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EFTA01386885

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RIN II • 094 Alpha Group Capital LLC Instead of using an O8M Contractor, the cost of lifecycle replacement and other maintenance of the infrastructure asset may or may not remain with the infrastructure provider to be met out of project revenues as and when it arises. As a result, the Obligor's revenue (and its ability to service the related Collateral Obligation) may suffer from performance reductions in an availability/capacity-based payment structure and/or the risk of lower demand/usage as the asset becomes less attractive to infrastructure users in a demand/usage based payment structure. An Obligor which services the asset is also subject to increases in maintenance costs due to an increase in usage volume. An operating failure may lead to fines, expropriation, termination or loss of a license, concession or contract on which an Obligor, or an asset owned or controlled by an Obligor, depends, which in turn may adversely impact an Obligor's ability to service its debt under any related Collateral Obligation. Revenue Risks The main types of payment mechanisms applicable to infrastructure providers generally are (i) availability-based payment mechanisms and (ii) demand/usage-based payment mechanisms. Under an availability or capacity-based payment mechanism, the infrastructure provider is paid for making the relevant asset or service available for use to infrastructure users irrespective of actual usage. In a demand/usage based structure, the infrastructure provider receives payment based on actual use of the relevant assets or services and the relevant Obligor's income stream is subject to the risk of actual usage falling below the projected usage. In addition, any obsolescence of an Obligor's infrastructure assets may reduce its revenues. Certain Collateral Obligations may involve a payment structure which requires the concession grantor to pay the agreed price for the provision of buildings. assets or services which are central to the infrast

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