LAW No. 39 of 27 May 1996 ratification of the agreement between Romania and the Republic of Bolivia concerning the reciprocal promotion and protection of investments, signed in Bucharest on 9 October 1995, the PARLIAMENT published in ISSUING the OFFICIAL GAZETTE NR. 111 of 30 May 1996, the Parliament of Romania adopts this law.
The sole article Shall ratify the agreement between Romania and the Republic of Bolivia concerning the reciprocal promotion and protection of investments, signed in Bucharest on 9 October 1995.
This law was adopted by the Senate at its meeting on 13 February 1996, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
p. SENATE CHAIRMAN ION SADANI this law was adopted by the Chamber of deputies at its meeting on 13 May 1996, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
PRESIDENT of the CHAMBER of DEPUTIES ADRIAN NASTASE agreement between Romania and the Republic of Bolivia, on promoting and protecting mutual investment Romania and the Republic of Bolivia, hereinafter referred to as the Contracting Parties, desiring to intensify economic cooperation between both countries, intentionind to create and maintain favourable conditions for investments by the investor of one Contracting Party that involve transfer of capital in the territory of the other Contracting Party, recognizing that the promotion and protection of mutual investment in accordance with this agreement, will contribute to boosting the economic prosperity of both countries, conscious of the need to establish an appropriate legal framework to govern and to guarantee the promotion and protection of mutual investment between both countries, have agreed upon the following: Article 1 Definitions for the purposes of this agreement: 1. the term investment covers all categories of assets or rights in connection with an investment provided that it is conducted in accordance with the laws and regulations of the Contracting Party on whose territory the investment has been made and shall include, in particular: a) the ownership of movable and immovable property and other rights in rem;
b) stocks, shares and any other kind of participation in companies within the territory of any of the Contracting Parties;
c) reinvestment benefits;
d) rights or any other benefit that has economic value, loans are included only if they are directly related to a specific investment;
e) intellectual property rights, including copyright and industrial property rights;
f) concessions authorized by law, including concessions for prospecting, exploration, extraction, exploitation and industrialization of natural resources.
Any change in the legal form in which they are invested or reinvested capital assets and shall not affect their character as investments in accordance with this agreement.
2. the term "investor" shall designate, for each Contracting Party, the following subjects who carry out investment in the territory of the other Contracting Party in accordance with this agreement: a) natural persons who, in accordance with the legislation of a Contracting Party shall be regarded as its nationals, as regards Romania, and its nationals, as regards the Republic of Bolivia;
(b) legal entities established under) the laws of a Contracting Party which have their headquarters, and the main economic activities in the territory of that Contracting Party;
(c) legal entities established in) accordance with the law of any country, which are controlled largely by investors referred to. the a and b)) of this subparagraph.
3. the term shall mean all income amounts of investment products, namely, profits, dividends, interest, royalties and other similar ones.
4. the term territory means:-in respect of Romania, the Romanian territory, including the territorial sea and exclusive economic zone over which Romania exercised in accordance with internal legislation and international law, sovereignty, sovereign rights or jurisdiction;
-with regard to the Republic of Bolivia, the entire space subjected to the sovereignty and jurisdiction of the Republic of Bolivia, in accordance with its internal legislation and international law.
Article 2 promotion and protection of investments 1. Each Contracting Party shall promote and create the territory or favourable conditions for investments by investors of the other Contracting Party and shall authorize such investments, in accordance with its laws and regulations.
2. Each Contracting Party shall grant, in accordance with its laws and regulations, protection and guarantees provided for in this agreement for investments carried out in the territory or, by investors of the other Contracting Party.
3. Each Contracting Party shall, in accordance with its laws and regulations, will allow investors the other Contracting Party to hire senior staff and specialized technical, at their own choice regardless of nationality and, as far as Romania, and nationality in relation to the Republic of Bolivia.
In addition, Contracting Parties, in accordance with the provisions of their legislation will allow investors the other Contracting Party and to their territory, lag in order to carry out their investment and management.
4. Each Contracting Party shall ensure to investors of the other contracting party access to tribunals, courts, administrative agencies and other bodies exercising judicial authority.
5. Each Contracting Party shall publish and will disseminate laws and regulations relating to the investments of investors of the other Contracting Party.
Article 3 Treatment of investments 1. Each Contracting Party will have to guarantee a fair and just treatment, on its territory, the other Contracting Party investment to investors and will ensure that the exercise of rights under this agreement are not violated.
