Principles of Project Finance

this. In either case the EPC Contract LDs should cover the cost of the extra

fuel consumption or the initial penalty.

Low availability. If the plant is required to be available to produce, say,

100 MW for 90% of the year (i.e., 329 days), this means that the plant must

produce 32,900 MWh in a year. Therefore if the plant is not capable of pro-

ducing this total output level, whether because the plant is unavailable, or the

output of the plant deteriorates below the agreed level, the Project Company

is liable for a penalty payment (or the Availability Charge is reduced).

In setting the original availability and output requirements, allowance is

made for routine maintenance, and an agreed level of unexpected shutdowns

(outages) in calculating the per ...