Article 1 Nature of IN-SHP

Co-sponsored by the United Nations Development Programme (UNDP) and United Nations Industry Development Organization (UNIDO), Ministry of Water Resources (MWR), Ministry of Foreign Trade and Economic Cooperation (MOFTEC) of People's Republic of China, the International Network on Small Hydro Power (hereinafter as IN-SHP) is an international coordinating and promoting organization for the global development of small hydro power (hereinafter as SHP), which is established on the basis of voluntary participation of regional, sub-regional and national focal points, relevant institutions, utilities and enterprises and with social benefit as its major objective.

Article 2 General Objectives of IN-SHP

IN-SHP aims at the promotion of global SHP development through triangle technical and economic cooperation among developing countries, developed countries and international organizations, hence to supply the rural areas in developing countries with environmentally sound, affordable and adequate energy, which will lead to the increase of employment opportunities, improvement of ecological environment, poverty alleviation, improvement of local living and cultural standards and economic development in rural areas.

Article 3 Specific Objectives and Tasks

The specific objectives and tasks of IN-SHP are as follows:

1. to promote small hydro power development through technical cooperation among developing countries, particularly through the exchange of know-how, experience, sharing of facilities for training, as well as matching of needs with capacities, as a means to the social, economic and environmental development of rural areas;

2. to exchange information on SHP development and management, including cost recovery, through workshops/seminars, publications, or study visits involving the membership;

3. to provide practical, technical advice to the membership and affiliated developing countries on developing bank fundable small hydro power proposals;

4. to undertake joint training, research and technology transfer among the Network members and affiliations;

5. to organize assistance to support selected SHP projects in developing countries, as appropriate;

6. to advise developing countries in the formulation of an appropriate legislative framework to encourage private investment in the development of SHP;

7. to assist in the development of world-wide markets for SHP technology and expertise, including those in developing countries, both to promote the technical development of SHP and to lower the cost of SHP equipment; and;

8. to set up an IN-SHP Trust Fund to give financial aid to activities in small hydro power field and the harnessing of small hydro power resources worldwide, as well as to cite and award the organizations and individuals who make notable contribution to the global small hydropower development.

Article 4 Name of the Organization

1. The name of this organization is INTERNATIONAL NETWORK ON SMALL HYDRO POWER, abbreviated as IN-SHP.

2. The headquarters of IN-SHP is HANGZHOU INTERNATIONAL CENTER ON SMALL HYDRO POWER, abbreviated as HIC, which is stationed in Hangzhou, Zhejiang Province, People's Republic of China.

Article 5 Management of IN-SHP

1. Management System

1.1. The headquarters office of IN-SHP, Hangzhou International Center on Small Hydro Power (HIC), is an international organization with an independent legal person status. It is registered both in the host country and in the United Nations Economic and Social Council (UNECOSOC). Internationally, it is operated and managed in line with the relevant rules and regulations of United Nations' NGO organizations, whose employees have UN NGO status.

1.2. The Director of HIC is its legal person who is in charge of the daily management of IN-SHP. The Director should be recommended by the government of the host country of the Network headquarters and approved and appointed by the plenary session of the Coordinating Committee of IN-SHP. The Director's term of office is 3 years.

2. Coordinating Committee

2.1. Definition and Responsibilities of the Coordinating Committee

The Coordinating Committee (CC) of IN-SHP is an international body. It is the policy and decision maker in the Network. It is responsible for the examination and approval of the Network's work plan, financial arrangement and enlisting of membership, etc. It is the governing and supervising body in the Network.

In normal case, the members of the Coordinating Committee meet annually to discuss the work of the Network. At least 50% of current CC members must be in attendance at the CC meetings to constitute a quorum and therefore make decisions on behalf of the Network. If quorum is not established, issues requiring a decision which affect the nature, policy, strategy of IN-SHP can be discussed, but decisions must be deferred until after consultation with other CC members. Decisions are reached on the basis of a majority (50%+1) of members in attendance.

CC members are responsible for attending the aforementioned annual meetings, making decisions to guide the strategic orientation and work of IN-SHP, contacting potential new members, promoting the work of IN-SHP among interested parties and advancing the work of IN-SHP through cooperation with HIC and among its members. In addition to paying their regular membership dues, CC members are responsible for facilitating funding of IN-SHP activities.

2.2. Composition of the Coordinating Committee

The institution of the Coordinating Committee is composed of Chair, Vice Chairs and members. In addition, an Honorary Chair(s) will be chosen to oversee the work of IN-SHP.

The CC members are IN-SHP member organizations which express an interest in participating in the CC. HIC will maintain up to date this list of member organizations.

Each organization designates one representative to the CC. In the event that an organization wishes to change its representative, HIC reserves the right to screen the new nominee to ensure he/she is at a level consistent with the previous representative. Such changes to the CC are effective as soon as the organization gives notices and do not need to be confirmed at CC meetings.

