26.3.2  Deductions

The following items will be deducted from the amount set out in section 26.3.1:

(a)  all credit balances on any bank accounts held by or on behalf of the private party on the Termination Date;

(b)  any amounts owing by the private party to government as at the Termination Date (including any amounts government is entitled to set-off);

(c)  any insurance proceeds paid or payable to the private party (or which would have been payable to the private party if it had complied with its insurance obligations) at any time between the Termination Date and the date the Voluntary Termination Payment Amount is paid, including insurance proceeds which would have been received before the Termination Date and applied against a component of the Voluntary Termination Payment Amount had the private party complied with the project documents, other than payments that are to be applied to repairing or rebuilding the facility or to third party liabilities; and

(d)  all sums due and payable to the private party from the financiers as a result of any prepayment of senior debt (including any amounts payable as a result of early termination of hedging arrangements) and any third party amounts paid to the private party at any time during the period between the Termination Date and the date of payment.131

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131  Upon termination, the private party must assign to government its rights to any claims against third parties which have not been determined or paid by the payment date.