Common use of Energy Project Clause in Contracts

Energy Project. Returns to the Energy Project are heavily dependent on increasing the demand for new generation and establishing new connections to the grid. There is currently uncertainty about the number and pace that can be expected for new connections. • LEC currently has both technical and management capacity constraints based upon the current capacity of its staff, as well as the failure of the management contract to meet its capacity building goals. In addition, the financial condition of LEC is very weak due to low cash flow resulting from problems with billing and collections as well as delays in improvements in generation, transmission and distribution infrastructure. • The sustainability and the functionality of the RMCs depends on the advancement of reforms in the road sector and a steady stream of revenue to finance maintenance and operating expenses. • Increased maintenance depends on road contractors being ready and able to assume maintenance works. There is a risk that the private sector does not have the technical or financial capacity to respond to the Government’s maintenance needs.