reduction Purchase Agreement                                                                                     Page 2 of 17

	Interpretation and Definitions  
	In this Agreement, unless otherwise required by the context, all capitalized terms shall have the meaning  
	set forth in the definitions below.  
	  
	Agreement:  	Means this Emission Reduction Purchase Agreement.  
	  
	Annex B Countries:	Means the countries listed in Annex B to the Kyoto Protocol having committed  
	 	themselves to reduce or limit their GHG emissions.  
	  
	Annex I Countries:  	Means the parties to the UNFCCC listed in Annex I thereto (Annex I consists of  
	  	industrial countries and countries in transition).  
	  
	Anticipated Emission  	Means up to 24,000 (twenty four thousand) Certified Emission Reductions  
	Reduction:  	(CERs) per annum during the Crediting Period, anticipated to be generated by the  
	  	Project and calculated in accordance with the Kyoto Rules.  
	  
	Baseline:  	Means the scenario that reasonably represents the anthropogenic emissions of  
	  	GHG that would occur in the Host Country in the absence of the Project,  
	  	determined in accordance with the Kyoto Rules.  
	  
	Business Day:  	Means a day on which banks are open for general business in Vietnam.  
	  
	Carbon Dioxide  	Means a metric measure used to compare the emissions of various GHG based  
	Equivalent:  	upon their global warming potential.  
	  
	Certification:  	Means the written confirmation by an Operational Entity of an Emission  
	  	Reduction resulting from a CDM project and having passed the Verification  
	  	procedure according to the Kyoto Rules.  
	  
	Certified Emission  	Means a unit of Emission Reduction issued pursuant to Article 12 of the Kyoto  
	Reduction (CER):  	Protocol and the requirements of the Kyoto Rules (including Certification), equal  
	  	to one metric ton of Carbon Dioxide Equivalent resulting from a CDM project.  
	  
	Clean Development  	Means the flexible mechanism established by Article 12 of the Kyoto Protocol  
	Mechanism (CDM):  	providing for Annex I Countries to implement projects that reduce emissions in  
	  	non-Annex I Countries in return for CERs and assist the non-Annex I Countries  
	  	in achieving sustainable development and contributing to the ultimate objective  
	  	of the UNFCCC.  
	  
	Crediting Period:  	Means, until December 31, 2026.  

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Emission Reduction Purchase Agreement                                                                                     Page 3 of 17

	Emission Reduction:  	Means reduction in emission of GHG achieved, calculated in accordance with the  
	  	Kyoto Rules.  
	  
	Executive Board:  	Means the international authority elected by the representatives of the parties to  
	  	the Kyoto Protocol responsible for monitoring the CDM process.  
	  
	First Commitment  	Means October 30, 2008 until December 31, 2012.  
	Period:  	  
	  
	Force Majeure:  	Means any circumstance or condition beyond the control of either party to this  
	  	Agreement affecting the performance of its obligations under this Agreement  
	  	including in particular wars, insurrection, natural disaster or equivalent  
	  	circumstances.  
	  
	Greenhouse Gases  	Means the six gases listed in Annex A to the Kyoto Protocol including CO2 , CH4 ,  
	(GHG):  	N2 O, HFCs, PFCs and SF6  
		    
	Host Country:  	Vietnam  
	  
	Kyoto Protocol:  	Means the protocol to the UNFCCC adopted at the third conference of the parties  
		to the UNFCCC in Kyoto, Japan, on December 11, 1997.  
	  
	Kyoto Rules:  	Means the UNFCCC, Kyoto Protocol, the Bonn agreement, the Marrakesh  
	  	Accords, any relevant decisions, guidelines, modalities and procedures made  
	  	pursuant to them and/or any succeeding international agreements as amended  
	  	and/or supplemented from time to time and which include those rules specifically  
		required to be met for the issuing and transfer of CERs.  
	  
	DNA  	Means the designated National Authority for the CDM in Viet Nam –  
	  	Responsible for receiving, assessing and submitting CDM project Idea Note  
	  	(PIN) or Project Design Document (PDD) developed by project participants to  
	  	the Minister of Ministry of Natural Resources and Environment (MONRE).  
	  
	Letter of Approval  	Means a binding approval of the Project by the Host Country together with an  
	(LOA):  	approval of the transfer of CERs.  
	  
	Monitoring Report:  	Means an annual report to be provided by Owner setting out the total number of  
	  	Emission Reductions generated by the Project during the previous year according  
	  	to the Kyoto Rules, international Monitoring rules and the PDD.  
	  
	Monitoring:  	Means the collection and record of data allowing the assessment of reductions in  
	  	GHG emissions resulting from the Project conducted in accordance with the  
	  	Kyoto Rules.  
	  
	Designated  	Means an independent entity accredited by the Executive Board being the  
	Operational Entity  	executive body for CDM and inter alias responsible for determining whether a  
	(DOE):  	project and the resulting Emission Reductions meet the requirements of Article  
	  	12 of the Kyoto Protocol.  
	  
	Project Idea Note  	Means a brief description providing information on the CDM Project considered  
	(PIN)  	by DNA. In case of permission to list the PIN of the project into the CDM  
	  	potential projects in Viet Nam, DNA shall issue Endorsement letter for the  
	  	project and allow to formulate PDD.  
	  
	Project Design  	Means a detailed description of the Project to be submitted for Validation  
	Document (PDD):  	prepared in accordance with the Kyoto Rules, the UFG and the Directive and  
	  	attached as Annex [iv]. The Purchaser will be responsible for providing PDD  
	  	development for Registration of the Project.  

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Emission Reduction Purchase Agreement                                                                                       Page 4 of 17

	Project:  	Means the proposed CDM project described in the PDD and other documents  
	  	describing the implementation and economics of the Project attached in Annex  
	  	[iii].  
	  
	Registration:  	Means the official registration of a CDM project by the Executive Board  
	  	according to the Kyoto Rules.  
	  
	UNFCCC:  	Means the United Nations Framework Convention on Climate Change adopted in  
	  	New York on May 9, 1992.  
	  
	Unit Price:  	Means the price payable by Purchaser to Project Proponent per Certified  
	  	Emission Reduction (CER) unit:  
	  
	  	The purchase unit price paid by EcoloCap Solutions Canada Inc. to Viet Nam  
	  	Project Proponent for the CER is fixed at (12)$US/CE for the year 2008 to 2012  
	  	and a new agreement for purchase unit price will be negotiated for the next two  
	  	periods of extension.  
	  
	  	The amount paid to the Viet Nam Project Proponent for the total certified CER  
	  	generated from this project is fixed at (85)% of the total value of CER calculated  
	  	at this above mentioned purchase price ($(12)US).  
	  
	  	For the first payment, a one time amount of (75,000)US) will be paid to Ecolocap  
	  	Solutions Inc for the reimbursement to Ecolocap for its advance cash for the costs  
	  	relating to CDM process. Other expenses will be paid by Ecolocap.  
	  
	Term:  	Ecolocap Solutions inc will purchase certified CER generated by this project for  
	  	the year 2008 to 2012 with options of extension for two other periods of 7 years,  
	  	the period 2013-2026, with the same terms and conditions except for the price  
	  	which will be renegotiated.  
	  
