The State expects the capital component of the Service Payment will not decline in nominal terms over the Operating Phase. For example, the State prefers not to receive proposals for sculpted capital components which facilitate the accelerated repayment of private sector capital.
Any variance to the State's preferred profile should be submitted as a value for money enhancement in accordance with Proposal Requirement E3.1 (Value for Money Enhancements), Volume 1, Part B (Evaluation Criteria and Proposal Requirements), and should not be submitted as part of Respondents' core Proposal.