invitation to submit applications for water exploitation .../media/nanoq/files... · under section...

Inuussutissarsiornermut, Nukissiuuteqarnermullu Naalakkersuisoqarfik

Departementet for Erhverv og Energi

Ministry of Industry and Energy

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Invitation to submit applications for water exploitation licences in

Greenland

Areas L-01 near Paamiut in West Greenland, L-02 near Nuuk in West

Greenland, L-03 near Nuuk in West Greenland, L-04 near Maniitsoq in West

Greenland and L-05 near Maniitsoq in West Greenland

Under section 12 of Greenland Parliament Act No. 11 of 27 November 2018 on

commercial exploitation of ice and water (the Ice and Water Act), the Government of

Greenland hereby invites interested companies to submit applications for exclusive or

non-exclusive water exploitation licences in this licensing round. A water exploitation

licence will be granted under section 4 of the Ice and Water Act.

The licences available concern the exploitation of water in areas L-01 near Paamiut in

West Greenland, L-02 near Nuuk in West Greenland, L-03 near Nuuk in West

Greenland, L-04 near Maniitsoq in West Greenland and L-05 near Maniitsoq in West

Greenland. This licensing round will take place in the period from 7 January 2019 to 1

August 2019.

Any public or private limited liability company which meets the qualification requirements

under the Ice and Water Act for being a licensee may apply for an exploitation licence

for one or more of the above-mentioned areas.

Applicants are responsible for ensuring that applications are submitted in accordance

with the rules and terms of the licensing round. The Ministry of Industry and Energy (the

Ministry) will reject an application if it does not meet the requirements. This means that

the application will not be processed or considered.

The Government of Greenland is not obliged to grant a licence, even if the Government

of Greenland has made an area available for grant of a licence under the Ice and Water

Act.

4 January 2019

Our ref. 2018-5296

P.O. Box 930

3900 Nuuk

Tel. (+299) 34 68 00

Fax (+299) 32 43 02

E-mail: [email protected]

www.nanoq.gl

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The Government of Greenland will decide whether or not to grant a licence to an

applicant in accordance with the Ice and Water Act and the general rules and principles

of administrative law, including the principles of objectiveness, non-discrimination and

proportionality.

Contents

Section Headline Page

1. The contract documents................................................................................ 3

2. Application procedure ................................................................................... 3

2.1 The application procedure in general ........................................................................ 3

2.2 Application for two or more water resources, take areas or licence areas ................ 4

3. Requirements to the contents of the application and information and

documents ..................................................................................................... 4

4. Licence period and deadline for application.................................................. 5

5. Activities under a licence............................................................................... 5

6. Areas available in the licensing round and licence areas ............................. 5

7. The licence period under a licence ............................................................... 7

8. The licensee and terms under a licence ....................................................... 7

8.1 General licence terms and approval of exploitation plan and closure plan ............... 7

8.2 Terms regarding royalty, direct and indirect taxes ..................................................... 8

8.3 Rights and obligations of the licensee under a licence .............................................. 9

9. Qualification requirements (fundamental requirements to an applicant) .... 10

9.1 Qualification requirements about the company's affairs, about the company being in

full control of its assets and about solvency, etc. ............................................................ 11

9.2 Qualification requirements about an applicant’s technical and professional ability and

economic and financial ability .......................................................................................... 12

10. Award criteria (criteria for any award and grant of a licence) ..................... 14

10.1 Generally about award criteria and competing applications .................................... 14

10.2 Primary award criterion 1: The applicant’s technical and professional ability ......... 17

10.3 Primary award criterion 2: The applicant’s economic and financial ability .............. 18

10.4 Secondary award criterion: Planned exploitation volumes ...................................... 19

11. Negotiation with an applicant about terms for the grant of a licence and the

terms of a licence ........................................................................................ 20

12. Fees and expenses in relation to case processing etc. .............................. 21

13. Information, data and assessments concerning water resources and water

etc. ............................................................................................................... 21

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1. The contract documents

The contract documents for the licensing round are the following:

1. This letter of invitation with the following Appendices

1.1. Appendix 1: The take area for L-01 near Paamiut in West Greenland

(area 1)

1.2. Appendix 2: The take area for L-02 near Nuuk in West Greenland

(area 2)

1.3. Appendix 3: The take area for L-03 near Nuuk in West Greenland

(area 3)

1.4. Appendix 4: The take area for L-04 near Maniitsoq in West

Greenland (area 4)

1.5. Appendix 5: The take area for L-05 near Maniitsoq in West

Greenland (area 5)

1.6. Appendix 6: Requirements to the contents of the application

1.7. Appendix 7: General licence terms and royalty

2. Application form for application for an ice and/or water exploitation licence under

section 4 of the Ice and Water Act

3. Model declaration on joint representative and obligations

4. Model ice and/or water exploitation licence

5. Model approval of exploitation plan and closure plan

The documents are available online at

https://www.businessingreenland.gl/en/Udbud/Aktuelle-udbud.

2. Application procedure

2.1 The application procedure in general

An application for the grant of a water exploitation licence for one or more of the areas

available in this licensing round shall be submitted to:

The Ministry of Industry and Energy

Imaneq 1A

P.O. Box 1601

3900 Nuuk

Email: [email protected]

The application and its appendices may be submitted by letter post or electronically by

email.

https://www.businessingreenland.gl/da/Udbud/Aktuelle-udbud

mailto:[email protected]

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The applicant shall use the application form for a water and/or ice exploitation licence,

which is available online at http://www.businessingreenland.gl. See Appendix 6.

If the applicant submits the application with appendices by letter post, an electronic copy

of the application with appendices shall be saved on a USB memory stick to be

enclosed. The electronic copy on the USB memory stick shall be in Microsoft Word

format as well as Adobe PDF format.

On submission of the application, the applicant shall pay a fee to the Ministry of DKK

1,000. The fee is non-refundable, irrespective of whether a licence is granted. See

section 12.

Proof of payment shall be enclosed to the application.

2.2 Application for two or more water resources, take areas or licence areas

If an applicant submits applications for exploitation licences for two or more water

resources, two or more take areas or two or more licence areas, the applicant may

submit one combined application or one application for each resource, each take area

and each licence area.

The applicant’s application(s) shall meet the requirements in relation to each resource,

each take area and each licence area comprised by the application in the same way as

if one separate application was submitted for each resource and each area, including as

regards the payment of fees. By way of example, if one application is submitted for the

grant of a water exploitation licence for two areas, the applicant shall pay a fee to the

Ministry of DKK 2,000 on submission of the application.

3. Requirements to the contents of the application and

information and documents

An application for the grant of a water exploitation licence for one or more of the above-

mentioned areas shall be accompanied by the information and documents set out in

Appendix 6.

An application shall also fulfil the terms and conditions set out in Appendix 6.

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An applicant shall submit additional information and documents concerning the applicant

and the application to the Government of Greenland on its request.

4. Licence period and deadline for application

The licensing round will take place in the period from 7 January 2019 to 1 August 2019

at 23.59 pm local time in Nuuk, Greenland.

An application and its documents and materials, including any USB memory sticks, shall

be forwarded to and received by the Ministry. The application and appendices to the

application may be submitted by letter post or electronically by email. For more details,

see section 2.1 above. The Ministry’s address and email address are provided in section

2.1 above.

An application and its documents and materials may be submitted from 7 January 2019

and shall be received by the Ministry no later than 1 August 2019 at 23.59 pm local time

in Nuuk, Greenland. All applications received on or before this date will be considered

as if received simultaneously.

An application received after this date will not be processed or considered.

5. Activities under a licence

The licensing round concerns water exploitation licences.

Exploitation activities under a licence generally comprise all activities performed by or

on behalf of the licensee.

The activities may include, among other matters, the construction and use of

exploitation facilities, infrastructure and facilities for the transport, storage and tapping of

water, the exploitation and export of water as well as other activities relating thereto.

6. Areas available in the licensing round and licence areas

The Government of Greenland hereby invites applicants to submit applications for one

or more exclusive or non-exclusive licences for the exploitation of water from one or

more of the following five areas:

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1. L-01 near Paamiut in West Greenland with a total take area of 400 km2. The

take area is shown in Appendix 1.