	  
	Validation:  	Means the assessment of the PDD, including the Baseline, by an Operational  
		Entity, determining its compliance with the Kyoto Rules.  
	  
	Verification:  	Means the periodic independent review and ex post determination of the  
	  	monitored reductions in GHG emissions that the Project has achieved during a  
	  	specified period of time by an Operational Entity in accordance with the Kyoto  
	  	Rules. The project's owner will be Responsible for providing periodical  
	  	monitoring.  
	   
	   
	Unless otherwise specified, references to clauses are to clauses of this Agreement, references to legal  
	provisions are references to such provisions as in effect from time to time, use of a gender includes any  
	gender and use of the plural includes the singular and vice versa where the context requires.  
	  
	All headings and titles are inserted for convenience only and shall not be deemed part of this Agreement or  
	taken into consideration in its interpretation.  

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Emission Reduction Purchase Agreement                                                                                  Page 5 of 17

	1.   	Preamble 
	  
	  	The DaM’ Bor Hydro Power Project, in Loc Bac ward – Bao Lam district – Lam Dong  
	  	Province, belongs to Bao Tan Hydro Electric Joint-Stock Company Owner, which was approved  
	  	to establish the feasibility study according to Decision No 8154/UBND dated on November 21,  
	  	2007 by the Chairman of Lam Dong province People Committee. Overview of the project is  
	  	described in the feasibility Study attached as Annex [iii],  
	   
	   
	2. 	Contractual Obligations  
	  
	2.1. 	Anticipated Emission Reductions  
	  
	2.1.1. 	Upon Registration of the Project, Purchaser shall endeavor to implement the Project in  
	  	accordance with the PDD and other documents describing the implementation and economics of  
	  	the project attached in [Annex iv] at its own risk and expense (Annex ii). It is hereby  
	  	acknowledged and agreed between the parties hereto that Purchaser does not warrant the  
	  	generation of, and is not obliged to generate, any CERs, whether by the Project or otherwise.  
	  
	2.1.2. 	If the Project generates CERs, during the crediting period Project Proponent shall, to the extent  
	  	it is legally possible and permissible, exclusively transfer to Purchaser all rights (and, to the  
	  	extent legally possible and permissible, legal title) which Project Proponent may have in the  
	  	Anticipated Emission Reductions.  
	  
	2.1.3. 	Purchaser shall pay to Project Proponent the Unit Price for each Anticipated Emission  
	  	Reduction generated by the Project and in which the Project Proponent's rights are transferred to  
	  	Purchaser in accordance with clause 3 below.  
	  
	2.2.6. 	Purchaser shall pay to Project Proponent a price equal to the Unit Price for each Additional  
	  	Emission Reduction in respect of which Purchaser has accepted such offer.  
	  
	2.2. 	Emission Reductions generated after the Crediting Period  
	  
	  	If the Project generates any Certified Emission Reductions after the Crediting Period. Purchaser  
	  	shall enter into negotiations with Project Proponent with a view to concluding an agreement on  
	  	the purchase of such Certified Emission Reductions based on the principles of this Agreement  
		but amended in order to reflect the international and/or national rules then applicable.
	  
	2.3. 	Production Check  
	  
	2.3.1. 	Obligation of Purchaser:  
	  
		To comply with standards and requirements of Vietnam government related to CDM.  
	  
	2.3.2. 	To satisfy the rules and the requirements of Kyoto Protocol;  
	  
	2.3.3. 	To meet the requirements of validation, monitoring, verification and CDM procedure issued by  
	  	EB.  
	  
	2.3.4. 	The Project Proponent shall be responsible to provide necessarily appropriate and real  
	  	information for the project implementation (Annex I, ii, iii, iv)  
	  
	2.3.5. 	The Product/Project shall be considered to be successful only when Purchaser receive amount of  
	  	money as being mentioned in this agreement.  

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Emission Reduction Purchase Agreement                                                                                    Page 6 of 17

	2.4. 	Schedule for CDM procedure  
	  
	2.4.1. 	Upon the signature of the ERPA contract, Purchaser shall develop the Project Idea Note (PIN)  
	  	and send it to Project Proponent for submitting to Department of Resources and Environment of  
	  	Viet Nam (DONRE) with all necessary legal documents. The DONRE’s endorsement letter shall  
	  	be done expectedly within a month.  
	  
	2.4.2. 	After having the endorsement letter of PIN from DONRE, Purchaser shall submit the Project  
	  	Design Document (PDD) of the Project with all necessary legal documents to DONRE for  
	  	appraisal and approval within 2-3 months. The PDD of the Project which has been written by  
	  	consultant shall also be considered and revised by Purchaser during this period of time.  
	  
	2.4.3. 	The Purchaser’s consultant shall improve and edit the PDD within one month, following the oral  
	  	presentation of the PDD of the Project to DONRE, in order to get DNA’s Approval letter [Letter  
	  	of Approval (LOAN)]  
	  
	2.4.4. 	Validation report shall completed by Designated Operational Entity (DOE) and the Purchaser’s  
	  	consultant within the period of 3-4 months after DNA’s approval.  
	  
	2.4.5. 	After meeting the requirements of validation by DOE, CDM project will be submitted to  
	  	Executed Board (EB) for final appraisal and approval within the period of 2-3 months.  
	  
	2.4.6. 	Following the first verification of DOE for the implementation of the CDM project and the  
	  	monitoring of GHG reduction, the CER’s certificate will be issued by EB.  
	  
	  
	3. 	Transfer  
	  
	  	Transfer to Purchaser of all the rights (and, to the extent legally possible and permissible, legal  
	  	title) which Project Proponent may have in a Certified Emission Reduction shall have occurred  
	  	upon the transfer of a CER’s certificate from the register of the Executive Board to a register in  
	  	favor of Purchaser. This transfer shall be made immediately as soon as the EB officially  
	  	approved the Project registration.  
	  
	  
	4. 	Payment  
	  
	4.1. 	Payment for Certified Emission Reductions  
	  
	4.1.1. 	Payment by Purchaser to Project Proponent for the Certified Emission Reductions shall be made  
	  	within 50 Business Days after the CER’s certificate is delivered to Purchaser. Purchaser shall  
	  	transfer money into the account of Project Proponent, after the CER certificate is issued by the  
	  	EB following each monitoring realized by the DOE.  
	  
	4.1.2. 	All payments shall be made through the account of Ecolocap which has been registered for the  
	  	Project when the PDD is submitted to EB for approval. This account is in the EB’s common  
	  	account.  
	  
	4.1.3. 	All payments shall be made in US Dollars.  
	  
	4.2. 	Cost and Expenses  

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Emission Reduction Purchase Agreement                                                                                   Page 7 of 17

	4.2.1. 	Subject to clause 4.2.2 below, all taxes, fees, costs or other expenses in connection with the  
	  	Registration and the transfer of CERs shall be borne by Purchaser including VAT, if any,  
	  	according to VAT law applied in Vietnam.  
	  
