31.10 Government right to request Re-financing

Government may request the private party to provide terms for a potential Re-financing if government considers that the terms available in the market for comparable finance to be more favourable than those reflected in the financing agreements.98

If requested by government, the private party will be required to use reasonable endeavours to obtain the most favourable available terms for any potential Re-financing. The private party must give government full details of the potential Re-financing, including the details set out in section 31.3.

Government may accept or reject the private party's proposed Re-financing in its absolute discretion.

If government accepts the proposed Re-financing:

(a) the private party must do all things necessary to give effect to the Re-financing as soon as practicable, including procuring the entry by any new financiers into a funder's direct agreement; and

(b) government will be entitled to share in any Re-financing gain in accordance with sections 31.4 to 31.7.

If government rejects the proposed Re-financing, it will reimburse the reasonable and proper professional costs directly incurred by the private party in connection with the potential Re-financing.

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98 Whether or not such circumstances would arise on a project will depend upon the nature of the project and the market conditions