2. L-02 near Nuuk in West Greenland with a total take area of 6374 km2. The take

area is shown in Appendix 2.

3. L-03 near Nuuk in West Greenland with a total take area of 50 km2. The take

area is shown in Appendix 3.

4. L-04 near Maniitsoq in West Greenland with a total take area of 25 km2. The


5. L-05 near Maniitsoq in West Greenland with a total take area of 25 km2. The


The five areas are shown on the below map.

An applicant may submit applications for water exploitation licences in one or more of

the above-mentioned areas.

The applicant shall prepare a proposed delineation for the licence area to be enclosed

to the application. The licence area may cover all or part of the take area described

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above and shown in Appendices 1-5 and an additional area in which the exploitation

activities and related activities are envisaged to be performed.

The Government of Greenland will decide on the delineation of the licence area in

connection with the grant of a licence. In relation to that, the Government of Greenland

will give weight, among other matters, to the applicant’s proposed delineation of the

licence area. However, the Government of Greenland is not bound in any way by the

delineation proposed by the applicant.

The Government of Greenland will not grant a licence for a licence area that is larger

than the area which the applicant has sufficiently demonstrated is needed for the

exploitation activities under the licence. The Government of Greenland may grant a

licence for a licence area that is smaller and with more modest water resources than the

area which the applicant has sufficiently demonstrated is needed for the exploitation

activities under the licence.

7. The licence period under a licence

In this licensing round, a water exploitation licence under the Ice and Water Act may

only be granted for a specified period of up to 20 years (the licence period).

The licence period for all of the areas available in the licensing round is up to 20 years.

The licence period is determined, among other matters, with due regard to the possibility

of obtaining a financial return on the activities.

The Government of Greenland may grant an extension of the licence period for a

specified period. The extension may be granted on changed terms. However, the total

licence period is subject to a maximum of 30 years.

8. The licensee and terms under a licence

8.1 General licence terms and approval of exploitation plan and closure plan

Activities under a water exploitation licence under the Ice and Water Act shall be

performed in an appropriate and sustainable manner as regards the technical, safety,

environmental, area, resource and quality matters.

The general terms and conditions applying to the grant of water exploitation licences

under the Ice and Water Act are set out, among other matters, in the Government of

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Greenland’s model documents which are available online at

https://www.businessingreenland.gl/en/Udbud/Aktuelle-udbud. This includes the

following model documents:

1. Model ice and/or water exploitation licence (the model licence)

2. Model approval of exploitation plan and closure plan (the model approval)

In this licensing round any exploitation licence will be granted on the terms of the model

licence with the adjustments and amendments which follow from the terms of this

licensing round, including the terms set out in this letter of invitation and its appendices

and documents.

For exploitation licences granted in this licensing round, any approval of an exploitation

plan and a closure plan will be granted on the terms of the model licence with the

adjustments and amendments which follow from the terms of this licensing round,

including the terms set out in this letter of invitation and its appendices and documents.

Some of the terms and conditions of an exploitation licence and an approval of an

exploitation plan and closure plan are mentioned in Appendix 7.

8.2 Terms regarding royalty, direct and indirect taxes

In relation to this licensing round, any exploitation licence will include, among others, the

following terms regarding royalty, direct and indirect taxes:

1. The licensee shall pay a royalty of DKK 0.04 per litre of water being exploited.

See section 25(1)(2) of the Ice and Water Act.

2. The licensee shall not be granted and may not apply for exemption from the

obligation to pay the royalty during a specified period from the grant of the

licence. See section 25(2) of the Ice and Water Act.

3. The licensee shall pay direct and indirect taxes under the relevant legislation of

the activities performed under the licence.

4. The licensee shall not be granted and may not apply for exemption from the

obligation to pay direct and indirect taxes under the relevant legislation of the

activities performed under the licence during a specified period from the grant of

the licence. See section 25(3) and (4) of the Ice and Water Act.

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8.3 Rights and obligations of the licensee under a licence

A water exploitation licence granted under the Ice and Water Act may only be granted to

one or more public or private limited liability companies with its registered office in

Greenland which meet the qualification requirements stated in section 9 below.

On grant of the licence, the company or the companies jointly will become the licensee

under the licence. The licensee holds the rights under the licence, including the right to

perform the exploitation activities for a delineated licence area (the licence area).

The licensee will also be bound under the licence. The licensee’s obligations are

imposed by the Ice and Water Act, the licence and the Government of Greenland’s

approval of activity plans and closure plans for the licence, etc.

A licence for exploitation of water may be granted as an exclusive or non-exclusive

licence for a specific resource or a specific area. As a general rule, the Government of

Greenland may grant an exclusive licence only where the exploitation potential is

expected to be utilised by the applicant as licensee and this has been sufficiently

documented by the applicant.

An exclusive licence implies that third parties as a general rule cannot be granted a

licence under the Ice and Water Act for exploitation of ice or water within the same area

or parts of the area or for the same resource.

In connection with the grant of a licence, the Government of Greenland will decide

whether to grant an exclusive or non-exclusive licence. In relation to that, the

Government of Greenland will give weight to all relevant matters, including whether the

application is for an exclusive or non-exclusive licence, whether the exploitation

potential is expected to be utilised in whole or in part by the applicant as licensee and

whether this has been sufficiently documented by the applicant. The Government of

Greenland may decide to grant a non-exclusive licence although the applicant has

applied for an exclusive licence. Before that, the Government of Greenland may ask the

applicant to state whether its wishes to be granted a non-exclusive licence.

The Government of Greenland will generally not grant an exploitation licence for a

volume of water that is larger than the volume of water which the applicant has

sufficiently demonstrated having the ability and willingness to exploit in relation to the

activities under the licence.

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The Government of Greenland may grant an exploitation licence for a volume of water

that is smaller than the volume of water which the applicant has sufficiently

demonstrated having the ability and willingness to exploit in relation to the performance

of the activities under the licence. Before that, the Government of Greenland may ask

the applicant to state whether its wishes to be granted such licence.

In a licence, the Government of Greenland may set terms on the maximum volume of

water which the applicant may exploit each year under the licence. The Government of

Greenland may decide to grant a licence on such terms although the applicant has

applied for a licence without such terms. Before that, the Government of Greenland may

ask the applicant to state whether its wishes to be granted a licence granted on such

terms.

In a licence, the Government of Greenland may set terms on the minimum volume of

water which the applicant shall exploit each year under the licence. The Government of

Greenland may decide to grant a licence on such terms although the applicant has

applied for a licence without such terms. Before that, the Government of Greenland may

request the applicant to state whether it wishes to be granted a licence with terms on the

minimum volume of water which the applicant shall exploit each year under the licence.

9. Qualification requirements (fundamental requirements to an

applicant)

The qualification requirements in this section 9 are fundamental requirements to any

applicant applying for a water exploitation licence under the Ice and Water Act in this

licensing round. Consequently, if an applicant does not meet the qualification

requirements of this section 9, the applicant cannot be granted a water exploitation

licence under the Ice and Water Act.

Any company shall meet the qualification requirements of this section 9 at the time of

application for an exploitation licence and during the entire licence period for an

exploitation licence.

In this licensing round, an applicant shall not be granted an exploitation licence with terms

on the exemption from the obligation to pay royalty or direct and indirect taxes for a

specified period after the grant of the licence. For more details, see section 8.2 above.

If a company meets all of the qualification requirements in this section 9, the

Government of Greenland will decide whether or not an applicant is to be granted a

water exploitation licence in the licensing round. For more details, see section 10 below.

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A company may decide to establish a subsidiary and have the subsidiary apply for and

be granted a water exploitation licence. The subsidiary shall then meet all of the

qualification requirements to the company in this section 9.

Two or more companies acting as a group may submit a joint application for and be

granted a water exploitation licence. Each such company in the group of companies

shall then meet all of the qualification requirements in section 9.1 about the company's

affairs, about the company being in full control of its assets and about solvency, etc.

