23.2.1  Cure periods

(a)  Government may give a default notice to the private party specifying that an Event of Default has occurred.

(b)  If government gives a notice and the Event of Default is capable of cure, the private party must, within a specified period, provide a draft cure plan proposing a program of rectification (including the proposed cure period) and the parties must consult in good faith to develop and settle the program.

(c)  Following agreement of the program (approved cure plan), the private party must cure the Event of Default within the agreed cure period and otherwise in accordance with the approved cure plan.

(d)  In certain circumstances set out in the project agreement, the private party can request an extension of time to cure the default. In some jurisdictions, government will agree to extend the cure period but only once and on certain conditions being met by the private party.

(e)  Government may, acting reasonably, extend the cure period provided the private party:

(i)  has provided government with sufficient reasons for the extension (and has provided any further information reasonably requested by government);

(ii)  can satisfy government (acting reasonably) that it will cure the default within the extended period; and

(iii)  can satisfy government that it has complied and is continuing to comply with the approved cure plan (as may be amended with government's agreement) and is diligently pursuing cure of the Event of Default.

(f)  If there is a dispute in relation to the cure plan, or a request for extension of time, the private party may refer the dispute for determination in accordance with Chapter 30 (Dispute resolution).