2.2.1.1 Defined List -

The consequences of a MAGA event occurring are borne by the Contracting Authority, so it is vital that the Contracting Authority considers carefully what events qualify and how it can minimize the risk of any occurrence. It is recommended that an exhaustive list of clearly defined events is agreed, with the common factor being that their occurrence has a material adverse effect on the Private Partner's ability to perform its obligations, or on its rights under the PPP Contract, or on its financial status28. However, as far as possible such materiality should be clearly defined to avoid the risk of disputes. See further Section 2.2.1.3 and Section 2.3, Sample Drafting 2, Clauses (1) and (2).

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28 A reciprocal position is sometimes seen - for example, the "Unforeseeable Conduct" provisions in the South Africa PPP Guidelines also address cases where there is a beneficial effect on the Private Partner's finances.