Content Headings

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Example clauses

Notes and References

Performance Security, Indemnities and guarantees

The Authority may require the Concessionaire to provide performance security to ensure completion of the project.  This would need to be negotiated between the parties.

The Concessionaire shall, for due and punctual performance of its obligations during the Implementation Period deliver to the Authority, simultaneously with the execution of this Agreement, a bank guarantee from a scheduled bank acceptable to the Authority, in the form as set forth in Schedule [Performance Security] for a sum of [amount]. 

The Performance Security shall be valid upto [12 months after Scheduled Project Completion Date]. 

Provided that If the Agreement is terminated due to any event other than a Concessionaire Event of Default, as defined in Clause [ref], the Performance Security if subsisting as of the Termination Date shall, subject to the Authority's right to receive amounts, if any, due from the Concessionaire under this Agreement, be duly discharged and released to the Concessionaire.

See SOPC Section 4.3, 4.4 and 23.

Example clause adapted from Concession Agreement for Colombo Kathunayake Expressway Project (note confidential), index reference A2, folder 1.