Common use of Mechanism of Payment Clause in Contracts

Mechanism of Payment. (a) MCD shall, within 30 days from the date of receipt of the Tipping Fee Statement pay to the Concessionaire Tipping Fee in accordance with the formulae given in this sub-article. The Tipping Fee payable by MCD for the previous month will depend on the level of segregation achieved during the said month as determined from the table below. The levels of segregation achieved would be ascertained by the Independent Consultant by conducting the Tests. Year of Operation Months from COD SB = Segregation Benchmark for corresponding Month ( in % terms)* R = Applicable Penalty for corresponding Months (in % terms) Year 1 1 – 12 0 NIL Year 2 13 – 24 5 15% Year 3 25 – 36 10 15% Year 4 37 – 48 12 15% Year 5 49 – 60 15 15% Year 6 61 – 72 18 15% Year 7 73 – 84 20 15% Year8 onwards 85 onwards 20 15% * The percentage of the total number of vehicle trips to the Landfill Site during the preceding month which have duly passed the Tests relating to level of biodegradability in accordance with the O&M Requirements. IF, the segregation level achieved for the particular Month is lower than the Segregation Benchmark (SB) as in the table above, then the Tipping Fee payable shall be calculated in accordance with the formula given below: Tipping Fee (TF) = [ QB + QNB ] * TFR * (1 - R/100) where, QB= Total Quantity of Biodegradable Substance during the preceding Month (in tons) QNB = Total Quantity of Non-biodegradable Substance during the preceding Month (in tons) TFR = Tipping Fee Rate payable by MCD per ton during the year in accordance with Schedule L. R = Reduction applicable for the particular month on non- achievement of Segregation Benchmark (SB) as presented in the table above. For assessing the Reduction the Concessionaire shall perform Test 1 as set out in the O&M Requirements and get it duly verified by the Independent Consultant.

Mechanism of Payment. (a) MCD shall, within 30 days from the date of receipt of the Tipping Fee Statement pay to the Concessionaire Tipping Fee in accordance with the formulae given in this sub-article. The Tipping Fee payable by MCD for the previous month will depend on the level of segregation achieved during the said month as determined from the table below. The levels of segregation achieved would be ascertained by the Independent Consultant by conducting the Tests. Year of Operation Months from COD SB = Segregation R = Year of Months Benchmark for Applicable Penalty Operation from COD corresponding for corresponding Month Months ( in % terms)* R = Applicable Penalty for corresponding Months (in % terms) Year 1 1 – 12 0 NIL Year 2 13 – 24 5 15% Year 3 25 – 36 10 15% Year 4 37 – 48 12 15% Year 5 49 – 60 15 15% Year 6 61 – 72 18 15% Year 7 73 – 84 20 15% Year8 onwards 85 onwards 20 15% * The percentage of the total number of vehicle trips to the Landfill Site during the preceding month which have duly passed the Tests relating to level of biodegradability in accordance with the O&M Requirements. IF, the segregation level achieved for the particular Month is lower than the Segregation Benchmark (SB) as in the table above, then the Tipping Fee payable shall be calculated in accordance with the formula given below: Tipping Fee (TF) = [ QB + QNB ] * TFR * (1 - R/100) where, QB= Total Quantity of Biodegradable Substance during the preceding Month (in tons) QNB = Total Quantity of Non-biodegradable Substance during the preceding Month (in tons) TFR = Tipping Fee Rate payable by MCD per ton during the year in accordance with Schedule L. R = Reduction applicable for the particular month on non- achievement of Segregation Benchmark (SB) as presented in the table above. For assessing the Reduction the Concessionaire shall perform Test 1 as set out in the O&M Requirements and get it duly verified by the Independent Consultant.