12.1.6  Maintenance Budget and Account

The private party must prepare an annual forecast maintenance budget which is to be reconciled with a pre-agreed 5-yearly maintenance program. It will also be required to open a maintenance and repair account which is to be adequately funded and only used for periodic capital works, asset refurbishment and asset replacement. Government may also require that the private party establish and maintain an improvement fund and make sufficient regular payments into that fund to cover the cost of future technological advances.