If a proposal is successful, Water Corporation will enter into a formal contract to facilitate the Project on terms substantially similar to the below.
- Water Corporation will provide the Customer with upfront capital to be used solely for the purpose of implementing the Project (Upfront Capital). This Upfront Capital may take the form of:
a. reimbursement of innovation initiatives supported by invoices paid ; or
b. other measures suggested by the Customer in its proposal.
- The quantum of the Upfront Capital will be comparable to, or less than, the estimated cost saving to Water Corporation which will be achieved by the Project over the first 5 years of implementation.
- The Customer must use best endeavours to successfully implement the Project.
- The Customer must take out appropriate insurances against force majeure in respect of the technology or equipment being used in the Project to maintain its continued operation.
- Unless otherwise agreed, Water Corporation will not assume any liability, or provide any technical assistance, during the implementation of the Project or for the success of the Project.
- The Customer is responsible for obtaining all relevant approvals and authorisations required to implement the Project.
- As part of the negotiations regarding the Agreement, Water Corporation and the Customer will agree on a benchmarked water usage matrix reflecting the Customer’s historical water use (Benchmark Figures). This will be a defined concept in the agreement.
- Notwithstanding that the implementation of the Project will result in a reduction in water usage, Water Corporation will continue to invoice the Customer at the Benchmark Figures until the total upfront capital is recovered, up to a maximum period of 5 years.
- The difference between the Customer’s actual water usage and the Benchmark Figures will be listed as a charge on the Customer’s invoice.
- The Customer must pay this additional charge.
- This charge will represent repayment of the Upfront Capital provided by Water Corporation.
- The Benchmark Figures will be subject to change to reflect increases in water charges imposed by Water Corporation over the repayment period.
- After the repayment period has elapsed, Water Corporation will perform a reconciliation exercise to determine whether the Customer has reimbursed Water Corporation, in full, for the Upfront Capital.
- If the reconciliation exercise determines that the Customer has not reimbursed Water Corporation, in full, for the Upfront Capital, the Customer will have the opportunity to either:
a. make a one-off payment to Water Corporation for the amount that remains un-reimbursed; or
b. continue to be invoiced at the revised benchmarked levels until reimbursement is made within a period not more than 5 years since the first capital upfront is paid.
- If the reconciliation exercise determines that the Customer has over-reimbursed Water Corporation for the Upfront Capital, Water Corporation will credit this overpayment to the Customer for its future water charges.
- Once the Upfront Capital has been provided to the Customer, the Customer will remain liable to reimburse Water Corporation for the Upfront Capital regardless of whether:
a. the Project is successful in reducing water usage; or
b. the Customer determines it no longer wishes to proceed with the Project.
- The Customer and Water Corporation may agree on a project and payment duration of less than 5 years by mutual agreement.
- If a force majeure event occurs, customer shall recover the cost of repayment through the insurance and continue to repay the un-paid upfront capital to Water Corporation.
- The Customer and Water Corporation will have reciprocal termination rights in the event of default and for convenience. If the Customer elects to terminate the contract, the Customer will need to make an immediate one-off payment to Water Corporation for the amount of the Upfront Capital that remains un-reimbursed.