Common use of Penalty for Delay in Commissioning Clause in Contracts

Penalty for Delay in Commissioning. The Project shall be commissioned by the Scheduled Commercial Operation Date. In case of failure to achieve this milestone, GUVNL shall encash the Performance Bank Guarantee (PBG) in the following manner. a) Delay upto six (6) months from SCOD – GUVNL will encash total Performance Bank Guarantee on per day basis and proportionate to the balance Capacity not commissioned b) In case the commissioning of the project is delayed beyond Six (6) months from SCOD, the Power Producer’s Event of Default as per Article 10.2.1 shall be considered to have occurred and the contracted capacity shall stand reduced to the project capacity commissioned upto SCOD + 6 months. The PPA for balance capacity not commissioned shall be terminated.

Penalty for Delay in Commissioning. The Project shall be commissioned by the Scheduled Commercial Operation Date. In case of failure to achieve this milestone, GUVNL shall encash the Performance Bank Guarantee (PBG) in the following manner. a) Delay upto six (6) months from SCOD – GUVNL will encash total Performance Bank Guarantee on per day basis and proportionate to the balance Capacity not commissioned b) In case the commissioning of the project is delayed beyond Six (6) months from SCOD, the Power Producer’s Event of Default as per ArticleArticle 5. 10.2.1 6.1 shall be considered to have occurred and the contracted capacity shall stand reduced to the project capacity commissioned upto SCOD + 6 months. The PPA for balance capacity not commissioned shall be terminated.

Penalty for Delay in Commissioning. The Project shall be commissioned by the Scheduled Commercial Operation Date. In case of failure to achieve this milestone, GUVNL shall have right to encash the Performance Bank Guarantee (PBG) in the following manner. a) Delay upto up to six (6) months from SCOD – GUVNL will have the right to encash total Performance Bank Guarantee on per day basis and proportionate to the balance Capacity not commissioned b) In case the commissioning of the project is delayed beyond Six (6) months from SCOD, the Power Producer’s Event of Default as per Article 10.2.1 Article 13.3.1 shall be considered to have occurred and the contracted capacity shall stand reduced to the project capacity commissioned upto SCOD + 6 months. The PPA for balance capacity not commissioned shall be terminated.