294/1999 Coll.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that the 14 December. December 1998 was in
Prague agreement signed between the Czech Republic and the Republic of South Africa
on the promotion and reciprocal protection of investments.
Parliament gave its assent to the agreement the United States and the President of the
the Republic has ratified the agreement.
Agreement entered into force, pursuant to article 12 paragraph 2. 1 day 17.
September 1999.
The Czech version of the agreement shall be published at the same time.
The agreement
between the Czech Republic and the Republic of South Africa for the promotion and mutual
protection of investments
The preamble to the
Czech Republic and South Africa (collectively, the "parties",
individually a "party"),
Desiring to develop economic cooperation for mutual benefit
of both States,
intending to create and maintain favourable conditions for investments by investors
one State on the territory of the other State and
Noting that the promotion and reciprocal protection of investments within the meaning of this agreement
encourages entrepreneurial initiative in this area,
have agreed upon the following:
Article 1
The definition of the
For the purposes of this agreement:
"investment" means any assets invested in
with regard to the activities of an investor of a party on the territory of the
the other party in accordance with the laws of the other party and shall, in particular,
but not limited to:
(a) movable and immovable property, as well as all property rights, such as
are mortgages, pledges or guarantees;
(b) stocks, bonds, unsecured bonds of companies or any
other forms of participation in society;
(c) monetary claims or claims to any transactions on the basis of the
the contract having an economic value and associated with an investment;
(d) the rights of intellectual property, including copyright,
of the trade marks, patents, industrial designs, techniques,
know-how, trade secrets, trade names and goodwill associated with the
the investment;
(e) any rights arising from the law or from the contractual arrangements and
any licenses and permits issued pursuant to the law, including concessions to
exploration, extraction, cultivation or exploitation of natural resources.
Any change in the form in which the values are invested does not affect the
their character as investments.
"investor" means any natural or legal person who
invests in the territory of the other party.
"natural person" means any natural person who is a national
the citizenship of one of the parties in accordance with its laws.
"legal person" means, in relation to any company
registered or established in accordance with its laws and recognized by them
as a legal person that has its head office in the territory of that party.
"proceeds" means the sums resulting from investment and include, in particular, no
However, exclusively, profits, interest, interest from loans, capital gains, shares,
dividends, licensing or other fees.
"territory" means
-in relation to the Czech Republic, the Czech Republic, over which the United
Republic shall exercise sovereignty, sovereign rights and jurisdiction in
accordance with international law;
-in relation to South Africa, the territory of South Africa including
the territorial sea, and any marine or underwater area, over which the
South Africa exercises, in accordance with international law,
the sovereign rights and jurisdiction for the purpose of exploring, exploiting and protection
the seabed, the subsoil and natural resources.
Article 2
The promotion and protection of investments
1. Each Party shall promote and create favourable conditions for the
investors of the other party, to invest in its territory, and such
investments liable in accordance with its legal system.
2. Investments of the investors of each of the parties will at all times
provided the proper and fair treatment and will enjoy full protection
and security in the territory of the other party.
3. Each Party shall grant, in accordance with its legal structure, the necessary
to enable such investments and related to the implementation of the licensing
agreements and contracts for technical, commercial or administrative assistance.
4. in order to create favourable conditions for the establishment of the financial position
and the results of the activities associated with investments in the territory of one side of this
the party will allow-regardless of its own requirements on leadership
accounting and audits-to investment to be subject to the accounts and the
audited according to the standard, which requires the State investment or
internationally accepted standards [e.g., International accounting standards (IAS)
drawn up by the International Accounting Standards Committee (IASC)]. The results of the
such an accounting and audit will be freely available for the investor.
Article 3
National treatment and MFN clause
1. Each Party shall provide in its territory for investments and the returns of the investors
of the other party treatment which is proper and equitable and not less
favourable than that accorded to investments and returns of their own
investors or investments of investors of any proceeds and of the third State.
2. Each Party shall provide in its territory of investors of the other party, if
as for the management, maintenance, use, recovery or disposal of their
investment, treatment which is the proper and equitable and not less favorable,
than to its own investors or to investors of any
of a third State.
3. The provisions of paragraphs 1 and 2 of this article shall be interpreted so that the
commit to one side to provide investors of the other party such
treatment, benefits or privileges, which may provide the first party on
the basis of:
(a) any of the Customs Union or free-trade areas or monetary Union
or similar international agreements leading to such unions or institutions
or other forms of regional cooperation, a member of one of the parties
is or may be;
(b) any international agreement or other arrangement relating to
wholly or mainly to taxation;
(c) any law or other measure whose purpose is to
to support the achievement of equality on their own territory persons or categories of persons
previously disadvantaged an unfair discrimination or which are intended
to protect or support of such persons or their categories.
