Assets where the Authority retains Residual Value on Expiry Sample Clauses

Assets where the Authority retains Residual Value on Expiry. (a) In most PPP projects, the Authority’s long-term objectives will be best served by retaining ownership of the Project Facility and granting a licence only to PPP Co. for the sole purpose of performing its obligations under the Project Agreement. The TPA is drafted on the basis that the Project Facility remains in the ownership of the Authority. This may be because:  the potential for renewal of a business lease under the Landlord and Tenant (Amendment) Xxx 0000. (See footnote 5 at Clause 6.1).  legal constraints prevent any practical alternative option, for example the private sector cannot be a roads authority so roads must revert to the public sector Authority;  contracts which involve Project Facilities, such as hospitals and schools, are specifically designed to cater for a particular service. In these sectors, the Project Facilities have a useful economic life if retained by the Authority but there is no realistic alternative use for the Project Facility. These may be only limited scope for alternative use on expiry of the Term and conversion is likely to be costly;  the Authority requires long-term use of the asset for the continued provision of its services; or  bidders are likely to discount the residual value of the assets.