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This Agreement shall enter into force on the date

of signing.

Done at Ashgabat on the 26 day of June, 1992, in
duplicate, in English and Russian languages , both texts

being equally authentic.

For the Government of
THE UNITED STATES OF AMERICA

President and Chief Executive .. ......

Officer of the OPIC, Ambassador

Fred M Zeder

an

For the Government of
TURKMENISTAN
Deputy. Head of the
Government.

M Radgapov

ae


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(ii) The arbitral tribunal shall base its
decision on the applicable principles and rules of
international law. The arbitral tribunal shail
decide by majority vote. Its decision shall be
final and binding.

(iii) During the proceedings, each of the
Governments shall pay the expense of its
arbitrator and of its representation in the
proceedings before the arbitral tribunal, whereas
the expenses of the president and other costs of
arbitration shall be paid in equal parts by the
two Governments. In its award, the arbitral
tribunal may, in its discretion, reallocate
expenses and costs between the two Governments.

(iv) In all other matters, the arbitral
tribunal shall regulate its own procedures.

(c) 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 of the Issuer.

ARTICLE 6

The two Governments, desiring reciprocity, agree
that, in the event the Government of Turkmenistan makes
arrangements to issue Coverage or make loans for projects
in the United states of America under a program similar in
substance to the investment incentive program to which
this Agreement relates, provisions equivalent to those of
this Agreement shall apply with respect to such
arrangements upon completion of the constitutional or
other legal processes of both Governments approving such
provisions.

ARTICLE 7

This Agreement shall continue in force until the
expiration of twelve months from the date on which either
Government shall have given written notice of the
termination of this Agreement to the other. Provided that
in respect of Coverage issued or loans made at any time
before the termination of this Agreement, its provisions
shall continue in effect with respect to such Coverage or
loans for a period of twenty years after the date of
termination of this Agreement.


INVESTMENT INCENTIVE AGREEMENT BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND THE GOVERNMENT OF TURKMENISTAN

The Government of the United States of America and
the Government of Turkmenstan;

Affirming their common desire to encourage
economic activities in Turkmenistan which promote the
development of the economic resources and productive
capacities of Turkmenistan; and

Recognizing that this objective can be promoted
through investment insurance (including reinsurance),
loans, and investment guaranties which are backed in whole
or in part by the Government of the United States of
America and provided by the Overseas Private Investment
Corporation ("OPIc"), an agency of the Government of the
United States of America;

Have agreed as follows:

ARTICLE 2

As used in this Agreement, the term "Coverage" shall refer
to any investment insurance,or investment guaranty which ~~.
is provided by the Issuer in connection with a project in
the territory of Turkmenistan, and the term "Issuer" shall
refer to OPIC, any successor agency of the Government of
the United States of America, and the agent of either.

ARTICLE 2

a) (i) If the Issuer makes Payment to any party
under Coverage, the Government of Turkmenistan
shall, subject to the provisions of Article 3 of
this Agreement, recognize the transfer to the
Issuer of any assets, including those in the form
of investment as well as currency or credits, in
connection with such Payment, as well as the
succession of the Issuer to any rights, title,
Claim, privilege, or cause of action existing, or
which may arise, in connection therewith.


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(ii) If the Issuer, in the exercise of its
rights as a creditor, acquires any such assets or
succeeds to any right, title, clain, privilege or
Cause of action, the Government of Turkmenistan
shall, subject to the provisions of Article 3 of
this Agreement, recognise such acquisition or
succession.

(b) The Issuer shall assert no greater rights
than those of the party from whom such rights were
acquired as described in Paragraph (a) of this
Article.

c) The Issuer, as a non-commercial agency of the
Government of the United States of America, shall
not be subject to regulation under the laws of
Turkmenistan applicable to commercial insurance or
financial organizations.

a) Interest and fees on loans Made or guaranteed
by the Issuer shall be exempt from tax in
Turkmenistan. The Issuer shall not be subject to
tax in Turkmenistan as a résult of any transfer,
Succession, or other acquisition described in
Paragraph (a) of this Article. In all other
cases, tax treatment of transactions conducted by
the Issuer in Turkmenistan shall be determined by
applicable law of Turmenistan or specific
agreement between the Government of the United
States of America and the Government of
Turkmenistan. .

ARTICLE 3

To the extent that the laws of Turkmenistan
partially or wholly invalidate or prohibit the transfer,
succession or other acquisition, as described in Article
2(a) of this Agreement, of any interest in any property
within the territory of Turkmenistan by the Issuer, the
Government of Turkmenistan shall permit the Issuer to make
appropriate arrangements pursuant to which such interests
are transferred to a person or entity permitted to own
such interests under the laws of Turkmenistan.

ARTICLE 4

(a) Amounts in the currency of Turkmenistan,
including credits thereof, acquired by the Issuer in
connection with payment to a Party under Coverage shall be


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(b) 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 Turkmenistan in accordance
with its laws.

(c) The provisions of this Article shall also
apply to any amounts and credits in the currency of
Turkmenistan which may be accepted by the Issuer in
settlement of obligations with respect to loans made by
the Issuer for projects in Turkmenistan.

ARTICLE 5

(a) Any dispute between the Government of the
United States of America and the Government of
Turkmenistan regarding the interpretation of this
Agreement or which, in the opinion of one of the
Governments, presents a question of international law
arising out of any project or activity for which the
Coverage has been issued shall be resolved, insofar as
possible, through negotiations between the two
Governments. If, at the end of six months, following the
request for negotiations, the two Governments have not
resolved the dispute by agreement, the dispute, including
the question of whether such a dispute presents a question
of international law, shall be submitted, at the
initiative of either Government, 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
function as follows:

(i) Each Government shall appoint one
arbitrator; these two arbitrators shall, by
agreement, designate a president of the arbitral
tribunal who shall be a citizen of a third state
and whose appointment shall be subject to
acceptance by the two Governments. The
arbitrators shall be appointed within three months
and the president within six months of the date of
the 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
Permanent Court of Arbitration to make the
necessary appointment or appointments, and both
Governments agree to accept such appointment or
appointments.