Investors of a Contracting Party who suffer losses because their investments in the territory of the other Contracting Party are affected by war or other armed conflict, national emergency, revolt, insurrection, civil disturbances and other similar events shall be accorded by such latter Contracting Party, in respect to restitution, indemnification, compensation or other settlement, treatment no less favorable than that it accords to its own investors or investors of any third State. (Article 6).

Transfers [Return to the top of the page]

TYPES OF PAYMENT

Returns

Yes. Each Contracting Party shall permit to investors of the other Contracting Party the unrestricted transfer of investments and returns, and in particular, but not exclusively:

1. the initial capital and the additional amounts necessary for the maintenance and the development of investments;
2. benefits, profits, interests, dividends, and other current incomes;
3. funds ncessary for the reimbursement of loans, as defined in Article 1 (1) c;
4. proceeds of the total or partial liquidation or sale of any investment;
5. indemnifiations, as indicated in Articles 5 or 6;
6. incomes of nationals of a Contracting Party wjo have obtained authorization to work in the territory of the other Contracting Party with respect to an investment; g) payments arising out of an investment dispute. Article 7(1)).

Repayment of Loans

Yes. (Article 7(1) (c)).

Proceeds of the Total or Partial Liquidation of an Investment

Yes. (Article 7(1) (d)).

Licenses and Other Fees

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Other Categories of Payment

Yes. (Article 7 (1) a), b), e), f), g).

CONVERTIBILITY, EXCHANGE RATES, AND TIMES OF TRANSFER

Currency

Transfers shall be effected without delay in a freely convertible currency at the exchange rate applicable on the date of transfer, in accordance with the procedures established by the Contracting Party in which territory the investment was made, procedures which cannot affect the substance of the rights set forth in this Article. (Article 7 (2)).

Exchange Rates

Transfers shall be effected at the exchange rate applicable on the date of transfer (Article 7 (2)).

Time of Transfer

Transfers shall be effected without delay. (Article 7 (2)). A transfer shall be considered without delay when effected within the normal time necessary to fulfill the formalities with respect to the transfer. In any case, the time shall not exceed two months, starting when the request is presented. (Article 7 (3)).

Expropriation [Return to the top of the page]

DEFINITION

Covered Expropriatory Measures

Expropriation, nationalization or measures which have a similar effect. (Article 5(1)).

CONDITIONS

Public Purpose and Non-Discrimination

Yes. “Public interest.” (Article 5(1)(2)).

Due Process of Law and Judicial Review

Yes. (Article 5(1)(2)).

Other

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Compensation Standard; Form and Time of Payment

“Prompt, adequate and effective compensation”

Compensation shall:

• amount to the market value of the investment immediately before the date of expropriation or before the impending expropriation became publicly known;
• include interests at a normal commercial rate from the date of expropriation;
• be made without delay in convertible currency;
• be effectively realizable and freely transferable. (Article 5(1)).

Settlement of Disputes between Contracting Parties
[Return to the top of the page]

PRE-ARBITRATION NEGOTIATIONS

Any dispute between the Contracting Parties concerning the interpretation or application of the Agreement shall, to the extent possible, be settled through diplomatic channels. (Article 11(1)).
If a dispute between the Contracting Parties cannot be settled in such a way within a reasonable time period, the dispute shall, at the request of either Contracting Party, be submitted to an arbitral tribunal. (Article 11(2)).

ARBITRATION

Constitution of the Tribunal

An arbitral tribunal shall be constituted for each particular case in the following manner:

• Within two months of the request for arbitration, each Contracting Party shall appoint a member of the tribunal.
• These two members shall select a national of a third State who shall be named Chairman of the tribunal upon the approval of both Contracting Parties. The Chairman shall be named within five months of the request for arbitration. When agreement cannot be reached and in the absence of other arrangements, the President of the International Court of Justice might be entrusted by either Contracting Party with the responsibility of making the appointment. There are also additional provisions to cover cases when the President is a national of either Party or is otherwise prevented from fulfilling this function.
• Regarding costs, each Contracting Party is required to bear the expenses of its own member of the tribunal and of its representation in the proceedings; the costs related to the Chairman and any other ancillary costs shall be borne equally by the Contracting Parties. (Article 11 (3)(4)(6)).

Procedural Rules of the Tribunal

The arbitral tribunal shall determine its own procedure, unless the Contracting Parties decide otherwise. (Article 11(5)).
Decisions of the tribunal shall be taken by a majority of votes and shall be final and binding on both Contracting Parties. (Article 11(6)).

Applicable Law

The tribunal shall decide on the basis of the provisions of the Agreement and the generally recognized principles of international law. (Article 11(6)).

Settlement of Disputes between a Contracting Party and an Investor [Return to the top of the page]

DEFINITION

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PREARBITRAL CONSULTATIONS AND DISPUTE SETTLEMENT MECHANISMS

Any dispute relating to investments between an investor of one Contracting Party and the other Contracting Party will, to the extent possible, be settled through amicable consultations. (Article 12 (1)).

If it was not possible to settle the dispute within a period of six months, starting on the date of notification as mentioned in paragraph 1, it may be submitted:

1. to the competent tribunals of the host party; or
2. to international arbitration. (Article 12 (2)).

Election by the investor of either one of these procedures shall be definitive. (Article 12 (4)).

ARBITRAL SETTLEMENT OF DISPUTES

Conditions

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Consent

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Forms of Arbitration

When the dispute is referred to international arbitration, it may be submitted to:

1. ICSID, provided each Contracting Party is a party to the ICSID Convention. (For the interim period, both parties give their consent to the submission of the dispute to the ICSID Additional Facility Rules); or
2. an ad hoc arbitration tribunal established under the UNCITRAL Arbitration Rules. (Article 12 (5)).

If three months have elapsed and the forum has not been selected, Parties shall submit the dispute to ICSID. (Article 12 (6)).

Applicable Law

The arbitral tribunal shall decide the dispute in accordance with the provisions of the Agreement; with reference to the laws of the Contracting Party involved in the dispute, including rules with respect to conflicts between laws; terms of any specific agreement concluded in relation to such an investment; and, principles of international law. (Article 12 (7)).