CONTRACT NO.

SCHEDULE "A"

30621127/00

the CONTRACT Price, as guarantee for CONTRACTOR's performance

of the WORK.

32.2

32.1.2

CONTRACTOR undertakes to keep the Bank Guarantees valid

throughout the CONTRACT Term and for twenty-four (24) Gregorian
months following the actual Preliminary Acceptance Date of all
PROJECT PORTIONS (except for the Power Plant Units as provided
in Paragraph 17.10 of this Schedule "AU).

32.1.3

The value of the Bank Guarantees will be reduced at the end of the
warranty period of relevant PROJECT PORTION(S) by an amount
equal to five percent (5%) of the CONTRACT Price of the relevant
PROJECT PORTIONeS).

32.1.4

For purposes of this paragraph, "throughout the CONTRACT Term u

means "from the Effective Date of the CONTRACT up to Final
Acceptance of the WORK (Final Acceptance Date)".

Extension of Bank Guarantees

In the event that the CONTRACTOR's Bank Guarantees need to be extended,

as a result of delayed Preliminary Acceptance (or Readiness for Commercial
Operation in the case of the Power Plant Units as proVided in Paragraph
17.10 of this Schedule "AU) due to any reason whatsoever, CONTRACTOR
shall, no later than seven (7) caiendar days after the actual Preliminary
Acceptance Date or Readiness for Commercial Operation Date, submit to
COMPANY an extension of the Bank Guarantees covering the entire warranty
period.
The Parties agree that the Bank Guarantees shall expire in any case after the
lapse of forty-eight (48) Gregorian months from the actual Preliminary
Acceptance Date of all PROJECT PORTIONS (except for the Power Plant Units
as provided in Paragraph 17.10 of this Schedu Ie "AU) or the actual end of the
warranty period of the last PROJECT PORTION completed, whichever is
earlier.
32.3

Failure by CONTRACTOR to Extend its Bank Guarantees

Should CONTRACTOR fail to extend the validity of its Bank Guarantees as

required, COMPANY shall draw down the full amount of the Bank Guarantees.
CONTRACTOR shall be provided in any event, thirty (30) calendar days
advance written notice during which time CONTRACTOR must commence to
cure the default to avoid COMPANY drawing down on the Bank Guarantees.
After expiration of the warranty period specified in Paragraph 18, Schedule
"A" of the CONTRACT and if the COMPANY has drawn down the Bank
Guarantee, then COMPANY shall refund to CONTRACTOR that amount of the
Bank Guarantees which was drawn down, iess that amount which COMPANY,
in its full and absolute discretion, deems necessary to retain in order to meet
the CONTRACTOR's warranty obligations.
33.

Validity of Commercial Registration

CONTRACTOR shall ensure that its Commercial Registration (CR) or License is valid
throughout the entire duration of the CONTRACT and any extension(s) thereof. In the
event that its CR or License expires during the duration of the CONTRACT and any
extension(s) thereof, CONTRACTOR shall submit to COMPANY a copy of its application
form or proof for renewal prior to the expiration of its CR or License and shall submit
its new or renewed CR or License Within forty-five (45) calendar days after the
expiration of its previous CR or License. Failure by CONTRACTOR to submit such
A-59
Conversion of Open Cycle Gas Turbines to Combined Cycle at Qurayyah Power Plant
Schedule '~A"