Guidance note: This Section is intended to provide an overview of the Payment Mechanism with reference to indexation and profile of capital structures, lifecycle expenditure profile and other payment profile considerations.

Table 6 (Components of Service Payment) should provide a breakdown of the components that make up the Service Payment which may include:

•  a capital component (comprising debt and equity);

•  an operations and asset management component (comprising both Reviewable Services and non-Reviewable Services);

•  a lifecycle component; and

•  a Project Co cost component.

It should also be noted in respect of each component whether it is subject to indexation and where subject to indexation, the applicable indexation factor should be specified.

Any additional payments made by the State to Project Co (e.g. a payment by results mechanism) or made by Project Co to the State (e.g. charge events) should also be addressed in this Section.

Table 7 (Components of Performance Regime) should set out the components of the performance regime.

Service Payment Component

Description

Base Components

[insert]

[insert]

[insert]

[insert]

Potential Payment Adjustments

Floating Rate Component

[insert]

[insert (e.g. insurance, utilities)]

[insert]