21.3.1  Either party may terminate

(a)  As soon as practicable following the Force Majeure Event, government and the private party must consult with each other and use reasonable endeavours to agree appropriate terms to mitigate the effects of the Force Majeure Event and facilitate continued performance of the project agreement.

(b)  If:

(i)  the private party and government are unable to agree appropriate terms to mitigate the effect of the Force Majeure Event and facilitate the continued performance of the project agreement within a specified period; and

(ii)  the Force Majeure Event (or the Relief Event giving rise to the Force Majeure Event) is continuing or its consequences remain such that the affected party has been or is unable to comply with all or a material part of its obligations under the project agreement for a period of more than a specified period,

(iii)  then this will be a "Force Majeure Termination Event" and, subject to paragraphs (c) and (e) below, either party may terminate the project agreement.

(c)  The private party's right to terminate may only arise:

(i)  in the design and construction phase, once the period for which the builder has advanced consequential insurance has expired; and

(ii)  during the operational period, where the private party is unable to recover under business interruption insurance.

(d)  For projects involving multiple sites or where the Force Majeure Event otherwise affects a separable portion of the site, the project agreement will contemplate the option of partial termination.

(e)  If the private party elects to terminate the project agreement and government wishes to continue the project agreement, then the project agreement may remain on foot but only on the basis that government pays to the private party the service fee, less:

(i)  the costs not incurred by the private party as a result of non-provision of the Contracted Services; and

(ii)  the amount of the proceeds the private party receives from any insurances.