The funding for the delivery of the new convention centre is an agreed sum, disbursed through the payment schedule contained in the PPP contract. The costs of the commercial aspects of the development are being fully met by the commercial developer.
The project agreement for the design and construction phase uses a fixed-cost contract with the majority of risk residing with the project company. The State's risk resides in variations to the project agreement. The project agreement defines the process by which the cost of variations by either the State or the project company can be addressed.
A cost claim for the clean-up of unidentified site contamination was shared between the State and the project company (in accordance with the risk allocations in the agreement). The State's contribution is being drawn from the project contingency funds.
For the operations phase, payments to the private party are linked to repayment of the capital component of the facility, as well as the supply of facilities management and ancillary services. The contract contains a provision for abatement if these services are delivered below the required standard.