In addition, the group of companies shall also jointly (collectively) meet the qualification

requirements in section 9.2 about technical and professional ability and economic and

financial ability and all of the minimum score requirements mentioned in section 10

below.

If two or more companies decide to apply for and are granted a licence together, the

companies may use a joint applicant company that is wholly (fully) owned and controlled

by the companies. The applicant company may then submit an application for and be

granted a water exploitation licence. The applicant company shall itself meet all of the

qualification requirements in section 9.1 about the company's affairs, about the company

being is in full control of its assets and about solvency, etc. and in section 9.2 about the

company's technical and professional ability and economic and financial ability and all of

the minimum score requirements in section 10.

9.1 Qualification requirements about the company's affairs, about the company

being in full control of its assets and about solvency, etc.

In this licensing round, a water exploitation licence may only be granted to one or more

companies if the company or each of the companies meets all of the following

requirements:

1. The company is a public or private limited liability company with its registered

office in Greenland.

2. The company is in full control of its assets and is not in suspension of payments,

bankruptcy or in a comparable situation.

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9.2 Qualification requirements about an applicant’s technical and professional

ability and economic and financial ability

Any company applying for an exploitation licence under the Ice and Water Act shall at

the time of application and for the entire licence period possess the technical and

professional ability and economic and financial ability required to perform the

exploitation activities and other activities under the licence.

The requirement for the applicant’s technical and professional ability means that the

applicant shall have the expertise necessary for establishing and operating a sound,

efficient and professional and economically sustainable (profitable) business and for

performing and ensuring the performance of the water exploitation project.

The requirement for the applicant’s technical and professional ability is, among other

matters, to contribute to ensuring that the activities under the licence are performed in a

sound and professional manner as regards safety, health, the environment and social

sustainability, including the use of Greenland workers and suppliers of goods and

services in relation to the performance of activities under an exploitation licence granted.

The required technical and professional ability includes, among other matters,

competencies, knowledge and experience with regard to the exploitation of ice or water

and the production, marketing, sales, transport and supply of ice or water products. The

required technical and professional ability also includes competencies, knowledge and

experience within nature conservation and environmental protection and the

performance of activities and implementation of measures relating to social

sustainability, including the use of Greenland workers and suppliers of goods and

services in relation to the performance of activities under an exploitation licence.

If two or more companies acting as a group (jointly) submit an application for a licence,

the requirement about possession of the required technical and professional ability and

documentation thereof may be fulfilled by either any of the companies of the group

individually or by the group of companies collectively.

The required technical and professional ability also comprises the requirement for and

documentation showing that neither the applicant company nor any person being part of

the applicant company's management team, including its executive board and board of

directors, and technical management team has in a final judgment been held to violate,

or accepted a fine for violating, a provision of the Criminal Code for Greenland

(Consolidated Act No. 1045 of 7 September 2017), Part 8 on terrorism etc., section 38

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on bribery, section 57 on false statement, section 61 on forgery, section 67(2) on supply

interruptions, including in particular water supply attacks, section 68 on illegal contact

with radioactive substances or sections 104-105 on fraud and data fraud. The required

technical and professional ability also comprises the requirement for and documentation

showing that neither the applicant company nor any of the mentioned person has in a

final judgment been held to violate, or accepted a fine for violating, a corresponding

provision of the laws of other relevant countries. In particular, such other relevant

countries comprise other countries in which the application company operates or have

operated and the home countries of the mentioned persons and other countries in which

the said persons or companies, which they own, manage or are employed with, operate

or have operated. If two or more companies jointly (together) apply for the grant of a

licence, the documentation shall comprise each of the applicant companies and each of

the mentioned persons in each of the applicant companies.

An applicant shall for the applicant company or each of the applicant companies submit

a declaration about the abovementioned matters regarding the provisions of the

Criminal Code for Greenland and of the laws of other relevant countries. The declaration

shall be issued and signed by one or more persons being part of the company's

management team, including its executive board and board of directors, who individually

or collectively are entitled to issue and sign the declaration for and with binding effect for

the company (are authorised signatories). An applicant shall for each person being part

of the applicant company's or each applicant company's management team, including

its executive board and board of directors, and technical management team submit an

extract from the criminal records or a similar document issued by a competent public

authority in Greenland or other relevant countries stating information on the

abovementioned matters. If it is not possible to obtain such document for one of the

mentioned persons in a relevant country, the applicant shall submit a declaration about

the abovementioned matters for the person in the country. The declaration shall be

issued and signed by the said person.

The requirement for the applicant’s economic and financial ability implies that the

applicant shall be able to incur and bear the costs and make the investments associated

with performing and completing the exploitation activities and other activities under the

licence and with establishing and operating an economically sustainable (profitable)

business in that relation.


the requirement about possession of the required economic and financial ability and

documentation thereof may be fulfilled by either any of the companies of the group

individually or by the group of companies collectively.

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The required economic and financial ability also comprises the requirement for and

documentation showing that the applicant company does not have unpaid debt due on

DKK 100,000 or more owed to public authorities in Greenland regarding taxes, indirect

taxes, payment under licences or social insurance contributions under legislation and

licence terms thereon in Greenland. If two or more companies jointly (together) apply for

the grant of a licence, the documentation shall comprise each of the applicant

companies. An applicant shall for the applicant company or each of the applicant

companies submit a declaration about the abovementioned matters issued by the

Government of Greenland. If it is not possible to obtain such declaration from the

Government of Greenland, the applicant shall for the applicant company or each of the

applicant companies submit a declaration about the abovementioned matters. The

declaration shall be issued and signed by one or more persons being part of the

company's management team, including its executive board and board of directors, who

individually or collectively are entitled to issue and sign the declaration for and with

binding effect for the company (are authorised signatories).

10. Award criteria (criteria for any award and grant of a licence)

10.1 Generally about award criteria and competing applications

If a company meets all of the qualification requirements mentioned in section 9, the

Government of Greenland will decide whether or not an applicant is to be granted a

water exploitation licence in the licensing round. The Government of Greenland’s

decision in that respect will be based on an overall assessment of the extent to which

the applicant complies with the following primary award criteria:

1. The applicant’s technical and professional ability

2. The applicant’s economic and financial ability

The award criteria are given the same (equal) weight.

The primary award criteria are mentioned in more detail in sections 10.2-10.3 below.

The Government of Greenland will make an overall assessment of an applicant’s

application and any additional information and documents which the Government of

Greenland deems to be of importance to the assessment. Based on this overall

assessment, the Government of Greenland will give an applicant 0-8 points for each of

the two primary award criteria according to the following score model:

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Compliance with criterion Score

Unsurpassed compliance with the criterion 8

Excellent/high degree of compliance with the criterion 7

Good/very satisfactory compliance with the criterion 6

Above average compliance with the criterion 5

Average/satisfactory compliance with the criterion 4

Below average compliance with the criterion 3

Less than satisfactory compliance with the criterion 2

Inferior compliance with the criterion 1

Poor compliance with the criterion 0

The Government of Greenland will only give points for matters which the Government of

Greenland finds to be documented or sufficiently demonstrated and which the

Government of Greenland otherwise deems to be realistic based on the application and

the supporting information and documents. If the Government of Greenland finds that a

matter has not been documented or sufficiently demonstrated or that it is unrealistic, the

Government of Greenland will generally disregard such specific matter. The matter will

thus carry no weight in the evaluation of an application.

An applicant shall meet the qualification requirements stated in section 9 above in order

for an applicant to be granted a water exploitation licence.

In addition, an applicant can only be granted a water exploitation licence under the Ice

and Water Act if the applicant obtains at least the below score for the compliance with

the following primary award criteria:

1. At least 4 points for the compliance with award criterion 1 – The applicant’s

technical and professional ability.

2. At least 4 points for the compliance with award criterion 2 – The applicant’s

economic and financial ability.

