The Project Agreement requires the project company to indemnify and keep the state and the state's associates indemnified from and against all claims, and the Project Agreement stipulates the method for dealing with disputes.
In terms of construction, if final completion does not occur by the required completion date the project company must pay the state by way of liquidated damages the amounts determined in accordance with the a formula in the Project Agreement.
During the operating phase, in the absence of negligence on the part of the project company, abatement of the service payment is the sole remedy available to the state for a failure to meet the service standards.
The payment and abatement regime reflected in the Project Agreement supports the risk transfer objectives of the state and provides appropriate financial incentives for the project company to deliver the project on time and meet its obligations during the operating phase.