The table below sets out the ownership arrangements for assets under the PV Standard Project Deeds.
Transfer of Ownership in Moveable Assets | |
When Project Co is required to acquire title | When Project Co is required to transfer title to the State |
Where the Moveable Asset: • forms part of the Works, by no later than the earlier of: - the date that the Moveable Asset is paid for; or - the Date of Commercial Acceptance; and • is acquired during the Operational Phase, the date the Moveable Asset is paid for, and in all other cases, no later than the Expiry Date. | The earlier of: • where the Moveable Asset: - forms part of the Works, the Date of Commercial Acceptance; and - is acquired by Project Co during the Operational Phase, when Project Co acquires title, and not later than the date that the Moveable Asset is paid for; and • the Expiry Date. |
Title in specialised equipment used to deliver the Services should be retained by the State on the Expiry Date and should therefore not be Services Equipment, on the basis that this type of equipment will need to be used by the State after the Expiry Date. Accordingly, the parties should agree prior to Contract Close which equipment falls into this category and include it in the Asset Management Plan at Contract Close. In that way, disputes over ownership and negotiations for transfer of the equipment can be avoided on expiry of the Project. Examples of the type of Services Equipment that falls into this category include:
• where it is bespoke for the Project, for example, automated guided vehicles that are often now used in hospital projects as part of Project Co's logistics solution; or
• where it is not part of the business as usual equipment provided by a Services Contractor as part of their services solution.
At times, this type of equipment may be hired rather than owned by Project Co so that it cannot transfer title to the State. Under the PV Standard Project Deeds the State must pre-approve the hiring of the equipment and the hire arrangements must be capable of novation to the State or its nominee, and during the Term the State may (on payment of the relevant residual value) require Project Co to procure that title to such equipment is transferred to the State. In the case of Group 3 Equipment, the State must be the counterparty to any applicable lease or hire purchase arrangement, unless the State agrees otherwise.
See section 2.1.4 for relevant definitions.