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13063 Mozambique - Investment Incentive Agreement


   
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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13063

 

 

INVESTMENT GUARANTIES

 

 

 

 

Agreement Between the
UNITED STATES OF AMERICA
and MOZAMBIQUE

 


Signed at Maputo September 23, 1999

 

 

 

 

 

NOTE BY THE DEPARTMENT OF STATE

Pursuant to Public Law 89—497, approved July 8, 1966
(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued
under the authority of the Secretary of State shall be competent
evidence . . . of the treaties, international agreements other than
treaties, and proclamations by the President of such treaties and
international agreements other than treaties, as the case may be,
therein contained, in all the courts of law and equity and of maritime
jurisdiction, and in all the tribunals and public offices of the
United States, and of the several States, without any further proof
or authentication thereof.”

 

MOZAMBIQUE

Investment Guaranties

Agreement signed at Maputo September 23, 1999;
Entered into force September 23, 1999.

INVESTMENT INCENTIVE AGREEMENT
BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND
THE GOVERNMENT OF THE REPUBLIC OF MOZAMBIQUE
THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE
GOVERNMENT OF THE REPUBLIC OF MOZAMBIQUE;
AFFIRMING their common desire to encourage economic activities in
Mozambique that promote the development of the economic resources and
productive capacities of the Republic of Mozambique; 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, coinsurance and reinsurance, investments
and 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,
reinsurance or coinsurance which is provided by the Issuer (or, in the case of
coinsurance, is provided by the Issuer and commercial insurance companies
("Coinsurers") under coinsurance arrangements under which the Issuer acts
both for itself and for such Coinsurers) in connection with a project in the
territory of Mozambique. The term "Issuer" refers to OPIC and any
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successor agency of the United States of America, and any agent of either.
The term "Taxes" means all present and future taxes, levies, imposts,
stamps, duties and charges, whether direct or indirect, imposed by the
Government of the Republic of Mozambique and all liabilities with respect
thereto.
ARTICLE 2
The two Governments confirm their understanding that the Issuer's activities
are governmental in nature and therefore:
(a) The Issuer shall not be subject to regulation under the laws of
Mozambique applicable to insurance or financial organizations, but, in the
provision of Investment Support, shall be afforded all rights and have access
to all remedies of any such entity, whether domestic, foreign or multilateral.
(b) The Issuer, 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, whether imposed directly on the Issuer or payable in the
first instance by others. Neither projects receiving Investment Support nor
investors in such projects shall be exempt from Taxes by operation of this
Article, provided, however, that any Investment Support shall be accorded
tax treatment no less favorable than that accorded to the investment support
of any other national or multilateral development institution which operates
in Mozambique. The Issuer shall not be subject to Taxes in connection with
any transfer, succession or other acquisition which occurs pursuant to
paragraph (c) of this Article or Article 3(a) hereof, but obligations for Taxes
previously accrued and unpaid with respect to interests received by the
Issuer shall not be extinguished as a result of such transfer, succession or
other acquisition.
(c) If the Issuer, alone or with a Coinsurer, makes a payment to any
person or entity, or exercises its rights as a creditor or subrogee in
connection with any Investment Support, the Government of the Republic of
Mozambique shall recognize the transfer to, or acquisition by, the Issuer and
any Coinsurer of any cash, accounts, credits, instruments or other assets in
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connection with such payment or the exercise of such rights, as well as the
succession of the Issuer and any Coinsurer 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 a
Coinsurer or any interests to which the Issuer or aCoinsurer succeeds under
this Article, the Issuer or a Coinsurer shall assert no greater rights than those
of the person or entity from whom 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 the Issuer
pursuant to paragraph (c) of this Article. No Coinsurer shall be entitled to
the benefits of this Agreement unless it is acting through, or its interests
have been assigned to, the Issuer.
ARTICLE 3
(a) Amounts in the currency of Mozambique, including cash,
accounts, credits, instruments or otherwise, acquired by the Issuer (or by the
Issuer and any Coinsurer) upon making a payment, or upon the exercise of
its rights as a creditor, in connection with any Investment Support for a
project in Mozambique, shall be accorded treatment in the territory of
Mozambique 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 such amounts were acquired.
(b) Such currency and credits may be transferred to any person or
entity and upon such transfer shall be freely available for use by such person
or entity in the territory of Mozambique in accordance with its laws.
ARTICLE 4
(a) Any dispute between the Government of the United States of
America and the Government of Republic of Mozambique 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
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Governments have not resolved the dispute, the dispute, including the
question of 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-General 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.
(iv) In all other matters, the arbitral tribunal shall regulate its
own procedures.
ARTICLE 5
(a) This Agreement shall enter into force on the date of signature.
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(b) 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.
IN WITNESS WHEREOF, the undersigned, duly authorized by their
respective Governments, have signed this Agreement.
DONE at Maputo , Mozambique , on the 23rd
day of September , 1999, in duplicate, in the English and Portuguese
languages, both texts being equally authentic.
FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF THE
THE UNITED STATES OF REPUBLIC OF MOZAMBIQUE
AMERICA
BRIAN DEAN CURRAN CARLOS CORNELIUS JESSEN Jr.
AMBASSADOR VICE-MINISTER OF PLANNING
AND FINANCE



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