|
Investment
Incentive Agreement
Between The Royal
Cambodian Government
and
The Government of The United States of America
The
Government of the United States of America and the Royal Cambodian
Government; affirming their common desire to encourage economic
activities in the Kingdom of Cambodia that promote the development of
the economic resources and productive capacities of Cambodia, and recognizing
that this objective can be promoted through investment support
provided by the Overseas Private Investment Corporation (“OPIC”),
a development institution and an agency of the United States of
America, in the form of investment insurance and reinsurance, debt and
equity investments and investment guaranties;
have agreed as follows:
Article
1:
As
used in this Agreement, the following terms have the meanings herein
provided. The term “investment support” refers to any debt or
equity investment, any investment guaranty and any investment
insurance or reinsurance which is provided by the issuer in connection
with a project in the territory of Cambodia.
The term “issuer” refers to OPIC and any successor agency
of the United States of America, and future taxes, levies, imposts,
stamps, duties and charges imposed by the Royal Cambodian Government
and all liabilities with respect thereto.
Article
2:
(A) The issuer shall not be subject
to regulation under the laws of Cambodia applicable to insurance or
financial organizations.
(B) All operations and activities
undertaken by the issuer in connection with any investment support,
and all payments, whether of interest, principal, fees, dividends,
premiums or the proceeds from the liquidation of assets or of any
other nature, that are made, received or guaranteed by the issuer in
connection with any investment support, shall be exempt from taxes in
Cambodia. The issuer shall not be subject to any taxes in Cambodia in
connection with any transfer, succession or other acquisition which
occurs to paragraph (C) of this article or article 3 (A) here of. Any
project in connection with which investment support has been provided
shall be accorded tax treatment no less favorable that accorded to
projects benefiting from the investment support programs of any other
national or multilateral development institution which operates in
Cambodia.
(c) If the issuer makes a
payment to any person or entity, or exercises its rights as a creditor
or subrogee, in connection with any investment support, the Royal
Cambodian Government shall recognize the transfer to, or acquisition
by, the issuer of any cash, accounts, credits, instruments or other
assets in connection with such payment, succession of the issuer to
any right , title, claim, privilege or cause of action existing, or
which may arise, in connection therewith.
(D) With respect to any interests
transferred to the issuer or any interests to which the issuer
succeeds under this article, the issuer shall assert no greater rights
than those of the person or entity from who such interests were
received, provided that nothing in this agreement shall limit the
right of the government of the United States of America to assert a
claim under international law in its sovereign capacity, as distinct
from any rights it may have as issuer pursuant to paragraph (c) of
this article.
Article
3:
(A) Amounts in the currency of
Cambodia, including cash, accounts, credits, instruments or otherwise,
acquired by the issuer upon making a payment, or upon the exercise of
its rights as a creditor, in connection with any investment support
provided by the issuer for a project in Cambodia, shall be accorded
treatment in the territory of Cambodia no less favorable as to use and
conversion than the treatment to which such funds would have been
entitled in the hands of the person or entity from which the issuer
acquired such amounts.
(B) Such currency and credits may be
transferred by the issuer to any person or entity and upon such
transfer shall be freely available for use by such person or entity in
the territory of Cambodia in accordance with its laws.
Article
4:
(A) Any dispute between the
Government of the United States of America and the Royal Cambodian
Government regarding the interpretation of this agreement or which, in
the opinion of either party hereto, presents a question of
international law arising out of any project or activity for which
investment support has been provided shall be resolved, insofar as
possible, through negotiations between the two governments. If, six
months following a request for negotiations hereunder, the two
governments have not resolved the dispute, the dispute, including the
question whether such dispute presents a question of international law
shall be submitted, at the initiative of either government, to an
arbitral tribunal for resolution in accordance with paragraph (B) of
this article.
(B) The Arbitral Tribunal referred to
in paragraph (A) of this article shall be established and shall
function as follows :
(i)
each government shall appoint one arbitrator. These two
arbitrators shall by agreement designate a president of the tribunal
who shall be a citizen of a third state and whose appointment shall be
subject to acceptance by the two governments. The arbitrators shall be
appointed within three months, and the president within six months of
the date of receipt of either government’s request for arbitration.
If the appointments are not made within the foregoing time
limits, either government may, in the absence of any other agreement,
request the Secretary-Genera1 of the International Centre for the
Settlement of Investment Disputes to make the necessary appointment or
appointments. Both governments hereby agree to accept such appointment
or appointments.
(ii)
Decisions of the Arbitral Tribunal shall be made by majority
vote and shall be based on the applicable principles and rules of
international law. Its decision shall be final and binding.
(iii)
During the proceedings, each government shall bear the expense
of its arbitrator and of its representation in the proceedings before
the Tribunal whereas the expenses of the president and other costs of
the arbitration shall be paid in equal parts by the two governments.
In its award, the Arbitral Tribunal may reallocate expenses and costs
between the two governments.
(iv)
In all other matters, the Arbitral Tribunal shall regulate its
own procedures.
Article
5:
(A) This Agreement shall continue in
force until six months from the date of a receipt of a note by which
one government informs the other of an intent to terminate this
agreement. In such event, the provisions of this agreement shall, with
respect to investment support provided while this Agreement was in
force, remain in force so long as such investment support remains
outstanding, but in no case longer than twenty years after the
termination of this Agreement.
(B) This Agreement shall enter into
force on the date on which the Royal Cambodian Government notifies the
Government of the United States of America that all legal requirements
for entry into force of this agreement have been fulfilled.
Done
at Phnom Penh on the 4th day of August, 1995, in duplicate,
in the English and Khmer Languages, both texts being equally
authentic.
For
the Government of
For the Royal
the
United States of America
Government of Cambodia
CHRISTOPHER
WARREN
KEAT CHHON
|
