The basis for reimbursement of the RTA's development costs was specified to the bidders in advance and an estimate of $54 million given. However, the RTA had received no clear and explicit directions then (or since) on how to use the BCF. Nor were there any guidelines on how the RTA should handle project cost increases.
The RTA understood that the project was to be delivered at 'no net cost to government'. It saw seeking an upfront payment to recover at least its project development costs, as estimated at the time, as fundamental to achieving this objective.
The RTA estimated its development costs for the 'project concept' put to tender. This indicative figure of $54 million would be revised as the project scope was further refined, especially if a non-conforming proposal was selected.