5.2.5  Share of refinancing gain

The Contracting Authority should consider what an appropriate sharing mechanism is. Equal sharing is one option, or staged sharing depending on the amount of the gain and/or how it arises. The basic premise under the Infra Australia PPP Guidelines is a 50% sharing (as it is in the South Africa PPP Guidelines), but recognising that more detailed arrangements and greater proportions may be appropriate.47 See Section 5.3, Sample Drafting 5, Clause (4).




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47  The UK PF2 Guidance draw a distinction between gains arising from a reduction in margin under the senior finance documents (where the Contracting Authority expects 90% of the gain) and other gains (where the Contracting Authority shares on a staged basis between 50 - 70% according to the size of the gain). A staged sharing percentage of 50 - 70% has also become the norm in the Netherlands.