Defined Terms | |
Argentine Economic Turmoil | The economic turmoil experienced by Argentina during late-2001 and early-2002 |
Argentina-France BIT (or Treaty) | The agreement between the Government of the French Republic and the Government of the Argentine Republic on the Encouragement and Reciprocal Protection of Investments, signed on 3 July 1991 |
Argentina-Luxembourg BIT | The agreement between the Government of the Argentine Republic and the Belgian/Luxembourg Economic Union on the Encouragement and Reciprocal Protection of Investments, signed on 28 June 1990 |
Bidding Terms | The bidding terms published on 23 February 1998 |
Comments on Quantum | The Parties comments of 15 November 2010 regarding the supplementary expert reports on quantum |
Concession Agreement | Concession agreement between the Government of Mendoza and EDEMSA, signed on 15 July 1998 |
Convertibility Law | Collectively referring to Federal Law No. 23,928 and its implementing National Decree No. 2,128 |
Cost Adjustment Clause | Contract clause establishing the periodic adjustment of tariff rates to account for the inflation of electricity distribution costs |
Currency Clause | Concession clause prescribing the calculation of costs in terms of U.S. dollars for purposes of assessing the ultimate tariff to be invoiced to consumers; Concession Anexo II, Subanexo 2 |
DAV | Distribution-added value |
EDEMSA | Empresa Distribuidora de Energía de Mendoza S.A. |
EDESTESA | Empresa Distribuidora de Electricidad de Este S.A. |
EDF | Électricité de France |
EDFI | EDF International S.A. |
Emergency Tariff Measures | Articles 8 through 10 of Federal Law No. 25,561 |
EMSE | The formerly state-owned electricity distributor, Energía Mendoza Sociedad de Estado |
EPRE | The independent regulatory agency known as Ente Provincial Regulador de la Electricidad |
Extraordinary Review | Interim tariff schedule review pursuant to Article 48 of Mendoza Provincial Law No. 6,497 |
First Session | The first session held at the seat of the Centre in Washington, D.C. on 1 September 2004 |
First Session Timetable | The timetable adopted for the submission of pleadings and the presentation of oral arguments |
GEMSA | Generación Eléctrica de Mendoza |
ILC Articles | 2001 International Law Commission‘s Draft Articles on Responsibility of States for Internationally Wrongful Acts |
Info Memo | The information memorandum distributed by Chase Manhattan Bank and Salomon Smith Barney in February 1998 |
Initial Tariff Schedule | The initial fixed-term tariff schedule established under Article 25 and described in Subanexo 3 of the concession agreement entered between the Government of Mendoza and EDEMSA |
ICSID Arbitration Rules | ICSID Rules of Procedure for Arbitration Proceedings |
Institutional Rule | ICSID Rules of Procedure for the Institution of Conciliation and Arbitration Proceedings |
JL&A Report | The report prepared by EPRE on the advice of Consultancy Jorge Lapeña y Asociados S.A. |
LECG | Law & Economics Consulting Group (Claimants‘ Experts) |
LECOPS | Letras de Cancelación de Obligaciones Provinciales or "Notes for the Cancellation of Provincial Obligations" |
León | León Participaciones Argentinas S.A. |
Letter of Understanding | Letter of 7 April 2005 between Province of Mendoza and EDEMSA concerning DAV increase |
MBG | Molina, Bello & González (Respondent‘s Experts) |
ME&PW | Ministry of the Environment and Public Works |
MEM | Electricity Wholesale Market |
MFN Clause | The most-favored-nation clause found in Article 4 of the Argentina-France BIT |
National Emergency Law | Federal Law No. 25,561 |
Network-Use Fee | Fee for use of the network applicable to large electricity users |
Nihuil IV Contract | The contract for the construction, operation and maintenance of a hydroelectric power plant known as NIHUIL IV |
Ordinary Review | The scheme in which successive tariff schedule reviews would be conducted pursuant to Article 47 of Provincial Law No. 6,497 |
PETROMS | Notes issued by the Mendoza government‘s treasury |
Pre-Emergency Measures affecting the Concession | Regulatory measures adopted prior to the national and provincial measures adopted prior to the national and provincial emergency laws of 2002 |
