1. The parties shall consider whether they authorise the assignment of the contract in whole or in part to a third party and, where permitted, whether they impose conditions on the position of the assignee and the place of registration of the assignee. 2. Is the agreement freely transferable by the authority? If not, is it at least transferable as collateral to the lenders concerned? (3) Is the assignment of the contract by the operator subject to the consent of the authority? The normal approach to this issue is to provide an agreed budget. The budgetary procedure should contain the following provisions:A. Agreement on the budget 1. Obligation of the operator to draw up a budget and obtain the approval of the authority for that budget. 2. There should be a dispute settlement procedure concerning the content of this budget. 3. The Authority should possibly be entitled to insist that certain items be excluded from the budget, subject to exclusion of liability on the part of the operator in the event that liability results. Β budget control 1.

The agreement may provide that, subject to a de minimis provision, the Authority shall approve all expenditure on a continuous basis, even if it is included in the budget. Alternatively, expenditures above a certain level must be approved. In the event that the budget is exceeded in one year without the approval of the authority, the threshold above which the approval of the authority is required may be reduced. (2) There should be an obligation to identify discrepancies that arise and to report on the reasons for those discrepancies. 3. Provision should be made for [monthly/quarterly] revisions of the budget. 4. As a general rule, there are certain exceptions to the general obligation of the operator to respect the budget, e.B: (a) the measures taken by the operator to minimize or avoid the impact of emergency situations; (b) expenditure pre-approved by the Authority; and/or (c) adaptations approved by the Authority; (d) any increase up to a certain maximum amount in relation to each budget line (i.e. no total increase) e) certain items may be recognised as beyond the control of the operator.C. The consequences of non-compliance with the budget: The agreement could provide for the following consequences if the budget is exceeded in a year: (a) an overrun of the budget by more than one prescribed amount could be treated as a material defect that allows the authority to terminate the appointment of the operator; (b) an overrun of the budget in successive years or two years over a period of three years could be considered a material breach authorizing the Authority to terminate the appointment of the operator; (c) the obligation for the operator to reimburse the Authority for any additional costs; and/or (d) verification of the financial limits beyond which the authority`s consent is required. The operator should be required to operate and maintain the facility at all times in accordance with: 1.

All applicable laws and regulations. 2. All applicable consents and licenses. 3. ”Project Contracts”, including concession agreements and/or the Main Acceptance Agreement. 4. Good industry practice or standard of a reasonable and prudent operator. 5. All security requirements. 6. Recommendations from all manufacturers.

7. The requirements of insurance policies. (8) (a) minimize natural deterioration and normal wear and tear; (b) maximize the operating efficiency of the facility; and (c) minimize forced failures (i.e., failures). NB. Where any of the above requirements are contradictory, the operator should be required to follow the authority`s instructions to remedy those inconsistencies at no additional cost. .