	4.2.2. 	The share of the proceeds from CERs generated by the Project which will be used to cover  
	  	necessary administrative expenses and/or to assist developing countries that are particularly  
	  	vulnerable to the adverse effects of climate change to meet the costs of adaptation (if any)  
	  	according to the Kyoto Rules shall be divided respectively in a proportion of 85% and 15%  
	  	between Project Proponent and Purchaser.  
	  
	4.2.3. 	The project Proponent should provide necessary information to the Purchaser for the preparation  
	  	of documents required for PIN (project idea note), PDD (project design document), the  
	  	validation, the verification/certification, and the registration with CDM Executive Board (Annex  
	  	i). All costs accrued to each of the Parties in negotiating, preparing, executing and carrying into  
	  	effect of this Agreement, shall be borne by each of the Parties themselves.  
	  
	  
	5. 	Termination and Remedies  
	  
	5.1. 	  
	  	Either Party (the "Non-defaulting Party") shall be entitled to terminate this Agreement by  
	  	written notice to the other Party with immediate effect if any of the following events occurs:  
	  
	5.1.1. 	The other Party commits a breach of any of its obligations under this Agreement and, in the case  
	  	of a breach capable of being remedied, such breach remains for more than 30 Business Days  
	  	after it has been requested in writing by the Non-defaulting Party to remedy the breach; or  
	  
	5.1.2. 	The other Party goes into liquidation (whether voluntary or otherwise), is unable to pay  
	  	its debts as they fall due, is wound up, makes any compromise, composition or other  
	  	arrangement with its creditors generally, or becomes subject to any administration  
	  	order.  
	  
	5.2. 	Force Majeure  
	  
	  	Should either Party be impeded wholly or in part from fulfilling any of its obligations under the  
	  	Agreement for reasons of Force Majeure, such obligation shall be suspended to the extent and  
	  	for as long as such obligation is affected by Force Majeure and the impeded Party shall be  
	  	entitled to such extension of time as may be reasonably necessary.  
	  
	  	Either Party shall notify the other Party of the existence and date of beginning of an event of  
	  	Force Majeure that is likely to impede its performance under the Agreement within 20 Business  
	  	Days after having obtained knowledge of any such event. Either Party shall likewise advise the  
	  	other of the date when such event ended and shall also specify the re-determined time by which  
	  	the performance of its obligations hereunder is to be completed.  
	  
	  	Project Proponent and Purchaser shall consult with each other with a view of determining any  
	  	further appropriate action if a condition of Force Majeure is to continue after 20 Business Days  
	  	from the date of giving notice thereof.  
	  
	  	Neither Party shall be liable for damages or have the right to terminate this Agreement for any  
	  	delay in performing hereunder if such delay is caused by Force Majeure; provided, however,  
	  	that the non-impeded Party shall be entitled to terminate such part of the Agreement that  
	  	remains unfulfilled, if the condition of Force Majeure is to continue after 6 months from the  
	  	date of giving notice thereof.  

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Emission Reduction Purchase Agreement                                                                Page 8 of 17

	6. 	Change in Circumstances  
	  
	  	If any change in circumstances (i.e. a change of scientific basics or applicable standards relating  
	  	to the Baseline methodology and/or the applicable criteria for Verification and Certification of  
	  	the resulting Emission Reductions) occurs which substantially affects the Project, the parties to  
	  	this Agreement shall enter into negotiations with a view to adapt the Project and its  
	  	implementation or any relevant provision of this Agreement, as may be necessary or useful. A  
	  	change in circumstances shall in no event be considered substantially affecting the Project if at  
	  	least 50% of the Anticipated Emission Reductions can be generated.  
	  
	  	The parties to this Agreement shall cooperate and make their best efforts to enable the  
	  	continuation of the Project in accordance with the new circumstances and to achieve the  
	  	generation and transfer of the Anticipated Emission Reductions.  
	  
	  	If any of the documents related to the Project and submitted at any time during the term  
	  	of this Agreement fails to be approved by such authority whose approval is required  
	  	under the Kyoto Rules or otherwise appears to be non-compliant with any relevant  
	  	standards or conditions of the Kyoto Rules, Project Proponent and Purchaser shall  
	  	discuss whether or not the relevant documents are to be revised and resubmitted.  
	  
	7. 	Conditions Precedent  
	  
	  	This Agreement shall enter into force upon satisfaction of the following conditions precedent:  
	  
	  	Conclusion of a binding agreement with the Host Country.  
	  
	  
	8. 	Miscellaneous  
	  
	8.1. 	Assignment and subcontracting  
	  
	  	Because the interests of Project Proponent is paid by Purchaser, Project Proponent shall not,  
	  	without the written consent of Purchaser, assign or transfer the Agreement or the benefits or  
	  	obligations thereof or any part thereof to any other person.  
	  
	  	Purchaser may transfer any of its rights or obligations under the ERPA to any third party  
	  	(“assignee”) without consent of Project Proponent. However, Purchaser shall inform Project  
	  	Proponent for these transfers if any. Rights and obligations between Purchaser and Project  
	  	Proponent remain the same after the transfer.  
	  
	  	Within 90 business days before the first commitment period come to an end, both parties shall  
	  	renegotiate to continue the agreement. If over 30 days, starting the day on which the first  
	  	commitment period ends, both Parties can not come to an agreement. Project Proponent has full  
	 	power to assign the Agreement to any other person without legal ties from Purchaser. 
	  
	8.2. 	Confidentiality and Disclosure  
	  
	  	The parties shall treat as confidential all information obtained as a result of entering into or  
	  	performing this Agreement which relates to the provisions of this Agreement, the negotiations  
	  	relating to this Agreement and the subject matter of this Agreement.  
	  
	  	No Party shall disclose any such confidential information to any third party, except in those  
	  	circumstances where disclosure is required in order to comply with any laws or regulations,  
	  	including without limitations the Kyoto Rules.  

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Emission Reduction Purchase Agreement                                                                                    Page 9 of 17

	8.3 	Notices  
	  
	  	Any communications to be made under or in connection with this Agreement shall be made in  
	  	writing (including by facsimile) to the address or facsimile number, from time to time  
	  	designated by the Party to whom the communication is to be made to the other Party for that  
	  	purpose.  
	  
	  	A communication shall only be considered as legal effedt if it is posted and confirmed by both  
	  	Parties.  
	  
	8.4 	Entire Agreement  
	  
	  	This Agreement embodies the whole and only agreement of the parties with respect to the  
	  	subject matter hereof, and no prior or contemporaneous oral or written agreement or  
	  	understanding shall be deemed to constitute a part of this Agreement, unless expressly referred  
	  	to herein, or attached hereto, or specifically incorporated by reference herein. The Annexes and  
	  	schedules to this Agreement constitute integral parts of this Agreement and shall therefore be  
	  	deemed part of this Agreement.  
	  
	8.5 	Amendments  
	  
	 	This Agreement may only be amended with the written consent of the parties hereto. 
	  
	8.6 	Severability  
	  
	  	If any part or provision of the Agreement is or becomes illegal, void or unenforceable in any  
	  	respect, the remaining parts or provisions shall not be affected or impaired. Any deficiency in  
	  	the Agreement resulting there from shall be amended by way of interpretation of the Agreement  
	  	having due regard to the parties intent.  
	  
