Content Headings

Key Issues

Example clauses

Notes and References

Authority Events of Default

Alternative 1

For the purposes of this Agreement, the Authority Events of Default means any of the following events or circumstances:

(a)   the Authority committing a material breach of its obligations under Clause [Nature of Land Interests] and/or the Licence (other than as a consequence of a breach by Concessionaire of its obligations under this Agreement) and such breach shall materially adversely affect the ability of Concessionaire to perform its material obligations under this Agreement for a continuous period of not less than thirty (30) Business Days;

(b) the failure of the Authority to pay any sum or sums due to Concessionaire under this Agreement (which sums are not in dispute) which, either singly or in aggregate, exceed(s) the amount of the Authority's Monthly Service Payment from time to time and such failure continues for thirty (30) Business Days from receipt by the Authority and the Strategic Health Authority (addressed to the Director of Finance) and to the Director of Finance and Investment of the Department of Health (or such other party as may be notified in advance in writing by the Authority to Concessionaire in substitution for such regional office) of a notice of non-payment from Concessionaire; or

(c) an Adverse Law or a Proposal for an Adverse Law being made.

Concessionaire's options

On the occurrence of an Authority Event of Default, or within a reasonable time after Concessionaire becomes aware of the same, and while the same is still subsisting, Concessionaire may, at its option:

(a)  in respect of execution of the Works prior to the Actual Completion Date, suspend performance by it of its obligations under this Agreement until such time as the Authority shall have demonstrated to the reasonable satisfaction of Concessionaire that it will perform and is capable of performing its obligations under this Agreement; or

(b)  serve notice on the Authority and the Strategic Health Authority (addressed to the Director of Finance) and to the Director of Finance and Investment of the Department of Health (or such other party as may be notified in advance in writing by the Authority to Concessionaire) of the occurrence (and specifying details) of such an Authority Event of Default.  If the relevant matter or circumstance has not been rectified or remedied by the Authority (or otherwise) in respect of Clause  [ref] within sixty (60) Business Days of such notice, and in respect of Clause within thirty (30) Business Days of such notice, Concessionaire may serve a further notice on the Authority and [any others?] terminating this Agreement with immediate effect.

Concessionaire shall not exercise or purport to exercise any right to terminate this Agreement (or accept any repudiation of this Agreement) except as expressly set out in this Agreement.

Alternative 1 adapted from Department of Health (UK), Standard Form Project Agreement Index reference A1 Folder 1.

Alternative 2

Any of the following events shall constitute an event of default by Agency ("Agency Event of Default"), unless caused by a Concessionaire Event of Default or a Force Majeure Event: 

(a)  Authority is in breach of any of its obligations under this Agreement except those for which specific remedy has been provided elsewhere, and has failed to cure such breach within 30 (thirty) days of receipt of notice thereof issued by the Concessionaire. 

(b)  Authority has repudiated this Agreement or otherwise expressed its intention not to be bound by this Agreement. 

(c)  Authority has (i) failed to execute the Substitution Agreement in accordance with clause [ref] or having executed the same is in breach of any of its obligations thereunder and such breach has not been cured within 30 days from the date of written notice thereof given by the Concessionaire. 

(d)  Authority has failed to execute and/or procure execution of the BOI Agreement/ Site Licence Agreement in accordance with Article 6.1(a) or having done the same is in breach of any of its obligations there under and has failed to cure such breach within 30 (thirty) days of receipt of notice thereof issued by the Concessionaire. 

(e)  Authority has unreasonably withheld or delayed grant of any approval or permission which the Concessionaire is obliged to seek under this Agreement, and thereby caused Material Adverse Effect. 

(f)  Authority has delayed payment of any amount that has fallen due in terms of this Agreement beyond 90 days. 

(g)  Any representation made or warranties given by the Authority under this Agreement has been found to be false or misleading.

Alternative 2 adapted from Concession Agreement for Colombo Kathunayake Expressway Project (note confidential), index reference A2, folder 1.