(1) In relation to the implementation of the project, if a party causes damage to the other party due to doing something contrary to this Act or the rules or agreements made under this Act, the party doing the work shall pay the other party a reasonable amount for the loss.
(2) If the compensation as per sub-section (1) is to be borne by the Government of Nepal, the Government of Nepal may extend the period of the permit by calculating the amount for such compensation.