24.2.2  Remedies for failure to cure an Event of Default capable of cure

If the private party fails to:

(a)  provide a draft cure plan;

(b)  comply with the approved cure plan or otherwise diligently pursue a cure of the Event of Default in accordance with the approved cure plan; or

(c)  cure the Event of Default within the agreed period,

then this is a 'Project Default' and government may accordingly:

(i)  exercise its rights under Chapter 25 (Termination);

(ii)  exercise its rights under Chapter 27 (Step-in) except in certain jurisdictions where government will not exercise such rights where the private party is complying with an approved cure plan and diligently pursuing a remedy; or

(iii)  in some jurisdictions:

•  require the private party, at its own cost, to replace any sub-contractor performing the obligations to which the Event of Default relates; or

•  exercise any of its security rights.