Article 4
Damage compensation
1. If the investments of investors of one or the other party suffers damages
as a result of war, armed conflict, a State of emergency, riot,
insurrection, riot or other similar events on the territory of the other party,
provide them with that party, when it comes to compensation, compensation, compensation
or other settlement, a treatment no less favourable than that which will provide
This party to its own investors or to investors of any third
State.
2. without prejudice to the provisions of paragraph 1 of this article, the investors
one side, who in any event referred to in the preceding
paragraph will suffer damage in the territory of the other party as a result of:
(a) the seizure of their property by the armed forces or authorities of the other
party, or
(b) the destruction of their property by the armed forces or authorities of the other party,
that was not due to combat action in or has not been invoked necessity
the situation,
granted restitution or fair and reasonable compensation for damage
suffered as a result or destruction of property grabbing. The resulting payments shall be
freely transferable without undue delay in a freely convertible currency.
Article 5
The expropriation
1. investments of investors of any party shall not be nationalized,
expropriated or subjected to a measure having the same effect as
nationalization or expropriation (hereinafter referred to as "expropriation") on the territory of the other
except for the public interest. Expropriation shall be carried out according to the
the law, on a non-discriminatory basis, and will be accompanied by measures to
payment of the immediate, adequate and effective compensation. Such compensation will
at the very least equal the value of the expropriated investment immediately before the
the expropriation or before the intended expropriation became publicly known,
It will include interest from the date of expropriation in the normal commercial rate, it will
carried out without undue delay, it will be effectively realizable and freely
shall not be transferable in freely convertible currency.
2. The investor has the right to immediate review of its case and
evaluate your investments judicial or other independent and impartial
authority of that party in accordance with the principles contained in this article.
Article 6
Conversions
1. each Party shall ensure to investors of the other party the free transfer of payments
associated with their investments and revenues, which will include, in particular,
but not limited to:
(a) capital and additional amounts to maintain or increase the investment;
(b) profits, interest, dividends and other current income;
(c) the amount of the repayment of loans;
(d) the license or other fees;
(e) proceeds from the sale or liquidation of the investment;
(f) income of individuals under the law of the party where the
the investment;
(g) compensation paid pursuant to articles 4 and 5.
2. All transfers will be carried out without undue delay, in any
convertible currency at the market exchange rate on the day of the transfer. If
There is no foreign exchange market, the exchange rate will be applied to the last currency
rate valid for the exchange of relevant convertible currencies in the special rights
pumping.
3. For transfers made "without undue delay" within the meaning of paragraph 2,
This article shall be considered as transfers made within the time limit, which is
normally required to perform the conversion. Such period shall in no circumstances
shall not exceed two months.
Article 7
Assignment of rights
1. where a party or an agency authorised by the latter performs the
the payment of its own investor because of the guarantees given by the
relation to an investment in the territory of the other party, the other party shall recognize:
(a) the assignment of each right or entitlement of the first side of the investor, or
the agency empowered by the latter, whether the referral was by operation of law, or
on the basis of the legal arrangements in the territory of the first party, as well as,
(b) that the first party or agency authorized by the latter, is by way of
assignment of rights shall be entitled to exercise the rights and entitlements of this float
Investor and assumes the obligations related to the investment.
2. The assignee's rights or claims shall not exceed the original rights or claims
the investor.
Article 8
Settlement of investment disputes between a party and an investor of the other party
1. any dispute which may arise between an investor of one party and
the other party in connection with an investment in the territory of the other party,
It will be the subject of negotiations between the parties in dispute.
2. If a dispute between an investor of one party and the other party cannot
thus be settled within six months of a written notice of the claim, will be
the investor shall be entitled to submit the dispute for resolution of either:
(a) the competent courts or administrative tribunals of the party that is
a party to the dispute; or
(b) the International Centre for settlement of investment disputes (ICSID)
taking into account the applicable provisions of the Convention on the settlement of investment disputes
between States and nationals of other States, opened for signature in Washington, d.c.
DC 18. March 1965, in the case that both parties are parties to this
Of the Convention. If this requirement is not met, both parties agree that the dispute
can be solved by Additional rules of procedure for the hearing,
issued by the Secretariat of the ICSID; or
(c)) the arbitrator or to the International Court of arbitration set up by ad hoc,
established under the arbitration rules of the United Nations Commission
for international trade law (UNCITRAL). Parties in a dispute may
agree in writing to changes to these rules.
Such arbitration will be final and binding on both parties in the dispute.
3. each Party shall recognize the validity of an arbitration award in accordance with their
national law.
