2.2.3  Termination

Similar to the prolonged Force Majeure position, both Parties typically have the right to terminate the PPP Contract if a MAGA event lasts longer than a certain period of time (generally between 6 to 12 months). See Section 2.3, Sample Drafting 2, Clause (8). How this is expressed in the PPP Contract may vary between jurisdictions. In recent PPP Contracts in the Philippines, termination rights are achieved by defining protracted MAGA as a Contracting Authority default. In some jurisdictions, the Contracting Authority may only be entitled to terminate following MAGA-style events by implementing a voluntary termination.