Common use of ADDITIONAL PERFORMANCE SECURITY Clause in Contracts

ADDITIONAL PERFORMANCE SECURITY. The Concessionaire shall alongwith the Performance Security provide to the Authority an Insurance Surety Bond (issued by Insurance Company authorized by Insurance Regulatory and Development Authority of India), Account Payee Demand Draft, Banker’s Cheque or irrevocable and unconditional e-Bank Guarantee from a Bank for a sum equivalent to Rs. ***** crore (Rupees ***** crore)3 in the form set forth in Schedule-F (the “Additional Performance Security”), to be modified, mutatis mutandis, for this purpose as security to the Authority if the Bid Project Cost of the Selected Bidder is lower by more than 10% with respect to the Estimated Project Cost. The requirement of submitting the Additional Performance Security shall be a Condition Precedent. Failure to maintain the Additional Performance Security shall be treated as Concessionaire Default as per Clause 31.1.1.