(1) In accordance with sub-rule (2) of Rule 15, the proponent shall submit to the authority a bank guarantee equal to or equal to zero percent of the total cost estimate of the project as a performance bond.
(2) According to sub-rule (1), if a bank guarantee is to be submitted for performance guarantee, such bank guarantee must be issued by an "A" class bank in Nepal that is acceptable to the authority.
(3) If the proponent does not start the work of the project within the period mentioned in the project contract without reasonable cause, or if the achievement or indicator of the project implementation is not achieved, the performance bond filed according to sub-rule (1) will be forfeited.
(4) Except for confiscation as per sub-rule (3), the performance bond submitted as per sub-rule (1) shall be released from the date of completion of the related project and commencement of commercial business.