Applications will be competing if, at the end of the licensing round, the Ministry has

received two or more licence applications for the exploitation of the same resource,

exploitation in the same take area and/or exploitation in the same licence area from

different applicants. Two or more applications for such licences are competing,

regardless of whether the applications concern two or more exclusive licences, two or

more non-exclusive licences or exclusive and non-exclusive licences, respectively. In

case of competing applications, the Government of Greenland will decide first of all

whether the applicants meet all of the qualification requirements mentioned in section 9

above and all of the minimum score requirements mentioned in this section 10. If two or

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more competing applicants meet the said requirements, the Government of Greenland

may grant a licence to the applicant who has achieved the highest aggregate (total)

score according to the score model and the terms provided in this section 10. However,

the Government of Greenland is under no obligation to grant a licence to such applicant.

If two or more competing applicants meet all of the above-mentioned requirements and

two or more applicants have each achieved in aggregate (total) the same (equal) score

and the highest score according to the score model and the terms provided in this

section 10, the Government of Greenland will give weight to the following secondary

criterion when deciding which of the competing applicants is to be granted a licence:

1. Planned exploitation volumes

The secondary award criterion is mentioned in more detail in section 10.4 below.

The Government of Greenland will make an overall assessment of an applicant’s

application and any additional information and documents which the Government of

Greenland deems to be of importance to the assessment. Based on this overall

assessment, the Government of Greenland will give an applicant 0-8 points for the

secondary criterion.

The Government of Greenland will only give points for matters which the Government of

Greenland finds to be documented or sufficiently demonstrated and which the

Government of Greenland otherwise deems to be realistic based on the application and

the supporting information and documents. If the Government of Greenland finds that a

matter has not been documented or sufficiently demonstrated or that it is unrealistic, the

Government of Greenland will generally disregard such specific matter. The matter will

thus carry no weight in the evaluation of an application.

The Government of Greenland may to the applicant who has achieved the highest

aggregate (total) score grant an exploitation licence setting terms on the maximum

volume of water which the applicant may exploit under the licence. However, the

Government of Greenland is under no obligation to grant a licence to such applicant. If

the Government of Greenland grants a licence to this applicant, the licence will set

terms on the maximum volume of water which the applicant may exploit under the

licence.

In that case, the Government of Greenland may also grant an exploitation licence to the

applicant who has achieved the second highest aggregate (total) score, to the extent

that an additional volume of water can be exploited from the resource or in the take area

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or licence area. However, the Government of Greenland is under no obligation to grant

a licence to such applicant. If the Government of Greenland grants a licence to this

applicant, the licence will set terms on the maximum volume of water which the

applicant may exploit under the licence, and such volume of water shall not be larger

than the additional volume of water which can be exploited from the resource or in the

take area or licence area.

In that case, the Government of Greenland may in similar manner and on similar terms

grant licences to the applicants who have achieved the next highest aggregate (total)

score, to the extent that additional volumes of water can be exploited from the resource

or in the take area or licence area.

If two or more competing applicants meet all of the above-mentioned requirements and

two or more applicants have each achieved in aggregate (total) the same (equal) score

according to the two primary award criteria as well as the secondary award criteria, the

Government of Greenland may grant an exploitation licence to each of the two or more

applicants in question. If the Government of Greenland grants a licence to one or more

of these applicants, the Government of Greenland will grant a licence to all of these

applicants who have in aggregate (total) achieved the same (equal) score according to

the two primary award criteria as well as the secondary award criteria. However, an

exploitation licence is not to be granted to any one of these applicants if the applicant

does not wish to be granted a licence on such terms.

If the Government of Greenland grants a licence to each of these applicants, each of the

licences will set terms on the maximum volume of water which the applicant may exploit

under the licence. The exploitation potential of the water resource, the take area or the

licence areas will be distributed proportionally between these applicants. The distribution

will be based on the maximum volumes of water for which each applicant has applied

for an exploitation licence and in respect of which each applicant has sufficiently

demonstrated having the ability and willingness to exploit.

10.2 Primary award criterion 1: The applicant’s technical and professional ability

In its assessment of the applicant’s technical and professional ability (expertise), the

Government of Greenland will give weight to the extent to which the applicant

possesses and documents its possession of competencies, knowledge and experience

with regard to the exploitation of ice or water and the production, marketing, sales,

transport and supply of ice or water products.

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The Government of Greenland will base its decision on an overall assessment of all

relevant matters. In its assessment, the Government of Greenland may decide to attach

weight to the following factors:

1. Which and how many different types of relevant activities the applicant has

experience with, including also knowledge and competencies. By way of

example, this could be experience with regard to the exploitation of ice or water

and the production, marketing, sales, transport and supply of ice or water

products. It could also be experience within nature conservation and

environmental protection and the carrying out of activities and implementation of

social sustainability measures, including the use of Greenland workers and

suppliers of goods and services in relation to the performance of activities under

a licence.

2. For how long the applicant has had experience with performing the relevant

activities.

3. The extent of the applicant’s experience with the relevant activities, including

also in terms of value and volume of ice or water with respect to the activities in

question.

4. The extent to which the activities which the applicant has experience performing

correspond to the activities to be performed under the possible licence.

5. How current the applicant’s relevant experience is.

6. The qualifications, knowledge and competencies of the applicant or available to

the applicant in the applicant’s organisation.

7. The applicant’s preliminary plans for its activities under the possible licence and

the extent to which such plans are deemed realistic and show competence in

relation to the planned activities.

8. The relevant experience, knowledge and competencies of group companies and

other companies, to the extent that they undertake to make such experience

knowledge and competencies available to the applicant, e.g. by entering into an

agreement to that effect or providing a binding declaration to that effect (such

agreement or declaration to be enclosed to the application).

10.3 Primary award criterion 2: The applicant’s economic and financial ability

In its assessment of the applicant’s economic and financial ability, the Government of

Greenland will give weight to the extent to which the applicant possesses and

documents its possession of the economic and financial ability to perform the

exploitation activities and the other activities under a licence and the planned project.

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1. The applicant’s revenue, cash flow, equity, solvency ratio and results.

2. The applicant’s plans for the performance, including funding, of the activities

under the possible licence and the extent to which such plans are deemed

realistic in relation to the planned activities.

3. The binding commitments of group companies and other companies, including

banks or other financial institutions, with regard to granting loans, providing

security or other economic or financial support to the applicant in relation to the

activities under the possible licence.

10.4 Secondary award criterion: Planned exploitation volumes

In its assessment of the planned exploitation volumes, the Government of Greenland

will give weight to the extent to which the applicant will exploit large volumes of water

under the possible licence and the extent to which this is deemed realistic and has been

sufficiently demonstrated by the applicant.




1. The extent of the applicant’s exploitation needs and its documentation thereof.

2. The applicant’s water exploitation plans, including the planned exploitation

volume, and how large a part of the take area the applicant plans to exploit, how

many litres of water the applicant plans to exploit in each year of the licence

period and the extent to which such plans are deemed realistic and their

implementation has been sufficiently demonstrated.

3. The applicant’s planned full or partial exploitation of the total exploitation volume

under the licence (exploitation ratio or exploitation efficiency) and

documentation thereof.

The applicant's submission of information, documents and plans concerning the above

matters is for purposes of the Government of Greenland's processing and decision as to

the applicant's application for an exploitation licence. It will have no bearing on the

applicant’s obligation to prepare and submit an exploitation plan and a closure plan and

chances of having the plans approved under sections 14 and 15 of the Ice and Water

Act if the applicant is granted an exploitation licence.

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11. Negotiation with an applicant about terms for the grant of a

licence and the terms of a licence

The Government of Greenland has a right to negotiate with an applicant about the terms

for the grant of a water exploitation licence and the terms of such licence.

However, any exploitation licence will be granted on the terms of the model licence with

the adjustments and amendments which follow from the terms of this licensing round,

including the terms set out in this letter of invitation and its appendices and documents.

According to, among other matters, the terms of the model licence and the terms of this

licensing round, a licence to a resource or an area may be exclusive or non-exclusive.

The Government of Greenland will only negotiate with an applicant where this is

deemed relevant by the Government of Greenland.

