Penalties and abatements:

-  Although abatement (including the threat of abatement) can be an effective means of driving private partner behaviour by providing a strong incentive to perform under the contractual framework of the concession deed, the decision to apply abatement for under-performance can be a matter of professional judgement. Knowing when to apply abatement and when to allow performance or compliance flexibility can be strategically important in achieving desired outcomes over the long term, but at the risk of endangering sustainable public partner management control.