1.6.4  Right to Compensation

Government may assume specific obligations and liabilities under the project agreement with respect to certain acts or omissions of government, including the exercise of its powers, functions and duties which will be enforceable against it. For example, government may be liable to pay Compensation and/or allow the private party certain Relief if its acts or omissions are not in accordance with the project agreement (but, not so as to effectively result in the fetter of government's statutory power or discretion described in section 1.6.1).

Government Relief and Compensation in such circumstances will be limited to that specified in the project agreement.3

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3 See Chapters 15 (Relief for Possible Key Risk Events) and 16 (Compensation Events).