Provincial | Province of Mendoza, unless otherwise stated |
Provincial Electricity Law | Mendoza Provincial Law No. 6,497 |
Provincial Emergency Law | Mendoza Provincial Law No. 6,976 |
PTC Fund | The Provincial Tariff Compensation Fund established under Articles 74 and 75 of Provincial Law No. 6,497 |
Regulatory Framework | Collectively referring to Provincial Laws No. 6,497 and No. 6,498 |
Renegotiation Commission | Renegotiation Commission of the Public Utilities Agreements |
Renegotiation Process | Renegotiation of the EDEMSA Concession Agreement |
Request of 16 June | Claimants‘ request for arbitration of 16 June 2003 |
SAURI | SAUR International S.A. |
Scattered Market | The scattered electricity market comprising of users that are located in distant regions |
SPA | Share Purchase Agreement, dated 30 June 2004, between EDFI and IADESA |
T-1 | Tariff No. 1 under Anexo II, Subanexo 1, Chapter 1 of the Concession Agreement |
T-2 | Tariff No. 2 under Anexo II, Subanexo 1, Chapter 1 of the Concession Agreement |
Tariff Schedule | The tariff schedule set forth under Anexo II, Subanexo 1 of the Concession Agreement between the Government of Mendoza and EDEMSA |
Transformation Law | Provincial Law No. 6,498 |
U.S. CPI | U.S. consumer price index published by the U.S. Bureau of Labor Statistics |
U.S. PPI | U.S. producer index published by the U.S. Bureau of Labor Statistics |
UTN Report | Study on the Concession Agreement conducted by EPRE‘s independent expert, Universidad Tecnológica Nacional - Regional Tucumán |
Vienna Convention | 1969 Vienna Convention on the Law of Treaties |
2002 Monetary Measures | Articles 3 through 5 of Federal Law No. 25,561 |
2002 Public Hearing | The public hearing held by EPRE on 13 December 2002 |
Initial
• Request of 16 June (16 June 2003)
• Amended Request (4 August 2003)
Jurisdiction
• Respondent‘s Memorial on Objections to Jurisdiction (15 July 2005)
• Claimants‘ Counter Memorial on Jurisdiction (3 October 2005)
• Respondent‘s Reply on Jurisdiction (17 November 2005)
• Claimants‘ Rejoinder on Jurisdiction (13 January 2006)
• Hearing on Jurisdiction (8 March 2006)
• Claimants‘ Post-Hearing Brief on Jurisdiction (20 March 2006)
• Respondent‘s Observations to Claimants‘ Post-Hearing Brief on Jurisdiction (6 April 2006)
Merits
• Claimants‘ Memorial on the Merits (2 May 2005)
• Respondent‘s Counter-Memorial on the Merits (26 January 2009)
• Claimants‘ Reply on the Merits (30 April 2009)
• Respondent‘s Rejoinder on the Merits (27 July 2009)
• Hearings on the Merits (1-3 October 2009; 2-7 November 2009)
• Claimants‘ Post Hearing Brief on the Merits (14 December 2009)
• Respondent‘s Post-Hearing Brief on the Merits (14 December 2009)
• Claimant‘s Reply Post Hearing Brief on the Merits (8 January 2010)
• Respondent‘s Reply Post Hearing Brief on the Merits (8 January 2010)
Quantum
• Claimants‘ LECG Report (28 April 2005)
• Respondent‘s MBG Report (9 January 2008)
• Claimants‘ LECG Supplemental Report (30 April 2009)
• Respondent‘s MBG Supplemental Report (20 July 2009)
• Claimants‘ Supplementary Expert Report on Quantum (24 September 2010)
• Respondent‘s Supplementary Expert Report on Quantum (24 September 2010)
• Respondent‘s Report on the Valuations Performed by LECG (10 November 2010)
• Claimants‘ Supplementary Report on Quantum: Comments to Argentina‘s Valuation Experts‘ Report (15 November 2010)
• Claimants‘ Comments on Quantum (15 November 2010)
• Respondents Comments on Quantum (15 November 2010)
• Expert Report of Mr. Reos (10 November 2010)
• Expert Reports of Messrs. Garcia and Guidi (11 November 2010)
• Hearing on Quantum (14 February 2011)
• Claimants‘ Post-Hearing Brief on Quantum (11 March 2011)
• Respondent‘ s Post-Hearing Brief on Quantum (11 March 2011)
• Respondent proposes to disqualify Dr. de Trazegnies (22 June 2006)
• Dr. de Trazegnies resigned (7 July 2006)
• Centre notified Tribunal‘s acceptance of Dr. de Trazegnies‘s resignation (20 July 2006)
• Respondent appointed Professor Jesús Ramón (26 September 2006)
• Professor Jesús Ramón accepted his appointment (17 October 2006)
• Respondent challenged appointment of Professor Kaufmann-Kohler (29 November 2007)
• Professor Kaufmann-Kohler provided explanation to address disqualification (21 December 2007)
