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Strategy Delivery and Commissioning

79.3. Dealing with Force Majeure Events

Force majeure events are a limited set of events which may arise during the term of the PPP contract through no fault of either party. These are best managed by the private partner. They are more severe than relief events, will typically last longer and may result in termination of the PPP contract. They are, by definition, unusual and rare events, and the contract management team should deal with these as exceptions. The focus should be on avoiding termination by the private partner mitigating the effects and, if required, obtaining support from the lenders to defer payment until such time as the project is stable again.

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