Extensions
TfNSW's contractual power to order variations allows TfNSW to order:
• a variation that requires ALTRAC to operate and maintain any extension to the Sydney light rail designed and constructed by TfNSW;
• a variation that requires ALTRAC to operate over, but not maintain, any extension to the Sydney light rail designed, constructed and maintained by TfNSW;
• a variation that extends the Sydney light rail by no longer than 20 per cent of its length and requires ALTRAC to design, build, operate and maintain the extension;
• a variation that requires ALTRAC to operate and maintain additional light rail vehicles for the Sydney light rail purchased from ALTRAC's LRV supplier (Alston); and
• a variation that requires ALTRAC to operate and maintain additional light rail vehicles for the Sydney light rail purchased by TfNSW from a third party (CAF).
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| However, the variation costs that TfNSW must pay for these variations have not yet been agreed. Rather, they must be negotiated and agreed having regard to various principles set out in schedules to the PPP contract. 33 The PPP contract includes fixed prices (subject to escalation and adjustment for specified events) for the supply of between four and 16 additional CESLR vehicles, provided TfNSW orders them before 1 March 2024. The fixed price doesn't cover operations or maintenance of the additional vehicles. The PPP contract also establishes a framework by which an augmentation (which is outside the scope of TfNSW's power to order variations) can be discussed and potentially agreed upon by the parties. The framework is based on the equivalent framework that was negotiated on the Sydney Metro Northwest, and fundamentally remains a non-binding agreement to negotiate. TfNSW cannot force ALTRAC to implement an augmentation, without ALTRAC's agreement. If TfNSW forms the view that it is unlikely the parties will reach agreement on an augmentation, TfNSW may terminate the PPP contract for convenience or purchase the equity in ALTRAC.34 |
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33 Schedule D4 (Net Financial Impact) and Schedule D5 (Pre-Agreed Options)
34 Schedule D9, clause 20