• Tribunal rejected challenge and lifted suspension of the proceeding (25 June 2008)
Procedural Orders in Chronological Order
• Procedural Order No. 1 establishing the schedule of pleadings on the merits (13 August 2008)
• Procedural Order No. 2 concerning document production (22 October 2008)
• Procedural Order No. 3 concerning document production (4 December 2008)
• Procedural Order No. 4 concerning document production (19 February 2009)
• Procedural Order No. 5 concerning document production (22 April 2009)
• Procedural Order No. 6 concerning the parties‘ motions to strike evidence (19 March 2011)
Decision on Professor Kaufmann-Kohler (21 December 2007)
Decision on Jurisdiction (5 August 2008)
Witnesses On Behalf of Claimants
1. Philippe Barthel
a. First Statement (22 April 2005)
b. Supplementary Statement (22 April 2009)
2. Carlos Birr Meza
a. First Statement (15 April 2005)
b. Supplementary Statement (28 April 2009)
3. Patrick Blandin
a. First Statement (25 April 2005)
b. Supplementary Statement (23 April 2009)
4. Michel Cavé, Statement (27 April 2009)
5. Serge Caubet, Statement (21 April 2009)
6. Jack Cizain, Statement (15 April 2005)
7. Héctor Alberto Gonella
a. First Statement (29 April 2005)
b. Supplementary Statement (30 April 2009)
8. Didier Lamèthe
a. First Statement (25 April 2005)
b. Supplementary Statement (12 April 2009)
9. Alejandro Neme, Statement (20 April 2005)
10. Bruno Nitrosso, Statement (2 May 2005)
Experts On Behalf of Claimants
1. Ricardo Héctor Arriazu
a. Expert Report (29 April 2005)
b. Supplementary Report (27 April 2009)
2. Carlos Manuel Bastos
a. Expert Report (27 April 2005)
b. Supplementary Report (25 April 2009)
3. Alberto B. Bianchi
a. Expert Report (29 April 2005)
b. Supplementary Report (25 April 2009)
4. Rudolf Dolzer
a. Expert Report (29 April 2005)
b. Supplementary Report (17 April 2009)
5. Manuel A. Abdala and Mr. Pablo T. Spiller of LECG
a. First Report (28 April 2005)
b. Second Report (30 April 2009)
c. Third Report (24 September 2010)
d. Fourth Report (15 November 2010)
Witnesses On Behalf of Respondent
1. Raúl Faura
a. First Statement (5 January 2008)
b. Rebuttal Statement (24 July 2009)
2. Daniel E. Fernández
a. First Statement (1 December 2008)
b. Rebuttal Statement (20 January 2009)
3. Héctor Manuel Laspada
a. First Statement (9 January 2008)
b. Rebuttal Statement (20 July 2009)
4. Eduardo A. Ratti
a. First Statement (15 November 2008)
b. Rebuttal Statement (27 July 2009)
5. César Hugo Reos
a. First Statement (5 January 2009)
b. Rebuttal Statement (20 July 2009)
c. Supplementary Statement (10 November 2010)
6. Sergio Isabelino Rodríguez
a. First Statement (10 January 2009)
b. Rebuttal Statement (21 July 2009)
Experts On Behalf of Respondent
1. Augusto César Belluscio (15 July 2009)
2. Gerardo E. Bozovich (25 July 2009)
3. Liliana De Riz (12 November 2008)
4. Claudio García and Jorge Guidi (11 November 2010)
5. Roberto Frenkel and Mario Damill
a. First Report (6 January 2008)
b. Supplementary Report (11 July 2008)
6. Ismael Mata
a. First Report (22 January 2009)
b. Supplementary Report (20 July 2009)
7. Federico Molina, Fabián Bello, Daniel González, Darío Quiroga
a. First Report (9 January 2008)
b. Supplementary Report (20 July 2009)
c. Third Report (23 September 2010)
d. Fourth Report (10 November 2010)
8. Mónica Pinto (16 July 2009)
9. Nouriel Roubini (6 January 2009)
10. Alejandro Sruoga
a. First Report (29 December 2008)
b. Supplementary Report (20 July 2009)
Los servicios suministrados por los transportistas y distribuidores serán ofrecidos a tarifas justas y razonables, las que se ajustarán a los siguientes principios: (a) proveer a los transportistas y distribuidores que administren los servicios de acuerdo a pautas y parámetros de gestión internacionalmente aceptados, la posibilidad de obtener ingresos suficientes para satisfacer los costos operativos, de mantenimiento y de expansión de los servicios, los impuestos y una tasa de rentabilidad razonable determinada conforme lo dispuesto en el art. 46 de esta ley; [y]... (c) en el caso de tarifas de distribuidores, el precio de venta de la energía eléctrica deberá incluir los costos propios de distribución reconocidos al concesionario y un término representativo de los costos de adquisición de la energía eléctrica en el mercado eléctrico mayorista, de manera que las variaciones de este último se reflejen en las tarifas a los respectivos usuarios; (d) Asegurar el mínimo costo razonable para los usuarios, compatible con la seguridad del abastecimiento, la calidad del servicio y el uso racional de la energía[…]
