21.5.1  Payment mechanism

The inclusion of a capital contribution will lower the total unitary charge by reducing the amount required to service finance; however, the unitary charge attributable to service providers will remain the same. The effect of this is to change the relative amount of unitary charge at risk to project sponsors once the capital contribution is paid. Where a capital contribution is introduced into a project, the Authority will need to review the payment mechanism / deduction regime to ensure it remains appropriately calibrated and appropriate incentives exist to ensure delivery of the contracted services.