21.2.5  No financial relief unless project agreement terminated

(a)  In some jurisdictions, government will not provide any financial relief to the private party during the period for which it is otherwise entitled to relief from performance (e.g. to meet the private party's fixed operating costs). However, an appropriate compensation amount will be paid if the project agreement is terminated for a Force Majeure Event.84

(b)  Other jurisdictions may service the lower of actual senior debt commitments and the senior debt commitments forecast in the Base Case Financial Model as being due and payable during the period of performance relief if the Force Majeure Event is not:

(i)  required to be insured against by the private party under the project agreement85 (as distinct from uninsurable events arising during the term to which the uninsurability regime under the project agreement applies). Government will consider, on a project-specific basis, the Force Majeure Events which are not required to be insured against; and

(ii)  an insurable risk customarily insured by operators of facilities similar to the facility or providing services similar to the Contracted Services.

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84  See section 21.3.

85  Government will consider, on a project-specific basis, the Force Majeure Events which are not required to be insured against, for example, damage caused by earthquake. Once identified, it is only on the occurrence of such Force Majeure Events that government will service forecast senior debt.