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Force Majeure Limitations in the Power Sector

The worldwide outbreak of COVID-19 has caused global uncertainty for organisations, governments and individuals, and the legal fraternity has been busy producing client posts, dressing and redressing COVID-19 in the illusive cloak of force majeure.

Yet the discussion is misguided in the context of rigid contractual arrangements such as those used in regional concession-based power projects; perhaps the question is not so much about whether COVID-19 is force majeure, but rather whether its seemingly apocalyptic consequence is a valid claim for time, cost and possibly revenue relief under regional independent power producer (IPP) projects.

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