Albania - Turkey BIT (1992) - Electronic Database of Investment Treaties (EDIT)

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Albania - Turkey BIT (1992)

Title

Agreement Between The Republic of Turkey and the Republic of Albania Concerning the Reciprocal Promotion and Protection of Investments

Preamble

The Republic of Turkey and the Republic of Albania, hereinafter called the Parties;

Desiring to promote greater economic cooperation between them, particularly with respect to investment by investors of one Party in the territory of the other Party,

Recognizing that agreement upon the treatment to be accorded such investment will stimulate the flow of capital and technology and the economic developments of the Parties,

Agreeing that fair and equitable treatment of investment is desirable in order to maintain a stable framework for investment and maximum effective utilization of economic resources, and

Having resolved to conclude an agreement concerning the encouragement and reciprocal protection of investments,

Hereby agree as follows:

Body

Article 1. Definitions

For the purpose of this Agreement;

1. The term "investor" means:

(a) Natural persons deriving their status as nationals of one Party according to its applicable law,

(b) Legal persons such as corporations, firms or business associations incorporated or constituted under the law in force of one Party and having their headquarters in the territory of that Party, provided that they have invested or are intending to invest in the territory of the other Party in accordance with the laws and regulations of that Party.

(a) The term "investment" means every kind of asset and in particular, but not exclusively:

(i) Stocks or any other form of participation in companies,

(ii) Returns reinvested, claims to money or other rights having financial value relating to an investment,

(iii) Movable and immovable property, as well as any other rights as mortgages, liens, pledges and any other similar rights as defined in conformity with the laws and regulations of the Party in whose territory the property is situated,

(iv) Industrial and intellectual property rights, patents, industrial designs, trademarks, goodwill, know-how and any other similar rights,

(v) Business concessions conferred by law or by contract, including the concessions related to natural resources.

(b) The said term shall refer to all direct investments made in accordance with the laws and regulations in the territory of the Party where the investments are made. The term "investments" covers all investments made in the territory of a Party before or after entry into force of this Agreement.

3. The term "returns" means the amounts yielded by an investment and includes in particular, though not exclusively, profit, interest and dividends.

4. "Territory" means the land boundaries, maritime areas and the continental shelf delimited by a mutual agreement between the parties concerned over which the Party hosting the investment has sovereign rights or jurisdiction in accordance with international law.

Article II. Promotion and Protection of Investments

1. Each Party shall promote in its territory investments and activities associated therewith, on a basis no less favourable than that accorded in similar situations to investments of investors of any third country, within the framework of its laws and regulations.

2. Each Party shall accord to these investments, once established, treatment no less favourable than that accorded in similar situations to investments of its investors or to investments of investors of any third country, whichever is the most favourable.

3. Subject to the laws and regulations of the parties relating to the entry, sojourn and employment of aliens;

(a) Nationals of either Party shall be permitted to enter and to remain in the territory of the other Party for the purpose of establishing, developing, administering or advising on the operation of an investment to which they, or an investor of the first Party that employs them, have committed or are in the process of committing a substantial amount of capital or other resources.

(b) Companies which are legally constituted under the applicable laws and regulations of one Party, and which are investments of investors of other Party, shall be permitted to engage managerial and technical personnel of their choice, regardless of nationality.

4. The provisions of this Article shall have no affect in relation to following agreements entered into by either of the Parties:

(a) Relating to any existing or future customs unions, regional economic organisation or similar international agreements,

(b) Relating wholly or mainly to taxation.

Article III. Expropriation and Compensation

1. Investments shall not be expropriated, nationalized or subject, directly or indirectly, to measures of similer affects except for a public purpose, in a nondiscriminatory manner, upon payment of prompt, adequate and effective compensation, and in accordance with due process of law and the general principles of treatment provided for in Article II of this Agreement.

2. Compensation shall be equivalent to the real market value of the expropriated investment at the time the expropriatory action was taken or became known. Compensation shall be paid without undue delay and be freely transferable.

In case the market value cannot be ascertained, the compensation shall be determined on equitable principles, taking into account, though not exclusively, capital invested, capital gains, current returns, depreciation and repatriated capital.

Article IV. Repatriation and Transfer

1. Each Party shal permit all transfers related to an investment to be made freely and without unreasonable delay into and out of its territory. Such transfers include:

(a) Returns,

(b) Proceeds from the sale or liquidation of all or any part of an investment,

(d) Reimbursements and interest payments deriving from loans in connection with investments,

(e) Salaries, wages and other remunerations received by the nationals of one Party, who have obtained in the territory of the other Party the corresponding work permits related to an investment.

(f) Payments arising from an investment dispute.

2. Transfers shall be made in the convertible currency in which the investment has been made or in any convertible currency if so agreed by the investor and the party concerned at the rate of exchange in force at the date of transfer.

3. Notwithstanding the provisions of paragraphs 1. and 2. either Party may maintain laws and regulations;

(a) Perescribing procedures to be followed concerning transfers permitted by this Article, provided that such procedures are completed without delay by the Party concerned and do not impair the substance of the rights set forth in paragraphs 1. and 2. of this Article,

(b) Requiring reports of currency transfer,

(c) Imposing income taxes by such means as a witholding tax applicable to dividends or other transfers. Furthermore, either Party may protect the rights of creditors or ensure the satisfaction of judgement in adjudicatory proceeding, through the equitable, non-discriminatory and good faith application of its law.

Article V. Subrogation

1. If the investment of an investor of one Party is insured against non-commercial risks under a system established by law, any subrogation of the insurer which stems from the terms of the insurance agreement shall be recognized by the other Party.

