They may exclude it from the study, and the study outcomes might...

Thanks. Yes would be negotiable but can't see why Uganda wouldn't take all 15% if it's a free carry (unless it's detrimental to project getting FID).

They may exclude it from the study, and the study outcomes might reflect the project as a whole rather than IXR's interest in the project specifically. But rough calculation, if DFS-I IRR was 32.7%, and you incorporate a 15% free carry, then IXR's IRR on their share of the project would drop by a fifth from 32.7% to 26.8%. That is because IXR would be fronting 100% of the CAPEX but would only get 85% of the cashflow if there is a 15% free carry on the project. The lower the IRR, the larger the negative impact from the free carry. So Uganda may choose to run a lower free carry to get it over the line?