The AUC shall be subject to a Recycling Adjustment to reflect the variance between the tonnage of Contract Waste Recycled and the Target Recycling Rate multiplied by the tonne of Contract Waste in the relevant Contract Year.
The Recycling Adjustment shall be calculated in accordance with the following formula:
R = (AR - (TRR * CW)) * RPR
where:
AR | Actual Recycled Tonnage in the relevant Contract Year |
TRR | |
CW | The tonnage of Contract Waste in the relevant Contract Year |
RPR | Recycling Payment Rate per tonne of Contract Waste |
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15 The Recycling Adjustment may be appropriate for MBT solutions to provide incentives for the Contractor to recycle Contract Waste. The base case scenario should include income through the Recycling Adjustment.