Agreement Synopsis, Context and Review

Model Bilateral Connection Agreement that is used by the UK National Grid Company (NGC) for customers who wish to connect to its transmission system.  This model agreement makes a reference to the so-called Connection and Use of System Code (CUSC), that NGC has developed and submitted to the UK regulator (OFGEM) for approval. The CUSC is a complex document and so may not be appropriate for adaptation to developing economies without extensive amendment.

The private partner would operate and manage and further develop the infrastructure to ensure (1) the area is fully irrigated within six (6) years of the date of signature of the contract; and (2) that at least 25% of the irrigated land is available for small farmers, who should be integrated into the production chain of the commercial producers that would occupy the remainder of the land. The private partner will be remunerated for the sale of water (through user tariffs) and a capacity payment by the government.

Prepared by the Legal Reform and Private Sector Development Unit Legal Department

In order to avoid the uncertainties and delays involved in relying on the applicable law, parties to contracts often prefer to provide for a specific regime for force majeure, along with a definition of which events shall qualify for special treatment.

The term force majeure used in drafting project documents comes originally from the Code Napoléon of France, but should not be confused with the French doctrine. Generally, force majeure means what the contract says it means.