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Legislative Assembly for the ACT: 2002 Week 5 Hansard (9 May) . . Page.. 1516 ..

Water and sewerage assets

(Question No 159)

Ms Tucker asked the Treasurer, upon notice, on 8 May 2002:

In relation to his response to Question No. 139 regarding the contract between ACTEW and ActewAGL for the management of ACTEW's water and sewerage assets and services:

(1) How long is the Government prepared to continue the phase one contract if an agreement cannot be reached with AGL on the terms of the phase two contract by the proposed date of 30 September 2004.

(2) Can the phase one contract be terminated by ACTEW if no agreement can be reached in a reasonable time on the terms of the phase two contract.

(3) Can the phase one contract be terminated for any reason, independently of the rest of the ActewAGL joint venture; if so, can you provide a full description of the circumstances in which the contract can be terminated.

Mr Quinlan: The answer to the member's question is as follows:

(1) The Government is prepared to see the arrangements stay in place while they benefit the ACT community, however, this is primarily an issue for ACTEW and I am advised that negotiations are underway in respect of the Phase two contract. ACTEW expects that the negotiations will be completed sooner rather than later.

(2) Yes.

(3) The Phase one contract can be terminated independently of the rest of the ActewAGL joint venture under the following circumstances:

ACTEW may give a notice of termination to ActewAGL if ActewAGL:

(a) commits a Material Breach of this agreement and fails to remedy that breach within a specified time (unless that breach has no material impact on Water and Sewerage Business); or

(b) commits four or more breaches of performance standards under this agreement in any one year; or

(c) an Insolvency Event occurs in respect of the Joint Venture Company; or

(D) the Joint Venture Company assigns or transfers its rights or obligations under this agreement otherwise than in accordance with the agreement.

ActewAGL may give notice of termination to ACTEW if:

(a) ACTEW fails to pay any amount payable to ActewAGL under this agreement and does not remedy that breach within a specified time; or

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