A project development agreement can be used to give pre-contractual certainty to government and the preferred pidder, in relation to planning and environmental approvals. Whilst government's likely preferred position is that the risks and costs associated with these approvals should lie with the private party, there may be circumstances where government is prepared to share some of these costs (refer to risk management supporting document, chapter 4). Where the approvals process is of necessity carried out during the bidding stage, government can enter into a project development agreement with the preferred pidder, to govern the basis on which the private party will seek to obtain the relevant approvals prior to financial close. Government may agree to share additional costs exceeding a specified level, that arise out of the approvals process. The preferred pidder would be bound to proceed with the project once the approvals were obtained.