41.1 The Company shall apply to the [insert relevant Ministry] for a Water-Use Permit, for which approval shall not be unreasonably withheld upon timely application in accordance with the Applicable Law and payment of any application fees.

41.2 The Water-Use Permit shall include the right, upon payment of a specified fee per cubic decametre of water, to remove specified quantities of surface water from waterways and to withdraw and use specified quantities of groundwater, based on the needs of the Project as determined by the Feasibility Study and subject to the needs of other users as determined by the Environmental and Social Impact Assessment.

41.3 Where the Project’s water use exceeds the specified quantity of water provided for in the Water-Use Permit, the Company shall be subject to [such penalties as provided for in the Applicable Law]/[a penalty of [insert currency and amount] per cubic decametre of water used above the permissible amount].

41.4 The Company shall be entitled, subject to the Applicable Law and to Section 25, to construct water-related infrastructure such as pipes and conduits and to alter the natural flow patterns by building dams, weirs, and reservoirs.

41.5 The Company shall consult separately with women and men Legitimate Tenure Rights Holders, Indigenous Peoples, and members of the Local Community on their water use, to identify and develop Gender-Sensitive strategies to mitigate potential negative impacts of planned water infrastructure and other Project Operations on that water use.

41.6 The Company shall not use water in such a way as to deny, deprive, or otherwise impede access to water for Legitimate Tenure Rights Holders, Indigenous Peoples, and the Local Community.

41.7 The Company shall not endanger aquatic or terrestrial ecosystems on or nearby the Project Area.

41.8 The Company shall report annually on:

(a) the quantity of water used and released by the Project;

(b) water quality and availability in and around the Project Area as verified by an independent third party; and

(c) the impact of Project Operations on water quality and availability for Legitimate Tenure Rights Holders and the Local Community, identifying any differences in impacts on women and men.

41.9 The Authority shall review the grant and terms, including the access and usage fees, of the Water-Use Permit(s) every [insert number] years.

41.10 The Authority reserves the right to restrict or withdraw the Water-Use Permit at any time in light of extreme unforeseen circumstances such as acute water shortages, flooding, or drought, to adapt to or mitigate the impacts of climate change.

For more information: See generally IISD, 2014, Section 9.3 (Water-Use Permits and Fees); ISLP & CCSI, 2016, Section 2.12.3 (Watercourses and Water Management); UNIDROIT & IFAD, 2021, Section 4.18. (Water).