Common use of Construction Security Clause in Contracts

Construction Security. 10.1.1 The Concessionaire shall submit to the Grantor, no later than on the Commencement Date, an unconditional and irrevocable on-demand bank guarantee, issued by a bank with a credit rating of at least AA- under the Standard and Poor's rating or with Aa3 under the ▇▇▇▇▇'▇ rating or such other rating as the relevant Public Authority may agree, in accordance with the Applicable Law for an amount in USD equal to the higher of (i) 10% of the VGF and (ii) ten million US Dollars (USD 10,000,000) and in the form set out in Appendix 9 (Security Forms) to secure the due performance of the Concessionaire's obligations under this Agreement during the Construction Period (the "Construction Security"). If the rating of the bank issuing the Construction Security falls at any time below the rating required under this Article 10.1.1, the Concessionaire shall, as soon as possible, issue a new Construction Security for the same amount remaining at the time of such occurrence, with a bank of a rating complying with the rating required under this Article 10.1. 10.1.2 The Concessionaire shall maintain the Construction Security in full force and effect from the date on which it was issued until the date on which the Completion Certificate is validly issued, on which date the Construction Security shall be released. 10.1.3 If the Construction Security is scheduled to expire prior to the date contemplated in Article 10.1.2, then at least twenty-two (22) Business Days prior to the scheduled expiry of the Construction Security, the Concessionaire shall arrange for an extension or replacement of the Construction Security. If the Concessionaire fails to extend or replace the Construction 10.1.4 Without prejudice to any other right which the Grantor may have under this Agreement, the Grantor shall have the right to draw on the Construction Security and claim the amount guaranteed on demand upon the Concessionaire's failure to honor any of its obligations, responsibilities or commitments during the Construction Period or in respect of any amount due from the Concessionaire to the Grantor and shall, at the time of the exercise of such right, send a notice to the Concessionaire describing the reasons for drawing on part or all of the Construction Security. The withdrawal by the Grantor of the entire amount of the Construction Security prior to the delivery of the Completion Certificate shall constitute a Concessionaire Event of Default. 10.1.5 If this Agreement is terminated prior to the Service Commencement Date for any reason other than the occurrence of a Concessionaire Event of Default, the Construction Security shall be duly discharged and released to the Concessionaire, when the Grantor's right to receive any amounts to meet the Concessionaire's accrued liabilities as on such date of Termination have been satisfied.

Construction Security. 10.1.1 The Concessionaire shall submit to the Grantor, no later than on the Commencement Date, an unconditional and irrevocable on-demand bank guarantee, issued by a bank reasonably acceptable to the Grantor and with a credit rating of at least AA- BBB under the Standard Standards and Poor's rating or with Aa3 Baa2 under the ▇▇▇▇▇'▇ rating or such other rating as the relevant Public Authority may agree, in accordance with the Applicable Law for an amount in USD equal to the higher of (i) 10% of the VGF and (ii) ten twenty-five million US Dollars (USD 10,000,00025,000,000) and in the form set out in Appendix 9 (Security Forms) to secure the due performance of the Concessionaire's obligations under this Agreement during the Construction Period (the "Construction Security"). If the rating of the bank issuing the Construction Security falls at any time below the minimum-required rating required under specified in this Article 10.1.1Article, the Concessionaire shall, as soon as possible, issue a new Construction Security for the same amount remaining at the time of such occurrence, with a bank of a rating complying with the rating required under this Article 10.1Article. 10.1.2 The Concessionaire shall maintain the Construction Security in full force and effect from the date on which it was issued until the date on which the Completion Certificate is validly issued, on which date the Construction Security shall be released.validly 10.1.3 If the Construction Security is scheduled to expire prior to the date contemplated in Article 10.1.2aforementioned date, then at least twenty-two (22) Business Days prior to the scheduled expiry of the Construction Security, the Concessionaire shall arrange for an extension or replacement of the Construction Security. If the Concessionaire fails to extend or replace the ConstructionConstruction Security by such date, the Grantor shall be entitled to draw on the Construction Security, and a Concessionaire Event of Default shall be deemed to have occurred. 10.1.4 Without prejudice to any other right which the Grantor may have under this Agreement, the The Grantor shall have the right to draw on the Construction Security and claim the amount guaranteed on demand upon the Concessionaire's failure to honor any of its obligations, responsibilities or commitments during the Construction Period or in respect of any amount due from the Concessionaire to the Grantor and shall, at the time of the exercise of such right, send a notice to the Concessionaire describing the reasons for drawing on part or all of the Construction SecurityGrantor. The withdrawal by the Grantor of the entire amount of the Construction Security prior to the delivery of the Completion Certificate shall constitute a Concessionaire Event of Default. 10.1.5 If this Agreement is terminated prior to the Service Commencement Date for any reason other than the occurrence of a Concessionaire Event of Default, the Construction Security shall be duly discharged and released to the Concessionaire, when subject to the Grantor's right to receive any amounts to meet the Concessionaire's accrued liabilities as on such date of Termination have been satisfiedTermination.