Common use of Appropriation of Construction Performance Security for Construction Works Clause in Contracts

Appropriation of Construction Performance Security for Construction Works. Upon occurrence of a Concessionaire Event of Default resulting in a delay of commissioning of the Project beyond the Commercial Operation Date, the Lead ULB shall, without prejudice to its other rights and remedies hereunder or in law, be entitled to encash and appropriate the relevant amounts from the Construction Performance Security as Damages for such Concessionaire Event of Default in the following manner: (a) Delay beyond Scheduled COD up to forty (40) days –Lead ULB shall encash 20% of Construction Performance Security on per day basis proportionate to the Capacity not commissioned. (b) Delay beyond Scheduled COD up to eighty (80) days - Lead ULB shall encash 40% of the Construction Performance Security on per day basis proportionate to the Capacity not commissioned. (c) Delay beyond Scheduled COD up to one hundred and twenty (120) days – Lead ULB shall encash the remaining 40% of the Construction Performance Security on per day basis proportionate to the Capacity not commissioned. (d) In case the commissioning of Power Project is delayed beyond 120 days from the Scheduled COD, the Developer shall pay the ULB Liquidated Damages at rate of INR 2,00,000 per MW (Rupees Two Lakhs per MW) per day of delay for the Capacity not commissioned. Upon such encashment and appropriation from the Construction Performance Security, the Concessionaire shall, within 30 (thirty) days thereof, replenish, in case of partial appropriation, to its original level the Construction Performance Security, and in case of appropriation of the entire Construction Performance Security provide a fresh Construction Performance Security, as the case may be, and the Concessionaire shall, within the time so granted, replenish or furnish fresh Construction Performance Security as aforesaid failing which the Lead ULB shall be entitled to terminate this Agreement in accordance with Article 28. Upon replenishment or furnishing of a fresh Construction Performance Security, as the case may be, as aforesaid, the Concessionaire shall be entitled to an additional Cure Period of 90 (ninety) days for remedying the Concessionaire Event of Default, and in the event of the Concessionaire not curing its default within such Cure Period, the Lead ULB shall be entitled to encash and appropriate such Construction Performance Security as Damages, and to terminate this Agreement in accordance with Article 28.

Appropriation of Construction Performance Security for Construction Works. 9.2.1 Upon occurrence of a Concessionaire Event of Default resulting in a delay of commissioning of the Project beyond the Commercial Operation Date, Construction Supervisor in consultation with the Lead ULB shall, without prejudice to its other rights and remedies hereunder or in law, be entitled to encash and appropriate the relevant amounts from the Construction Performance Security as Damages for such Concessionaire Event of Default in the following manner: (a) Delay beyond Scheduled COD up to upto forty (40) days –Lead ULB – Construction Supervisor shall encash 20% of Construction Performance Security on per day basis proportionate to the Contracted Capacity not commissioned.; (b) Delay beyond Scheduled COD up to upto eighty (80) days - Lead ULB Construction Supervisor shall encash 40% of the Construction Performance Security on per day basis proportionate to the Contracted Capacity not commissioned.; (c) Delay beyond Scheduled COD up to upto one hundred and twenty (120) days – Lead ULB Construction Supervisor shall encash the remaining 40% of the Construction Performance Security on per day basis proportionate to the Contracted Capacity not commissioned.; (d) In case the commissioning of Power Project is delayed beyond 120 days from the Scheduled COD, the Developer Concessionaire shall pay the ULB Liquidated Damages at rate of INR 2,00,000 per MW (Rupees Two Lakhs per MW) per day of delay for the Contracted Capacity not commissioned. . 9.2.2 Upon such encashment and appropriation from the Construction Performance Security, the Concessionaire shall, within 30 (thirty) days thereof, replenish, in case of partial appropriation, to its original level the Construction Performance Security, and in case of appropriation of the entire Construction Performance Security provide a fresh Construction Performance Security, as the case may be, and the Concessionaire shall, within the time so granted, replenish or furnish fresh Construction Performance Security as aforesaid failing which the Lead ULB in consultation with Construction Supervisor shall be entitled to terminate this Agreement in accordance with Article 2829. Upon replenishment or furnishing of a fresh Construction Performance Security, as the case may be, as aforesaid, the Concessionaire shall be entitled to an additional Cure Period of 90 (ninety) days for remedying the Concessionaire Event of Default, and in the event of the Concessionaire not curing its default within such Cure Period, the Lead Construction Supervisor in consultation with the ULB shall be entitled to encash and appropriate such Construction Performance Security as Damages, and to terminate this Agreement in accordance with Article 2829.

Appropriation of Construction Performance Security for Construction Works. 9.2.1 Upon occurrence of a Concessionaire Event of Default resulting in a delay of commissioning of the Project beyond the Commercial Operation Date, Construction Supervisor in consultation with the Lead ULB shall, without prejudice to its other rights and remedies hereunder or in law, be entitled to encash and appropriate the relevant amounts from the Construction Performance Security as Damages for such Concessionaire Event of Default in the following manner: (a) Delay beyond Scheduled COD up to upto forty (40) days –Lead ULB – Construction Supervisor shall encash 20% of Construction Performance Security on per day basis proportionate to the Contracted Capacity not commissioned.; (b) Delay beyond Scheduled COD up to upto eighty (80) days - Lead ULB Construction Supervisor shall encash 40% of the Construction Performance Security on per day basis proportionate to the Contracted Capacity not commissioned.; (c) Delay beyond Scheduled COD up to upto one hundred and twenty (120) days – Lead ULB Construction Supervisor shall encash the remaining 40% of the Construction Performance Security on per day basis proportionate to the Contracted Capacity not commissioned.; (d) In case the commissioning of Power Project is delayed beyond 120 days from the Scheduled COD, the Developer Concessionaire shall pay the ULB Liquidated Damages at rate of INR 2,00,000 per MW (Rupees Two Lakhs per MW) per day of delay for the Contracted Capacity not commissioned. . 9.2.2 Upon such encashment and appropriation from the Construction Performance Security, the Concessionaire shall, within 30 (thirty) days thereof, replenish, in case of partial appropriation, to its original level the Construction Performance Security, and in case of appropriation of the entire Construction Performance Security provide a fresh Construction Performance Security, as the case may be, and the Concessionaire shall, within the time so granted, replenish or furnish fresh Construction Performance Security as aforesaid failing which the Lead ULB in consultation with Construction Supervisor shall be entitled to terminate this Agreement in accordance with Article 282929. Upon replenishment or furnishing of a fresh Construction Performance Security, as the case may be, as aforesaid, the Concessionaire shall be entitled to an additional Cure Period of 90 (ninety) days for remedying the Concessionaire Event of Default, and in the event of the Concessionaire not curing its default within such Cure Period, the Lead Construction Supervisor in consultation with the ULB shall be entitled to encash and appropriate such Construction Performance Security as Damages, and to terminate this Agreement in accordance with Article 282929.