In English, the provision reads,
The rates charged by electricity transmission companies and distributors shall be fair and reasonable and shall be subject to the following principles: (a) Rates shall afford transmission companies and distributors operating the services in accordance with internationally-accepted management guidelines and parameters, the opportunity to derive sufficient income to cover any operating, maintenance and expansion costs and taxes applicable to the services, and to obtain a reasonable rate of return defined pursuant to the provisions of Article 46 of this law; [and]... (c) For distribution rates, the electricity sale price shall include the specific distribution costs inherent in the distribution business recognized to the concessionaire, and a term representative of the cost of electricity purchased in the wholesale electricity market, in a manner such that any variations in this market may be reflected in the rates applied to the respective users; (d) Ensure the minimum reasonable cost to users, compatible with the security of supply, service quality and rational use of energy[…]
La valuación de las unidades empresarias, será realizada en base al cálculo del valor actual del flujo neto de fondos descontado, generado por la actividad o activos que se privaticen, en concordancia con el art. 96 de la ley 24065, art. 19 de la ley nacional 23696 y de la ley provincial 6072. No serán admisibles ofertas económicas inferiores al setenta por ciento (70%) de la valuación oficial.
In English the relevant portion reads:
economic offers lower than seventy percent (70%) of the official valuation shall not be admissible.
La aplicabilidad excluyente del derecho argentino y de la sumisión a la jurisdicción de los tribunales competentes en lo contencioso administrativo de la Provincia de Mendoza, renunciando expresamente a la aplicación de cualquier fuero extranjero regulado por nomas o tratados de cualquier tipo.
In English, the provision reads:
[The acquisition of the Bidding Terms and the presentation of offers imply:] the exclusive application of Argentine law and the submission to the jurisdiction of competent courts for administrative contentions of the Province of Mendoza, expressly renouncing the application of any foreign jurisdiction regulated by norms or treaties of any kind.
Previo al vencimiento el período inicial del Articulo 25, el EPRE elevará al Poder Ejecutivo la propuesta de las tarifas por períodos de CINCO (5) AÑOS. En los nuevos cuadros tarifarios se tendrá en cuenta lo dispuesto por los artículos 43 a 45 de la Ley N° 6,497 y su Decreto Reglamentario, y se establecerán los descuentos anuales previstos en el artículo 46 de la Ley N° 6,498. A ese fin, con UN (1) AÑO de antelación a la finalización de cada período de CINCO (5) AÑOS, la CONCESIONARIA presentará al EPRE la propuesta de un nuevo Cuadro Tarifario.
In English the provision reads:
Prior to the end of the initial period provided for in Article 25, EPRE shall submit to the Executive Branch the proposed rates for FIVE (5) YEAR periods. The provisions of Law 6,497, Articles 43-45, and its Regulations shall be taken into account in preparing the new rate structures and the annual discounts provided for Law 6,498, Article 46 shall be established. To that end, ONE (1) year before the end of each period of FIVE (5) YEARS the CONCESSIONAIRE shall present to EPRE the proposal for a new Rate Structure.
For the purpose of rate revision, EPRE:
a) May contract the services of a consulting group with recognized experience in the electrical sector, which must prepare an alternative rates proposal following guidelines identical to those defined for the CONCESSIONAIRE.
b) Shall analyze both proposals and establish the Rate Structure that shall be ineffect during the following FIVE (5) YEAR period.
