Common use of Calculation of Construction Interest Clause in Contracts

Calculation of Construction Interest. The Construction Interest on the Capital Costs is the amount calculated in accordance with the following formula: CI = J t Σ | ⎝ x = 1 CCx × (1 + Rmth )t – x + 1 ] – CC | ] where: CI = The Construction Interest on the Capital Costs CC = The total Capital Costs incurred by the Trustee and Aurizon Network CCx = The part of the Capital Costs incurred by the Trustee and Aurizon Network in Month x R = The annual interest rate (expressed as a decimal) that the Access Regulator uses to capitalise interest on costs included in the Regulatory Asset Base for the Extension Rmth = (1+R)1/12 – 1 t = The number of months from the date of the first CCx amount is incurred by the Trustee or Aurizon Network to the date the Capital Costs are included in the Regulatory Asset Base x = Each month after the first CCx is incurred (x = 1 in the first month after the first CCx amount is incurred by the Trustee or Aurizon Network)

Calculation of Construction Interest. The Construction Interest on the Capital Costs is the amount calculated in accordance with the following formula: CI = J ⎡ t Σ | ⎝ ∑ ⎢ ⎣ x = 1 CCx × (1 + Rmth )t – − x + 1 ] – ⎤ − CC | ] ⎥ ⎦ where: CI = The Construction Interest on the Capital Costs CC = The total Capital Costs incurred by the Trustee and Aurizon Network CCx = The part of the Capital Costs incurred by the Trustee and Aurizon Network in Month x R = The annual interest rate (expressed as a decimal) that the Access Regulator uses to capitalise interest on costs included in the Regulatory Asset Base for the Extension Rmth = (1+R)1/12 – 1 t = The number of months from the date of the first CCx amount is incurred by the Trustee or Aurizon Network to the date the Capital Costs are included in the Regulatory Asset Base x = Each month after the first CCx is incurred (x = 1 in the first month after the first CCx amount is incurred by the Trustee or Aurizon Network)