22.2.3  No termination

If government directs the private party not to repair or reinstate the damage but does not terminate the project agreement:

(a)  the private party waives in favour and for the benefit, of government its right to give a notice of claim under its insurance policy;

(b)  the private party must pay government any insurance proceeds it receives (including moneys paid by government as an insurer of last resort in respect of an uninsurable risk),92 subject to the rights of the financiers under any funder's direct agreement;  

(c)  the private party will be relieved of its obligations to construct the works or provide the Contracted Services to the Services Specifications, to the extent reasonably determined by government in the context of the damage;93 and

(d)  government will issue a government Modification request in relation to the private party's reduced obligations.94

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92  See section 23.4 of Chapter 23 (Insurance).

93  The service fee will be adjusted in accordance with Chapter 18 (Compensation payable).

94  See Chapter 19 (Modifications).