23.3  [Authority obligation to deliver 49

23.3.1  From the Services Commencement Date and subject to Clause 23.3.2, the Authority shall deliver Contract Waste that has arisen (or procure that Contract Waste that has arisen is delivered) to the Contractor in an amount no greater than the [Minimum Tonnage/Maximum Tonnage/Base Case]. The Contractor shall not be entitled to have delivered to it Contract Waste over the [Minimum Tonnage/Maximum Tonnage/Base Case], although the provisions of Clause 23.4 (Additional Waste) shall apply in relation to any Additional Waste.

23.3.2  The provisions of Clause 23.3 (Authority obligation to deliver) shall not apply to the extent that the Contractor does Not Accept Contract Waste or to Contract Waste which is handled, processed or landfilled outside the Contract because of a Relief Event, Force Majeure Event or Excusing Cause.

23.3.3  Breach by the Authority of Clause 23.3 (Authority obligation to deliver) shall be treated and assessed as a Compensation Event but shall not constitute an event of Authority Default.

23.3.4  Changes to the Administrative Area shall be treated and assessed as an Authority Change save that any Third Party Income shall be calculated in accordance with paragraph 6 (Principles Relating to Third Party Income) of Schedule 19. (Revision of Base Case and Custody). Changes to the Administrative Area shall not constitute an event of Authority Default.]

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49  In assessing whether exclusivity in relation to Contract Waste offers vfm, Authorities should give consideration to:

•  whether further Third Party Income can be guaranteed in the Base Case;

•  whether funder cover ratios can be met or lowered as a result; and

•  whether there is any benefit in providing exclusivity through a lower (or no) GMT (taking into account whether there is a proposed higher recovery of fixed costs in the initial band).

Where exclusivity is assessed as providing better value for money, Authorities should aim to have as narrow a definition of Contract Waste as possible (see footnote to the definition of Contract Waste in Schedule 1).  WIDP's position in relation to exclusivity is that Authorities should not offer this as a matter of course.