25.4  Termination for Government Default

Certain jurisdictions do not allow for termination by the private party following Government Default. In other jurisdictions, the private party can terminate the project agreement by giving a specified period of notice, and assuming government has not cured that default during the notice period, where:

(a)  there is an expropriation of a material part of the assets and/or any of the shares of the private party group by a relevant authority in each jurisdiction;

(b)  a failure by government to make payment to the private party of an amount (that is not in dispute) that is due and payable under the projects agreement and that is above a specified threshold within 20 business days of service of a formal written demand by the private party; or

(c)  a breach by government which substantially frustrates or renders it impossible for the private party to perform its obligations for a continuous period of two months.