Common use of BREACH OF CONTRACT Covered Risk Clause in Contracts

BREACH OF CONTRACT Covered Risk. 6.1 The guarantee against Breach of Contract shall cover a Loss that is due to the inability of the Guarantee Holder or the Project Enterprise to enforce an Award rendered in its favor against the Host Government, provided that: (a) the Award is for a specified monetary amount and has been rendered pursuant to a breach of a Contractual Obligation in a Project Agreement or repudiation of such Project Agreement by the Host Government; and (b) the Guarantee Holder and/or the Project Enterprise, as applicable, have made all reasonable efforts to exhaust available remedies to enforce the Award against the Host Government during the applicable Waiting Period from the date of the Award. 6.2 Prior to payment of compensation for a Loss under Section 6.3 below, MIGA may in its sole discretion agree to make one or more Provisional Payments (normally, corresponding to unpaid Scheduled Payments and in an aggregate amount not to exceed 50 percent of the Amount of Guarantee) provided that: (a) the Guarantee Holder and the Project Enterprise, as applicable, have not been able to obtain an Award within a period of 180 consecutive days from initiating arbitral or judicial proceedings against the Host Government for such breach of a Contractual Obligation in a Project Agreement, or repudiation of such Project Agreement, and the Guarantee Holder has made a written request for Provisional Payments after such time period has elapsed; (b) the merits of the Guarantee Holder’s claim have been determined through binding recourse to an independent expert in accordance with the procedures specified in Annex 5 to the Contract; and (c) the Guarantee Holder has provided MIGA with an irrevocable financial guarantee, in a form and from a guarantor acceptable to MIGA, to repay MIGA on demand the Provisional Payments as follows: (i) if the Award is rendered against the Guarantee Holder or the Project Enterprise or both, the Provisional Payments shall be repaid in full; or (ii) if the Award is rendered in favor of the Guarantee Holder or the Project Enterprise or both, but the awarded amount is less than the Provisional Payments, the Provisional Payments shall be repaid in part in the amount of such shortfall; or (iii) if the Guarantee Holder or the Project Enterprise receives compensation from the Host Government based on the Award, the Provisional Payments shall be repaid in the amount of such compensation received; and in each case, plus Interest at LIBOR plus 1 percent, calculated for the period from the date MIGA makes the respective Provisional Payment until the date the Award is rendered or the date when the Guarantee Holder or the Project Enterprise receives compensation from the Host Government, as applicable.

BREACH OF CONTRACT Covered Risk. 6.1 The guarantee against Breach of Contract shall cover a Loss that is due to the inability of the Guarantee Holder or the Project Enterprise (on behalf of the Guarantee Holder) to enforce an Award rendered in its favor against the Host Government, provided that: (a) the Award is for a specified monetary amount and has been rendered pursuant to a breach of a Contractual Obligation in a Project Agreement or repudiation of such Project Agreement by the Host Government; and (b) the Guarantee Holder and/or the Project Enterprise, as applicable, have made all reasonable efforts to exhaust available remedies to enforce the Award against the Host Government during the applicable Waiting Period from the date of the Award. 6.2 Prior to payment of compensation for a Loss under Section 6.3 below, MIGA may in its sole discretion agree to make one or more Provisional Payments (normally, corresponding to unpaid Scheduled Payments and normally in an aggregate amount not to exceed 50 percent of the Amount of Guarantee) provided that: (a) the Guarantee Holder and the Project Enterprise, as applicable, have not been able to obtain an Award within a period of 180 consecutive days from initiating arbitral or judicial proceedings against the Host Government for such breach of a Contractual Obligation in a Project Agreement, or repudiation of such Project Agreement, and the Guarantee Holder has made a written request for Provisional Payments after such time period has elapsed; (b) the merits of the Guarantee Holder’s claim have been determined through binding recourse to an independent expert in accordance with the procedures specified in Annex 5 4 to the Contract; and (c) the Guarantee Holder has provided MIGA with an irrevocable financial guarantee, in a form and from a guarantor acceptable to MIGA, to repay MIGA on demand the Provisional Payments as follows: (i) if the Award is rendered against the Guarantee Holder or the Project Enterprise or both, the Provisional Payments shall be repaid in full; or (ii) if the Award is rendered in favor of the Guarantee Holder or the Project Enterprise or both, but the awarded amount is less than the Provisional Payments, the Provisional Payments shall be repaid in part in the amount of such shortfall; or (iii) if the Guarantee Holder or the Project Enterprise receives compensation from the Host Government based on the Award, the Provisional Payments shall be repaid in the amount of such compensation received; and in each case, plus Interest at LIBOR plus 1 percent, calculated for the period from the date MIGA makes the respective Provisional Payment until the date the Award is rendered rendered, or the date when the Guarantee Holder or the Project Enterprise receives compensation from the Host Government, as applicable.

