6 POWERS OF THE GOVERNMENT

6.1 Exceptional Situation Plan

The CONCESSION HOLDER shall participate with the relevant governmental authorities in establishing recovery plans for cases of calamity that, among other things, may result in serious and substantial interruption or deterioration in the CONCESSION HOLDER'S ability to provide the Basic Services. The CONCESSION HOLDER shall use its reasonable efforts to restore normal services within a reasonable time, among others in cases when the interruption or deterioration is caused by the circumstances set out in Section 5.9 Force Majeure of this Agreement.

6.2 Inspection and Supervision

The GOVERNMENT shall inspect and supervise the activities of the CONCESSION HOLDER for the purpose of ensuring the continuous and efficient rendering of the Basic Services and the compliance with the legal and technical standards governing such services, as well as the obligations imposed on the CONCESSION HOLDER by virtue of this Agreement.

In the exercise of the power granted to the GOVERNMENT by virtue of this Section, officials authorized by the GOVERNMENT may, with adequate prior notice to the CONCESSION HOLDER and in the presence of representatives of the CONCESSION HOLDER, inspect the equipment and facilities of the CONCESSION HOLDER, as well as its files and accounting records, and may demand any information reasonably necessary to supervise the activities of the CONCESSION HOLDER.

The CONCESSION HOLDER shall assist the officials authorized by the GOVERNMENT in performing their duties. At the request of the CONCESSION HOLDER, the resulting information shall be treated as confidential to any third party.

6.3 Evaluation of the Performance of the CONCESSION HOLDER

Based on the reports on the inspection and supervision filed by the officials referred to in Section Inspection and Supervision, of this Agreement, as well as any other information obtained from the CONCESSION HOLDER or other sources, the GOVERNMENT shall, in consultation with the CONCESSION HOLDER, evaluate the performance of the CONCESSION HOLDER and the results thereof not sooner than three nor later than four years after the Effective Date of this Agreement and shall prepare a report concerning its findings and conclusions.

The CONCESSION HOLDER may submit a report to the GOVERNMENT concerning its own evaluation of its performance and the results thereof as well as its views and recommendations concerning the implementation of this Agreement or any other aspect of the legal regulatory environment in which the CONCESSION HOLDER operates.

The GOVERNMENT and the CONCESSION HOLDER shall consult with each other concerning any disagreements with respect to the findings or conclusions of their respective reports. The parties may seek to resolve any such disagreements, taking steps towards modifying this Agreement as consistent with Section 5.8 Modifications Of Terms And Conditions Of The Concession, or in accordance with the provisions of Section 9 FINAL PROVISIONS.

6.4 Legal Succession

In case of liquidation or reorganization of a state organ of the relevant competency, nominated by the government of East Timor referred to as the GOVERNMENT in this Agreement, which has been appointed to exercise the rights and fulfill the obligations under this Agreement, the respective rights and obligations under this Agreement shall pass on to its successor in title.