Negotiations with an applicant may be deemed relevant, for example, if an applicant has

applied for an exclusive licence and can only be granted a non-exclusive licence, and

the Government of Greenland then requests the applicant to state whether it wishes to

be granted a non-exclusive licence. If the applicant informs the Government of

Greenland that it wishes to be granted a non-exclusive licence, the Government of

Greenland may grant such non-exclusive licence to the applicant. However, the

Government of Greenland is under no obligation to grant a non-exclusive licence to the

applicant.

Negotiations with an applicant may also be deemed relevant, for example, if an

applicant has applied for an exploitation licence for a specific volume of water and can

only be granted an exploitation licence for a smaller volume of water, and the

Government of Greenland then requests the applicant to state whether it wishes to be

granted an exploitation licence for the smaller volume of water. If the applicant informs

the Government of Greenland that it wishes to be granted an exploitation licence for the

smaller volume of water, the Government of Greenland may grant such licence to the

applicant. However, the Government of Greenland is under no obligation to grant such

licence to the applicant.

The Government of Greenland may negotiate with an applicant in the period allowed for

submission of applications in this licensing round and in the following period when the

Government of Greenland is processing and deciding on the application.

The Government of Greenland’s negotiations with an applicant will be conducted in

accordance with the Ice and Water Act, the terms of this letter of invitation and the

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general rules and principles of administrative law, including the principles of

objectiveness, non-discrimination and proportionality.

12. Fees and expenses in relation to case processing etc.

An applicant applying for a licence and a licensee under a licence shall pay certain fees

in relation to the regulatory processing, including, among other matters, the below fees:

1. Submission of one application: DKK 1,000

2. Grant of one licence: DKK 10,000

3. Approval of transfer of one licence: DKK 5,000

4. Extension of one licence: DKK 10,000

5. Approval of one exploitation plan and one closure plan: DKK 10,000

6. Approval of one change of the above plans: DKK 10,000

7. Approval of one temporary suspension of exploitation activities: DKK 5,000

In addition, the licensee shall reimburse and pay any expense in relation to case

administration, other regulatory processing, supervision and other administration in

relation to a licence and activities under a licence which is incurred by the Government

of Greenland, the Ministry and other authorities in Greenland.

The fees and the reimbursement and payment of expenses in relation to regulatory

processing etc. shall be paid by an applicant applying for a licence and by a licensee

under a licence at no cost or expense to the Government of Greenland, the Ministry or

other public authorities. Payment to the Government of Greenland or the Ministry shall

be made by transfer of the amount to account number 6471-1000028 and GLN no.

5790001954017.

13. Information, data and assessments concerning water

resources and water etc.

This letter of invitation and its appendices and documents comprise information, data

and assessments concerning water resources and water, including concerning take

areas, take sites, possible licence areas, volumes of water, water properties and water

qualities, and concerning facilities, equipment and infrastructure, etc. which can be used

for the exploitation, processing, transport or storage, etc. of water.

All such information, data and assessments are published and made available "as is"

and are general in nature and provided for guidance only. The information, data and

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assessments may differ from actual (real) conditions and may be inaccurate, incomplete

or incorrect as regards some conditions. If such information, data or assessments differ

from actual (real) conditions or are inaccurate, incomplete or incorrect, the Government

of Greenland and the Geological Survey of Denmark and Greenland (GEUS) assume no

obligations or liability in relation thereto or in relation to the resulting implications

towards applicants applying for the grant of licences, licensees under licences or third

parties.

Applicants applying for licences and licensees under licences shall make their own

investigations and assessments, where relevant.

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Appendix 1 – The take area for L-01 near Paamiut in West Greenland (area 1)

The take area L-01 near Paamiut in West Greenland with a total take area of 400 km2.

The take area made available covers a geographical area delineated by corner

coordinates connected with longitudes and latitudes as set out in the below table. All

longitudes and latitudes follow the World Geodetic System Datum 1984 (WGS-84).

No. Longitude latitude

0 -49.28130 62.25940

1 -49.33370 62.27210

2 -49.38170 62.28680

3 -49.37440 62.29350

4 -49.34810 62.30410

5 -49.33690 62.33270

6 -49.35730 62.33870

7 -49.37050 62.35890

8 -49.40310 62.36100

9 -49.38720 62.37290

10 -49.36720 62.37230

11 -49.32960 62.40490

12 -49.27050 62.44490

13 -49.15060 62.45500

14 -49.11070 62.48230

15 -49.00150 62.48000

16 -48.91020 62.46010

17 -48.80630 62.49820

18 -48.70970 62.48520

19 -48.64710 62.45500

20 -48.68370 62.43930

21 -48.72710 62.45790

22 -48.75740 62.45600

23 -48.76720 62.43770

24 -48.82070 62.41970

25 -48.79790 62.38180

26 -48.84470 62.37180

27 -48.84460 62.35930

28 -48.85720 62.35940

29 -48.85770 62.34190

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30 -48.88060 62.34110

31 -48.91170 62.34630

32 -48.93140 62.35900

33 -48.96230 62.35890

34 -48.97980 62.34410

35 -49.00210 62.33820

36 -49.01890 62.33900

37 -49.01810 62.33090

38 -49.06440 62.32630

39 -49.08350 62.31680

40 -49.13800 62.31010

41 -49.13480 62.27630

42 -49.18910 62.27040

43 -49.25820 62.24800

44 -49.27560 62.25350

The take area is shown on the below map.

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Appendix 2 – The take area for L-02 near Nuuk in West Greenland (area 2)

The take area L-02 near Nuuk in West Greenland with a total take area of 6374 km2.




No. Longitude Latitude

0 -50.78630 63.38440

1 -50.85400 63.38950

2 -50.85320 63.42350

3 -50.82340 63.45690

4 -50.85340 63.50060

5 -50.81180 63.51430

6 -50.05000 63.54260

7 -49.96640 63.60370

8 -49.75030 63.64120

9 -49.52990 63.75090

10 -49.07290 63.77550

11 -48.96060 63.68060

12 -48.56810 63.74580

13 -48.17000 63.72000

14 -47.98730 63.66920

15 -47.99020 63.59650

16 -47.80380 63.55970

17 -47.18610 63.51390

18 -46.77770 63.40180

19 -46.44870 63.28820

20 -46.20510 63.14170

21 -45.89310 63.12080

22 -45.83470 63.10370

23 -46.13590 63.05580

24 -46.37120 63.05020

25 -46.59650 63.14090

26 -46.92150 63.15130

27 -46.98830 63.09330

28 -47.42680 63.18760

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29 -47.74960 63.26330

30 -47.96520 63.24450

31 -48.57750 63.27910

32 -48.96050 63.26400

33 -49.28790 63.32570

34 -49.34530 63.36570

35 -49.50860 63.35350

36 -49.66270 63.36670

37 -49.80190 63.33630

38 -49.85920 63.35810

39 -49.88590 63.42010

40 -50.11670 63.39840

41 -50.14840 63.43880

42 -50.48590 63.42770

43 -50.59930 63.39420

44 -50.77100 63.37820


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Appendix 3 – The take area for L-03 near Nuuk in West Greenland (area 3)

The take area L-03 near Nuuk in West Greenland with a total take area of 50 km2.





0 -51.02370 64.07950

1 -50.96600 64.06760

2 -50.85050 64.03310

3 -50.85840 64.00860

4 -50.87090 63.99480

5 -50.89770 63.99340

6 -50.90220 63.97670

7 -50.96260 63.96840

8 -51.04070 63.97110

9 -51.08340 63.98260

10 -51.11810 64.00100

11 -51.09980 64.01220

12 -51.07360 64.02810

13 -51.04970 64.03590

14 -51.05870 64.07000

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Appendix 4 – The take area for L-04 near Maniitsoq in West Greenland (area 4)

The take area L-04 near Maniitsoq in West Greenland with a total take area of 25 km2.





