Should an MNSP commercial model with a capacity charge be the preferred choice, a Build Own Operate Transfer (“BOOT”) delivery model should deliver an optimal outcome BOOT transfers majority of construction, maintenance, operations and ownership to the private sector. Bidders would compete on what their minimum Capacity Charge is to deliver and operate the asset over the project life Maintains strong incentives for the asset owner to ensure the asset is available and maintain and maintain and operate the asset to reduce transmission losses. Much like the commercial model analysis, procurement decisions cannot be considered in isolation. Ideal procurement outcomes are a derivative of both the government’s goals and objectives of the second interconnector. This analysis also highlights the importance of the level of the need to consider the implication of the one vs. two ownership structure may also have on the procurement and long term viability of two interconnectors.
Should an MNSP commercial model with a capacity charge be the preferred choice, a Build Own Operate Transfer (“BOOT”) delivery model should deliver an optimal outcome BOOT transfers majority of construction, maintenance, operations and ownership to the private sector. Bidders would compete on what their minimum Capacity Charge is to deliver and operate the asset over the project life Maintains strong incentives for the asset owner to ensure the asset is available and maintain and maintain and operate the asset to reduce transmission losses. Much like the commercial model analysis, procurement decisions cannot be considered in isolation. Ideal procurement outcomes are a derivative of both the government’s goals and objectives of the second interconnector. This analysis also highlights the importance of the level of the need to consider the implication of the one vs. two ownership structure may also have on the procurement and long term viability of two interconnectors.
feasibility-second-tas-interconnector-final-report-app-e_financial_and_commercial_analysis-2016.docx