TREATIES AND OTHER INTERNATIONAL ACTS SERIES 00-329 

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INVESTMENT GUARANTIES 

 Agreement Between the 

UNITED STATES OF AMERICA 

and MONTENEGRO 

Signed at Washington and Brussels 

March 23 and 29, 2000 

 
 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.” 
MONTENEGRO 

Investment Guaranties 

 Agreement signed at Washington and Brussels 

 March 23 and 29, 2000; 

 Entered into force March 29, 2000. 
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INVESTMENT INCENTIVE AGREEMENT 

BETWEEN 

THE GOVERNMENT OF THE UNITED STATES OF AMERICA 

AND 

THE GOVERNMENT OF THE REPUBLIC OF MONTENEGRO 

THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE 

GOVERNMENT OF THE REpUBLIC OF MONTENEGRO (THE "PARTIES"), 

.AFFIRMING their common desire to encourage economic activities in the Republic 

of Montenegro that promote the development of the economic resources and productive 

capacities of the Republic of Montenegro; 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 Montenegro. The term "Issuer" 

refers to OPIC and any successor agency of the United States of America, and any agent 

of either. The term "Taxes" means all present and future taxes, levies, imposts, stamp, 

duties, . and charges, whether direct or indirect, imposed in the Republic of Montenegro 

and all liabilities with respect thereto. 

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ARTICLE 2 

The parties hereto 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 or effective 

within the Republic of Montenegro 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, 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 the Republic of Montenegro. 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 makes a payment to any person or entity, or exercises its 

rights as a creditor or subrogee, in connection with any Investment Support, the Republic 

of Montenegro shall recognize the transfer to, or acquisition by, the Issuer of any cash, 

accounts, credits, instruments or other assets in connection with such payment or the 

exercise of such rights, as well as the succession of the Issuer to any right, title, claim, 

privilege or cause o(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 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 in its sovereign capacity, as distinct from any rights it may have 

as the Issuer pursuant to paragraph (c) of this Article. 

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ARTICLE 3 

. (a) Amounts in the currency of the Republic of Montenegro, 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 the Republic of Montenegro shall be 

accorded treatment in the territory of Montenegro 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 the Republic of Montenegro in accordance with its laws. 

ARTICLE 4 

(a) Any dispute between the Government of the United States of America and 

the Government of the Republic of Montenegro regarding the interpretation or 

application of this Agreement arising out of any project or activity for which Investment 

Support has been provided shall be resolved, insofar as possible, through negotiations. If, 

six months following a request for negotiations hereunder, the dispute has not been 

resolved, the dispute shall be submitted, at the initiative of either party, 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 party shall appoint one arbitrator. These two arbitrators shall 

by agreement designate a president of the tribunal who shall be a citizen of a state 

other than the United States of America and the Republic of Montenegro and 

whose appomtment shall be subject to acceptance by the two parties. The 

arbitrators shall be appointed within three months, and the president within six 

months, of the date of receipt of either party's request for arbitration. If the 

appointments are not made within the foregoing time limits, either party 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 parties 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.