25. Termination Payments

Principle

On early termination of the project agreement, other than due to private party default, government must pay a Termination Payment to the private party. This payment is calculated in accordance with the principles set out in this Chapter.

This chapter assumes that the private party has not taken residual risk on the project assets, and that those assets are transferred to government upon termination. In other circumstances, a different regime may be appropriate.

More Information