(i) Each Government shall appoint one arbitrator; these two
arbitrators shall designate a president by common agreement
who shall be a citizen of a third state 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. If the appointments are not made within the
fcregoing time limits, either Government may, in the absence
of any other agreement, request the President of the Inter~-
\
national Coiirt of Justice to make the necessary appointment ~
or appointments, and both Governments agree to accept such
appointment or appointments.
(ii) The arbitral tribunal shall base its decision on the
applicable principles and rules of public international
law. The arbitral tribunal shall decide by majority vote.
Its decision shall be final and binding.
(iii) Each of the Governments shall pay the expense of its
arbitrator and of its representation in the proceedings

before the arbitral tribur.

the expenses cf the President
and the other costs shail be paid in equal parts by the two
Governments. The arbitral tribunal may adopt regulations
concerning the costs, consistent with the foregoing.
However, the arbitral tribunal as part of its decision
may determine that the Government in whose favor the decision
is made is entitled to reimbursement of all or part of its
reasonable expenses from the other Government.
{iv) In all other matters, the arbitral tribunal shall
regulate its own procedures.
: ARTICLE 7 .
This Agreement shall continue in force until six months

from the date of receipt 22 a note by which one Government


Amounts in the lawful currency of the Republic of Cape
Verde, -ncluding credits thereof, acquired by the Issuer by
virtue of such Coverage sn2ll be accorded troatment by the
Government of the Republic of Cape verde no less favorable
as to use and conversion than the treatment to which such
“unds would be entitled in the hands of the party under
Coverage.

Such-amounts and credits may be transferred by the

and upon such transfer

person or enti

shall be freely available for use by such person or entity

in the territory of the Republic of e Verde.

ARTICLE 6

(a) Any dispute between the Government of the United
States of America and the Government of the Republic of
Cape Verde regarding the interpretation cf this Agreement
or which, in the opinion of onc of the Governments, involves
a@ question of public international law arising out of any
Project or activity for which Coverage has been issued shall
be resolved, insofar as possible, through negotiations
between the two 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 presénts a
question of public international law, whall be submitted,
at the initiative of cither Government, to an arbitral

tribunal for resolution in aceczSance with Ar

le 6(b}
(b) The arbitral tribunal for resolution of disputes

pursuant to Article 6(a) shall be established and function

we

as follows:


informs the other of an intent no longer to be a party
to the Agreement. In such event, the provisions of the
Agreement with respect to Coverage issued while the
Agreement was in force 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 Provisions are acceptable to the Govern-
ment of Cape Verde, the Government of the United States of
America will consider that this note and your reply thereto
constitute an Agreement between our two Governments on
this suzjccot, to enter into force on the date of the note
by which the Covernment of the Republic of Cape Verde
communicates to the Government of the United States of
America that this exchange of notes has been approved
pursuant to its constitutiona: procedures.

Accepz, Excellency, the rencwed assurances of my

highest consideration.

His Excellency
Osvaldo Lopes da Silva
Minister of Economy and Finance

Praia .


e
©

INVESTMENT INCENTIVE AGREEMENY BETWEEN
T3E GOVERNMENT OF THE UNITED STATES OF AMERICA

AND THE GOVERNMENT OF THE REPUBLIC OF CAPE VERDE

EMBASSY OF TE
UNITED STATES OF AMERICA

Praia, June 17, 1985.
Ss
Excellency:
I have the honor to refer to conversations which nave
recently taken place between representatives of our two
Governments relating to:
(a) economic activities in the Republic of Cape Verde by
r ) citizens of the United States of America and entities in
: which such citizens have a beneficial ownership interest
and which promote the development of the economic resources
and productive capacities of the Republic of Cape Verde; and
(b) investment insurance including reinsurance, and guaran-
ties which are backed in whole or in part by the credit or
public monies cf 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
Af Americ: or nursnant t> arrangements between OPIc and
commercial insurance, reinsurance and other companies.
Z also nave the honor to confirm the following under-

es standings reached as a result of those conversations and v |
A

referred to in Your Excellency's note: .



shall refer

As used herein, the tern

suranc2 or investment quaranty

in accordance with

agreement sy OPIC, by
any successor agency of the tnited States cf cmerica or by

any other entity or croup of encities, pursuant to risk

sharing arrangements with OPIC -:r any ce2sscr agency, all

included in the term "Issuer"

of whom are hereinafter deem
te the extent; of their iateresc as insure, reinsurer, or

guarantor in any Coverage, whether as a pasty cr successor

te) an agent for the

contract provicir

Covercge or a

administration cf Coverage.

The procedures set forth this Agrcament shall appiy

only with respect to Coveracs relating

projects or acti-

vities recistered with or in any other way approved by the

Sovernzent of @ Verde cr to Covera

he Republic of Ca

relating to ujects with respect te wr the Government

of the Republic o pe Verde cr any agency or political

subdivision thereot, has entered into a contract invoiving

the provision of gooés or services.

ARTICLE 3

(a) If the Issuer makes payment to any party under
Coverage, the Government of the Kepublic of Cape verde shall,

te 4 hereof, recognize the

gabject to the provisions of Arti

transfer to the Issuer of any currency, credits, assets, or

ent on accor

& of which payment znder such Ccverace
is made as well as the succession of the Issuer to any right,
title, claim, privilege, or cause of action existing, or

ith.

whith may arise, in connection there

oN


~3-

(b) The Issuer shall assert no greater rights than
those of the transferring Party under Coverage with respect
to any interests transferred or succeeded to under this
Article. Nothing in this Agreement shall limit the right
of the Government of the United States of America to
assert 4 claim under international law in its sovereign
Capacity, as distinct from any rights it may have as
Issuer. Each Government shall retair the right to assert
such a claim.

(c) the issuance of Coverage outside of the Republic
of Cape Verds with respect tO a project or activity in the

Republic of Cape Verde shall not subject the Issuer to

ARTICLE 4
To the extent that the laws of the Republic of Cape
Verde partially or wholly invalidate or prohibit the acquisi-
tion from a Party under Coverage of any interest #4 any
Property within the territory of the Republic cf Cape Verde

by the Issuer, the Government of the Renunlic of Cape Verde