The general principles set out above apply to the income generated from the sale of all other process outputs which could include recyclable materials, compost, CLO, recycled bottom ash etc. The market conditions for these outputs vary significantly and the Authority should ensure it takes no downside risk in relation to the income sharing arrangements. Given the Contractor takes downside risk it is likely to be equitable to have a banded arrangement for sharing upside with the lowest band being 100% attributable to the Contractor.
Authorities should also be aware that the market for such outputs may require the Contractor to make a payment (rather than receive income) to transfer
ownership of the product. Again the Authority should ensure that it does not share the risk that such payments are higher than forecast.