2. The insurer shall not be entitled to exercise any rights other than the rights which the investor would have been able to exercise.

3. Disputes betweem a Party and an insurer shall be settled in accordance with the provisions of article X of this Agreement.

Article VI. Derogation

This agreement shall not derogate from:

(a) Laws and regulations, administrative practices or procedures or administrative or adjudicatory decisions of either Party,

(b) International legal obligations, or

(c) Obligations assumed by either Party, including those contained in an investment agreement or an investment authorization, that entitle investment or associated activities to treatment more favourable than that accorded by this Agreement in like situations.

Article VII. Preclusion

1. This Agreement shall not preclude the application by either Party of measures necessary for the maintenance of public orders and morals, the fulfillments of its obligations with respect to the maintenance of restoration of international peace or security, or the protection of its own essential security interests.

2. This Agreement shall not preclude the application by either Party from prescribing special formalities in connenction with the establishment of investments, but such formalities shall not impare the substance of any of the rights set forth in this agreement.

Article VIII. Taxation

With respect to its tax policies each party should strive to accord fairness and equity in the treatment of investment of investors of the other Party.

Article IX. Consultation

The Parties agree to consult promptly, on the request of either, to resolve any disputies in connection with the Agreement or to discuss any matter relating to the interpretation or application of the Agreement.

Article X. Settlement of the Disputes between One Party and Investors of the other Party

1. Disputes between one of the Parties and one investor of the other Party, in connection with his investment shall be notified in writing, including a detailed information by the investor to the recipient Party of the investment. As far as possible the investor and the concerning Party shall endeavour to settle these disputes by consultations and negotiations in good faith.

2. If these disputes cannot be settled in this way within six months following the date of the written notification mentioned in paragraph 1. the dispute can be submitted, as the investor may choose, to:

(a) An ad hoc court of arbitration laid down under the Arbitration Rules of Procedure of the United Natons Commission for International Trade Law (UNCITRAL).

(b) The International Center for Settlement of Investment Disputes (ICSID) set up by the "Convention on Settlement of Investment Disputes Between States and Nationals of other Satates", in the case both Parties become signatories of this Convention, provided that, if the Investor concerned has brought the dispute before the courts of justice of the Party that is a party to the dispute and a final award has not been rendered within one year.

3. The arbitration shall be based on:

(a) The provisions of this Agreement,

(b) The national laws and regulations of the Party in whose territory the investment was made, including the rules relative to conflicts of law.

4. The arbitration awards shall be final and binding for all parties in dispute. Each Party commits itself to execute the award according to its national law.

Article XI. Settlement of Disputes between the Parties

1. The Parties shall seek in good faith and a spirit of cooperation a rapid and equitable solution to any dispute between them concerning the interpretation or application of this Agreement. In this regard, the Parties agree to engage in direct and meaningful negotiations to arrive at such solutions. If the Parties cannot reach an agreement within six months after the foregoing procedure, the dispute may be submitted, upon the request of either Party, to an arbitral tribunal of three members.

2. Within two months of receipt of a request, each Party shall appoint an arbitrator. The two arbitrators shall select a third arbitrator as Chairman, who is a national of a third State. In the event either Party fails to appoint an arbitrator within the specified time, the other Party may request the President of the International Court of Justice to make the appointment.

3. If both arbitrators cannot reach an agreement about the choice of the Chairman within two months after their appointment, the Chairman shall be appointed upon the request of either Party by the President of the International Court of Justice.

4. If, in the cases specified under paragraphs (2) and (3) of this Article, the President of the International Court of Justice is prevented from carrying out the said function or if he is a national of either Party, the appointment shall be made by the Vice-President, and if the Vice-President is prevented from carrying out the said function or if he is a national of either Party, the appointment shall be made by the most senior member of the Court who is not a national of either Party.

5. The tribunal shall have three months from the date of the selection of the Chairman to agree upon rules of procedure consistent with the other provisions of this agreement. In the absence of such agreement, the tribunal shall request the President of the International Court of Justice to designate rules of procedure, taking into account generally recognizad rules of international arbitral procedure.

6. Unless otherwise agreed, all submissions shal be made and all hearings shall be completed within eight months of the date of selection of the third arbitrator, and the tribunal shall render its decision within two months after the date of the final submissions or the date of the closing of the hearings, whichever is later. The arbitral tribunal shall reach its decisions, which shall be final and binding, by a majority of votes.

7. Expenses incurred by the Chairman, the other arbitrators, and other costs of the proceedings shall be paid equally by the Parties. The tribunal may, however, at its discretion, decide that a higher proportion of the costs be paid by one of the Parties.

8. A dispute shall not be submitted to an international arbitration court under the provisions of this Article, if the same dispute has been brought before another international arbitration court under the provisions of Article X and is still before the court. This will not impair the engagement in direct and meaninful negotiations between both Parties.

Article XII. Entering Into Force

1. This Agreement shall enter into force on the date on which the exchange of instruments of ratification has been completed. It shall remain in force for a period of ten years and shall continue in force unless terminated in accordance with paragraph 2 of this Article. It shall apply to investments existing at the time of entry into force as well as to investments made or acquired thereafter.

2. Either Party may, by giving one years's written notice to the other Party, terminate this Agreement at the end of the initial ten year period or at any time thereafter.

3. This Agreement may be amended by written agreement between the Parties. Any amendment shall enter into force when each Party has notified the other that it has completed al internal requirements for entry into force of such amendment.

4. With respect to investments made or acquired prior to the date of termination of this Agreement and to which this Agreement otherwise applies, the provisions of all of the other Articles of this Agreement shall thereafter continue to be effective for a further period of ten years from such date of termination.