Principles of Project Finance

• Insolvency of the Input Supplier or acceleration of its debt

• Default by a guarantor of the Input Supply Contract

Permanent force majeure making continued deliveries impossible also gives rise

to a mutual right to terminate the contract.

Rather than termination for failure to make deliveries, and a claim for a loss

that may or may not be recovered, the Project Company may wish to enforce

specific performance of the contract (i.e., obtain a court order requiring delivery

of input supplies as contracted). Whether such a remedy is available varies be-

tween different countries. It may also be possible to make provision in the Input

Supply Contract for the Input Supplier to be required to obtain supplies from an-

other source.

§7.4 PERMITS AND OTHER RIGHTS ...