(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 7 (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"), including:
(i) Delay resulting from the acquisition of additional Land Rights as provided in Section 4.3(c)(vii) (Land Acquisition and Right-of-Way);
(ii) failure to comply with the Design and Technical Specifications, unless the failure was due to a change in the detailed engineering designs and plans at the instance of the Agency pursuant to Section 5.5.3(a) (Changes after Acceptance) after acceptance has been given;
(iii) failure to implement the detailed engineering designs and plans, including integration between the Existing Facilities and New Facilities, unless the failure was due to a change in the engineering designs and plans at the instance of the Agency after acceptance has been given pursuant to Section 5.5.3(a) (Changes after Acceptance); or
(iv) Delay Liquidated Damages under Section 5.8 (Liquidated Damages for Delay).
(b) 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.
(c) The Performance Security shall be reduced proportionately as each Project Milestone is completed following Schedule 5 (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).