O&M Performance Security definition

O&M Performance Security shall have the meaning set forth in Clause 9.1; “Political Event” shall have the meaning set forth in Clause 17.4;
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O&M Performance Security means a first demand irrevocable and unconditional guarantee, issued by a scheduled bank in Pakistan with a minimum credit rating of at least ‘AA’ acceptable to the Authority in the form of a demand guarantee or a standby letter of credit (being in an amount equal to two percent (2%) of the estimated total project cost, as indicated in the Financial Proposal of the Successful Bidder, that shall be replaced every year so as to ensure that it remains valid throughout the O&M Period, provided by the Concessionaire to the Authority in the form of the instrument attached herewith as Schedule 2 – Annex B (Form of O&M Performance Security).
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O&M Performance Security means a security in the form of a financial guarantee issued by a scheduled commercial bank operating in Pakistan acceptable to the Primary Implementing Agency (with a minimum credit rating of ‘A-’any reputable credit rating agency like JCR-VIS, PACRA, etc., rating scale for financial institutions) or from an Insurance company and in the amounts equivalent to 5% of the O&M Cost of the relevant O&M Year.
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Examples of O&M Performance Security in a sentence

  • It is hereby clarified that the Operator will supplement/enhance the O&M Performance Security at the time of Handover Date of the Project if the actual project cost (as determined and informed by the Authority to the Operator) exceeds the Estimated Project Cost so that the O&M Performance Security is at least 5% of the actual project cost.

  • All costs, expenses, fees and other charges of any nature, in each case, associated with the issuance, maintenance and encashment of the O&M Performance Security are solely on account of the Sponsors.

  • The O&M Performance Security provided in the first instance shall become effective simultaneously upon return of the Construction Performance Security to the Concessionaire by the GoS and thereafter, each O&M Performance Security provided prior to commencement of an Operational Year shall become automatically become effective simultaneously upon return of the O&M Performance Security for the previous Operational Year.

  • The O&M Performance Security shall be returned to the Company on the O&M Performance Security Expiry Date provided that no claim for payment is outstanding on such date, in which case it will be returned on satisfaction of such claim.

  • The O&M Performance Security will name the Department a permitted assignee or transferee beneficiary (as applicable), with rights to draw upon or exercise other remedies thereunder if the Department succeeds to the position of the Concessionaire under the applicable O&M Contract.

  • The Parties have agreed that the amount of the O&M Performance Security is reasonable and in accordance with the Legal Requirements.

  • In the event of failure by the Concessionaire to extend the validity of the O&M Performance Security in accordance with this Section 13.7.2, the GoS shall have the right to encash the O&M Performance Security, ten days prior to its expiry, up to its outstanding value (the “O&MEncashed Sums”).

  • The Company shall notify GoS of the impending expiry of the O&M Performance Security not more than three (3) and not less than two (2) Months prior to the date it is due to expire.

  • In the event the funds received by the GoS through encashment of the O&M Performance Security are less than the GoS Remedy Amount, the Concessionaire shall be obligated to pay the GoS the shortfall within three (3) days of the GoS’s written demand.

  • In the event that the Solar Company fails to pay such damages within the specified period, the Procurer shall have the right to recover the amount of such damages from the subsequent month’s Tariff Payment in accordance with Clause 7.1 or by encashing the O&M Performance Security.


More Definitions of O&M Performance Security

O&M Performance Security means the irrevocable, unconditional and on-demand bank guarantee (and any replacement thereof), in favour of GoS, in an amount equal to Pakistani Rupees five hundred million only (PKR 500,000,000/-), issued by an Acceptable Bank in the form set out in part 2 of appendix 6;
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