5.7  Performance Security

(a)  On or before the Signature Date, the Company shall provide and deliver to the Agency an unconditional and irrevocable standby letter of credit substantially in the form set out in Schedule E (Form of Performance Security) as security for the performance by the Company of its obligations under this Agreement from the Signature Date until the Provisional Operations Start Date (the "Performance Security"). The Performance Security shall have a value equivalent to two percent (2%) of the Total Project Cost and shall be issued by a Performance Security Issuer in favor of the Agency.

(b)  The Performance Security shall be reduced proportionately as each Project Milestone is completed following the Project Milestone Schedule and unless forfeited or otherwise called on by the Agency in accordance with this Agreement, shall be returned to the Company on the date on which the provisional acceptance certificate is issued but only after submitting an Operating Security in exchange pursuant to Section 6.3 (Operating Security).