Project finance — Checklist for force majeure clause

Introductory note:
Force majeure is used to describe an event that occurs which is beyond the control of the project parties, and which prevents them from fulfilling their contractual obligations.
A force majeure event can be either defined by referring to an exhaustive list of events or by generally referring to any event which is beyond the reasonable control and foreseeability of an affected party. Often though, the operative definition will be drafted as both a general description with a non-exhaustive list of those types of events that are to be included. For project lenders, it is preferable that an exhaustive list, rather than a potentially open list of events, is used. This allows lenders to better identify and assess the risks residing in the project company.
This checklist provides a list of force majeure events that legal practitioners should consider including in the project documents for a project finance transaction.