Commercial opportunities that the State will permit Project Co to pursue in respect of a Project will be determined on a project specific basis.
The procuring agency must clearly set out in the EOI and the RFP, the type of commercial opportunities Project Co will not be entitled to pursue and those that the State strongly endorses. Respondents' proposed commercial opportunities should be discussed as part of the ITP Workshops to ensure they meet State expectations. If the State accepts the commercial opportunities proposed by the Successful Respondent, the Project Deed will need to include:
• access arrangements for commercial opportunity tenants;
• any approval rights the State requires in respect of commercial opportunity tenants and agreements;
• any other fetters that the State requires in respect of the commercial opportunities; and
• any revenue sharing in respect of the commercial opportunities (beyond any discount to the Service Payments already included in the Project Deed).
These will be determined on a project specific basis.
If the State accepts the commercial opportunities proposed by the Successful Respondent, the State will determine how the commercial revenue is shared. The arrangements may include:
• an upfront discount to the total quantum of Service Payments locked in at Financial Close based on forecast revenues; or
• sharing an agreed percentage of actual revenue during the Operational Phase with Project Co making periodic payments to the State.
The approach pursued will depend on the nature of the commercial revenues, the allocation of demand, cost and performance risks inherent in generating such revenues and value for money.