16.1  Compensation Events

Compensation Events may occur in either the construction period or the operating period. The specific Compensation Events will differ for jurisdictional or project specific reasons, but may generally fall within the following categories of events:

(a)  a modification, withdrawal, revocation or replacement of the government obtained planning approval referred to in section 6.2(a), other than due to an application for a further planning approval by, or any other action or inaction of, the private party or its sub-contractors, or as a result of a breach of that planning approval or as a result of a private party initiated Modification;

(b)  as a result of a challenge to the government obtained planning approval referred to in section 6.2(a) the private party is ordered by a court to cease carrying out the design and construction activities (or to change the way it does so), provided the challenge was not the result of a breach of the planning approval or project agreement by the private party;

(c)  a government or court direction to suspend or cease all or any part of the works because of a native title application or claim where government assumes this risk53 (provided the cessation order does not result from a private party breach of its obligations in relation to native title); and

(d)  a government direction in relation to artefacts (provided the direction does not result from a private party breach of its obligations in relation to artefacts).

Jurisdictions may adopt some, all or none of the Compensation Events listed above, or parts thereof, and may include additional Compensation Events.

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53 See section 5.1 in Chapter 5 (Native title and artefacts).