Article 9
The resolution of disputes between the parties
1. disputes between the parties concerning the interpretation or application of this agreement
they will, if possible, resolved through consultations or negotiations.
2. If the dispute is not resolved in this way, within six months from the date of
When one of the parties has requested such consultations or negotiations will be
the dispute at the request of either party be submitted to an arbitral tribunal in accordance with the
the provisions of this article.
3. the arbitral tribunal shall be established for each individual case in the following
way. Each Party shall designate one arbitrator within a period of two months from the
receipt of the request for arbitration. These two arbitrators then select
a citizen of a third State to be appointed with the consent of both parties
President of the Court (hereinafter referred to as "the Chairman"). The Chairman shall be appointed within three
months from the date of appointment of the two arbitrators.
4. If, in one of the periods referred to in paragraph 3 of this article
the appointment has been made necessary, may be asked by the President of the
International Court of Justice to make the appointment. If the President of the
citizen of any party, or for any other reason unable to perform the operation,
on the appointment of the Vice-President will be asked. If it is also Vice-Chair of the
a citizen of a party to enforce this Act or not, will be on the implementation of
the appointment of a senior member of the requested the International Court of Justice,
who is not a citizen of any party.
5. the Arbitration Tribunal shall take its decisions by majority vote. Such
the decision will be binding for both parties. Each party will bear the costs of
its own arbitrator and its participation in the arbitration proceedings. The costs of the Chairman and
the remaining expenditure will be borne by the parties equally. The Court of arbitration
shall determine its own rules rules.
Article 10
The use of other provisions and specific commitments
1. in the event that there is some question of the adjusted at the same time this agreement and
another international agreement, to which both parties are party, nothing in this
the agreement does not prevent to any party or any of its investor
private investment in the territory of the other party, any rules,
which are more favourable for him.
2. If the treatment granted to one party to the other party for investors
in accordance with its legal regulations or other specific terms
provisions is more favourable than that provided for in this agreement,
will be given more favourable treatment.
Article 11
The Applicability Of The Agreement
The provisions of this Agreement shall be applicable to future investments made
investors of one party in the territory of the other party and also the investment
existing in accordance with the laws of the parties at the date of this agreement in
force. The provisions of this Agreement shall not apply to claims arising from the
events that happened prior to its entry into force, and to claims,
that were resolved prior to its entry into force.
Article 12
Entry into force, duration, termination, and modification
1. each Party shall notify the other party of its legal compliance
procedure for the entry into force of this agreement. This agreement shall enter into force on
the date of the second notification.
2. This agreement shall remain in force for a period of ten years. Then remains in the
force until the 12-month period running from the date when
either party shall notify the other party of its intention to terminate
into force of the agreement.
3. for investments made before the expiry of this agreement,
the provisions of this agreement will remain effective for fifteen years from the date of
their validity.
In witness whereof the undersigned, duly authorised thereto, have signed this agreement.
Given in duplicate in Prague on 14. December 1998, in the language of
Czech and English, both texts being equally authentic.
For the Czech Republic:
Mgr. Ivo Svoboda in r.
the Minister of finance
For the Republic of South Africa:
Thomas Langley in r.
Ambassador Extraordinary and Plenipotentiary
Protocol
Czech Republic and South Africa, at the signing of the agreement between the
The Czech Republic and the Republic of South Africa for the promotion and mutual
protection of investments agreed upon the following provisions, which shall be
form an integral part of the above-mentioned agreement:
Ad article 6:
1. the provisions concerning transfers of investments and the income referred to in article 6 are not
pay for persons with permanent residence in South Africa, which are subject to
South African legislation on foreign exchange regulation. For residents
in South Africa are under the provisions governing the exchange rate
the regulation in force in South Africa, regarded as citizens of another State,
who are natural persons and who are staying in South Africa for longer
than five years and have met the required formalities concerning foreign exchange control
associated with přistěhováním to South Africa.
2. exceptions from article 6 referred to in paragraph 1 of this Protocol automatically
ends its validity in relation to each restriction as soon as this
restrictions removed from national law of South Africa.
3. South Africa will make every effort to ensure that a stated limit
She was from a national law is deleted as quickly as possible.
4. paragraph 1 of this Protocol does not apply to transfers of revaluation
payments made in accordance with articles 4 and 5 of this agreement, or
limit.
5. this Protocol shall enter into force simultaneously with the agreement.
In witness whereof the undersigned, duly authorised thereto, have signed this Protocol
in two originals in the Czech and English languages, both texts are
just as authentic.
Done at Prague on 14. December 1998.
For the Czech Republic:
Mgr. Ivo Svoboda in r.
the Minister of finance
For the Republic of South Africa:
Thomas Langley in r.
Ambassador Extraordinary and Plenipotentiary
