32.6  Payment of the Re-financing Gain

Government may elect to receive its share of the Re-financing Gain in one (or a combination) of the following ways:

(a)  a lump sum payment from the private party; and/or

(b)  a reduction in the service fee in accordance with the Compensation Principles.

In determining the appropriate method for payment, government will consider the form in which the private party receives the Re-financing Gain (i.e. whether a reserve that has been released is paid out).