(a) Where the private party can demonstrate it is more appropriate given the project structure and represents better value for money for government to grant a lease during the operating term (as opposed to a licence), then government may choose to grant a lease on the Full Service Commencement Date. The private party will then immediately grant a sub-lease back to government for access to the leased area and use of the plant, equipment, furnishings and fittings.
(b) Any lease will be subject to reservations enabling government to access and use the facility to deliver the core services and for any other lawful purpose.21 Unless otherwise specified, the lease will be limited to use of the land solely for the purpose of delivering the facility in accordance with the project agreement.
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21 The rights of government under the lease and sublease should be drafted as broadly as possible to ensure that it may use and act in respect of the facility without the need to obtain the private party's consent.