What is the maximum amount payable by the Crown on early termination of the Warkworth to Te Hana Project Agreement in the event of contractor default, voluntary Crown termination, and force majeure respectively?

Answer

The amount payable will depend on the time and circumstances of termination. The termination payment can be based on the value of the project/its equity (each subject to a valuation methodology set out in the project agreement), an amount paid by the market on re-tender and/or the value of the outstanding debt, depending on the circumstances. As a general rule a higher amount is payable on voluntary termination by NZTA, and a materially lower one on termination for contractor default.