TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13063 

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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