Government may assume all or some of the service delivery obligations of the private party for a period of time where:
(a) a situation arises which in the bona fide opinion of government:
(i) is likely to be a serious risk to the environment, a risk to the health or safety of the users of the facility or other members of the public, a risk to the structural integrity or safety of any parts of the works or the facility, or a serious risk of material damage to public or private property or other specified emergency; or
(ii)
(iii)
(iv) requires government to take immediate action to discharge or exercise a statutory duty or power. Where the service being provided is an essential service, government may be given Step-in Rights to guarantee the continuity of that essential service;
(b) there has been an Event of Default except where the private party is complying with an approved cure plan and diligently pursuing a remedy; or
(c) there has been a Default Termination Event.136
(d) While government is entitled to exercise its Step-in Rights during any period of suspension following the occurrence of a Force Majeure Termination Event, if any of paragraphs (a) to (c) apply, it is not intended that any government emergency step-in regime cut across the force majeure regime (for example, operation of termination rights for force majeure).
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136 Government's step-in rights in sections 27.1.1(b) and (c) will be subject to funders' step-in rights under the funders' direct agreement.