Transport for LondonPPP Contracts
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Schedule 4.2 - Indexation |
| 1 Any monetary value or amount ( the Indexable Amount ) set out in any Transaction Document ( except for Asset Damage Mandatory Deductible and Third Party Mandatory Deductible ) shall be indexed ( the result of such indexation being the Indexed Amount ), in the absence of express provision to the contrary, pursuant to the following provisions of this Schedule 4.2. |
| 2 Where no reference is made in any Transaction Document to indexation taking place as at any particular date, indexation shall take place annually on the anniversary of the Start Date. |
3 Subject to paragraphs 8 and 9 below the Indexed Amount is calculated as follows: x ( Indexable Amount )where: ro = RPIX published for February 2002. |
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Withdrawal of index |
| 4 If any index, any of the publications or the information derived from any such publication and referred to in any Transaction Document ceases to be published, then such alternative index or publication or information which the parties agree produces as nearly as possible the same result or gives the same information shall be substituted therefore, and if the reference date used in the compilation of any such index or information shall change, the figure taken to be shown in such index or information shall be the figure which would have been shown in the index or information if the original reference date had been retained. |
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Change in the Basis of Index |
| 5 If there has been a material change in the basis of information from which the index is compiled which produces a significant change to the indexation provisions contained in any Transaction Document or it becomes impossible, by reason of any change after the date hereof in the method used to compile any such index or information or for any other reason whatever, to calculate the amounts by which the sums payable hereunder should be adjusted by reference to any such index or information or any alternatives thereto, the parties shall agree such alternative method of adjusting the last available reference charge payable under the relevant Transaction Document as a basis for the making of subsequent payments under that Transaction Document as most closely reflects the intent of the index or information in question. |
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Reference to Disputes Procedure |
| 6 If any dispute or difference shall arise between the parties as to this Schedule 4.2 or as to the calculation of the sums payable in the circumstances referred to in paragraphs 4 or 5 ( and a dispute shall be deemed to have arisen if the parties have not reached agreement within six (6) weeks of the occurrence of the event referred to in paragraphs 4 or 5 ) the same shall be determined in accordance with the provisions of the Dispute Resolution Agreement. |
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Effect of determination under Disputes Procedure |
| 7 If so determined pursuant to this Schedule 4.2 and the Dispute Resolution Agreement, the index or information in respect of which the dispute or difference has arisen between the parties may be amended, or replaced by a substitute index or information, or replaced by other provisions providing for the adjustment of payments under any Transaction Document, as may be provided in such determination, and the necessary payments and repayments shall be made between the parties together with interest at the Applicable Rate in order to give effect to such determination with effect from the date on which it is determined that the circumstances or events giving rise to dispute or difference between the parties occurred. |
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Adjustments to Indexation of the ISC |
| 8 Paragraph 3 shall apply to the indexation of the PAISC until the calculation of the PAISC for the first Payment Period on or following the First Review Date when the level of the PAISC as agreed between the parties or directed by the Statutory Arbiter is payable. From the time when that calculation is carried out the Indexed Amounts in respect of the PAISC shall be calculated as set out below. |
| 9 Indexation shall be applied to the PAISC separately in respect of the Fixed Amount ISC Component and the Residual PAISC Component in accordance with paragraphs 10 and 11, respectively. |
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10.1 The Indexed Amount in respect of the Fixed Amount ISC Component is calculated as follows: ( Indexed Amount ) NP = Applied Indexation Factor for the Contract Year x ( Indexable Amount ) (a) the Actual Indexation Factor is greater than the Maximum Indexation Factor in which case the Applied Indexation Factor shall be the Maximum Indexation Factor; or (b) the Actual Indexation Factor is less than the Minimum Indexation Factor in which case the Applied Indexation Factor shall be the Minimum Indexation Factor. |
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10.2 The Indexation Factors for Contract Year 'n' in a Review Period ( where the first Contract Year in a Review Period, in respect of which 'n' = 1, shall be the Contract Year in which the first day of the relevant Review Period falls ) shall be calculated as follows: (a) For Contract Year 1 the Indexation Factors shall equal 1.0000. (b) For each subsequent Contract Year in a Review Period the Indexation Factors shall be calculated as follows: ( Actual Indexation Factor )n = ( Actual Indexation Factor ) n-1 x  ( Maximum Indexation Factor )n = ( Maximum Indexation Factor ) n-1 x (  +0.0200 )( Minimum Indexation Factor )n = ( Minimum Indexation Factor ) n-1 x ( - 0.0200 )where  = RPIX published for the month of February in the year before the month of February referred to in the definition of rn. = the value of RPIX applicable to the relevant Contract Year as stated by the Statutory Arbiter in accordance with paragraph 1.5(d) of Schedule 1.9. = the value of RPIX applicable to the Contract Year immediately preceding the relevant Contract Year as stated by the Statutory Arbiter in accordance with paragraph 1.5(d) of Schedule 1.9. |
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11 The Indexed Amount in respect of the Residual PAISC Component is calculated as follows: where ( Actual Indexation Factor )n means the value for that term calculated in accordance with paragraph 10.2. |