The CONCESSIONAIRE must strictly apply the rates approved. Nevertheless, it may request from EPRE the changes it considers necessary, for which purpose the procedure established in Law 6,497, Articles 48 and following, and its regulations shall apply.
In Spanish the Provision reads:
EI EPRE, a los efectos de proceder a la revisión tarifaria:
a) podrá contratar los servicios de un grupo consultor de reconocida experiencia en el Sector Eléctrico, que deberá efectuar una propuesta tarifaria alternativa siguiendo idénticos lineamientos que los definidos para Ia CONCESIONARIA.
b) analizará ambas propuestas y establecerá el Cuadro Tarifario que estará vigente en el siguiente período de CINCO (5) AÑOS.
La CONCESIONARIA deberá aplicar estrictamente las tarifas aprobadas. Sin embargo, podrá solicitar al EPRE las modificaciones que considere necesarias, a cuyo fin se aplicará el procedimiento previsto por los artículos 48 y ss. de la Ley No 6,497 y su reglamentación.
Todos los costos mencionados se calcularán y recalcularán en dólares estadounidenses. El Cuadro Tarifario recalculado o resultante, se expresará en el momento de su aplicación para la facturación a los usuarios en pesos ($), teniendo en cuenta para ello la relación para la convertibilidad al peso, establecida en el Articulo 3° del Decreto Nacional N° 2128/91 y en las condiciones establecidas en la ley 23,298.
In English translation, the provision reads:
All the aforementioned costs shall be calculated and recalculated in U.S. dollars. The recalculated or resulting Rate Structure shall be expressed in Argentine pesos ($) at the time it is applied to the user invoices, at the peso conversion rate established in National Decree 2128/91, Article 3, and under the conditions established in [Federal] Law [No.] 23,298 [text corrected by hand to read: "23,928"].
Los Costos Propios de Distribución y los Gastos de Comercialización se recalcularán anualmente en coincidencia con la actualización de los Precios Mayoristas de Energía y Potencia para el período estacional que da inicio en el mes de Noviembre de cada año, y tendrán vigencia para los doce (12) meses siguientes al recálculo. Para el recálculo anual se utilizará la siguiente expresión:...
In English the provision reads:
The Actual Distribution Costs and the Marketing Costs shall be recalculated each year to coincide with the updating of the Wholesale Energy and Power Prices for the seasonal period beginning in November each year and shall be in effect for the twelve (12) months following the recalculation. The following expression shall be used for the annual recalculation:....
Sin perjuicio del marco legal sustancial dado por las Leyes N° 6,497, 6,498 y sus reglamentaciones, el CONTRATO será regido e interpretado de acuerdo con las leyes de la República Argentina, y en particular, por las normas y principios del Derecho Administrativo, sin que ella obste a que las relaciones que la CONCESIONARIA mantenga con terceros se rijan sustancialmente por el Derecho Privado.
Para todos los efectos derivados del CONTRATO, las partes aceptan la jurisdicción de los Tribunales en lo Contencioso Administrativo competentes de la ciudad de Mendoza.
In English, the provision reads:
Without prejudice to the substantive legal framework pursuant to the [Provincial Electricity Law], the [Transformation Law], and their regulations, the [Concession] Contract shall be governed and interpreted in accordance with the laws of the Argentine Republic, and in particular, by the norms and principles of Administrative Law, without precluding the substantive governance of Private Law with respect to relationships the Concessionaire maintains with third parties. To all effects derived from the [Concession] Contract, the parties accept the jurisdiction of competent Courts for Administrative Contentions of the city of Mendoza.
- First Modification of Tariff Schedule: the "Use of Network" Fees
- Unilateral Expansion of the Scope of Concession
- Second Modification of Tariff Schedule: The Optional T-2 Tariff Category
- Refusal to Pay Amounts Owed to EDEMSA and Denial of Access to Court
- Modification of the Subsidies Regime
- Imposition of More Stringent Conditions Regarding Quality of Service
- Imposition of the Obligation to Accept Quasi-currency as payment from users.
- Modification of "Use of Network" Fees
- Second Modification to Tariff Schedule: The Optional T-2 Tariff Category
- Incorporation of the Town of Polvaredas Into the Concession Area
- Incorporation of the "scattered electricity market" Users
- Failure to Pay Amounts Owed in Regards to Nihuil IV (First Nihuil Claim)
- Failure to Pay Amounts Owed in Regards to Nihuil IV (Second Nihuil Claim)
- Failure to Pay Subsidies and Provision of Public Lighting Services
- Modification of the "Agricultural Irrigation" Subsidies Regime
- Imposition of More Stringent Conditions Regarding Quality of Service
- Imposition of the Obligation to Accept Quasi-Currency from Users.
