2.27.3  Relief and compensation

As neither party is likely to be in a better position than the other to manage either the occurrence or the effects of the Force Majeure Event, and the events may continue for a long period of time, such events are treated differently to other Relief Events. The entitlement to relief and compensation in the PV Standard Project Deeds generally reflects the common law principle in respect of Force Majeure Events that the loss lies where it falls.

Provided the conditions precedent to Project Co's entitlement are satisfied (refer to sections 2.26.6 and 2.38), to the extent Project Co is prevented from carrying out all or a material part of the Development Activities or performing the Services as a result of a Force Majeure Event, Project Co's obligations to perform those Development Activities or Services (as applicable) will be suspended for the period of the Force Majeure Event.

For Project Co to be entitled to relief from or compensation for a Force Majeure Event, the Force Majeure Event must prevent Project Co from carrying out all or a material part of the Project Activities in accordance with the State Project Documents. Where Project Co is delayed by a Force Majeure Event, and this delay prevents Project Co from achieving Commercial Acceptance by the Date for Commercial Acceptance, then the 'prevention' requirement for the Force Majeure Event will be satisfied.

Diagram 14 over sets out Project Co's entitlements to relief and compensation for Force Majeure Events.

Diagram 14