Investment Promotion and Protection Agreement
The Royal Cambodian Government
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:
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.
(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.
(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.
(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.
(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