Common use of Capacity Augmentation Clause in Contracts

Capacity Augmentation. 14.1 NGS/ SMC may at any time after COD decide to augment/ increase the capacity of the Project (Capacity Augmentation) with a view to provide the desired level of service to the users of the Project Facility. 14.2 NGS/ SMC shall invite proposals from eligible Persons for Capacity Augmentation. The Concessionaire shall have option to submit its proposal for Capacity Augmentation. 14.3 In case the Concessionaire, after participating in the bidding procedure, fails to give the lowest offer, the Concessionaire shall be given the first right of refusal to match the preferred offer. If the Concessionaire matches the preferred offer the Parties shall enter into a suitable agreement supplemental to this Agreement to give effect to the changes in scope of the Project, Concession Period and all other necessary and consequential changes. In such an event the Concessionaire shall pay to the bidder who had made the lowest offer sum equivalent to 0.1% of the estimated cost of Capacity Augmentation towards bidding costs incurred by such bidder. 14.4 In case the Concessionaire wishes to augment/ increase the capacity of the Project at its own resources with a view to provide the desired level of service to the users of the Project Facility, the same shall be undertaken only after prior written approval of NGS / SMC.