26.1 If the Agreement is terminated in accordance with Clause 25.1 (Termination), save for the obligations set out in Clause 14 (Commitment of the Authorities and Contributions), Clause 18 (Sites) and Clause 27 (Confidentiality and Announcements), the Authorities shall be released from their respective obligations described in this Agreement.
26.2 Where an Authority withdraws from the Project and this Agreement in accordance with Clause 22 (Withdrawal during the Procurement Exercise) or is a Defaulter and this Agreement is terminated in respect of that Authority in accordance with Clause 25.2 (Termination), the withdrawing or Defaulter Authority shall, if the other Authority or Authorities so require by notice given before the expiry of the period of two (2) months' of the date of such withdrawing Authority's withdrawal or the termination of this Agreement in respect of that Authority as Defaulter, transfer to any one or all of such other Authorities any property acquired and/or secured by such withdrawing Authority or Defaulter for the purposes of the Project at cost (taking into account any contribution made to that cost to the withdrawing or Defaulter Authority from another Authority).
26.3 The Authorities acknowledge and agree that:
26.3.1 the PFI Project has been modelled on the basis of participation by the Authorities and that there are considerable economic benefits to be achieved as a result of such joint working; and
26.3.2 accordingly, save for the circumstances described in Clause 25.1. (Termination) or Clause 22 (Withdrawal during the Procurement Exercise), in the event that this Agreement is terminated in relation to any Authority pursuant to Clause 25.2. (Termination) or that any Authority otherwise fails to conclude the Second Inter Authority Agreement pursuant to the provisions of Clause 23 (Conclusion of Second Inter Authority Agreement) such Defaulter shall, subject to Clause 26.4. (Consequences of Termination), be liable to the Non-Defaulting Authority or Authorities for their consequential loss, including their reasonable and properly incurred abortive costs incurred in the Project (including but not necessarily limited to the costs of legal, financial and technical advice) any costs, claims and damages payable by the Non-Defaulting Authority or Authorities arising from claims from bidders in respect of their abortive costs and costs of re-commissioning alternative provision for the Project, loss of external funding and additional costs including LATS penalties or the cost of acquiring additional LATS Allowances as a consequence of the delayed availability of the facilities which were proposed to be procured under the PFI Contract.
26.4 Notwithstanding the provisions of Clause 26.3 (Consequences of Termination) the Authorities shall not agree or enter into discussions with a view to agreeing with any Bidder (including any Bidder appointed as preferred or reserved Bidder for the Project) that any of them is or will become liable to that Bidder at the time in question or in the future for any abortive or similar costs or damages of that bidder or its advisers.