23.1 Events of Default

Events of Default of the private party may include:79

(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;

(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;80

(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;

(i) the private party persistently breaches a similar obligation more than a specified number of times within a specified period (for example, consistent failure to meet KPIs within a specified period of time); and

(j) the private party fails to respond to a show cause notice in relation to a potential Event of Default (where the project agreement provides for a show cause process).

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

80 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.