14.3.1  Additional Rent

As a general principle, government will seek to share in excess profits. The private party may be required to pay to government additional rent payments under the lease government grants to the private party during the operations term. Any additional rent derived may be determined as a proportion of the amount of revenue from end users or other third parties that exceeds that projected in the Base Case Financial Model. The proportion payable will be specified in the project agreement.

Additional rent payments are treated as operating expenses for the private party and take priority to debt service.

Government may elect to reduce the Contract Term (up to a maximum pre-agreed percentage of the remaining Contract Term) instead of requiring payment by the private party of the additional rent.54

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54 See also section 3.2 (Variation to )