(1) 2 Boch Government shall appoint one arbaitaaten

@ these two arbitvators shall designate a President by common
agreement who shall be a citizen of a third BeaCe and be
appointed by the two Governments. The arbitrators shall be
appointed within two months and the President within three
months of the date of receipt of either Government's request
for arbitration, I£ the appointments are not made within the
foregoing time limits, either Government may, in the absence of

» any other agreement, request the President of the Internacional

4.

a

r Court of Justice to make the necessary appointment or

: appointments, and: both Governments agree to accept such

appointment or g ntments.
srbitral tribunal shall base its decision on

(ii)
*,
‘the applicable principles and rules of public international

law. the agbitral tribunal shall decide by majority vote. tts
decision shall be final and binding.

(ii1) Each of the Governments shall pay the expenses of
its arbitrator and of its representation in the proceedings

before the arbitral tribunal; the expenses of the President and

the other costs shall be paid in equal parts by the two
Governments, The arbitral tribunal may adopt regulations
concerning the costs, consistent with the foregoing.

{iv) In all other matters, the arbitral tribunal shal!

regulate its own procedures.

j
. @


S favorable ag bo tse and vonversion thaw fhe treatment te whieh
e@ Buch Conds wotlk be untit bed ia the Tranebs Ob Che ceiver
Investor. Such amounts and credits may be traniberced by the
Issuer to any person or entity and upon such transter shall be
freely available for use by such person or entity in the
territory of the Republic of Djibouti.
ARTICLE 6
(a) Any dispute between the Government of the United

= States of America and the Government of the Republic of

opabous regarding the interpretation of this Agreement or

£ one of the Governments, involves a

international law arising out of any project

hich Coverage has been issued shall be
resolved insofarTM possible, through nagotiations between the

@... Governments. If at the end of three months following the

: request for negotiations the two Governments have not resolved
the dispute by agreement, the dispute, including the question
of whether such dispute Presents a question of public
international law, shall be submitted, at the initiative of
either government, to an arbitral tribunal for resolution in
accordance with Article 6(b).

(b) The arbitral tribunal for resolution of dispute:

Pursuant to Article 6(a) shall be established and function as

follows:


@ Vhis Agreement shall continue in force until six months
from the date of receipt o£ a note by which one Government

informs the other of an intent no langer to be a party to the

Agreement, In such event, the provisions of the Agreement with
respect to Coverage issued while the Agreament was in Foree

shall remain in force for the duration of such Coverage, but in

no case longer than twenty years after the denunciation of the

Agreement.
~ Upon receipt of a note from Your Excellency indicating
that the “foregoing ptovisions are acceptable to the Government

of the Rapublic: OF Ditbouti, the Government of the United
a consider that this note and your reply

States of America
thereto constitut &n “Agreement between our two Governments on

ee :
is subject,” to enter into force on the date of the note by

which the Government of the. Republic of Djibouti communicates

to the Government of the United States of America that this

exchange of notes has been approved pursuant to its

constitutional procedures.
Accept, Excellency, the renewed assurances of my Li ghee:

consideration.

Dated: MLE CA
LE Cpe tcl.

VA



er A Ta

a

INVESYMENY INCENYIVE AGREEMENT BEYWHEN

OF AMER ECA

THE GOVERNMENT G2 TE UIE SURAT

AND ‘YHE GOVERNMENY OF CHE REPUBLIC OF DY LBUUTT

tyt

I have the honor to refer to conversations which have
recently taken place between representatives of our two
governments relating to investments in the Republic of Djibouts
which promote the development of the economic resources ane
productive capacities of the Republic of Djibouti and to
investment insurance (including reinsurance) and investment
guaranties which are backed in whole or in part by the credit
r ) or public monies of the United States of America and are

administered either directly by the Overseas Private Investment

Corporation ("OPIC"), an independent government corporation

organized under the laws of the United States of America, or

pursuant, to arrangements between OPIC and commercial insurance,
reinsurance and other companies. I also have the honor to

confirm the following understandings reached as a result cf

those conversations:
ARTICLE 1
As used herein, the term "Coverage" shall refer to any
investment insurance or guaranty which is issued in Accordance
with this Agreement by OPIC, by any successor agency of the

United States of America or by any other entity or group of

an


entities, pursuant to arrangements with OPICc or UY SUCCEBSON
agency, all o£ whom are hereinafter deemed included in the term
"Tssuec" to the extent of their interest as insurer wh.
reinsuxer in any Coverage, whether as a Party or suecessor to a
voutiack providing Coverage or as an agent £or the
administration of Coverage.
ARTICLE 2
The procedures set forth in this Agreement shall apply

only with respect to Coverage relating to projects or .
activities approved by the Government of the Republic of
Djibouti. In the case of contracts for the provision of goods
or services entered into by a party under Coverage and the
Government of the Republic of Djibouti, or any agency or
‘political subdivision thereof, the project or activity to which
such contracts relate shall be deemed to have been approved by

the Government of the Republic of Djibouti for purposes of this

Agreement.
ARTICLE 3

(a) If the Issuer makes payment to any investor under

Coverage, the Government of the Republic of Djibouti shall,
subject to the provisions of Article 4 hereof, recognize the
transfer to the Issuer of any currency, eredits, assets, or
investment on account of which payment under such Coverage is
made as well as the succession of the Issuer to any vigni,
title, claim, privilege, or cause of action existing, ox whic.

may arise, in connection therewith.


‘@

"under ‘the Jawa of

Hoey ohh assert ma queakter a belitss tlran

(> re ts
those of the transferring investor with respect to wy
interests iransCecred or succeeded to under this: paragraph.
Nothing in this Agreement shall Limit tie right of the
Government of the United States ‘of America to assert a claim
under international law in its soverign capacity, as distinct
from any rights it may have as Issuer.

{e) The issuance of Coverage outside of the Republic
of Djibouti with respect to investment in a project in the

Repyblic of Djibouti shall not subject the Issuer to regulation
he Republic of Djibouti applicable to

* oe
lL organisations.
ARTICLE 4
‘that the laws of the Republic of Djibouti

partianty « % “wholly invalidate or prohibit the acquisition from

a covered “tav ator, of any interest in any property within the

territory of the Republic of Djibouti by the Issuer, the
Government of the Republic of Djibouti shall permit such
investor and the Issuer to make appropriate arrangements
pursuant to which such interests are transferred to an entity
permitted to own such interests under the laws of the Republic
of Djibouti.
ARTICLE 5

Amounts in the lawful currency of the
Republic of Djibouti, including credits thereof, acquired by
the Issuer by virtue of such Coverage shall be accorded

treatment by the Government of the Republic of Djibouti ne ies: