33.2.  Updating the Financial Model

Whenever a Relevant Event occurs, the financial consequence shall (save where otherwise provided in this Agreement or where the parties agree otherwise) be determined in accordance with this clause 33 (Financial Adjustments).  Where for the purposes of this clause 33 (Financial Adjustments) the Financial Model is to be adjusted by reference to a Relevant Event, this shall be carried out by the Service Provider, and agreed by the Authority, to reflect the impact of any prior Relevant Event on the version of the Financial Model applicable immediately prior to the relevant adjustment and to reflect the impact of the Relevant Event in respect of which such adjustment is being undertaken, including the effect of Estimated Change in Project Costs.  In calculating any Change in Costs and any Change in Revenue, and in assessing other adjustments to be made to the Financial Model, the Service Provider shall be entitled to take into account, inter alia:

33.2.1.  reasonable economic assumptions prevailing at the time; and

33.2.2.  changes in the prospective Services arising as a result of the Relevant Event,

provided that the Authority shall not be required (and the Service Provider shall not be entitled) to take into account the financial impact up to the date of the Relevant Event of those risks which the Service Provider bears under the terms of this Agreement, including (to the extent so borne by the Service Provider under this Agreement) changes in VAT rates and taxation rates.