0 -52.65800 65.80170

1 -52.62460 65.81160

2 -52.59310 65.81520

3 -52.57320 65.83210

4 -52.54630 65.85440

5 -52.53290 65.85110

6 -52.50430 65.85540

7 -52.50100 65.84770

8 -52.51790 65.82950

9 -52.51800 65.82210

10 -52.51060 65.80780

11 -52.49940 65.80370

12 -52.49690 65.79070

13 -52.48410 65.78570

14 -52.45610 65.78460

15 -52.46410 65.77380

16 -52.48930 65.77030

17 -52.48700 65.76110

18 -52.49480 65.75550

19 -52.52730 65.74940

20 -52.55640 65.75640

21 -52.61170 65.75340

22 -52.60700 65.76650

23 -52.63870 65.76560

24 -52.66380 65.77950

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Appendix 5 – The take area for L-05 near Maniitsoq in West Greenland (area 5)

The take area L-05 near Maniitsoq in West Greenland with a total take area of 25 km2.





0 -52.75570 65.57730

1 -52.75780 65.58330

2 -52.73680 65.59920

3 -52.67090 65.61950

4 -52.58100 65.63630

5 -52.56850 65.62530

6 -52.57660 65.61810

7 -52.58670 65.61590

8 -52.59310 65.60960

9 -52.60490 65.60770

10 -52.61020 65.59940

11 -52.64600 65.58850

12 -52.67800 65.58520

13 -52.71670 65.57790

14 -52.73590 65.57660

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Appendix 6 – Requirements to the contents of the application

An application for the grant of a water exploitation licence for one or more of the above-

mentioned areas shall be accompanied by the information and documents set out below

in this Appendix 6.

The applicant is responsible for ensuring that adequate documentation is provided to

show that the applicant meets the requirements for the grant of a licence. However, the

Government of Greenland reserves the right, but not the obligation, to request

supplementary information and documentation from the applicant after the end of the

application period for licences in this licensing round.

The qualification requirements of section 9 of the letter of invitation are the fundamental

requirements that shall be met by any applicant in order to be granted a water

exploitation licence under the Ice and Water Act. Consequently, if an applicant does not

meet the qualification requirements of section 9 or if no documentation is provided to

show that the applicant meets the qualification requirements, the applicant cannot be

granted a water exploitation licence under the Ice and Water Act.

1. Contents of application

1.1 Application form

The applicant shall fill in the application form for a water and/or ice exploitation licence,

which is available online at https://www.businessingreenland.gl/en/Udbud/Aktuelle-

udbud.

In the application form, the applicant shall state, among other matters, which area or

resource the application concerns and whether the application is for an exclusive or

non-exclusive licence.

Once completed, the form shall be enclosed to the application.

The language of the application and its appendices shall be Danish or English.

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1.2 Other information and documents

1. Information about companies and ownership interests

The application form shall provide general information about the applicant, e.g. the

applicant’s name, address, business registration (CVR) number, telephone number and

email address.

If the applicant is a group of companies, the application shall – in addition to the above-

mentioned general information – provide information on the envisaged share of each

individual applicant company in the possible licence. The applicant companies shall also

appoint a company and a person from such company to act as the joint representative

of the applicant group of companies and to be fully authorised (have power of attorney)

to represent the applicant group of companies and enter into agreements with the

Government of Greenland on behalf of and with binding effect on all of the applicant

companies in the group.

If the applicant is a group of companies, the application shall be accompanied by a

completed and signed declaration on joint representation and obligations, which is

available online at https://www.businessingreenland.gl/en/Udbud/Aktuelle-udbud. The

declaration shall be signed by one or more persons, who individually or collectively are

entitled and authorised to sign for (authorised signatories) and enter into binding

commitments for and on behalf of each applicant company. If the applicant companies

have entered into a cooperation agreement, such agreement shall also be enclosed to

the application.

2. Information about the use of Greenland and foreign workers and suppliers of goods

and services and about business partners, advisers, consultants, etc.

The application submitted by an applicant shall provide information about and/or be

accompanied by information about the applicant’s planned use of Greenland and foreign

workers and suppliers of goods and services in connection with the exploitation activities

and other activities under any exploitation licence granted, and about any business

partners, advisers, consultants, etc. of the applicant.

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3. General documentation concerning the applicant

An applicant shall append the following documentation to demonstrate that it meets the

requirements for being granted a water exploitation licence:

1. Documentation that the applicant is a public or private limited liability company

with its registered office in Greenland, e.g. a transcript from the Central

Business Register (CVR).

2. A declaration that the applicant is in full control of its assets and is not in

suspension of payments, bankruptcy or in a comparable situation. The

declaration shall be issued and signed by one or more persons, who are part of

the applicant company's management team, e.g. its board of directors or

executive board, and who individually or collectively are entitled and authorised

to issue and sign the declaration with binding effect for the applicant company.

Two or more companies may submit a joint application for and be granted a water

exploitation licence. Each such company shall then comply with the above

documentation requirements to the company.

4. Documentation of the applicant’s technical and professional ability and economic

and financial ability

An applicant shall provide documentation to show that it possesses the technical and

professional ability and economic and financial ability required to perform the

exploitation activities and other activities under the licence. For more details, see

sections 9 and 10 of the letter of invitation.

If two or more companies submit a joint application, the requirement for documentation

of the required technical and professional ability and economic and financial ability may

be met by either any of the companies of the group individually or by the group of

companies collectively.

By way of example, the technical and professional ability and economic and financial

ability of the applicant may be documented by the submission of audited financial

statements and a declaration providing relevant information on the financial statements

and documentation thereof. A declaration may describe how the applicant plans to

perform the activities under the possible licence, and provide information about and

documentation of the applicant’s technical and professional ability and economic and

financial ability. Additionally, the declaration may provide information about and

documentation of the applicant’s knowledge and experience with regard to the

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exploitation of ice or water and the production, marketing, sales, transport and supply of

ice or water products as well as the economic background to the project.

If the applicant bases itself on the relevant knowledge and experience of group

companies or other companies, the applicant shall provide documentation to show that

the supporting companies undertake to make such knowledge and experience available

to the applicant. By way of example, such documentation could be in the form of a copy

of agreements to this effect between the applicant and the supporting companies being

enclosed to the application.

An applicant may in some cases base itself on the agreements with or binding

declarations from one or more group companies or other companies, including banks or

other financial institutions, with regard to granting loans, providing security or other

economic or financial support to the applicant in connection with the activities under any

licence granted. If the applicant does so, the applicant shall provide documentation to

show that the supporting companies undertake to provide economic or financial support

to the applicant. By way of example, such documentation could be in the form of

agreements to this effect between the applicant and the supporting companies or

binding declarations to this effect from the supporting companies being enclosed to the

application.


the requirement about possession of the required technical and professional ability and

economic and financial ability and documentation thereof may be fulfilled by either any

of the companies of the group individually or by the group of companies collectively.

The required technical and professional ability also comprises the requirement for and

documentation showing that neither the applicant company nor any person being part of

the applicant company's management team, including its executive board and board of

directors, and technical management team has in a final judgment been held to violate,

or accepted a fine for violating, a provision of the Criminal Code for Greenland

(Consolidated Act No. 1045 of 7 September 2017), Part 8 on terrorism etc., section 38

on bribery, section 57 on false statement, section 61 on forgery, section 67(2) on supply

interruptions, including in particular water supply attacks, section 68 on illegal contact

with radioactive substances or sections 104-105 on fraud and data fraud. The required

technical and professional ability also comprises the requirement for and documentation

showing that neither the applicant company nor any of the mentioned person has in a

final judgment been held to violate, or accepted a fine for violating, a corresponding

provision of the laws of other relevant countries. In particular, such other relevant

countries comprise other countries in which the application company operates or have

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operated and the home countries of the mentioned persons and other countries in which

the said persons or companies, which they own, manage or are employed with, operate

or have operated. If two or more companies jointly (together) apply for the grant of a

licence, the documentation shall comprise each of the applicant companies and each of

the mentioned persons in each of the applicant companies.

