23.1  Events of Default

Events of Default of the private party may include:71

(a)  the private party fails to commence, or to expeditiously and diligently progress, the works;

(b)  the private party permanently abandons, or displays an intention to permanently abandon, the project;

(c)  the private party fails in a material respect to operate, maintain, repair or insure the facility;

(d)  the private party defaults in a material respect in relation to the environmental and community consultation obligations imposed on it under the project agreement;

(e)  the private party defaults in a material respect in the performance of its obligations under the Project Contracts including delivering the project in accordance with the Output Specification or verified design documentation;

(f)  any of the private party, the private party's material sub-contractors or their guarantors become insolvent;72

(g)  during the Contract Term a representation or warranty given by the private party to government proves to be untrue or misleading;

(h)  the private party's right to obtain finance or draw down funds under the finance agreements is cancelled.

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71  These Events of Default are not intended to be exhaustive, and will vary depending on the nature of the project.

72  The project agreement will contain a broad definition of the concept of "insolvency". The project agreement may also allow the replacement of material sub-contractors and/or guarantors within an agreed timeframe by an entity which is reputable and able to perform the obligations imposed on the relevant sub-contractor or guarantor in the Project Contracts, or that is otherwise acceptable to government.