Changes in Circumstances

Abstract This chapter deals with key changes in circumstances after financial close affecting the rights of either party to the PPP contract, namely: ‘Compensation events’, i.e. cases where there is a delay in completion, or increases in capex or opex for which the contracting authority has agreed to compensate the project company; ‘Excusing causes’, i.e. actions taken by the project company that affect its performance under the PPP contract but that do not result in any performance deductions by the contracting authority; ‘Relief events’ (also known as ‘temporary force majeure’), i.e. events outside the control of both the project company and the contracting authority resulting in a delay in completion of the facility, or failure to meet performance requirements after completion; in these cases, the contracting authority still has the right to make any payment deductions under the PPP contract, but not to terminate it for default by the project company.