(a) Where the private party's claim is only in respect of hard operating cost increases, or a mixture of capital expenditure and hard operating cost increases, government will assess and respond to the private party's claim at the next review date following the submission of the claim. To the extent the private party's claim is accepted by government, government will compensate the private party (by way of a one-off payment) for any approved capital expenditure and hard operating costs incurred by the private party during the period between the relevant Project Specific Change in Law occurring and the relevant review date.
(b) However, where:
(i) the capital expenditure is above a specified threshold; and
(ii) the private party, having used its reasonable endeavours, is unable to obtain competitive funding for the cost of additional works which is acceptable to government,
government will consider the private party's claim for capital expenditure in isolation from the operational effect at the time the private party submits its claim.