38.1  State right to suspend

(a)  (Suspension): The State:

(i)  may 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; and

(ii)  is not required to exercise its power under clause 38.1(a) for the benefit of Project Co.

(b)  (Result of suspension):

(i)  Except to the extent the circumstances leading to the suspension under clause 38.1(a):

A.  are caused or contributed to by a Project Co Act or Omission; or

B.  are, or are caused by, a Force Majeure Event,

a direction to suspend all or any part of the Project Activities by the State under clause 38.1(a) will be:

C.  in relation to any Development Activities, a Compensable Extension Event; and

D.  in relation to any Services or other obligations under this Deed (which are not Development Activities) in each case during the Operational Phase, an Intervening Event.

(ii)  To the extent the circumstances leading to the suspension are a Force Majeure Event, a direction to suspend the Project Activities (while that Force Majeure Event or its effects are subsisting) by the State under clause 38.1(a)(i) will be a Force Majeure Event.

(c)  (Lift suspension): If a suspension is due to a Project Co Act or Omission or Force Majeure Event, the State must lift the suspension once the Project Co Act or Omission (and its effects) or, the Force Majeure Event (and its effects), no longer prevents:

(i)  Project Co from carrying out all or a material part of the Project Activities; or

(ii)  the State from carrying out all or a material part of its obligations,

in accordance with the State Project Documents.

(d)  (Limitation): A suspension under this clause 38.1 must not extend for more than 180 consecutive days. If a suspension exceeds a period of 180 consecutive days the State must either:

(i)  lift the suspension; or

(ii)  terminate this Deed in accordance with clause 38.1(e).

(e)  (Termination): If the State elects to terminate under clause 38.1(d)(ii) and the suspension under this clause 38.1, is caused by:

(i)  a Project Co Act or Omission, the State must issue a notice to terminate this Deed under clause 46.4(a);

(ii)  a Force Majeure Event, and at the end of 180 consecutive day period referred to in clause 38.1(d) the effects of the Force Majeure Event are still subsisting, a Force Majeure Termination Event will be deemed to have occurred and the State must issue a notice to terminate this Deed under clause 46.3; or

(iii)  any other event, the State must issue a notice to terminate this Deed for convenience under clause 46.2.