	8.7 	Governing law  
	  
	  	This Agreement shall be governed and construed in accordance with English law excluding its  
	  	rules on conflicts of laws.  
	  
	8.8 	Jurisdiction  
	  
	  	The Parties irrevocably submit to the exclusive jurisdiction of the courts having jurisdiction in  
	  	commercial matters in Singapore with regard to all disputes arising out of or in connection with  
	  	this Agreement, its violation, termination or nullity.  
	  
	8.9 	Counterparts  
	  
	  	This Agreement shall be executed in two counterparts with one copy for Project Proponent and  
	  	one for Purchaser. If there are any discrepancies between the English and the Vietnamese  
	  	version, the English version will prevail .  

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Emission Reduction Purchase Agreement                                                                                                     Page 10 of 17

PARTIES TO THE AGREEMENT

WHEREOF the parties have agreed to the terms and conditions of this agreement as 

outlined above, this 5th day of August 2008, in the presence of:

Purchaser:

	 
	 
	 
	                                                         	DR. TRI VU TRUONG 
	                                                       	President CEO : Dr. Tri Vu Truong   
	 	
	 	
	Project Proponent:   
	    
	    
	    
	    
	                                                     	DINH VAN TUNG   
	                                                       	General Director: Dinh Van Tung   
	 	
	 	
	 	
	 	
	Witness No 1  	Witness No 2  
	   
	   	 
	 	
	BUI THI LAN HUONG	NGUYEN UY HUNG
	MSc. Bui Thi Lan Huong 	Nguyen Uy Hung 
	Biology Energy-Waste Treatment  	Vietnam 
	(Vietnam) Ltd.	

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Emission Reduction Purchase Agreement                                                                                                 Page 11 of 17

ANNEX i:

1. The salient features of DaM’ Bor Hydro Power Project in Loc Bao Commune, Bao Lam 

District, Lam Dong Province, Vietnam.

	No  	Parameters  	Symbols 	Units 	Value  
	 	TECHNICAL	 	 	 
	1  	Catchment area  	F 	km2 	22.11  
	2  	Long-term average annual rainfall  	Xo 	mm 	1353  
	3  	Average flow  	Q0 	m3/s 	0.863  
	4  	Total amount of average annual flow  	W0 	106m3/yr 	27.22  
	5  	Specific runoff  	M0 	l/s.km2 	42.91  
	6  	Normal water level  	MNDBT 	m 	632.00  
	7  	Dead water level  	MNC 	m 	629.6  
	8  	Designated Flood water level  	MNLTK 	m 	634.79  
	9  	Verified flood water level  	MNLKT 	m 	635.30  
	10  	Surface area with normal water level  	F 	Km2 	0.11  
	11  	Designed head  	Hu 	m 	334.48  
	12  	Msximum Head  	Hmax 	m 	340.45  
	13  	Minimum head  	Hmin 	m 	332.48  
	14  	Average head  	Hbq 	m 	337.38  
	15  	Designed discharge  	QTK 	m3/s 	3.60  
	16  	Designed flood discharge p = 1.0%  	Q1.0% 	m3/s 	198.00  
	17  	Designed flood discharge p = 0.2%  	Q0.2 	m3/s 	258.00  
	18  	Firm flow with capacity 85%  	Q85 	m3/s 	0.70  
	19  	Maximum flow  	  	m3/s 	3.60  
	20  	Installation capacity  	Nlm 	MW 	9.60  
	21  	Elevation of machine installation  	  	M 	285.00  
	22  	Firm capacity P 85%  	Ndb 	MW 	2.64  
	23  	Number of united  	Z 	Unit 	3  
	24  	Capacity of each unit  	  	KW 	3200  
	25  	Firm Electricity generation  	Edb 	106kWh 	   
	26  	Estimated Annual Electricity generation  	Eo 	106kWh 	42.75  
	27  	Estimated Annual Operation Hours  	Hsd 	H 	4453.00  
	28  	Annual estimation of the emission reduction, tCO2 eq  	CERs 	tCo2 eq 	24,000  
	29  	Is it run off river hydropower plant?  	   	Yes/No 	Yes  
	30	Type of Hyddro power plant?	 	Ground/

Underground 	Ground

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	31	Type of Turbine?	 	 	CJA237-W

-12532x11 

	  32	New hydropower project with reservoirs having

power densities (installed capacity devided by the

surface area at full reservoir level) greater than 4

W/m2  	 	Yes/No	Yes

(87.3)

	33  	Elevation of dam from foundation  	   	m 	  
	 34  	Kind of dam    	   	  	Gravity Dam
	35  	Elevation of dam  	   	m 	636.50 
	36  	Maximum elevation of dam  	   	  	13.60 
	37  	Breadth of dam  	   	m 	12.79 
	38  	Spillway discharge  	   	m3/S 	258.00 
	39  	Reservoir volume  	   	106m3 	0.06 
	40  	Reservoir surface?  	   	ha 	1.13 
	41  	Useful reservoir volume  	   	106m3 	0.03 
	42  	Dead reservoir volume  	   	106m3 	0.03 
	43	Geological and hydrogeological risk assessment has

been performed? (If yes, please provide copies

separately)  	 	Yes/No	No

	44	What is the total areas (upstream and downstream of

the dam) which will be flooded at the maximum

water level of the reservoir?  	 	ha	1.57

	45  	Material mine area  	   	ha 	2.00 
	46  	Area of main category construction resettleing  	   	ha 	20.00 
	  	Spillway  	   	   	   
	47	Kind of overflow	 	 	Free

spillway 

	48  	Dimension  	   	m 	20.00 
	49  	Height of overflowed threshold  	   	m 	632.00 
	50  	Spillway crest length  	   	m 	20.00 
	  	Water inlet  	   	   	   
	51  	Type of water inlet?  	   	   	Unpressed 
	52  	Designed discharge  	Qtk   	m3/s 	3.60 
	53  	Valve door  	(BxH)  	m 	2.10 x1.85
	54  	Screen cleaner – dimension  	(BxH)  	m 	2.65x2.35 
	  	Canal ditch  	   	   	   
	55	Type of canal ditch?	 	 	Steel

concrete 

	56  	Dimension  	(D)  	m 	1.80 x2.20

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	57  	Designed discharge  	(Q)  	m3/s 	3.60 
	58  	Length  	(L)  	m 	3658.23 
	   	Pressure pipe  	   	   	   
	  
	59	Type of Pressure pipe?	 	 	Steel

concrete 

	60  	Dimension  	(D)  	m 	1.8x2.2 
	61  	Designed discharge  	(Q)  	m3/s	3.60 
	62  	Length  	(L)  	m 	3658.23 
	63	Is there any risk assessment conducted to evaluate

dam breakage on downstream population?  	 	  Yes/No	  No

	64	Hydropower plant will put on-line the grid? What is

the distance from dam up to local/national grid for

connection?  	 	km	30.00

	65	Which portion of all required infrastructures for dam

construction including access roads, grid connection,

etc/have been built?  	 	Yes/No	No

	  	ECOLOGICAL  	   	  	  
	 66	Are there any other areas on or around the location

which are important or sensitive for reasons of their

ecology e.g. wetlands, watercourses or other

waterbodies, the coastal zone, mountains, protected

forests or woodlands, which could be affected by the

project?  	 	  Yes/No	  No

	67	Are there any areas on or around the location which

contain important, high quality or scarce resources

e.g. groundwater, surface waters, forestry,

agriculture, fisheries, minerals, which could be

affected by the project?  	 	Yes/No	No

	68	Is the project location susceptible to earthquakes,

subsidence, landslides, erosion, flooding or extreme

or adverse climatic conditions e.g. temperature

inversions, fogs, severe winds, which could cause the

project to present environmental problems?  	  	Yes/No	No

	   	SOCIAL  	    	    	   
	 69	Are there existing land uses on or around the location

e.g. homes, other private property, industry,

commerce, historic or cultural importance, public

open space, community facilities, agriculture,

forestry, tourism, mining or quarrying which could be

affected by the project?  	 	

