2.53.2  Major Default Notice (clause 45.1 and 45.2)

Major Defaults are events which trigger the operation of the Major Default mechanism. Subject to project specific considerations, the events which are Major Defaults are set out in the PV Standard Project Deeds.

The following Major Defaults are deemed to be capable of Cure:

•  where Project Co fails to achieve Commercial Acceptance by the Date for Commercial Acceptance; 

•  where Project Co fails to achieve Final Acceptance by the Date for Final Acceptance;

•  (if applicable) where Project Co fails to achieve Technical Acceptance by the Date for Technical Acceptance;

•  where Project Co breaches the Local Content Requirements, the LIDP, the Major Projects Skills Guarantee or the Major Projects Skills Guarantee Compliance Plan.

The deeming provision puts it beyond doubt that notwithstanding that these events may not be capable of remedy or cure as a matter of fact, Project Co will have the benefit of the maximum cure period permitted by the State under the State Project Documents in respect of those Major Defaults.

Diagram 15 below sets out the Major Default Notice regime. The regime has been modified to ensure that there are sufficient protections for Project Co to provide input in the Major Default procedure.

Diagram 15