Organizations who have representatives holding the position of Chair or Vice-Chair may nominate an additional CC member to act as the day-to-day contact with IN-SHP, at its discretion.

2.3. Election of CC members

IN-SHP Officials, namely the Honorary Chair, Chair and Vice Chair, are nominated by IN-SHP members and elected by the CC members at their annual meeting. Each position has a term of office of 3 years. At the end of the term of office, Officials are required to indicate their intention to run for re-election or resign their Official position to HIC, preferably in writing, no less than 30 days before the CC meeting marking the end of the 3 year term.

Additional IN-SHP member organizations may be invited to join the CC by the Honorary Chair, Chair, Vice-Chairs of the Network, the Director of HIC, representatives from the Network's regional focal points, from the UN system, plus nominees from country focal points, international organizations and companies, NGOs and other institutions. Confirmation of new CC members will be made at the annual CC meetings.

No absolute maximum number of CC members is set. However, efforts will be made to keep the number of CC members to a manageable size of approximately 30. Therefore, no new CC members should be invited if the current number of CC members is greater than 30. Exceptions to this guideline in special circumstances can be made with the approval of the Chair of the CC, Director of HIC and at least one other CC member.

The term of office of CC member organizations is three years. At the end of each three year term, CC members are required to indicate their intention to remain on or withdraw from the CC to HIC, preferably in writing, no less than 30 days before the CC meeting marking the end of the 3 year term. At that time, the IN-SHP officials will propose a new list of CC member organizations for confirmation by the CC at the annual meeting marking the end of the three year term.

Article 6 Qualification of IN-SHP members

The membership of IN-SHP is open to all the governments, international organizations and other public and private institutions and individuals which/who are independent and legally qualified in research, equipment manufacture, project construction and management and operation in the field of SHP, and which/who accept the guiding principles of the Network, pay membership dues and take part in the activities of the Network. However, the country focal points of IN-SHP must be nominated and appointed by the relevant department of a ministry.

Article 7 Rights of Members

1. To participate in the Network's conferences, take part in the discussion of its work plan and make suggestions for its activities.

2. To have priority in getting the Network magazines and information provided by the Network.

3. To have priority or preferential policy in personnel training programmes organized by the Network.

4. To have priority or preferential policy in getting the technical consultation service and technical aid provided by the Network.

5. To participate in the implementation of the Network's work plan and programme.

Article 8 Obligations of Members

1. To observe this Guiding Principles, to publicize the image of the Network and to contribute to the development of Network and global SHP as a whole.

2. To enhance the cooperation among Network members and to support the Network's activities.

3. To carry out the Network's decision and plan. To undertake what is assigned to do.

4. To recommend and submit articles to the Network magazines and to provide the Network with technical information and SHP data.

5. To pay membership dues on time.

Article 9 Fund Sources

1. Fund for activities provided by relevant UN organizations and Chinese government;

2. Membership fees;

3. Financial support and donation from relevant governments and organizations, including contribution in kind.

Article 10 Membership fees

1. Every member organization and individual is obliged to pay membership fee on time. The standards for annual membership fees are as follows: US $ 800 each for the Coordinating Committee member organizations from developed countries and US $ 300 for Coordinating Committee member organizations from developing countries; US $ 300 each for the Country focal points in developed countries; and US $ 100 each for those in developing countries; US $ 300 each for enterprises in developed countries; and US $ 100 for those in developing countries; US $ 100 each for other institutions; and US $ 20 each for Individuals.

2. Member organizations having financial difficulty for paying membership fees, can apply for remission. Such applications are to be approved by the CC. In special circumstances, when the CC is able to spot organizations or individuals who have contributed well to the SHP movements, the CC may nominate them as honorary members, who shall not pay any member fees. Organizations having similar objectives in SHP promotion may be invited to be members on Exchange Membership basis.

3. Paying members who fail to remit the dues by the end of the financial year will be considered as voluntarily withdrawn from the Network and their names will be removed from the Current List of Members.

1. Expenses for the activities organized by the Network, including training, consultation, inspection and conference, etc.

2. Compilation, editing, publishing and distribution expenses for Network magazines.

3. Expenses for the establishment of SHP information & Network database.

4. Daily office expenses of the headquarters.

5. Other related expenses.

Article 12 Matters to Be Settled

1. This Guiding Principles of IN-SHP is issued with the authorization from the plenary meeting of the Coordinating Committee members. Any modification in line with the change of circumstances must be subject to the approval of the Coordinating Committee.

2. The headquarters office of the Network, HIC, is entitled to the interpretation of this Guiding Principles as well as the coordination of other matters to be settled.

3. In case the organization is dissolved, the CC will decide on how to distribute the remaining asset.