Yes/No

	

Yes

	70  	Forecast displaced population  	     	Persons 	No 
	   	LEGAL  	    	   	   
	71	Project has been accepted by all concerned

stakeholders (developer, community, population,

Ministry of Resource Environment or other

governmental agencies) ? (If yes, please provide

copies separately)  	 	Yes/No	Not yet

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	   	FINANCIAL  	   	   	   
	72  	Other client except local / national grid to buy the  	   	  Yes/No	  No
	  	electricity?  	   	   	   
	73  	Selling price of electricity?  	   	USD/kw-h 	0.0468  
	74	Total forecasted investment cost (interest not

included)  	 	106 USD	  215.10

	75  	Amount in equity currently available?  	   	106USD 	58.66  
	76	Secured borrow amount?	a. VN

currency  	
106USD

% 

	
79.04

14.00  

	77	Borrow secured interest rate(s)?	b. Foreign

currency  	% 	7.50  

	  78	If financing has not completed, which amount is

missing to complete financing?	 	106USD	  57.84

	79  	What is forecasted IRR of the project without

supplement money of CDM?  	 	% 	12.02  

	80	What is forecasted IRR of the project with

supplement money of CDM?  	 	%	15.18

	81	What is the forecasted Return On Investment (ROI)

of the project?  	 	  %	  51.84

	82	Forecasted financial compensation (land, tree, farm,

property, etc...)  	 	106USD	  4.00

	83	Compensation costs, grid connection costs are all

included in the total investment cost?  	 	  Yes/No	  Yes

	84  	Investment cost (interest not included) for 1 MW?/  	   	106USD 	20.37  
	85	Financing characterization

Equity

Bank

Government subsidy

Government loan

Other  	 	%

%

%

%

% 	30.00

70.00

0.00

0.00

0.00  

2. Project time schedule.

     -Year of 2008: Designing technique, level ground.

     -Year of 2009: Starting construction in beginning of year.

     -Year of 2010: Generate electricity the first team in June, complete in the end of the year

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Emission Reduction Purchase Agreement                                                                                                Page 15 of 17

ANNEX ii:

WORK FLOW OF CDM ACTIVITY

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ANNEX iii:

SUMMARY OF FEASIBILITY STUDY (FS) AND 

ENVIRONMETAL IMPACT ASSESSMENT (EIA)

 

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ANNEX iv:

PROJECT DEVELOPMENT DOCUMENT (PDD)

 

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Emission Reduction Purchase Agreement                                                                                                Page 1 of 12

Exhibit 10.17

EMISSION REDUCTION PURCHASE AGREEMENT

(ERPA)

between

(the "Purchaser")

ECOLOCAP SOLUTIONS (CANADA) INC (ECOLOCAP) .

740 St Maurice suite 102 

Montreal, Qc H3C1L5 Canada 

Tel : 5148763907 

Fax: 5148764080 

Email: trivutruong@ecolocap.com

President-CEO : Dr. Tri Vu Truong

and

(the " THEN SIN Hydro Power - CDM Project Proponent”)., 

henceforth “VIETNAM PROJECT PROPONENT”

Owner: CONSTRUCTION AND INFRASTRUCTION DEVELOPMENT JOINT-STOCK 

COMPANY NUMBER NINE

Address: 201 Min Knai Street, Hai Ba Trung District, Hanoi 

Telephone: + 0084 4 5665002 - 5665003 

Fax : +0084 4 5665002 - 5665003 

Email: tvlong@thpcorp.com.vn

Director: Tran Xuan Hoan

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	Interpretation and Definitions  
	In this Agreement, unless otherwise required by the context, all capitalized terms shall have the meaning  
	set forth in the definitions below.  
	   
	Additional Emission  	Means any Certified Emission Reduction (CER) generated by the Project that is  
	Reduction:  	in excess of [50,000] Certified Emission Reductions (CERs) per annum.  
	   
	Agreement:  	Means this Emission Reduction Purchase Agreement.  
	   
	Annex B Countries:  	Means the countries listed in Annex B to the Kyoto Protocol having committed  
	  	themselves to reduce or limit their GHG emissions.  
	   
	Annex I Countries:  	Means the parties to the UNFCCC listed in Annex I thereto (Annex I consists of  
	  	industrial countries and countries in transition).  
	   
	Anticipated Emission  	Means up to [50,000] Certified Emission Reductions (CERs) per annum during  
	Reduction:  	the Crediting Period, anticipated to be generated by the Project and calculated in  
	  	accordance with the Kyoto Rules.  
	   
	Baseline:  	Means the scenario that reasonably represents the anthropogenic emissions of  
	  	GHG that would occur in the Host Country in the absence of the Project,  
	  	determined in accordance with the Kyoto Rules.  
	   
	Business Day:  	Means a day on which banks are open for general business in Vietnam.  
	   
	Carbon Dioxide  	Means a metric measure used to compare the emissions of various GHG based  
	Equivalent:  	upon their global warming potential.  
	   
	Certification:  	Means the written confirmation by an Operational Entity of an Emission  
	  	Reduction resulting from a CDM project and having passed the Verification  
	  	procedure according to the Kyoto Rules.  
	   
	Certified Emission  	Means a unit of Emission Reduction issued pursuant to Article 12 of the Kyoto  
	Reduction (CER):  	Protocol and the requirements of the Kyoto Rules (including Certification), equal  
	  	to one metric ton of Carbon Dioxide Equivalent resulting from a CDM project.  
	  
	Clean Development  	Means the flexible mechanism established by Article 12 of the Kyoto Protocol  
	Mechanism (CDM) :  	providing for Annex I Countries to implement projects that reduce emissions in  
	  	non-Annex I Countries in return for CERs and assist the non-Annex I Countries  
	  	in achieving sustainable development and contributing to the ultimate objective  
	  	of the UNFCCC.  
	   
	Crediting Period:  	Means, until December 31, 2026.  
	   
	Emission Reduction:  	Means reduction in emission of GHG achieved, calculated in accordance with the  
	  	Kyoto Rules.  
	   
	Executive Board:  	Means the international authority elected by the representatives of the parties to  
	  	the Kyoto Protocol responsible for monitoring the CDM process.  
	   
