6.5.1  Payment Mechanism

Payments to Project Co during the Operating Phase will be structured as Service Payments encompassing capital and services elements of the Project.  The payment mechanism is being developed to drive performance, innovation and value for money.  The payment structure's performance will be:

•  clearly linked to the achievement by Project Co of the availability and performance requirements in the Project Deed;

•  set at realistic and achievable levels; and

•  capable of objective measurement, effective monitoring and accurate and timely reporting.

The payment mechanism is described in Table 5 (Overview of Service Payment) below.

Table 5: Overview of Service Payment