An applicant shall for the applicant company or each of the applicant companies submit

a declaration about the abovementioned matters regarding the provisions of the

Criminal Code for Greenland and of the laws of other relevant countries. The declaration

shall be issued and signed by one or more persons being part of the company's

management team, including its executive board and board of directors, who individually

or collectively are entitled to issue and sign the declaration for and with binding effect for

the company (are authorised signatories). An applicant shall for each person being part

of the applicant company's or each applicant company's management team, including

its executive board and board of directors, and technical management team submit an

extract from the criminal records or a similar document issued by a competent public

authority in Greenland or other relevant countries stating information on the

abovementioned matters. If it is not possible to obtain such document for one of the

mentioned persons in a relevant country, the applicant shall submit a declaration about

the abovementioned matters for the person in the country. The declaration shall be

issued and signed by the said person.

The required economic and financial ability also comprises the requirement for and

documentation showing that the applicant company does not have unpaid debt due on

DKK 100,000 or more owed to public authorities in Greenland regarding taxes, indirect

taxes, payment under licences or social insurance contributions under legislation and

licence terms thereon in Greenland. If two or more companies jointly (together) apply for

the grant of a licence, the documentation shall comprise each of the applicant

companies. An applicant shall for the applicant company or each of the applicant

companies submit a declaration about the abovementioned matters issued by the

Government of Greenland. If it is not possible to obtain such declaration from the

Government of Greenland, the applicant shall for the applicant company or each of the

applicant companies submit a declaration about the abovementioned matters. The

declaration shall be issued and signed by one or more persons being part of the

company's management team, including its executive board and board of directors, who

individually or collectively are entitled to issue and sign the declaration for and with

binding effect for the company (are authorised signatories).

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5. Feasibility study and project description

The applicant shall carry out a feasibility study and submit it together with the

application.

The feasibility study shall include an assessment of the commercial exploitation

potential. The feasibility study shall also include an assessment of the area,

employment, quality, environment, resources, safety and technical aspects of the

contemplated exploitation activities. Furthermore, the feasibility study shall include an

assessment of the applicant’s planned use of Greenland and foreign workers and

suppliers of goods and services in its planned performance of the exploitation activities

under any licence granted.

Moreover, the applicant shall prepare and append the best possible project description

based on relevant matters, information, documents, assessments and plans. Among

other matters, the project description shall include an assessment of expected costs and

sales and the quality of the water product which the applicant plans to manufacture and

sell. The project description may be accompanied by documentation and other

appendices, where relevant.

6. Delineation of licence area

The applicant shall prepare a proposed delineation for the licence area. The licence

area may comprise in whole or in part the take area shown in Appendices 1-5 and an

additional area in which the exploitation activities and related activities are envisaged to

be performed.

The Government of Greenland will decide on the delineation of the licence area in

connection with the grant of a licence. In relation to that, the Government of Greenland

will give weight, among other matters, to the applicant’s proposed delineation of the

licence area. However, the Government of Greenland is not bound in any way by the

delineation proposed by the applicant.

7. Exploitation volumes

In the application, the applicant shall state the volumes applied for. The applicant shall

document or sufficiently demonstrate its exploitation needs.

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In its assessment of whether to grant an applicant a water exploitation licence and

whether to grant an exclusive or non-exclusive licence, weight will be given by the

Government of Greenland to the volumes of the total amount of water from the take

area (the highest product volumes possible) which the applicant is planning to exploit.

If the applicant believes that, in practice, the highest production volumes possible of a

take area are smaller than the generally or theoretically possible take area assessed by

the Geological Survey of Denmark and Greenland (GEUS) in the report on the five take

areas made available in this licensing round, the applicant may provide its own

assessment of the take area in question. If the applicant provides adequate calculations

to sufficiently support its assessment and those calculations are regarded by the

Government of Greenland as realistic and accurate, the Government of Greenland may

use the applicant’s calculations as its basis. They will then be used, among other

matters, when the Government of Greenland decides whether to grant the applicant the

water exploitation licence applied for and whether to grant an exclusive or non-exclusive

licence.

The report issued by the Geological Survey of Denmark and Greenland (GEUS) on the

five take areas made available in this licensing round is available online at

https://www.businessingreenland.gl/en/Udbud/Aktuelle-udbud.

8. Any appendices

Any appendices consisting of technical specifications, brochures or other material shall

be submitted together with the application. If the documentation is not available in

Danish, the appendix shall be enclosed in English or any other language approved by

the Government of Greenland.

1.3 Confidentiality

The Government of Greenland will observe confidentiality with regard to all information

and documentation prepared, submitted or received by the Government of Greenland in

connection with preliminary discussions concerning the grant of a possible licence for a

party or the party’s possible submission of a licence application. The confidentiality will

end three years after the end of the party’s discussions with the Government of

Greenland.

The confidentiality will not extend to any subsequent discussions, including concerning

the submission of a licence application.

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After the termination of confidentiality, public access to the information and

documentation will be subject to the general rules in this regard.

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Appendix 7 – General licence terms and royalty

Some of the terms of an exploitation licence and an approval are mentioned below.

1. Exploitation plan and closure plan

The licensee under a licence shall prepare an exploitation plan comprising all activities,

including exploitation activities and other activities, under the exploitation licence. The

exploitation plan and its appendices shall be submitted to the Government of Greenland.

The licensee shall also prepare a closure plan for the activities to be performed on

termination of the exploitation activities in respect of clean-up and removal of buildings

and facilities, etc. which have been established by the licensee. The closure plan and its

appendices shall be submitted to the Government of Greenland.

Both plans are subject to the approval of the Government of Greenland. Activities under

the licence may not commence before the Government of Greenland has approved both

plans.

In connection with its approval of the plans, the Government of Greenland may set

further and more specific terms regarding all relevant matters, e.g. technical, safety,

environmental, area, resource and quality matters and for the provision of security for

the licensee’s performance of its obligations under the licence, the exploitation plan and

the closure plan.

The licensee shall update and amend the plans on an ongoing basis to reflect any

substantial changes in the exploitation activities.

2. Maximum and minimum exploitation volume

In a licence, the Government of Greenland may set terms on the maximum volume of

water which the licensee may exploit each year under the licence. The Government of

Greenland may decide to grant a licence on such terms although the application is for a

licence without such terms.

In a licence, the Government of Greenland may also set terms on the minimum volume

of water which the licensee shall exploit under the licence each year. The Government

of Greenland may decide to grant a licence on such terms although the application is for

a licence without such terms.

3. Provision of security

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The Government of Greenland may set terms to the effect that the licensee shall provide

security in an amount decided by the Government of Greenland as security for the

fulfilment of its obligations under the Ice and Water Act, the exploitation licence and the

approval of the exploitation plan and the closure plan, including among other matters for

payment of the expenses related to the implementation of the required closure and

termination activities.

In connection with its approval of the closure plan, the Government of Greenland will set

further and more specific terms for the provision of security for the licensee’s

performance of its obligations.

4. Payment of royalty to the Government of Greenland

The Government of Greenland will set terms on the payment of a royalty under the

licence.

A licensee shall pay a royalty to the Government of Greenland. The royalty has been

fixed at DKK 0.04 per litre of water being exploited.

The royalty payable for a quarter shall be paid each quarter.

The licensee shall not be granted and may not apply for exemption from the payment of

the royalty for a specified period after the grant of the licence. See section 25(2) of the

Ice and Water Act.

5. Payment of direct and indirect taxes to the Government of Greenland

The licensee shall pay direct and indirect taxes under the relevant legislation of the

activities performed under the licence.

The licensee shall not be granted and may not apply for exemption from the payment of

direct and indirect taxes under the relevant legislation of the activities performed under

the licence during a specified period from the grant of the licence. See section 25(3) and

(4) of the Ice and Water Act.

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6. Supervision

The Government of Greenland supervises the activities under the licence, including,

among other matters, activities relating to the environment, water quality and

microbacteriology.

On presentation of evidence of identity, a person representing the supervisory authority

is entitled at any time, without a court order, to access all parts of the company and

activities to the extent required for the performance of the supervision, and to demand

all necessary information and documents from the licensee regarding its business and

activities.

A person representing the supervisory authority and the Government of Greenland may,

among other matters based on a supervision carried out, issue reprimands and orders

concerning violations of the Ice and Water Act, the exploitation licence and the approval

of the exploitation plan and closure plan and any other acts, regulations, provisions and

terms which apply to the licensee.