BREACH OF CONTRACT Covered Risk. 6.1 The guarantee against Breach of Contract shall cover a Loss resulting from a default by the Project Enterprise in making payment to the Guarantee Holder of Guaranteed Reimbursement Amounts that is due attributable to the inability of the Guarantee Holder or the Project Enterprise to enforce an Award rendered in its favor against the Host Government, provided that: (a) the Award in respect of such Loss is for a specified monetary amount and has been rendered pursuant to a breach of a Contractual Obligation in a Project Agreement Agreement, or repudiation of such Project Agreement by the Host Government, and such Award clearly states that such breach or repudiation by the Host Government was the cause of the Loss; and (b) the Guarantee Holder and/or the Project Enterprise, as applicable, have made all reasonable efforts to exhaust available remedies to enforce the Award against the Host Government during the applicable Waiting Period from the date of the Award. 6.2 Prior to payment of compensation for a Loss under Section 6.3 below, MIGA may in its sole discretion agree to make one or more Provisional Payments (normally, normally corresponding to due but unpaid Scheduled Payments Guaranteed Reimbursement Amounts and in an aggregate amount not to exceed 50 percent of the Amount of Guarantee) provided that: (a) the Guarantee Holder and the Project Enterprise, as applicable, have not been able to obtain an Award within a period of 180 consecutive days from initiating arbitral or judicial proceedings against the Host Government for such breach of a Contractual Obligation in a Project Agreement, or repudiation of such Project Agreement, and the Guarantee Holder has made a written request for Provisional Payments after such time period has elapsed; (b) the merits of the Guarantee Holder’s Xxxxxx's claim have been determined through binding recourse to an independent expert in accordance with the procedures specified in Annex 5 to the Contract; andin (c) the Guarantee Holder has provided MIGA with an irrevocable financial guarantee, in a form and from a guarantor acceptable to MIGA, to repay MIGA on demand the Provisional Payments as follows: (i) if the Award is rendered against the Guarantee Holder or the Project Enterprise or both, the Provisional Payments shall be repaid in full; or (ii) if the Award is rendered in favor of the Guarantee Holder or the Project Enterprise or both, but the awarded amount is less than the Provisional Payments, the Provisional Payments shall be repaid in part in the amount of such shortfall; or (iii) if the Guarantee Holder or the Project Enterprise receives compensation from the Host Government based on the Award, the Provisional Payments shall be repaid in the amount of such compensation received; and in each case, plus Interest at LIBOR plus 1 percent, calculated for the period from the date MIGA makes the respective Provisional Payment until the date the Award is rendered rendered, or the date when the Guarantee Holder or the Project Enterprise receives compensation from the Host Government, as applicable.

BREACH OF CONTRACT Covered Risk. 6.1 The guarantee against Breach of Contract shall cover a Loss resulting from a default by the Project Enterprise in making payment to the Guarantee Holder of Guaranteed Reimbursement Amounts that is due attributable to the inability of the Guarantee Holder or the Project Enterprise to enforce an Award rendered in its favor against the Host Government, provided that: (a) the Award in respect of such Loss is for a specified monetary amount and has been rendered pursuant to a breach of a Contractual Obligation in a Project Agreement Agreement, or repudiation of such Project Agreement by the Host Government, and such Award clearly states that such breach or repudiation by the Host Government was the cause of the Loss; and (b) the Guarantee Holder and/or the Project Enterprise, as applicable, have made all reasonable efforts to exhaust available remedies to enforce the Award against the Host Government during the applicable Waiting Period from the date of the Award. 6.2 Prior to payment of compensation for a Loss under Section 6.3 below, MIGA may in its sole discretion agree to make one or more Provisional Payments (normally, normally corresponding to due but unpaid Scheduled Payments Guaranteed Reimbursement Amounts and in an aggregate amount not to exceed 50 percent of the Amount of Guarantee) provided that: (a) the Guarantee Holder and the Project Enterprise, as applicable, have not been able to obtain an Award within a period of 180 consecutive days from initiating arbitral or judicial proceedings against the Host Government for such breach of a Contractual Obligation in a Project Agreement, or repudiation of such Project Agreement, and the Guarantee Holder has made a written request for Provisional Payments after such time period has elapsed; (b) the merits of the Guarantee Holder’s Xxxxxx's claim have been determined through binding recourse to an independent expert in accordance with the procedures specified in Annex 5 to the Contract; and (c) the Guarantee Holder has provided MIGA with an irrevocable financial guarantee, in a form and from a guarantor acceptable to MIGA, to repay MIGA on demand the Provisional Payments as follows: (i) if the Award is rendered against the Guarantee Holder or the Project Enterprise or both, the Provisional Payments shall be repaid in full; or (ii) if the Award is rendered in favor of the Guarantee Holder or the Project Enterprise or both, but the awarded amount is less than the Provisional Payments, the Provisional Payments shall be repaid in part in the amount of such shortfall; or (iii) if the Guarantee Holder or the Project Enterprise receives compensation from the Host Government based on the Award, the Provisional Payments shall be repaid in the amount of such compensation received; and in each case, plus Interest at LIBOR plus 1 percent, calculated for the period from the date MIGA makes the respective Provisional Payment until the date the Award is rendered rendered, or the date when the Guarantee Holder or the Project Enterprise receives compensation from the Host Government, as applicable.