18.1.1  Entitlement

Jurisdictions may choose to provide different levels of detail as to what 'reasonable costs and expenses' include.  Subject to the overriding principles and requirements set out in section 18.1.2 below, the private party will generally be entitled to the following categories of costs and expenses:

(a)  the sum of the following amounts properly and reasonably incurred by it:

(i)  incremental design and construction trade costs;

(ii)  incremental costs in providing the Contracted Services (including incremental Lifecycle Costs);

(iii)  incremental debt financing costs;

(iv)  external third party advisory costs; and

(v)  incremental administrative and overhead costs of the private party; and

(b)  the lost service fee, or lost commercial opportunities, in so far as the project includes commercial opportunities / development (limited to the revenue projections in the Base Case Financial Model),

less:

(c)  any insurance proceeds or damages, or other compensation, or amounts received or receivable by the private party as a direct result of the occurrence of any events which gave rise to or contributed to the Compensation Event;

(d)  any costs avoided (including tax, financing and/or other benefits associated with deferred expenditure) accruing to the private party as a result of the occurrence of a Compensation Event; and

(e)  any additional revenue (over and above that specified in the Base Case Financial Model) which will be earned as a direct result of the Compensation Event.