Guidance note: Procuring Agencies should delete reference to refinancing gains arising from the change in the manner or timing of payment of a State Contribution if a State Contribution(s) will not be paid by the State to Project Co in respect of the Project and Section 5.5.1 ([#State Contribution / #State Contributions)] is deleted. |
The State wishes to maintain its position in accordance with the Social Infrastructure Standard Commercial Principles in the National PPP Guidelines (Volume 3 Commercial Principles for Social Infrastructure) on refinancing, whereby refinancing gains [(other than refinancing gains which arise from a change in the manner or timing of payment of a State Contribution)] are shared equally between Project Co and the State once any previous refinancing losses have been recouped by Project Co. The State will not accept losses resulting from refinancing.
[Where a refinancing gain arises from a change in the manner or timing of payment of a State Contribution, the State will be entitled to 100% of the refinancing gain.]