While each project deed is different, typically the private party must not permit any change to the legal or beneficial ownership of any shares or units or any other interests (providing a change in control) of it or any member of the consortium, without the State's prior consent. The project deed will outline the circumstances in which it would be reasonable for the government party to withhold its consent. If none of the reasons are satisfied, the government party must provide its consent to the change in ownership/control.
Additionally, recent project deeds mandate that designated equity investors (which are considered sufficiently critical to the private party's ownership structure and ability to meet its obligations through the construction and initial operating period) must maintain their initial ownership level for a specified period (usually two years from commercial acceptance) to ensure the designated equity investors remain incentivised to manage the asset to steady-state operations. This means that the State has an absolute discretion to withhold consent to a change in ownership/control during the minimum hold period.