ADWEA Shuweihat Water Transmission Scheme

Supply Division CONTRACT No. N-00-0173

SECTION 3

CONDITIONS OF AGREEMENT AND ANNEXES

ANNEXURE 'G'

i) FORM OF PERFORMANCE BANK GUARANTEE

ii) FORM OF ADVANCE PAYMENT GUARANTEE

FILE: P:\ED0012 SHUWEIHAT\CORRESPONDANCE\OUTGOING\ADWEA [Page 1 of 4] August 2002 Rev. A

ADWEA Shuweihat Water Transmission Scheme
Supply Division CONTRACT No. N-00-0173

FORM OF PERFORMANCE BANK GUARANTEE

THE GOVERNMENT OF ABU DHABI

ABU DHABI WATER AND ELECTRICITY AUTHORITY
P.O. Box No. 6120
Abu Dhabi
United Arab Emirates

SUBJECT: PERFORMANCE BANK GUARANTEE NO. DATE:

AMOUNT
AGREEMENT NO.

Dear Sirs,

Whereas ABU DHABI WATER AND ELECTRICITY AUTHORITY (hereinafter referred to as

“ADWEA”) has entered into an agreement with ............................... (hereinafter referred to as
“CONTRACTOR”) for ............................................., and whereas CONTRACTOR shall be required
under the AGREEMENT to procure a Performance Bank Guarantee issued by a bank in favour of
ADWEA in support of the due and proper performance of the obligations undertaken by
CONTRACTOR in respect of the above-mentioned AGREEMENT.

Therefore, in consideration of the above, We [Name of the Bank] established in Abu Dhabi
and having our address at P.O. Box ....... , Abu Dhabi, U.A.E. hereby irrevocably and
unconditionally guarantee and undertake to ADWEA, without any right of defence set off or
counterclaim whether on our behalf or on behalf of CONTRACTOR to pay to ADWEA a sum not
exceeding (Figures) (Letters) or any lesser sum specified by ADWEA upon receipt of ADWEA’s
written request addressed to us in the event that CONTRACTOR fails to perform or fulfil any of his
obligations set forth in the AGREEMENT, by transfer to an account in ADWEA’s name at such
bank in Abu Dhabi as ADWEA shall stipulate or in such other manner as shall be acceptable to
ADWEA. Such written request shall be conclusively binding on us for all purposes under this
Performance Bank Guarantee.

We agree that any changes, modifications, additions or amendments which may be made to the
AGREEMENT, or in the work to be performed thereunder, or in the payments to be made on
account thereof, or any extensions of the time for performance or other forbearance on the part of
either ADWEA or CONTRACTOR to the other or to any other guarantor of the obligations of either
of them, shall not in any way release us from our continuing liability hereunder, and we hereby
expressly waive notice to us of any such changes, modifications, additions, amendments,
extensions or forbearance.

We further agree that any payment made hereunder shall be made free and clear of and without
deductions for or on account of any present or future taxes, levies, imposts, duties, charges, fees,
deductions or withholdings of any nature whatsoever and by whomsoever imposed.

This Performance Bank Guarantee shall come into force on the date hereof and shall continue
until the issue of the Final Acceptance Certificate.

This Performance Bank Guarantee shall be governed by and interpreted under the laws of
Abu Dhabi and the U.A.E.

Yours faithfully,
________________________________
Authorised Signature and Stamp of Bank

FILE: P:\ED0012 SHUWEIHAT\CORRESPONDANCE\OUTGOING\ADWEA [Page 2 of 4] August 2002 Rev. A

ADWEA Shuweihat Water Transmission Scheme
Supply Division CONTRACT No. N-00-0173

FORM OF ADVANCE PAYMENT GUARANTEE

THE GOVERNMENT OF ABU DHABI

ABU DHABI WATER AND ELECTRICITY AUTHORITY
P.O. Box No. 6120
Abu Dhabi
United Arab Emirates

SUBJECT: ADVANCE PAYMENT GUARANTEE NO. DATE:

AMOUNT DHS.
AGREEMENT NO.

Dear Sirs,

Whereas ABU DHABI WATER AND ELECTRICITY AUTHORITY (hereinafter referred to as

“ADWEA”) has entered into an agreement with ............................... (hereinafter referred to as
“CONTRACTOR”) for ............................................., and whereas you have agreed to make an
advance payment of Dhs. ……………………… (Figures) (Letters) to our above client upon
receipt of a Bank Guarantee issued by a bank in favour of ADWEA for an equivalent amount.

Therefore, in consideration of the above and based on the request of our client, we ………………
(Name of the Bank) established in Abu Dhabi and having our address at P.O. Box ……………..,
Abu Dhabi, U.A.E. hereby irrevocably and unconditionally covenant and agree as primary obligator
and not as Surety merely as follows:

1. We undertake to pay to you the said amount or part thereof at your first written demand, by
transfer to an account in ADWEA’s name at such bank in Abu Dhabi as ADWEA shall
stipulate or in such other manner as shall be acceptable to ADWEA, without warning or any
restriction or condition and without recourse and notwithstanding any objection from the said
Messrs. ………………………………

2. We further agree that any payment made hereunder shall be made free and clear of and
without deductions for or on account of any present or future taxes, levies, imposts, duties,
charges, fees, deductions or withholdings of any nature whatsoever and by whomsoever
imposed.

3. We agree that any changes, modifications, additions or amendments which may be made to
the AGREEMENT, or in the work to be performed thereunder, or in the payments to be
made on account thereof, or any extensions of the time for performance or other
forbearance on the part of either ADWEA or CONTRACTOR to the other or to any other
guarantor of the obligations of either of them, shall not in any way release us from our
continuing liability hereunder, and we hereby expressly waive notice to us of any such
changes, modifications, additions, amendments, extensions or forbearance.

4. As and when the advance payment is recovered against progress payments made by you to
CONTRACTOR, then this guarantee shall automatically stand reduced to the extend of such
recovery.

FILE: P:\ED0012 SHUWEIHAT\CORRESPONDANCE\OUTGOING\ADWEA [Page 3 of 4] August 2002 Rev. A

ADWEA Shuweihat Water Transmission Scheme
Supply Division CONTRACT No. N-00-0173

5. This Bank Guarantee shall come into force on the date hereof and shall remain valid until
such time as it is called up or you inform us that it is cancelled.

6. This Bank Guarantee shall be governed by and interpreted under the laws of Abu Dhabi and
the U.A.E.

Yours faithfully,

_________________________________
Authorised Signature and Stamp of Bank

FILE: P:\ED0012 SHUWEIHAT\CORRESPONDANCE\OUTGOING\ADWEA [Page 4 of 4] August 2002 Rev. A