Model Project Development Agreement Page 59
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8816.6.2
The Company shall first fund any costs, which it is entitled to recover under Section
16.6.1through:
(A)
the proceeds which the Company is entitled to claim from the Export
Offtaker under the Export Power Purchase Agreement; and
(B)
the proceeds of any insurance policies which have been taken out by the
Company, including the proceeds from the insurance policies required
by Section 15.14.
16.6.3
In the event that the Company is unable to fully recover such costs through the methods
specified in Section 16.6.2, provided that the Company has fully exercised all its rights
to claim such costs under the Export Power Purchase Agreement and the applicable
insurance policies, the GON shall compensate the Company for such costs which
remain outstanding by means of one (1), or a combination of, the following (determined
at the sole discretion of the GON):
(A)
reducing the Energy Royalty payable by the Company to the GON
following COD under Section15.22; and/or
(B)
reducing the Capacity Royalty payable by the Company to the GON
following COD under Section 15.22; and/or
(C)
reallocating all, or a proportion of, the electrical energy which is to be
provided to the GON by the Company free of charge under the
Domestic Free Power Purchase Agreement and Section 15.15.
In order to comply with its obligations under Section 16.4 to mitigate the effects
of such Political Force Majeure Event, the Company shall sell any additional
electrical energy reallocated by the GON under Section 16.6.3 (A)into the market
on arm's length commercial terms and at a price which is not less than that being
paid under the Export Power Purchase Agreement.
Consequences of Political Force Majeure Events following COD
16.7
16.7.1
Upon the occurrence of a Political Force Majeure Event on or after COD, for the period
during which the Political Force Majeure Event or the effects thereof are outstanding,
the Company shall first fund any costs incurred or loss of revenue through:
(A)
the proceeds which the Company is entitled to claim under the Export
Power Purchase Agreement (including under any deemed availability
provisions); and
(B)
the proceeds of any insurance policies which have been taken out by the
Company, including the proceeds from the insurance policies required
by Section 15.15.
16.7.2
In the event that the Company is unable to fully recover such costs or loss of revenue
through the methods specified in Section 16.7.1, provided that the Company has fully
exercised all its rights to claim such costs or loss of revenue under the Export Power
Purchase Agreement and the applicable insurance policies, the GON shall compensate
the Company for such costs or loss of revenue which remain outstanding by means of
one (1), or a combination of, the following (determined at the sole discretion of the
GON):
(A)
reducing the Energy Royalty payable by the Company to the GON
following COD under Section15.22; and/or
53
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