OPERATION GUARANTEE definition

OPERATION GUARANTEE. Means the bond issued in terms of the APP, equal to 10% (ten percent) of the yearly payment of the CONSIDERATION in force at that time for the portion corresponding to the T2 + (T3 X Q) Tariffs, using the last invoice paid to the DEVELOPER, or in the event of the first year of the OPERATION PERIOD, the amount corresponding to the production volume communicated to the DEVELOPER pursuant to Clause Sixteenth of this APP shall be used as the base, which the DEVELOPER, shall deliver to CEA on the DATE OF COMMENCEMENT OF OPERATIONS and which shall be renewed yearly within the first ten calendar days following the commencement of the corresponding tax year and shall remain in force until the DELIVERY and operation of the SYSTEM to CEA, and the delivery of the APP TERMINATION GUARANTEE by the DEVELOPER to CEA, pursuant to this APP, moment in which such guarantee shall be returned to the DEVELOPER. This guarantee substitutes the CONSTRUCTION GUARANTEE, and shall be applied, if applicable, to guarantee the compliance of its obligations arising from the APP, and the payment of the conventional penalties relating to the operation and maintenance of the SYSTEM.
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OPERATION GUARANTEE means the bank letter of guarantee that shall be delivered by the Concessionaire to the Grantor in accordance with Clause 16.3 (Operation Guarantee) in the form provided for in Part 2 of Appendix 14 (Form of Letters of Guarantee), and which shall be effective from the Concession Commencement Date;
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Examples of OPERATION GUARANTEE in a sentence

  • Sincerely, Signature Name Financial Institution Annex No. 4-A OPERATION GUARANTEE FORMAT‌ (city), of 201….

  • Once the DEVELOPER has delivered the OPERATION GUARANTEE to CEA, CEA shall be obliged to, immediately, return the CONSTRUCTION GUARANTEE and to issue the MINUTES OF COMMENCEMENT OF OPERATION.

  • The foregoing irrespective of enforcing, if applicable, the OPERATION GUARANTEE, pursuant to the provisions of the APP.

  • With the issuance and execution of these minutes, the effects of the APP terminate and the release of the OPERATION GUARANTEE referred to in CLAUSE TWENTY EIGHTH of this APP is viable, provided that the DEVELOPER has delivered to CEA the APP TERMINATION GUARANTEE.