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(iii) Each of the Government shall Pay the expense of
its arbitrator and of its representation in the
Proceedings before the arbitral tribunal; the
expenses of the President and 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 shall
regulate its own procedures.

ARTICLE 7

This agreement shall continue in force until six months from
the date of receipt of a note by which one Government 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.

This agreement shall enter into force on the date of signature.---

aan
Done at Manama, State of Bahrain, in duplicate, this g5th day of
April. 1987.

|

For the Government of the For the Government of the
United States of America State of Bahrain
. «
=> —
Se A Zn 7 a DA /
. 7 ~

nan Hq. Zakhen Ebrahim Abdul Kareem Mohamed
ambassador Minister of Finance and National

Economy



(b)

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in the opinion of one 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 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).

The arbitral tribunal for resolution of disputes pursuant
to Article 6(a) shall be established and function as
follows:

(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 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, 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 a majority vote. Its decision shall be
final and binding.


INVESTMENT INCENTIVE AGREEMENT
BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND
THE GOVERNMENT OF THE STATE OF BAHRAIN

The Government of the United States of America and the
Government of the State of Bahrain, recalling the conversations
which have recently taken place between representatives of the
two Governments relating to economic activities in the State of
Bahrain which promote the development of the economic resources
and productive capacities of the State of Bahrain and to investment
insurance (including reinsurance) and guaranties which are backed
in whole or in part by the credit or public monies of the United
States of America and are administered either @irectly 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, have agreed as follows:

ARTICLE 1

As used herein, the term "Coverage" shall refer to any
investment insurance, reinsurance er 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
entities, pursuant to arrangements with OPIC or any successor agency,
all of whom are hereinafter deemed included in the term "Issuer" to
the extent of their interest as insurer, reinsurer, or guarantor
in any Coverage, whether as a Party or successor to a contract
providing Coverage or as an agent for the administration of Coverage,



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ARTICLE 2

The procedures set forth in this Agreement shall apply only

with respect to Coverage relating to projects or activities
registered with or otherwisé approved by the Government of the
State of Bahrain in accordance with its established procedures
or to Coverage relating to projects with respect to which the

Government of the State of Bahrain, or any agency or political
subdivision thereof, has entered into a contract involving the
provision of goods or services.

(a)

(b)

ARTICLE 3

If the Issuer makes Payment to any part under Coverage,

the Government of the State of Bahrain shall, subject to

the provisions of Article 4 hereof, recognize the transfer
to the issuer of or the succession of the issuer to any
right, title, claim, privilege, or cause of action existing,
or which may arise, in connection with any currency, credits,
assets, or investment on account of which payment under such
Coverage is made,

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 and
any such interest shall be subject to any valid security
interest, encumbrance, right of set-off or counterclaim
enforceable against such Party with respect to such interest.
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 Issuer.



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(c) The issuance of Coverage outside of the State of Bahrain
with respect to a Project or activity in the State of Bahrain
shall not subject the Issuer to regulation under the laws of
the State of Bahrain applicable to insurance or financial
organizations.

ARTICLE 4

To the extent that the laws of the State of Bahrain Partially
or wholly invalidate or Prohibit the acquisition from a party
under Coverage of any interest in any property within the territory
of the State of Bahrain by the Issuer, the Government of the state
of Bahrain agrees that such party and the Issuer may make
appropriate arrangements pursuant to which such interests are
transferred to an entity permitted to own such interests under the
@ jaws of the State of Bahrain. :

ARTICLE 5

State of Bahrain.

. ARTICLE 6

(a). Any dispute between the Government of the United States
of America and the Government of the State of Bahrain
regarding the interpretation of this Agreement or which,