Andritz Hydro GmbH and Finance and Trade Watch Austria
Lead NCPAustria
Supporting NCP(s)None Selected
DescriptionSpecific instance notified by nine NGOs regarding the activities of Andritz Hydro GmbH operating in Laos.
Theme(s)Environment, Human rights, General policies
Date9 Apr 2014
Host country(ies)Lao People's Democratic Republic
Industry sectorConstruction

Read the final statement issued by the Austrian NCP – June 2017

In April 2014 the Austrian NCP received a submission from nine NGOs alleging that Andritz Hydro GmbH had not observed the Guidelines. More specifically, the submission regarded the company’s supply of hydropower-turbines and its role in the construction and operation of the Xayaburi hydropower project in Lao People's Democratic Republic.
The Austrian NCP undertook an initial assessment on 22 May 2014 concluding that the specific instance merited further consideration. The parties accepted the offer of good offices by the Austrian NCP. Seven mediation meetings were held between 2014 and 2017, all chaired by the Austrian NCP.

A confidentiality agreement was signed by the parties. On 21 May 2015, the NGO International Rivers left the group of submitters and the specific instance procedure stating that the confidentiality agreement did not meet its standards. On 10 February 2016, the remaining parties signed an interim statement as a sign of willingness to continue the mediation process and to reach a joint statement.

In February 2017, six of the submitting organisations left the process, stating that it was no longer productive to discuss the responsibility for the Xayaburi hydropower project’s cross-border impacts within the mediation.

The NGOs EarthRights International, Finance & Trade Watch Austria and the company Andritz Hydro GmbH remained in the proceedings and in June 2017, signed a joint statement which was also signed by the Austrian NCP. The Austrian NCP also issued a final statement.

The joint statement 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 Guidelines, in its due diligence procedures for all future projects.

Andritz Hydro GmbH 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 Guidelines. In the course of the adaptation of its policies, Andritz Hydro GmbH will exchange information and involve relevant stakeholder groups, including the remaining complainants.

The parties agreed to issue a follow-up statement on recent developments to the Austrian NCP twelve months from the date of issuing the joint statement. After reception of the follow-up statements, the Austrian NCP is willing to provide its good offices for a follow-up meeting. The follow-up statements will be made available publically by the Austrian NCP.