ARTICLE 6

(a) Any dispute between the Government of the United States
of America and the Government of the Democratic and Popular
Republic of Algeria regarding the interpretation of this
Agreement or which, 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).

(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,


ARTICLE 4

To the extent that the laws of the Democratic and Popular
Republic of Algeria partially or wholly invalidate or prohibit
the acquisition from a party under Coverage of any interest in
any property within the territory of the Democratic and Popular
Republic of Algeria by the Issuer, the Government of the
Democratic and Popular Republic of Algeria shall permit such
party 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 Democratic and

Popular Republic of Algeria.

ARTICLE 5

Amounts in the lawful currency of the Democratic and
Popular Republic of Algeria, including credits thereof,
acquired by the Issuer by virtue of such Coverage shall be
accorded treatment by the Government of the Democratic and
Popular Republic of Algeria no less favorable as to use and
conversion than the treatment to which such funds would be
entitled in the hands of the party under Coverage.

Such amounts 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 Democratic and Popular Republic of Algeria.


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 majority vote. Its
decision shall be final and binding. Only the two Governments
may request the arbitral procedure and participate in it.

(iii) Each of the Governments shall pay the expense 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 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


e

INVESTMENT INCENTIVE AGREEMENT BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE
GOVERNMENT OF THE DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA

The Government of the United States of America and the
Government of the Democratic and Popular Republic of Algeria,
desiring to encourage economic activities in the Democratic and
Popular Republic of Algeria which promote the development of
the economic resources and productive capacities of the
Democratic and Popular Republic of Algeria and to provide for
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 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, have agreed as follows:

ARTICLE 1

As used herein, the term "Coverage" shall refer to any
investment insurance, reinsurance 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 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


shall remain in force for the duration of such Coverage, but in
no case longer than twenty years after the termination of the

Agreement.

This Agreement shall enter into force on the date of the
note by which the Government of the Democratic and Popular
Republic of Algeria communicates to the Government of the
United States of America that its constitutional procedures

with respect to the Agreement have been fulfilled.

In witness whereof, the undersigned, duly authorized
thereto by their respective Governments, have signed this
Agreement.

Done at Washington on the twenty-second day of June, 1990,
in duplicate, in the Arabic and English languages, both texts

being equally authentic.

For the Government of For the Government of
THE UNITED STATES OF AMERICA THE DEMOCRATIC AND POPULAR
i REPUBLIC OF ALGERIA

— WY


party or successor to a contract providing Coverage or as an

agent for 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
registered with or otherwise approved by the Democratic and
Popular Republic of Algeria or to Coverage relating to projects
with respect to which the Government of the Democratic and
Popular Republic of Algeria, or any agency or political
subdivision thereof, has entered into a contract involving the

provision of goods or services or invited tenders on such a

contract.

ARTICLE 3

(a) If the Issuer makes payment to any party under
Coverage, the Government of the Democratic and Popular Republic
of Algeria shall, subject to the provisions of Article 4
hereof, recognize the transfer to the Issuer of any currency,
credits, assets, or investment on account of which payment
under such Coverage is made as well as the succession of the
Issuer to any right, title, claim, privilege, or cause of

action existing, or which may arise, in connection therewith.


(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 a claim
under international law in its sovereign capacity, as distinct
from any rights it may have as Issuer.

(c) The issuance of Coverage outside of the Democratic and
Popular Republic of Algeria with respect to a project or
activity in the Democratic and Popular Republic of Algeria
shall not subject the Issuer to regulation under the laws of
the Democratic and Popular Republic of Algeria applicable to
insurance or financial organizations.

(ad) Interest and fees on loans made or guaranteed by the
Issuer shall be exempt from tax in the Democratic and Popular
Republic of Algeria. The Issuer shall not be subject to tax in
the Democratic and Popular Republic of Algeria as a result of
any transfer or succession which occurs pursuant to Article
3(a) hereof. Tax treatment of other transactions conducted by
the Issuer in the Democratic and Popular Republic of Algeria
shall be determined by applicable law or specific agreement
between the Issuer and appropriate fiscal authorities of the

Government of the Democratic and Popular Republic of Algeria.