	First Commitment  	Means 2nd August 2008 until December 31, 2012.  
	Period:  	  
	   
	Force Majeure:  	Means any circumstance or condition beyond the control of either party to this  
	  	Agreement affecting the performance of its obligations under this Agreement  
	  	including in particular wars, insurrection, natural disaster or equivalent  
	  	circumstances.  
	   
	Greenhouse Gases  	Means the six gases listed in Annex A to the Kyoto Protocol.  
	(GHG):  	  

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	Host Country:  	Vietnam  
	  
	Kyoto Protocol:  	Means the protocol to the UNFCCC adopted at the third conference of the parties  
		to the UNFCCC in Kyoto, Japan, on December 11, 1997. 
	    
	Kyoto Rules:  	Means the UNFCCC, Kyoto Protocol, the Bonn agreement, the Marrakesh  
	  	Accords, any relevant decisions, guidelines, modalities and procedures made  
	  	pursuant to them and/or any succeeding international agreements as amended  
	  	and/or supplemented from time to time and which include those rules specifically  
		required to be met for the issuing and transfer of CERs. 
	    
	Letter of Approval  	Means a binding approval of the Project by the Host Country together with an  
	(LOA):  	approval of the transfer of CERs.  
	    
	Monitoring Report:  	Means an annual report to be provided by Owner setting out the total number of  
	  	Emission Reductions generated by the Project during the previous year according  
	  	to the Kyoto Rules, international Monitoring rules and the PDD.  
	    
	Monitoring:  	Means the collection and record of data allowing the assessment of reductions in  
	  	GHG emissions resulting from the Project conducted in accordance with the  
	  	Kyoto Rules.  
	    
	Operational Entity:  	Means an independent entity accredited by the Executive Board being the  
	  	executive body for CDM and inter alias responsible for determining whether a  
	  	project and the resulting Emission Reductions meet the requirements of Article  
	  	12 of the Kyoto Protocol.  
	   
	Project Design  	Means a detailed description of the Project to be submitted for Validation  
	Document (PDD):  	prepared in accordance with the Kyoto Rules, the UFG and the Directive and  
	  	attached as Annex III. The Purchaser will be responsible for providing PDD  
	  	development for Registration of the Project.  
	   
	Project:  	Means the proposed CDM project described in the PDD and other documents  
	  	describing the implementation and economics of the Project attached in Annex  
	  	IV.  
	   
	Registration:  	Means the official registration of a CDM project by the Executive Board  
	  	according to the Kyoto Rules.  
	   
	UNFCCC:  	Means the United Nations Framework Convention on Climate Change adopted in  
	  	New York on May 9, 1992.  
	   
	Unit Price:  	Means the price payable by Purchaser to Project Proponent per Certified  
	  	Emission Reduction (CER) unit:  
	   
	  	The purchase unit price paid by EcoloCap Solutions Canada Inc. to Viet Nam  
	  	Project Proponent for the CER is fixed at (12)$US/CER, less applicable tax and  
	  	sale commission, for the year 2008 to 2012 and a new agreement for purchase  
	  	unit price will be negociated for the two periods of extention.  
	   
	  	The amount paid to the Viet Nam Project Proponent for the total certified CER  
	  	generated from this project is fixed at (85)% of the total value of CER at this  
	  	above mentioned purchase price ($12US), less commission, applicable tax and  
	  	the one time reimbursement of an amount of $75,000 USD to Ecolocap Solutions  
	  	inc for funding the CDM process.  
	   
	  	TERM:  
	   
	  	Ecolocap Solutions inc will purchase certified CER generated by this project for  
	  	the year 2008 to 2012 with options of extension for two other periods of 7 years,  
		the period 2012-2026, under same terms and conditions. 
	

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	Validation:  	Means the assessment of the PDD, including the Baseline, by an Operational  
		Entity, determining its compliance with the Kyoto Rules. 
	
	Verification:  	Means the periodic independent review and ex post determination of the  
	  	  	  	monitored reductions in GHG emissions that the Project has achieved during a  
	  	  	  	specified period of time by an Operational Entity in accordance with the Kyoto  
	  	  	  	Rules. The project's owner will be Responsible for providing periodical  
	  	  	  	monitoring.  
	  
	  
	Unless otherwise specified, references to clauses are to clauses of this Agreement, references to legal  
	provisions are references to such provisions as in effect from time to time, use of a gender includes any  
	gender and use of the plural includes the singular and vice versa where the context requires.  
	    
	All headings and titles are inserted for convenience only and shall not be deemed part of this Agreement or  
	taken into consideration in its interpretation.  
	   
	   
	1. Preamble  	  
	  
	  	  	The Project is located on the territory of the Host Country.  
	  
	  
	2. 		Contractual Obligations  
	  
	2.1. 	 	Anticipated Emission Reductions  
	  
	2.1.1. 	 	Upon Registration of the Project, Purchaser shall endeavor to implement the Project in  
	  	  	accordance with the PDD and other documents describing the implementation and economics of  
	  	  	the project attached in Annex IV at its own risk and expense. It is hereby acknowledged and  
	  	  	agreed between the parties hereto that Purchaser does not warrant the generation of, and is not  
	  	  	obliged to generate, any CERs, whether by the Project or otherwise.  
	  
	2.1.2. 		If the Project generates CERs, during the crediting period Project Proponent shall, to the extent  
	  	  	it is legally possible and permissible, exclusively transfer or cause to be transferred to Purchaser  
	  	  	all rights (and, to the extent legally possible and permissible, legal title) which Project  
	  	  	Proponent may have in the Anticipated Emission Reductions generated during the Crediting  
	  	  	Period to Purchaser.  
	  
	2.1.3. 		Purchaser shall pay to Project Proponent the Unit Price for each Anticipated Emission  
	  	  	Reduction generated by the Project and in which the Project Proponent's rights are transferred to  
	  	  	Purchaser in accordance with clause 3 below.  
	  
	2.2. 	 	Additional Emission Reductions  
	  
	2.2.1. 	  	If Additional Emission Reductions are generated by the Project during the Crediting Period,  
	  	  	Project Proponent shall offer any Additional Emission Reductions to Purchaser subject to the  
	  	  	terms and conditions of this Agreement and at a price per Additional Emission Reduction equal  
	  	  	to the Unit Price. If Purchaser does not wishes to exercise the purchase option then Project  
	  	  	Proponent may deal with the Additional Emission Reductions as it wishes.  
	  
	2.2.2. 	 	Additional Emission Reductions offer by the Purchaser shall be made as soon as possible after  
	  	  	such Additional Emission Reductions have been generated, but no later than December 31 of  
	  	  	the year subsequent to the calendar year in which such Additional Emission Reductions have  

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Emission Reduction Purchase Agreement                                                                                                Page 5 of 12

	  	  	been generated.  
	  
	2.2.3. 	 	Purchaser shall be entitled to accept such offer as a whole or in part and shall notify to Project  
	  	  	Proponent within one month after receipt of such offer, whether and to what extent it accepts the  
	  	  	offer. If Purchaser does not respond within this deadline the offer shall be deemed to be rejected  
	  	  	by Purchaser.  
	  
