Common use of Excluded Costs Clause in Contracts

Excluded Costs. 1. The following costs shall not be considered eligible: a) interest on debt, debt service charges and late payment charges; b) charges for financial transactions and other purely financial costs, except costs related to accounts and financial services imposed by the project contract; c) costs related to purchase of land or real estate; d) provisions for losses or potential future liabilities; e) exchange losses; f) recoverable VAT; g) costs that are covered by other sources; h) fines, penalties and costs of litigation, except where litigation is an integral and necessary component for achieving the outcomes of the project; and i) excessive or reckless expenditure. 2. The provisions in this Article shall apply mutatis mutandis to all eligible expenditure unless otherwise stated in this Agreement.