2. Each Contracting Party shall accord to investors of the other Contracting Party investments, conducted on its territory, a treatment no less favourable than that accorded to its own investors or investments of investors of a third State, provided that this latter treatment is more favourable.
3. Where a Contracting Party has granted special advantages to investors of any third state, by virtue of an agreement creating a free trade zone, Customs Union, common market, economic Union or any other regional economic organization, or by virtue of an agreement relating wholly or mainly to tax issues, that Contracting Party shall not be obliged to give the above-mentioned advantages to investors the other Contracting Party.
Article 4 Expropriation and compensation 1. None of the parties will not adopt measures that will directly or indirectly deprive an investor of the other Contracting Party of its investment, unless the following conditions are met: (a) measures shall be taken to) cause public or national interest, and in accordance with the law;
(b) they are not discriminatory);
c) measures are accompanied by provisions regarding payment of compensation without delay, appropriate and effective.
2. The compensation shall be based on market value of investments at once affected, immediately preceding the week in which the measure becomes known to the public. In a situation where it is difficult to determine this value, compensation will be determined in accordance with generally recognised principles of valuation as being equitable, taking into account the size of the invested capital, its devaluation, capital repatriated by that date, replacement value and other relevant factors. As a result of the payment of compensation to any intirzieri will add the interest at a commercial rate established on the basis of market value, starting from the date of expropriation or loss until the date of payment.
The amount of the compensation, including interest, if any, will be paid to the investor in freely convertible currency.
3. With regard to the legality of the expropriation or any naţionalizarii, other measures of equivalent effect, and with respect to the amount of compensation, the affected investor will be able to advertise it in legal proceedings and courts will be subject to the legal order of the Contracting Party that adopts the measure of expropriation or compensation makes to become effective.
4. Investors of any Contracting Party whose investments in the territory of the other Contracting Party suffer losses due to war or other armed conflict, a State of national necessity, civil disorders, or other similar events in the territory of the other Contracting Party, they have to receive from the latter, by way of reparation, compensation, indemnity or other arrangement, a treatment no less favourable than that accorded by the latter Contracting Party to its own investors or of any third State.
Payments that could result with this title shall be made in freely convertible currency.
Article 5 free Transfer 1. Each Contracting Party shall, without delay, the other Contracting Party, investors transfer funds arising from investments, in freely convertible currency, and in particular of: (a) interest, dividends), profits and other benefits after paying taxes established by the laws and regulations of the Contracting Parties;
(b) the reimbursement of foreign loans) in connection with an investment;
c) amounts obtained from total or partial sale or liquidation of an investment;
d) payments arising from a dispute and compensation regulation, in conformity with art. IV.
2. Such transfers shall be made at the exchange rate applicable on the date of the transfer market, in accordance with the laws and regulations of the Contracting Party that has accepted the investment.
Article 6 Subrogation 1. If a Contracting Party or a body authorized by it has concluded an insurance contract or given to any other financial guarantee against non-commercial risks in connection with an investment of one of its investors in the territory of the other Contracting Party, the latter will recognize the right of the first Contracting Party of the investor's rights are subroga, if a payment has been granted, in the light of those laid down in the contract security referred to.
2. If a Contracting Party has paid to the investor or by virtue of such payments has assumed the rights and obligations thereof, the investor will not be able to advertise other Contracting Party those rights and obligations without the express authorization of the first Contracting Party and whenever these rights and obligations are effective and legally recognized by the other Contracting Party.
Article 7 Consultations the Contracting Parties shall consult on any matter concerning the application or interpretation of this agreement.
Article 8 settlement of the disputes between the Contracting Parties 1. Disputes arising between the Contracting Parties relating to the interpretation and application of this agreement will be resolved, as possible, through direct negotiations.
2. Where both Contracting Parties could not reach an agreement within six months from the date of notification of the dispute, it shall be submitted, at the request of any of the Contracting Parties, an arbitral tribunal.
This Court will be composed of three members, each Contracting Party must appoint an arbitrator within two months of receipt of the request for arbitration, and these two arbitrators will have to nominate a President, who will be the national of a third State, within a period of two months following their appointment.
3. If one of the parties has not appointed the arbitrator and has not responded to the request of the other Contracting Party to make the appointment within a period of two months from the date of notification of the request for arbitration, the arbitrator will be appointed, at the request of that Contracting Party, by the President of the International Court of Justice.
