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Project facility

Upon Termination of this Agreement for any reason whatsoever, the Authority shal ave the power and authority to:

(a)  enter upon and take possession and control of Project Site/Project Facility forthwith; 

(b)  prohibit the Concessionaire and any Person claiming through or under the Concessionaire from entering upon/dealing with the Project Assets; 

(c)  step in and succeed upon election by the Authority without the necessity of any further action by the Concessionaire, to the interests of the Concessionaire under such of the Project Agreements as the Authority may in its discretion deem appropriate with effect from the date of communication of such election to the counter party to the relative Project Agreements. 

(d)  Provided any sums claimed by such counter party as being due and owing for work and services performed or accruing on account of any act, omission or event prior to such date of election shall and shall always constitute debt between the Concessionaire and such counter party and the Authority shall in no way or manner be liable or responsible for such sums. The Concessionaire shall ensure that the Project Agreements contain provisions necessary to give effect to the provisions of this clause.

(e)  Notwithstanding anything contained in this Agreement, the Authority shall not, as a consequence of Termination or otherwise, have any obligation whatsoever including but not limited to obligations as to compensation for loss of employment, continuance or regularisation of employment, absorption or re-employment on any ground, in relation to any person in the employment of or engaged by the Concessionaire in connection with the Project, and the handback of the Project Site/Project Facility by the Concessionaire to the Authority shall be free from any such obligation. 

(f)  For the avoidance of doubt, it is clarified that title to the Project Facilities shall not pass to the Authority, notwithstanding the above, until the date on which the Termination Payment, subject to the deductions expressly contemplated in this Agreement is received in full by the Concessionaire.

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