Common use of Performance Bank Guarantee (PBG) Clause in Contracts

Performance Bank Guarantee (PBG). 2.5.1. The Performance Bank Guarantee furnished under this Agreement shall be for guaranteeing the successful commissioning of the Project for power up to the Contracted Capacity within the time specified in this Agreement. 2.5.2. The failure on the part of the SPG to furnish and maintain the Performance Bank Guarantee shall be a material breach of the term of this Agreement on the part of the SPG. 2.5.3. The PBG shall be initially valid from the date of issue until 2 months (i.e. sixty (60) days) beyond the 9 months from the date of signing of Power Purchase Agreement (PPA). 2.5.4. The PBG will be returned to the SPG after successful commissioning of Solar power plant, after taking into account any penalties due to delay in commissioning as per terms and conditions of RfS. 2.5.5. The Performance Bank Guarantee shall be distinct from and in addition to the Bank Guarantee equivalent to Central Financial Assistance(CFA) to be submitted by SPG. 2.5.6. On declaration of commercial operation date (COD), the successful bidder shall have to submit Bank Guarantee equivalent to CFA amount. Bank Guarantee shall be in favor of PGVCL and to be submitted at the office of Chief Engineer (Project), PGVCL, _ _ _ _ _ _ _ _ within 15 days of COD. The release of CFA to RESCO developer is subject to submission of bank guarantee equivalent to CFA amount. Bank Guarantee will be released in four lots of 25% each on successful operation of plant after 2.5 years, 5 years, 7.5 years and 10 years from CoD.

Performance Bank Guarantee (PBG). 2.5.1. The Performance Bank Guarantee furnished under this Agreement shall be for guaranteeing the successful commissioning of the Project for power up to the Contracted Capacity within the time specified in this Agreement. 2.5.2. The failure on the part of the SPG to furnish and maintain the Performance Bank Guarantee shall be a material breach of the term of this Agreement on the part of the SPG. 2.5.3. The PBG shall be initially valid from the date of issue until 2 months (i.e. sixty (60) days) beyond the 9 months from the date of signing of Power Purchase Agreement (PPA). 2.5.4. The PBG will be returned to the SPG after successful commissioning of Solar power plant, after taking into account any penalties due to delay in commissioning as per terms and conditions of RfS. 2.5.5. The Performance Bank Guarantee shall be distinct from and in addition to the Bank Guarantee equivalent to Central Financial Assistance(CFA) to be submitted by SPG. 2.5.6. On declaration of commercial operation date (COD), the successful bidder shall have to submit Bank Guarantee equivalent to CFA amount. Bank Guarantee shall be in favor of PGVCL UGVCL and to be submitted at the office of Chief Engineer (Project), PGVCLUGVCL, _ _ _ _ _ _ _ _ within 15 days of COD. The release of CFA to RESCO developer is subject to submission of bank guarantee equivalent to CFA amount. Bank Guarantee will be released in four lots of 25% each on successful operation of plant after 2.5 years, 5 years, 7.5 years and 10 years from CoD.