Service risks

The withdrawal by Octagon's investors of large early benefits from the project was, in effect, an advance payment of the profits that Octagon expected to earn over the life of the contract. It creates a risk that Octagon's investors may not be so concerned about the quality of Octagon's future service delivery because the investors have already received a substantial part of their project benefits which previously depended on service performance. The Trust, so far, has found Octagon's service to be very good but these are early days in a contract which now extends to 2037.12




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12  C&AG's Report, Figure 8, p 9; Qq 9, 18-21