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ARTICLE · 24 FEBRUARY 2020

What To Do When You Receive A Force Majeure Claim Based On The Novel Coronavirus

Gowling WLG
Gowling WLG
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Last month, the World Health Organization (WHO) declared the novel coronavirus (2019-nCoV) a Public Health Emergency of International Concern (PHEIC).

CanadaEnergy and Natural Resources

Last month, the World Health Organization (WHO) declared the novel coronavirus (2019-nCoV) a Public Health Emergency of International Concern (PHEIC). In doing so, the WHO added the virus to the growing list of PHEICs including such diseases as Severe Acute Respiratory Syndrome (SARS), H1N1 (Swine Flu), Ebola, Zika virus, and Smallpox. This declaration was made in the wake of global travel restrictions and citywide lockdowns in certain areas of China because of the virus' contagious, and potentially deadly, nature.

As China is a major source of the manufactured components, there have been concerns across the power, energy and infrastructure sectors that Chinese suppliers and their downstream customers may face difficulties satisfying supply and service obligations–particularly those reliant upon component parts coming from the City of Wuhan, where the virus is believed to have originated and where the Chinese government has focused its lockdown protocols.

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