12.2.2  Effects of a force majeure event on government

Government may be faced with the following consequences if a force majeure event occurs:

•  inability to obtain the relevant services from an alternative source. This might be the case because the services simply are not available from another source, or because the project asset is the only locally or regionally-accessible infrastructure of its type

•  increased costs in obtaining the relevant services from an alternative source - which may be greater than the amount by which the service charge is abated as a consequence of the interruption to services. This consequence most obviously occurs during the operating phase of the project. However, it is a consequence that may also arise during the construction phase of the project if, for example, damage to the project asset delays its commissioning and government is forced to continue using an existing, more expensive facility during the period of the delay

•  non-financial consequences, such as adverse public reaction to the service interruption or to government's inability to deliver services that it has a duty to deliver

•  if the project asset is damaged and government is the owner of that asset, government is required to deal with the consequences of the damage.