2.2.1.3 Materiality -

In defining MAGA events, the Contracting Authority must also consider whether or not all occurrences of the relevant type of events should qualify as MAGA and trigger the contractual consequences. The Contracting Authority may be able to agree certain criteria which an event has to satisfy in order for the Private Partner to be entitled to relief - this could, for example, include a "materiality" threshold related to the effect of the event on the Private Partner. However, the Contracting Authority is strongly advised to define, to the extent possible, any threshold clearly (e.g. by reference to a specific monetary value established by reference to the PPP Project financial model), as any undefined reference to materiality will immediately give rise to a debate over its meaning. The same applies wherever any similar term is used in the PPP Contract. See Section 2.3, Sample Drafting 2, Clause (1).