3.2  Formula for compensation during the Development Phase

Unless this Deed expressly states otherwise, the amount payable (AP) in respect of a Change Compensation Event which occurs during the Development Phase is calculated as follows:

AP = BCM + DelC - S 

 

where:

 

AP =

(a)  the amount payable to Project Co, where AP is a positive amount; or

 

(b) the amount payable to the State, where AP is a negative amount;

BCM =

where applicable, the amount of any Base Costs plus, where applicable, Agreed Margins on those Base Costs. BCM is calculated in accordance with section 3.3;

DelC =

where applicable, the amount of any Development Phase Finance Interest and Prolongation Costs. DelC is calculated in accordance with section 3.4; and

=

the amount of any Savings.

Where the Change Compensation Event is the preparation of a Modification Proposal under Item 9 in Table 1BCM = Consultant Costs.