16. Compensation Events
Principle Compensation Events are events which are outside of the control of the private party and in respect of which government provides Compensation for additional costs incurred by the private party.52 Compensation Events may adversely affect the ability of the private party to perform its obligations under the project agreement or cause the private party to incur additional costs. |
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Projects with complex interface risk may require additional obligations on government. In such cases government may consider providing Compensation for failure to satisfy those obligations. However, the definition must underpin and not undermine the agreed risk allocation for the project.