24.1.1  Private party default

(a)  If the private party does not:

(i)  remedy an Event of Default of the private party, which is capable of cure, within the cure period;

(ii)  diligently pursue a cure of the Event of Default; or

(iii)  comply with an approved prevention plan (in accordance with section 23.2.3(a),

government may give a specified period of notice to the private party of government's intention to terminate the project agreement. The private party may remedy the Event of Default or comply with its obligations within the notice period.

(b) If the notice period expires, and the Event of Default is not remedied or the private party has otherwise failed to comply with its obligations in respect of the Event of Default, government may terminate the project agreement by notice to the private party.81 The right of termination is subject to the financier's rights under the financing agreements.

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81 Government is not entitled to terminate if the Event of Default of the private party arose as a sole and direct cause of a breach by government of its obligations under the Project Contracts.