Common use of Development Fund Clause in Contracts

Development Fund. Clause 5 of the SCA shall be amended by adding the following new clause 5(7) :- “In the absence of any agreement to the contrary, CLP Power shall discharge its liabilities in respect of the balances in the Development Fund and the Rate Reduction Reserve after the expiry of this Agreement. Such agreement could include the handling and/or the continued maintenance of the balances in the Development Fund and/or the Rate Reduction Reserve after the expiry of this Agreement. In the absence of any agreement (whether under Clause 7(3) hereof or otherwise), the Government and the Companies will twelve months before the expiry of the current SCA (i.e. 30th September 2008) institute specific discussions regarding the way CLP Power shall discharge these liabilities.”