have access to the financial model as it gives details of the operating costs and
profit.
It may be appropriate to ask a third-party arbiter (such as the firm of account-
ants that acted as the Model Auditor for the lenders) to agree to such calculations.
For more minor capital costs, it may be sufficient to agree that they will be repaid
in the Tariff on an annuity basis at an agreed interest rate over the balance of the
term of the Project Agreement (but cf. §8.11).
Most of the political risk insurers discussed in Chapter 11 do not directly cover
change of law risk, but will provide cover indirectly for the Host Government de-
faulting on an obligation to compensate the Project Company for the costs in-
curred as a result of changes in law.
§10.7 QUASI-POLITICAL ...