14.1.1  General assumptions

The capital expenditure and operating expense cash flows are derived based on the following general assumptions:

•  The construction and commissioning period is two years commencing [insert date], followed by a 10-year operating period, commencing [insert date].

•  All operating cash flows are assumed to be paid at the end of each period.

•  Nominal cash flows increase, in line with forecast inflation, is assumed to be 2.5 per cent per annum, except for labour costs which are assumed to increase by 3.5 per cent a year.18

•  All costs are exclusive of any GST.

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18  As advised by the Relevant PPP Authority