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 liquidated damages determined in accordance with a formula in the project agreement.
During the operating phase, in the absence of negligence or any other default event trigger, on the part of the project company, abatement of the service payment is the main remedy available to the state for a failure to meet 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 to meet its obligations during the operating phase.