Common use of Optional Development Clause in Contracts

Optional Development. I. The Concessionaire shall, subject to Applicable Laws, Applicable Permits, prior written approval of the Authority, be entitled to undertake in accordance with terms herein, and at its sole risk, and cost the development, operation and maintenance of the additional beds and/ or any non-obligated specialty service(s) at the Hospital, and / or, a Medical College, and/or additional housing blocks for doctors and paramedical staffs and Students, at the Site as set forth in the Schedule A ; which Concessionaire to be developed in conformity with the Specification and Standards set forth in the Schedule B (referred in this Agreement as "Optional Development"). For avoidance of doubt, in regard to the Option al Development, the Parties hereby unconditionally agree, confirm and understand that the Concessionaire shall, subject always to terms herein and full compliance with Applicable Laws, be entitled to undertake the development of optional component of the Medical College at any time during the Concession Period. The Parties further in this regard agree that Authority shall solely for the purpose of meeting part(s) of the capital cost of the Medical College, upon written request by Concessionaire clearly demonstrating its complete compliance with Applicable Laws and terms herein, disburse (in tranches) an interest bearing (viz, highest G Sec Rate as per latest RBI published bulletin) repayable loan facility to Concessionaire of the value equivalent to lower of:- (i) 50% of the then Authority’s estimated capital cost of development of Medical College, as would be determined by Authority in its discretion; and (ii) the sum of INR 00 (Xxxxxxx Xxxx) Xxxxxx; (hereinafter the “Loan Facility”) in accordance with terms hereof; provided, that, prior to the commencement of such disbursement(s) of any tranche the Concessionaire shall furnish relevant bank guarantee(s) of value equivalent to 110% of the relevant amount being disbursed in such tranche, to be issued by a Scheduled Bank in India as per the format enclosed herein as Schedule V (“Optional Development Guarantee”)1, each having respective validity period till expiry of corresponding repayment timeline as set out later at S. No (III) below.