ARTICULO 8° " Dispónese que a partir de la sanción de la presente ley, en los contratos celebrados por la Administración Pública bajo normas de derecho público, comprendidos entre ellos los de obras y servicios públicos, quedan sin efecto las cláusulas de ajuste en dólar o en otras divisas extranjeras y las cláusulas indexatorias basadas en índices de precios de otros países y cualquier otro mecanismo indexatorio. Los precios y tarifas resultantes de dichas cláusulas, quedan establecidos en pesos a la relación de cambio UN PESO ($ 1) = UN DOLAR ESTADOUNIDENSE (U$S 1).
Las disposiciones previstas en los artículos 8° y 9° de la presente ley, en ningún caso autorizarán a las empresas contratistas o prestadoras de servicios públicos, a suspender o alterar el cumplimiento de sus obligaciones.
In English, the provision reads:
Under no circumstances will the provisions of articles 8 and 9 herein authorize utility companies to suspend or change the performance of their obligations.
Tout différend relatif aux investissements, au sens du présent Accord, entre l‘une des Parties contractantes et un investisseur de l‘autre Partie contractante est, autant que possible, réglé à l‘amiable entre les deux Parties concernées.
In English, the provision reads:
Any dispute concerning investments in the terms of this Agreement between one Contracting Party and an investor of the other Contracting Party shall whenever possible be settled by amicable consultations between the two parties to the dispute.
El órgano arbitral decidirá en base a las disposiciones del presente Acuerdo, al derecho de la Parte Contratante que sea parte en la controversia "incluidas las normas relativas a conflictos de leyes" y a los términos de eventuales acuerdos particulares concluidos con relación a la inversión como así también a los principios del Derecho Internacional en la materia.
In the French version, Article 8(4) provides:
L‘organe d‘arbitrage statuera, sur la base des dispositions du présent Accord, du droit de la Partie contractante partie au différend"y compris les règles relatives aux conflits de loi", des termes des accords particuliers éventuels qui auraient été conclus au sujet de l‘investissement ainsi que des principes de droit international en la matière.
In the English version, Article 8(4) provides:
The arbitration organization shall rule based on the provisions of this Agreement, on the laws of the Contracting Party that is a party to the dispute"including rules relating to conflicts of laws"and on the terms of any special agreements made in connection with the investment, and on the principles of International Law on the subject.
El órgano arbitral decidirá en base al derecho de la Parte Contratante que sea parte en la controversia"incluidas las normas relativas a conflictos de leyes", en base a las disposiciones del presente Convenio y a los términos de eventuales acuerdos especiales concluidos con relación a la inversión, como así también según los principios del derecho internacional en la materia.
In French, the provision reads:
L‘organe d‘arbitrage statuera sur la base du droit de la Partie contractante partie au différend, y compris les règles relatives aux conflits de lois, des dispositions du présent Accord, des termes des accords particuliers éventuels qui auraient été conclus au sujet de l‘investissement ainsi que des principes de droit international en la matière.
In English, the provision reads:
The arbitration tribunal shall make a determination based on the laws of the Contracting Party that is a party to the dispute"including its conflict of law provisions"based on the provisions of this Agreement and the terms of any special agreements regarding the relevant investment, as well as in accordance with the applicable international law principles.
Cada Parte Contratante aplicará, en su territorio y en su zona marítima, a los inversores de la otra Parte, en aquello que concierne a sus inversiones y actividades ligadas a estas inversiones, un tratamiento no menos favorable que el acordado a sus propios inversores, o el tratamiento acordado a los inversores de la Nación más favorecida si este último fuese más ventajoso. Por la misma razón, los nacionales de una de las Partes Contratantes autorizados a trabajar en el territorio y en la zona marítima de la otra Parte Contratante deberán poder gozar de las facilidades apropiadas para el ejercicio de sus actividades profesionales.
Ese tratamiento no se extenderá a los privilegios que una Parte Contratante acuerde a los inversores de un tercer Estado, en virtud de su participación o de su asociación a una zona de libre comercio, una unión aduanera, un mercado común o cualquier otra forma de organización económica regional.