	2.2.4. 	 	To the extent Purchaser accepts the offer, Project Proponent shall, to the extent it is legally  
	  	  	possible and permissible, transfer or cause to be transferred to Purchaser all rights (and, to the  
	  	  	extent legally possible and permissible, legal title) which Project Proponent may have in those  
	  	  	Additional Emission Reductions in respect of which Purchaser has accepted such offer, within  
	  	  	two months after acceptance of such offer by Purchaser.  
	  
	2.2.5. 	 	To the extent Purchaser rejects such offer of Additional Emission Reductions or such offer is  
	  	  	deemed rejected by Purchaser, Project Proponent shall be free to enter into contracts with other  
	  	  	parties for the sale of such Additional Emission Reductions or to otherwise deal with such  
	  	  	Additional Emission Reductions as Project Proponent wishes.  
	  
	2.2.6. 	 	Purchaser shall pay to Project Proponent a price equal to the Unit Price for each Additional  
	  	  	Emission Reduction in respect of which Purchaser has accepted such offer.  
	  
	2.3. 		Emission Reductions generated after the Crediting Period  
	  
	  	  	If the Project generates any Certified Emission Reductions after the Crediting Period, Purchaser  
	  	  	shall enter into negotiations with Project Proponent with a view to concluding an agreement on  
	  	  	the purchase of such Certified Emission Reductions based on the principles of this Agreement  
			but amended in order to reflect the international and/or national rules then applicable.
	    
	   
	3. 	 	Transfer  
	    
	  	  	Transfer to Purchaser of all the rights (and, to the extent legally possible and permissible, legal  
	  	  	title) which Project Proponent may have in a Certified Emission Reduction shall have occurred  
	  	  	upon the transfer of a CER from the register of the Executive Board to a register in favor of  
	  	  	Purchaser or such other account or register Purchaser has notified to Project Proponent in  
	  	  	writing.  
	   
	   
	4. 		Payment  
	   
	4.1. 	  	Payment for Certified Emission Reductions  
	   
	4.1.1. 	 	Payment by Purchaser to Project Proponent for the Certified Emission Reductions (the rights in  
	  	  	which are transferred pursuant to clause 3) shall be made on the last Business Day of the month  
	  	  	in which a 40 Business Day period, starting at the day on which Purchaser has received  
	  	  	satisfactory evidence of the transfer as provided for in Clause 3, has elapsed.  
	   
	4.1.2. 	 	All payments shall be made to the accounts specified in Annex [I] hereto or such other account  
	  	  	as may from time to time be notified to the other party in writing.  
	   
	4.1.3. 		All payments shall be made in US Dollars.  
	   
	4.1.4. 		Subject to clause 4.1.5 below, all taxes, fees, costs or other expenses in connection with the  

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Emission Reduction Purchase Agreement                                                                                         Page 6 of 12

	  	  	generation of CERs by the Project and their Registration and transfer (including VAT in any  
	  	  	jurisdiction Purchaser duly notifies Project Proponent to transfer CERs as in Clause 3, if  
	  	  	applicable) shall be borne by Project Proponent and purchaser.  
	   
	4.1.5. 		The share of the proceeds from CERs generated by the Project to be used to cover  
	  	  	administrative expenses according to the Kyoto Rules shall be borne by Project Proponent and  
	  	  	Purchaser in equal shares .  
	   
	  	  	The share of the proceeds from CERs generated by the Project to be used to assist developing  
	  	  	countries that are particularly vulnerable to the adverse effects of climate change to meet the  
	  	  	costs of adaptation according to the Kyoto Rules shall be borne by Project Proponent and  
	  	  	Purchaser in equal shares.  
	   
	   
	5. 		Termination and Remedies  
	   
	5.1. 	 	   
	  	 	Either party (the "Non-defaulting Party") shall be entitled to terminate this Agreement by  
	  	  	written notice to the other party with immediate effect if any of the following events occurs:  
	   
	5.1.1.		the other party commits a breach of any of its obligations under this Agreement and, in the case  
	  	  	of a breach capable of being remedied, such breach remains for more than 30 Business Days  
	  	  	after it has been requested in writing by the Non-defaulting Party to remedy the breach; or  
	   
	5.1.2. 		the other party goes into liquidation (whether voluntary or otherwise), is unable to pay its debts  
	  	  	as they fall due, is wound up, makes any compromise, composition or other arrangement with  
	  	  	its creditors generally, or becomes subject to any administration order.  
	  
	5.2. 		Force Majeure  
	  
	  	  	Should either party be impeded wholly or in part from fulfilling any of its obligations under the  
	  	  	Agreement for reasons of Force Majeure, such obligation shall be suspended to the extent and  
	  	  	for as long as such obligation is affected by Force Majeure and the impeded party shall be  
	  	  	entitled to such extension of time as may be reasonably necessary.  
	   
	  	  	Either party shall notify the other party of the existence and date of beginning of an event of  
	  	  	Force Majeure that is likely to impede its performance under the Agreement within 5 Business  
	  	  	Days after having obtained knowledge of any such event. Either party shall likewise advise the  
	  	  	other of the date when such event ended and shall also specify the re-determined time by which  
	  	  	the performance of its obligations hereunder is to be completed.  
	   
	  	  	Project Proponent and Purchaser shall consult with each other with a view of determining any  
	  	  	further appropriate action if a condition of Force Majeure is to continue after 20 Business Days  
	  	  	from the date of giving notice thereof.  
	   
	  	  	Neither party shall be liable for damages or have the right to terminate this Agreement for any  
	  	  	delay in performing hereunder if such delay is caused by Force Majeure; provided, however,  
	  	  	that the non-impeded party shall be entitled to terminate such part of the Agreement that  
	  	  	remains unfulfilled, if the condition of Force Majeure is to continue after 6 months from the  
	  	  	date of giving notice thereof.  
	   
	   
	6. 	 	Change in Circumstances  
	  
	  	  	If any change in circumstances (i.e. a change of scientific basics or applicable standards relating  

 

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Emission Reduction Purchase Agreement                                                                                                            Page 7 of 12

	  	  	to the Baseline methodology and/or the applicable criteria for Verification and Certification of  
	  	  	the resulting Emission Reductions) occurs which substantially affects the Project, the parties to  
	  	  	this Agreement shall enter into negotiations with a view to adapt the Project and its  
	  	  	implementation or any relevant provision of this Agreement, as may be necessary or useful. A  
	  	  	change in circumstances shall in no event be considered substantially affecting the Project if at  
	  	  	least 50% of the Anticipated Emission Reductions can be generated.
	   
	  	  	The parties to this Agreement shall cooperate and make their best efforts to enable the  
	  	  	continuation of the Project in accordance with the new circumstances and to achieve the  
	  	  	generation and transfer of the Anticipated Emission Reductions.
	   
	  	  	If any of the documents related to the Project and submitted at any time during the term of this  
	  	  	Agreement fails to be approved by such authority whose approval is required under the Kyoto  
	  	  	Rules or otherwise appears to be non-compliant with any relevant standards or conditions of the  
	  	  	Kyoto Rules, Project Proponent and Purchaser shall discuss whether or not the relevant  
	  	  	documents are to be revised and resubmitted.  
	   
