The State must retain flexibility to be able to suspend the Project throughout the Term. Accordingly, the State may unilaterally direct Project Co to suspend and, after a suspension has been directed, to recommence, the carrying out of all or any part of the Project Activities.
Unless the circumstance leading to the State's decision to suspend the Project Activities:
• are caused or contributed by a Project Co Act or Omission; or
• are, or are caused by, a Force Majeure Event,
a direction to suspend the Project Activities will be a Compensable Extension Event (in relation to Development Activities) and an Intervening Event (in relation to the Services). A direction to suspend during the Operational Phase is treated as an Intervening Event rather than a Compensable Intervening Event as, subject to the exceptions set out in section (a)(i)2.38.2.1 above, Project Co will continue to receive the Service Payment notwithstanding that the Services are suspended and Project Co should not incur any additional costs as a result of the suspension.
If the circumstances leading to the suspension are a Force Majeure Event, a direction to suspend the Project Activities will also be a Force Majeure Event (refer to section 2.27.2).
An instruction to suspend the Project Activities must not exceed 180 days. Suspension in excess of 180 days will require the State to terminate the Project Deed.
Project Co's rights on termination will depend on the reason for the suspension.