5
president within six 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
Permanent Court of Arbitration 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
international law. The arbitral tribunal shall decide
by majority vote. Its daecision 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.


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ARTICLE 5

(a) Any dispute between the Government of the United
States of America and the Government of the Republic of
Moldova regarding the interpretation of this Agreement or
which, in the opinion of one of the Governments, involves a
question of internacional 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 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 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 Article 5(b).

(b) The arbitral tribunal for resolution of disputes
pursuant to Article 5(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 whose appointment shall be subject to
acceptance by the two Governments. The arbitrators

shall be appointed within three months and the


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ARTICLE 6
The two Governments, desiring reciprocity, agree that,
in the event the Government of the Republic of Moldova makes
arrangements to issue Coverage in the United States of
America under a program similar in substance to the
investment guaranty program to which this Agreement relates,
provisions equivalent to those of this Agreement shall apply
with respect to Moldovan investments in the United States of
America upon completion of the constitutional and other
legal processes of both Governments approving such

arrangements.

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 termination to
the other. Provided that in respect of Coverage issued or
loans made at any time before the termination of the
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.

This Agreement shall enter into force on the date on which
the Government of the Republic of Moldova communicates to the
Government of the United States that its constitutional or other
legal requirements with regard to this Agreement have been

fulfilled.


INVESTMENT INCENTIVE AGREEMENT BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA
The Government of the United States of America and the

Government of the Republic of Moldova affirm their common desire
to encourage economic activities in the Republic of Moldova which
promote the development of the economic resources and productive
capacities of the Republic of Moldova. Recognizing that this
objective can be promoted through investment insurance (including
reinsurance), loans and guaranties which are packed in whole or
in part by the Government of the United States of America and
administered by the Overseas Private Investment Corporation
("OPIC") -- an agency of the Government of the United States of
America -- or pursuant to agency arrangements between OPIC and

private companies, the parties signatory hereto agree as follows:

ARTICLE 1
As used in this Agreement, 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 the agent of either. In this Agreement, the term
"Issuer" shall refer to OPIC and any such successor agency,
or the agent of either, 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.


In witness whereof, the undersigned, duly authorized thereto

by their respective Governments, have signed this Agreement.

DONE at Washington on the 19th day of June, 1992, in
duplicate, in the English language. A Romanian Janguage text
shall be prepared which shall be considered equally authentic
upon an exchange of diplomatic notes confirming i:s conformity

with the English language text.

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF
THE UNITED STATES OF AMERICA: THE REPUBLIC 9F MOLDOVA:

Dh


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ARTICLE 2

a) If the Issuer makes payment to any party under
Coverage, the Government of the Republic of Moldova shall,
subject to the provisions of Article 3 hereof, recognize the
transfer to the Issuer of any assets, including currency,
credits, 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
aistinct from any rights it may have as Issuer.

(c, The Issuer shall not be subject to regulation
under the laws of the Republic of Moldova applicable to
insurance or financial organizations.

(a) Interest and fees on loans made or guaranteed by
the Issuer shall be exempt from tax in the Republic of
Moldova. The Issuer shall not be subject to tax in the
Republic of Moldova as a result of any transfer or
succession which occurs pursuant to Article 2(a) hereof.

Tax treatment of other transactions conducted by the Issuer
in the Republic of Moldova shall be determined by applicable
law or specific agreement between the Issuer and competent

authorities of the Republic of Moldova.


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ARTICLE 3

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

ARTICLE 4

(a) Amounts in the currency of the Republic of
Moldova, including credits thereof, acquired by the Issuer
by virtue of such Coverage shall be accorded treatment by
the Government of the Republic of Moldova 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.

(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 the Republic of Moldova in accordance with its
laws.

(c) The provisions of this Article 4 shall also apply
to any amounts and credits in the currency of the Republic
of Moldova which may be accepted by the Issuer in settlement
of obligations with respect to loans made by the Issuer for

projects in the Republic of Moldova.