Guidelines for determination of tariff & SBD for ... - Ministry of Power

4.9 Format for Bid Bond
Standard RFP for ….[Insert ‘medium’ or ‘long’, as applicable] term power procurement under Case - 1
FORMAT OF THE UNCONDITIONAL AND IRREVOCABLE BANK GUARANTEE
FOR BID BOND
(To be on non-judicial stamp paper of appropriate value as per Stamp Act relevant to place of
execution. Foreign entities submitting Bids are required to follow the applicable law in their
country.)
In consideration of the ……………. (Insert name of the Bidder) submitting the Bid inter alia
for supply of power on ………….. [Procurer/Authorized Representative to insert ‘medium’
or ‘long’, as applicable] term basis through tariff based competitive bidding process for
meeting the requirements of Procurer(s) in response to the RFP dated ……….[Insert date of
RFP] issued by …………… [Insert name of the Procurer / Authorized Representative as
applicable], (hereinafter referred to as Procurer/ Authorized Representative) and such
Procurer/ Authorized Representative agreeing to consider the Bid of ……… [Insert the name
of the Bidder] as per the terms of the RFP, the ……………………… (Insert name and address
of the bank issuing the Bid Bond, and address of the head office) (here in after referred to as
“Guarantor Bank”) hereby agrees unequivocally, irrevocably and unconditionally to pay to the
Procurer/ Authorized Representative or its authorized representative at
…………………..[Insert Name of the Place from the address of Procurer/Authorized
Representative] forthwith on demand in writing from the Procurer/ Authorized Representative
or any representative authorized by it in this behalf an amount not exceeding Rupees
……………… (Rs………….…….) only [Insert amount not less than that derived on the basis
of Rs. 3 lakhs per MW multiplied with the total quantum of power offered by the Bidder], on
behalf of M/s. ………………………..[Insert name of the Bidder].
This guarantee shall be valid and binding on the Guarantor Bank up to and including
……………… (Insert date of validity of Bid Bond in accordance with Clause 2.12 of this
RFP) and shall not be terminable by notice or any change in the constitution of the Guarantor
Bank or by any other reasons whatsoever and our liability hereunder shall not be impaired or
discharged by any extension of time or variations or alternations made, given, or agreed with
or without our knowledge or consent, by or between concerned parties.
Our liability under this Guarantee is restricted to Rupees …………………….. (Rs…
………….) only. Our Guarantee shall remain in force until …………………….. [Date to be
inserted by Procurer/Authorized Representative] or its authorized representative shall be
entitled to invoke this Guarantee until ……………………….. [Insert Date, which is 30 days
after the date in the preceding sentence].
The Guarantor Bank hereby expressly agrees that it shall not require any proof in addition to
the written demand from the Procurer/ Authorized Representative or its authorized
representative, made in any format, raised at the above mentioned address of the Guarantor
Bank, in order to make the said payment to the Procurer/ Authorized Representative or its
authorized representative.
The Guarantor Bank shall make payment hereunder on first demand without restriction or
conditions and notwithstanding any objection, disputes, or disparities raised by the Bidder or
any other person. The Guarantor Bank shall not require …………………….……….. [Insert
name of Procurer(s)] or its authorized representative to justify the invocation of this BANK
GUARANTEE, nor shall the Guarantor Bank have any recourse against the Procurer/
………..[Insert name of Procurer / Authorized Representative ] Page 98