4.1 Subject to paragraph 4.2, if the provisions of this paragraph 4 (No Retendering Procedure) apply Sub-hubco shall not be entitled to receive any Post Termination Service Amount.
4.2 If the Authority elects to follow the no retendering procedure in accordance with this paragraph 4 (No Retendering Procedure) after it has elected to follow the procedure under paragraph 3 (Retendering Procedure), then the Authority shall continue to pay to Sub-hubco each Post Termination Service Amount until the Compensation Date, in accordance with paragraph 3 (Retendering Procedure).
4.3 In agreeing or determining the Estimated Fair Value of the Agreement the parties shall be obliged to follow the principles set out below:
4.3.1 all forecast amounts of revenues and costs should be calculated in nominal terms at current prices, recognising the adjustment for indexation in respect of forecast inflation between the date of calculation and the forecast payment date(s) as set out in this Agreement;
4.3.2 the total of all payments of the full Service Payments forecast to be made from the Termination Date to the Expiry Date shall be calculated and discounted at the Discount Rate;
4.3.3 the total of all costs reasonably forecast to be incurred by the Authority as a result of termination shall be calculated and discounted at the Discount Rate and deducted from the payment calculated pursuant to paragraph 4.3.2 above, such costs to include (without double counting):
(a) a reasonable risk assessment of any cost overruns that will arise, whether or not forecast in the relevant base case;
(b) the costs of providing the Services reasonably forecast to be incurred by the Authority from the Termination Date to the Expiry Date in providing the Project Operations to the standard required; and
(c) any rectification costs required to deliver the Project Operations to the standard required (including any costs reasonably forecast to be incurred by the Authority to complete the Works) and additional operating costs required to restore operating services standards less (to the extent that such sums are included in any calculation of rectification costs for the purposes of this paragraph) the aggregate of:
vii. any insurance proceeds received (or held in the Insurance Proceeds Account) or which will be received pursuant to policies maintained in accordance with Clause 53 (Insurance): and
viii. amounts payable by the Authority in respect of Capital Expenditure under this Agreement which have not been paid,
in each case such costs to be forecast at a level that will deliver the Services to the standards required by this Agreement.
4.4 If the parties cannot agree on the Estimated Fair Value of the Agreement on or before the date falling twenty (20) Business Days after the date on which the Authority elected or was required pursuant to paragraph 2 (Retendering Election) or paragraph 3 (Retendering Procedure) to follow the no retendering procedure in accordance with this paragraph 4 (No Retendering Procedure), then the Adjusted Estimated Fair Value of the Agreement shall be determined in accordance with Clause 56 (Dispute Resolution).
4.5 The Adjusted Estimated Fair Value of the Agreement shall be paid in accordance with Section 5 (General) of this Schedule Part 17 (Compensation on Termination).