4. If the two arbitrators cannot reach an agreement regarding the election of the President, within two months following their appointment, it will be designated at the request of any Contracting Party, by the President of the International Court of Justice.
5. If, in the cases referred to in paragraphs 3 and 4 of this article, the President of the International Court of Justice is prevented to fulfil this function or if it is of one of the Contracting Parties, the appointment will have to be made by the Vice President, and if the latter is prevented to do so or if it is a national of one of the Contracting Parties, the next member of the International Court of Justice as a function which is not a national of one of the Contracting Parties will have to make the appointment.
6. The President of the arbitral tribunal should be national of a third State with which both parties maintain diplomatic relations.
7. the arbitral Tribunal will have to adopt by a majority judgment. With respect to all other matters, arbitration proceedings will be determined by it.
8. Arbitration shall be final, irrevocable and binding for the parties.
9. Each Contracting Party shall bear the costs should the Member's designated by it, and the costs of its representation in the arbitration procedure; the President's spending and other expenses shall be borne in equal parts by the two Contracting Parties.
Article 9 settlement of the disputes between a Contracting Party and an investor of the other Contracting Party 1. Disputes that occur in the context of this agreement between one of the Contracting Parties and an investor of the other Contracting Party which has made investments in the territory of that on your teeth will be resolved, as amicably as possible.
2. If these consultations do not reach a solution within a period of 6 months from the date of application of the regulation, the investor will be able to submit the dispute: (a) the competent court) of the Contracting Party on whose territory the investment has been carried out; or (b)) of the International Center international arbitration for the settlement of Disputes relating to Investments (C.I.R.D.I.), established by the Convention on the settlement of the investment dispute between the States and the people of other States, done at Washington on 18 March 1965; or (c) an arbitral tribunal) "ad hoc", constituted in accordance with the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL).
3. If the investor has been subject of dispute to the competent court of the Contracting Party on whose territory the investment is made or by arbitration, choice of one of the procedures shall be final.
4. the effect of this article, any legal entity which is established in accordance with the laws and regulations of one of the Contracting Parties and whose actions, prior to the occurrence of the dispute, are owned in majority by investors of the other Contracting Party, shall be treated as a legal person to the other Contracting Party.
5. Arbitration shall be final, irrevocable and binding for both parties. Each Contracting Party shall execute in accordance with its laws and regulations.
6. The Contracting Parties will not be able to treat, through diplomatic channels, to the issues of disputes subject to arbitration or judicial proceedings, in accordance with the provisions of this article, until the completion of their respective procedures, except that the other party to the dispute has not carried out the judgment or decision of a Court of arbitration within the time limits laid down in the judgment or decision.
Article 10 scope This agreement shall apply to investments made before and after the entry into force of the agreement by investors of a Contracting Party, in accordance with the laws of the other Contracting Party, the latter's territory.
Yet he will not apply to disputes or controversies that have occurred previously its entry into force.
Article 11 application of other legal rules 1. If, in the future, the Contracting Party on whose territory was made an investment by an investor of the other Contracting Party will promulgate legal rules will be given more favourable treatment than that provided for under this agreement for foreign investment in the territory or, such provisions shall prevail over the present agreement, to the extent that they are more favourable.
2. Moreover, where the Contracting Parties shall conclude between themselves agreements which contain legal rules which are more favourable for investments in the territory of the other party or of the investors, the provisions of those agreements shall prevail over those contained in this agreement.
Article 12 Final Provisions 1. This agreement shall enter into force 30 days after the date on which the Contracting Parties have notified each other and the fulfilment of legal requirements necessary for the entry into force of the agreement.
2. This agreement shall remain in force for a period of 10 years and will be automatically extended for an equal period if one of the Contracting Parties shall not terminate by means of a written notice one year prior to the date of expiry of the period of validity.
3. the provisions of article 4. I-XI of this Agreement shall remain in force for a further period of 10 years from the date of its expiry, for investments made prior to that date.
In witness whereof, the undersigned, being duly authorised by their respective Governments, have signed this agreement.
Done at Bucharest on 9 October 1995, in two copies, in the English, Spanish and Romanian languages, all texts being equally authentic. In case of differences of interpretation, the English text shall prevail.
For Romania, Florin Georgescu, State Minister, Minister of finance for the Republic of Bolivia, Antonio Aranibar Quiroga, Minister of external relations and religious affairs — — — — — — — — — — — — — — — — — — — — — — — — —