Assessing allocation

At the end of the Project Term, the Project Company will handover the Hospital Facilities to the government for a nil consideration.  The Project Company will be required to ensure that the Hospital and the Mater Hospital Site are returned to the government in the requisite condition at the end of the Project Term.  Accordingly, four years prior to the end of the Project Term, an independent reviewer will be appointed to review the condition of the Hospital Facilities and recommend the refurbishments required to allow the Hospital and Mater Hospital Site to be in the Handover Condition at the end of the Project Term.

The government will then require the Project Company to set aside an applicable amount from each Service Payment that relates to its refurbishment obligations to be paid into an escrow account.  Any monies remaining in the escrow account upon expiry of the Project Deed will be returned to the Project Company.

Although the Project Company will be required to ensure that the Facilities are in the condition required by the government at the end of the Project Term, it is the government who has set the handover conditions and the party who will bear the significant proportion of residual value risk.  Consequently, this risk has been assessed to lie with the government.