	   
	7. 		Conditions Precedent
	  
	  	  	This Agreement shall enter into force upon satisfaction of the following conditions precedent:  
	   
	  	  	           1. Conclusion of a binding agreement with the Host Country.
	   
	   
	   
	8. 	  	Miscellaneous
	   
	8.1. 	  	Assignment and subcontracting
	  	  	Neither party shall, without the written consent of the other party, assign or transfer the  
	  	  	Agreement or the benefits or obligations thereof or any part thereof to any other person.  
	   
	8.2. 		Confidentiality and Disclosure
	  	  	The parties shall treat as confidential all information obtained as a result of entering into or  
	  	  	performing this Agreement which relates to the provisions of this Agreement, the negotiations  
	  	  	relating to this Agreement and the subject matter of this Agreement.
	  
	  	  	No party shall disclose any such confidential information to any third party, except in those  
	  	  	circumstances where disclosure is required in order to comply with any laws or regulations,  
	  	  	including without limitations the Kyoto Rules.
	   
	8.3. 	  	Notices
	  
	  	  	Any communications to be made under or in connection with this Agreement shall be made in  
	  	  	writing (including by facsimile) to the address or facsimile number, from time to time  
	  	  	designated by the party to whom the communication is to be made to the other party for that  
	  	  	purpose. The address and facsimile number so designated are set out in Annex [I] hereto. A  
	  
	  	  	Communication will only be effected, if sent by mail, when delivered to or rejected by the  
	  	  	recipient, if sent by facsimile, when a transmission report shows that the facsimile has been sent.  
	   
	8.4. 		Entire Agreement
	   
	  	  	This Agreement embodies the whole and only agreement of the parties with respect to the  
	  	  	subject matter hereof, and no prior or contemporaneous oral or written agreement or  

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	  	  	understanding shall be deemed to constitute a part of this Agreement, unless expressly referred  
	  	  	to herein, or attached hereto, or specifically incorporated by reference herein. The Annexes and  
	  	  	schedules to this Agreement constitute integral parts of this Agreement and shall therefore be  
	  	  	deemed part of this Agreement.  
	  
	8.5 .	  	Amendments  
			 
			This Agreement may only be amended with the written consent of the parties hereto. 
	   
	8.6. 		Costs and Expenses  
	    
	  	  	Each party shall bear its own costs and expenses in relation to the negotiation, preparation,  
	  	  	execution and carrying into effect of this Agreement.  
	   
	8.7. 		Severability  
	   
	  	  	If any part or provision of the Agreement is or becomes illegal, void or unenforceable in any  
	  	  	respect, the remaining parts or provisions shall not be affected or impaired. Any deficiency in  
	  	  	the Agreement resulting there from shall be amended by way of interpretation of the Agreement  
	  	  	having due regard to the parties intent.  
	   
	8.8. 	 	Governing law  
	   
	  	  	This Agreement shall be governed and construed in accordance with English law excluding its  
	  	  	rules on conflicts of laws.  
	   
	8.9. 	  	Jurisdiction  
	   
	  	  	The parties irrevocably submit to the exclusive jurisdiction of the courts having jurisdiction in  
	  	  	commercial matters for England with regard to all disputes arising out of or in connection with  
	  	  	this Agreement, its violation, termination or nullity.  
	   
	8.10. 	 	Counterparts  
	   
	  	  	This Agreement shall be executed in two counterparts with one copy for Project Proponent and  
	  	  	one for Purchaser. If there are any dicrepencies between the English anh the Vietnamese  
	  	  	version, the English version will prevail .  

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Emission Reduction Purchase Agreement                                                                                               Page 9 of 12

PARTIES TO THE AGREEMENT

WHEREOF the parties have agreed to the terms and conditions of this agreement as outlined above, 

this 5th day of August 2008, in the presence of:

Purchaser:

DR. TRI VU TRUONG

President CEO : Dr. Tri Vu Truong

Project Proponent:

TRAN XUAN HOAN

Director: Tran Xuan Hoan

 

                                                                                          

 

	Witness No 1 		Witness No 2
	 	  	 
	 		  
	BUI THI LAN HUONG  		LE VAN TAN  
	MSc. Bui Thi Lan Huong  		Le Van Tan-Engineer  
	Biology Energy-Waste Treatment  		Viet nam  
	(Viet nam) Ltd.  		  

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Emission Reduction Purchase Agreement                                                                                                            Page 10 of 12

ANNEX I:

1. The salient features of Then Sin 1 and Then Sin 2 – Nam Xe Hydro Power Project at Then Sin Ward, Tam Duong District in Lai Chau Province and at Nam Xe Ward, Phong Tho District in Lai Chau Province, Vietnam.

	No	Parameters	Symbols	Units	Terrace

1A 	Terrace

1B 

	1  	Catchment area  	F  	km2 	105.1 	139.2 
	2  	Long-term average annual rainfall  	Xo  	mm 	2411.6 	2411.6 
	3  	Average flow  	Q0   	m3/S 	5.49 	7.27 
	4  	Total amount of average annual flow  	W0  	106m3 	173.13 	229.27 
	5  	Specific runoff  	M0  	l/s.km2 	52.29 	52.29 
	6  	Normal water level  	MNDBT  	m 	511.5 	473 
	7  	Dead water level  	MNC  	m 	511.5 	468 
	8  	Surface area with normal water level  	F  	Km2 	4.47 	7.55 
	9  	Designed head  	Htt  	m 	27.5 	81.82 
	10  	Designed discharge  	QTK  	m3/s 	6.22 	7.06 
	11  	Installation capacity  	Nlm  	MW 	1.5 	4.95 
	12  	Firm capacity P=85%  	Ndb  	MW 	0.3 	0.8 
	13  	Number of unit  	z  	     	2 	3 
	14  	Estimated Annual Electricity Generation  	Eo  	106 kWh 	6.21 	22.06 
	15  	Estimated Annual Operation Hours  	hsd  	h 	4141 	4456 
	16	Annual estimation of the emission

reduction, tCO2 eq  	CERs	tCO2 eq	3601.8	12795

	17  	Resettlement  	   	person 	0 	0 
	18	Compensation (land, tree, farm, property, etc...)	   	 106 USD 	0.1 	  0.15 
	19	It is run off river hydropower plant	 	 	Day &

night 	Day &

night 

	20	New hydropower project with reservoirs

having power densities (installed capacity

devided by the surface area at full reservoir

level) greater than 4 W/m2 .  	 	  	yes	Yes

2. Project time schedule.

- Year of 2008: Compensation and clearing of the Then Sin2 – Nam Xe Hydro Power and construction

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of the access road to the plant will be carrier out by the October, 2008

- Year of 2009 and 2010: Preparing work and construction of Then Sin2 – Nam Xe.

- Year of 2010: Operation of 3 units of Then Sin2 – Nam Xe by the 4th quarter of 2010.

- Year of 2009: Compensation and clearing of the Then Sin 1 Hydro Power and construction of the access road to the plant will be carrier out by the June, 2009.

- The 4th quarter of 2010 and 2011. : Preparing work and construction of Then sin 1. 

- Year of 2011: Operation of 2 units of Nam Xe 1 by the 4th quarter of 2011.

 

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Emission Reduction Purchase Agreement                                                                                                Page 12 of 12

ANNEX 2:

Work flow of CDM Activity

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