Content Headings

Key Issues

Example clauses

Notes and References

Stabalisation

The long-term nature of most concession agreements means there is a risk that events would occur that significantly change the nature of the agreement, or the assumptions that underlie either the government or the project company's risks, rights and obligations under the agreement.  For this reason, the concession agreements often contain "stablisation" provisions to deal with what happens if "exceptional events" occur.  The exceptional events may be changes in law, modifications to licenses or permits, economic disruption or loss of basic investment protection rights (however they are defined).