A reward and sanction regime is defined in the SDA. The reward system involves the SCSA making quarterly payments (via an escrow account) to the concessionaire for the delivery of key services outlined in the SDA. Sanctions or abatements are applied when the concessionaire fails to meet the specified KPIs.
Each KPI failure attracts penalty points and the accumulation of penalty points each quarter is used to calculate an abatement amount.
Penalty units are weighted in regard to the most critical services. The penalties are commensurate with the level of risk associated with the particular KPIs.