20.3.1  Project-specific changes compensable

Relief and Compensation will be granted for Project-Specific Changes in Law in both the design and construction phase and the operating phase. Where a Change in Law is a Project Specific Change in Law (as set out in section 20.3.2), government will (subject to a nominal threshold in certain jurisdictions78) take full risk on each such event. Government will compensate the private party for any direct cost increases (including operating, capital expenditure consequences and financing costs) above specified thresholds. These thresholds may differ for capital and operating costs. Government will also take the benefit of any decreases in operating costs.

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78  These nominal threshold levels will be determined on a project-specific basis but are intended to avoid the administrative burden to government of frequent claims for relatively small amounts of monetary relief. Examples of the type of thresholds government may consider appropriate are $200,000 (indexed) for capital costs and $20,000 (indexed) per annum for operating costs.