Principles of Project Finance

Charge, which varies with usage of the plant (also known as the Variable Charge).

In addition, certain other charges may be payable.

Availability charge. The Availability Charge element of the Tariff is paid

even if plant is not dispatched, since it represents the fixed costs that the Proj-

ect Company incurs just by building the plant and making it available to the

Power Purchaser.

This element of the Tariff is thus intended to cover:

• Fixed operating costs, e.g. land rental, staff costs, insurance premiums,

scheduled maintenance and replacement of spare parts, fixed (or capacity)

payments to a fuel supplier for a fuel pipeline, taxes, etc. Accounting de-

preciation of the plant (cf. §12.7.1) is not a fixed operating cost for this

purpose, nor is it taken ...