The template project deed includes an ability for the State to pay down a portion of senior debt. If a Conditional Debt Pay Down (CDPD) is included in the project deed, the Responsible Agency must pay down the agreed amounts once the project is completed and operational, subject to the Project Company's satisfaction of CDPD conditions. These conditions may include, but are not limited to:
• no outstanding major default; and
• the CDPD amount allocated directly to paying down outstanding debt.
Once a CDPD has been made, the availability payment from the State will step down by pre-agreed amounts in accordance with a CDPD protocol.
The State's incorporation of a CDPD into the project deed and the quantum of that payment will be determined on value-for-money grounds, taking into account a corresponding reduction in risk to the project in the post-construction environment.
Responsible Agencies must consult with NSW Treasury as early as practicable to determine and agree on the appropriateness of a CDPD, and the quantum for each specific project.