7. Duty to report

Each year on 1 April, a licensee under a water exploitation licence shall submit a report

to the Government of Greenland concerning activities and results in the preceding year.

The Government of Greenland will set terms on the licensee’s annual reporting and

other regular reporting on activities performed and the results thereof etc. Among other

matters, the Government of Greenland may set terms requiring the licensee to ensure

that its suppliers of goods and services etc. shall submit information and documentation

concerning activities and exports comprised by the licence under Ice and Water Act.

The Government of Greenland may also set terms on reporting in a decision to that

effect.

All expenses for the preparation and submission of reports etc. shall be borne by the

licensee.

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8. The licensee’s obligations and liability under the Ice and Water Act and the

licence etc. and liability in damages

The licensee shall observe and comply with all provisions, terms, decisions and orders,

etc. under the Ice and Water Act, the licence, the approval of the exploitation plan and

the closure plan, etc.

Furthermore, the licensee shall pay compensation for any damage or loss caused by

activities performed under the licence, even if accidental.

The licensee’s liability shall at any time be covered by appropriate insurance determined

by the Government of Greenland. The licensee will be liable for any claim for damages,

even if the amount of such claim exceeds the sum insured or is not covered by the

policy.

The Government of Greenland will set specific terms on the licensee’s insurance cover

in the Government of Greenland’s approval of the exploitation plan and the closure plan.

If the licensee is a group consisting of two or more companies, all such companies will

be jointly (and severally) liable and responsible to the Government of Greenland.

9. Third-party activities in the licence area

The licensee shall respect all existing rights in the licence area.

Within the licence area, third parties may be granted the following licences and

approvals and may perform the following activities etc.:

1. Other parties may be granted and perform activities under licences for

exploitation of ice and water resources for the supply to local consumers in

inhabited areas.

2. Other parties may be granted and perform activities under licences for and

approvals of exploitation of ice and water resources for own consumption.

3. Other parties may be granted and perform activities under licences for

commercial exploitation of ice and water resources granted under the Ice and

Water Act, to the extent this does not conflict with the licensee’s rights under its

licence.

4. Other parties may be granted and perform activities under prospecting,

exploration and exploitation licences for mineral resources under the Mineral

Resources Act, to the extent that the performance of such activities and the

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granting of such licences do not preclude, restrict or otherwise affect the

activities under an exploitation licence under the Ice and Water Act.

5. Other parties may be granted and perform activities under licences for or

approvals of construction and operation of pipelines, installations, infrastructure,

etc. under the Ice and Water Act or the Mineral Resources Act.

6. Other parties may perform tourism activities without tourism concessions and be

granted and perform tourism activities under tourism concessions granted by

the Government of Greenland under relevant legislation.

7. The Self-Government may carry out surveys of a general and cartographic

nature regarding hydrological and glaciological matters.

When granting a licence for or approval of other activities such as those mentioned

above, the Government of Greenland will set terms to the effect that the activities shall

be performed so as not to unnecessarily hamper the licensee’s activities under the

licence.

10. Transfer of the licence

Any direct, indirect or conditional transfer of the licence is subject to the prior approval of

the Government of Greenland. The Government of Greenland may decide to approve

the transfer if, among other matters, the new licensee meets the requirements to the

licensee and other requirements under the Ice and Water Act and the licence.

A direct transfer means a transfer of the licence by the licensee to another party. An

indirect transfer means any transfer of ownership interests in the licensee company

which will or may have an impact on the controlling interest in the licensee company.

In connection with the approval of the Government of Greenland, one of the matters to

be ensured is that the transfer does not impair or remove the basis for the licensee’s

performance of its obligations.

11. Revocation of the licence and approvals of the exploitation plan and the

closure plan

The Government of Greenland will set terms in a licence concerning revocation of the

licence and the approval of the exploitation plan and the closure plan.

Generally, the Government of Greenland may only revoke the licence and the approval

of the exploitation plan and the closure plan if the licensee fails to comply with the terms

of the licence or the approval of the exploitation plan or the closure plan, or provisions in

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the Ice and Water Act or provisions set under the Ice and Water Act or if the licensee

fails to meet specified time-limits.

In addition, the licence and the approval of the exploitation plan and the closure plan

may be revoked if the conditions for granting or upholding the licence are no longer met

or if liquidation or bankruptcy proceedings or the like are initiated against a licensee.

12. Nature conservation, environmental protection aspects, cultural monuments

and cultural landscapes

Nature conservation and environmental protection aspects under an exploitation licence

are generally governed by Greenland Parliament Act No. 29 of 18 December 2003 on

nature conservation (the Nature Conservation Act) and Greenland Parliament Act No. 9

of 22 November 2011 on environmental protection (the Environmental Protection Act)

with any subsequent amendments and executive orders set out under the Acts.

Section 14(2)(v) of the Ice and Water Act provides that a licensee's exploitation plan

shall comprise, among other matters, an assessment of the environmental impact of the

exploitation activities. In the explanatory notes to the provision it is stated, among other

matters, that in connection with an approval of an exploitation plan and a closure plan,

the Government of Greenland will make an overall assessment of all relevant matters of

the activities which the licensee is planning to perform and the facilities which the

licensee is planning to establish and operate, etc. In its assessment, the Government of

Greenland will take into account the activities and the environmental impact of the

facilities, etc. This means, among other matters, that a licensee will be required to make

an environmental impact assessment (EIA), prepare a report thereon (an EIA report)

and to have the report approved by the Government of Greenland, where relevant.

Apart from that, the Ice and Water Act does not contain any provisions on environmental

impact assessments and the preparation of a report thereon (an EIA report).

However, it follows from the Environmental Protection Act that major building and

construction works or other establishment of activities which may be assumed to

potentially have a significant environmental impact are not to be initiated until an EIA

report has been prepared and submitted to the Government of Greenland.

An EIA report shall generally be prepared and approved for an installation or the like

which, by reason of its nature, dimensions or situation may be expected to have a

significant environmental impact, including on ice, water, air or soil, etc. This is set out in

the Self-Government’s Executive Order No. 5 of 27 March 2013 on assessment of the

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environmental impact of certain installations etc. and payment for environmental

considerations.

For each licence, it shall be assessed, among other matters, whether activities, facilities,

etc. under the licence will mean that an EIA report shall be prepared by the licensee and

approved by the Government of Greenland under the relevant provisions of the

Environmental Protection Act. Furthermore, it shall be assessed whether a nature

consequence analysis is to be prepared by the licensee and approved by the

Government of Greenland under the relevant provisions of the Nature Conservation Act.

Protection and other cultural heritage protection of cultural monuments in areas covered

by activities after an exploitation licence is generally regulated by the Greenlandic

Parliament Act no. 11 of 19 May 2010 on protection and other cultural heritage

protection of cultural monuments (with subsequent amendments). Furthermore, the act

has been supplemented by provisions set under the act.

In the report made by GEUS on the five take areas in 2017, the take site (“outlet”) L04 is

for instance mentioned. There are in its take area (“catchment area”) some registered,

protected ancient monuments (NKAH 5144 and 5145). Near the 2 take sites (“outlets”)

L06 and L25 there are registered ancient monuments (NKAH 4863-4464 and NKAh

2600). The 3 other take sites ("outlets") have such a location that there with a significant

probability are unregistered ancient monuments nearby. It has to be assessed whether

ancient monuments eventually will be affected by activities after an exploitation licence

including for example construction activities or motorized traffic and whether some

activities therefore cannot be performed or will have to be performed in certain ways etc.

13. Area allotment and other public permits

The licensee’s activities under a licence will generally require an area allotment.

Areas, land and soil in Greenland generally all belong to the public. Thus, before any

specific area can be put to use, an application for the right to use the area shall be

submitted. The right to use the area is granted by way of a so-called area allotment.

The licensee under a licence shall submit an area allotment request to the local

authority of the licence area. The local authority will decide in each case whether to

issue an area allotment. The Government of Greenland will decide for areas outside the

scope of the local authorities.

Area allotments may be applied for online at http: http://www.nunagis.gl/da/.

http://www.nunagis.gl/da/

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