Tariff Methodology for Calculation of the Tariff. The States Parties shall permit Nabucco International Company to receive Capacity Payments from Shippers for offering Transportation Services that will inter alia allow it to recover the following types of investment and operating costs that it will incur by constructing, operating and maintaining the Nabucco Pipeline System: • Capital Expenditure (“CAPEX”) incurred by Nabucco International Company in constructing the pipeline: such as raw material costs (e.g. steel), equipment costs (e.g. compressor costs), appropriate depreciation and capital costs reflecting the investment cost (on the assumption that CAPEX is depreciated over 25 years); • Operating Expenditure (“OPEX”) will include a mixture of fixed and variable costs reflecting Nabucco International Company’s on-going operation of the pipeline. Additionally, OPEX such as fuel gas costs, associated environmental costs (such as the purchase of any applicable carbon emission permit allowances, or equivalent cost, that may be levied on Nabucco International Company in any of the transit states), and any rental expenditures incurred by Nabucco International Company for the use of any other pipeline systems that could be connected to the Nabucco Project to enable earlier operation of the Nabucco Project; • Economic costs incurred by Nabucco International Company in managing its business such as inflation, wage inflation, interest rates and other costs related to the financing of the Nabucco Project. For calculation of tariffs the capacities sold on a long term (i.e. 25 years) shall be used as basis. The States Parties shall permit that the tariff methodology takes in particular into consideration the fact that the investment costs for constructing the Nabucco Pipeline System will be funded from a mixture of equity contributions from Shareholders, and debt by means of receiving loans from lenders and other financial institutions providing debt finance.
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