Land Lease Agreements

Land Lease Agreements are used whenever the government owns the land of the site of a project and leases it to the operating company or concesionnaire for the period of the concession contract. In an independent power project, the Land Lease Agreement could be a stand-alone agreement, or its main provisions can also be included in the Power Purchase Agreement or Implementation Agreement.

Australia

Land Lease Agreement (Solar Farm) may also need to be negotiated with private land owners or even local community groups. In certain remote parts of Australia, a part of a project site might be held by a local indigenous community through a registered corporate entity (called indigenous corporation). This sample land lease agreement was entered into between a solar farm project company and an indigenous corporation (which owned part of the project site). In addition to standard land lease provisions, the agreement imposed an obligation on the solar farm project company to provide employment opportunities to members of the indigenous corporation.

This Wind Farm Guide for Host Landholders was produced by New South Wales Farmer’s Association in Australia. It sets out an overview of common legal issues and market practices in respect of the negotiation of land lease agreements for hosting renewable projects in Australia.

The following is a sample stand alone Land Lease Agreement created for an independent power project in South East Asia.

Energy Land Lease Agreement

Name of Agreement: 

  • Land Lease Agreement between [Government] and [Project Company]
  • Land Lease Agreement

Part of a suite of model documents comprising also:

Type of Agreement:

Year of Agreement/ Draft: 2003

For more information about this sector, please visit Public–Private Partnerships in Energy and Power.

  • PPP Arrangements/Types of PPP Agreements

    Page Specific Disclaimer

    *Note: Although the key features of each category are summarized, there is overlap between the categories and the name given to a particular agreement may not reflect this classic categorization. Care should also be taken to identify whether a specific classification is enshrined in the laws of the host country, as in the case of many civil law jurisdictions where there are strict definitions of "concessions" and "affermages". The sample agreements included in this section are not the full range of agreements associated with infrastructure projects. They agreements are NOT intended to be used as "models". Legal advice should be sought in the preparation and drafting of an agreement to ensure that it is appropriate and workable in the circumstances of a particular project, sector and country. Find Terms and Conditions of this website here.

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Updated: September 24, 2024