Asimismo, este tratamiento no se extenderá a los privilegios que una Parte Contratante acuerde a los inversores de un tercer Estado, en virtud de un convenio para evitar la doble imposición o cualquier otro convenio en materia fiscal.
In the French version, the MFN Clause provides:
Chaque Partie contractante applique, sur son territoire et dans sa zone maritime, aux investisseurs de l‘autre Partie, en ce qui concerne leurs investissements et activités liées à ces investissements, un traitement non moins favorable que celui accordé à ses investisseurs, ou le traitement accordé aux investisseurs de la nation la plus favorisée, si celui-ci est plus avantageux. A ce titre, les ressortissants de l‘une des Parties contractantes autorisés à travailler sur le territoire et dans la zone maritime de l‘autre Partie contractante doivent pouvoir bénéficier des facilités appropriées pour l‘exercice de leurs activités professionnelles.
Ce traitement ne s‘étend pas aux privilèges qu‘une Partie contractante accorde aux investisseurs d‘un Etat tiers, en vertu de sa participation ou de son association à une zone de libre échange, une union douanière, un marché commun ou toute autre forme d‘organisation économique régionale.
De même, ce traitement ne s‘étend pas aux privilèges qu‘une Partie contractante accorde aux investisseurs d‘un Etat tiers, en vertu d‘une convention tendant à éviter la double imposition fiscale ou de toute autre convention en matière fiscale.
In English, the MFN clause reads:
Within its territory and in its maritime zone, each Contracting Party shall provide to the investors of the other Party, with respect to their investments and activities associated with such investments, a treatment no less favorable than that accorded to its own investors or the treatment accorded to investors of the most favored Nation if the latter is more advantageous. For the same reason, the nationals of either of the Contracting Parties authorized to work in the territory and in the maritime zone of the other Contracting Party shall be able to enjoy suitable terms for the conduct of their professional activities.
Such treatment shall not extend to the privileges that a Contracting Party grants to investors of a third State by virtue of its participation or its association with a free trade zone, a customs union, a common market, or any other form of regional economic organization.
Furthermore, such treatment shall not extend to the privileges that a Contracting Party grants to investors of a third State by virtue of an agreement to prevent double taxation or any other agreement covering fiscal matters."
Cada una de las Partes Contratantes respetará en todo momento los compromisos contraídos con los inversores de la otra Parte Contratante.
In English, the provision reads:
"Each of the Contracting Parties shall respect at all times the commitments it has undertaken with respect to investors of the other Party."
Cada Parte Contratante cumplirá cualquier otro compromiso que haya contraído con relación a las inversiones de nacionales o sociedades de la otra Parte Contratante en su territorio.13
In English, the provision reads:
"Each Contracting Party shall comply with any other commitment undertaken in connection with the investments made by nationals or companies from the other Contracting Party in the former‘s territory."
Tant que la convertibilité US$/Peso est garantie par la loi, la formule d‘ indexation couvre correctement le risque de change. En revanche dans un scénario de crise du Peso, le décret 2118/1991 pourrait alors être amendé. Dans ce cas, la formule ne prévoit pas le risque du taux de change réel du peso, phénomène qui se produit normalement après un subite dévaluation.
As long as US$/Peso convertibility is guaranteed by law, the indexation formula adequately covers the exchange risk. However, in a scenario of crisis of the Peso, decree 2128/1991 could then be amended. In that case, the formula does not contemplate the risk of appreciation of the real exchange rate of the peso, a phenomenon that normally occurs after a sudden devaluation ("tequila effect").
As long as the dollar/peso convertibility is guaranteed by law, the indexation formula adequately covers the exchange risk. Quite the opposite, in a scenario of the crisis of the peso, Decree No. 2128/1991 could thus be modified. Consequently, the formula does not foresee the risk of modification of the real exchange rate of the peso, which normally occurs after a sudden devaluation (tequila effect).
There is no reason preventing the continued validity of the right granted to the concessionaire once the Convertibility Law was extinguished[,]... this right would acquire economic meaning if the peso was rated below the dollar, for example, 2 AR$ = 1 US$. Similarly, and from the hermeneutics point of view, it is more reasonable to maintain that the contract has no lacunae, and therefore the repeal of the Convertibility Law shall not produce the loss of the clause, but its substitution with another, in this case the substitution of the parity fixed by the Convertibility Law with another parity or different exchange rate. See Bianchi Supplemental Expert Report at paragraph 30.