4.5  Project Company Default Analysis

Please consider the likelihood of Project Company default post refinancing and detail increased exposure in terms of Compensation on Termination requirements (See Application Note 1.3.1). Whilst the Authority will not be exposed to additional termination liabilities under Contractor Default in accordance with SoPC when a refinancing is undertaken, potential exists for a termination to be more likely if incentives to perform are reduced therefore affecting the continuing deliverability of service.

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