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Convention Between the Belgo-Luxembourg Economic Union and the Republic of Burundi Concerning the Reciprocal Promotion and Protection of Investments

The Government of the Kingdom of Belgium, acting in its own name and on behalf of the Grand Duchy of Luxembourg, under existing agreements, and

The Government of the Republic of Burundi,

Desiring to strengthen their economic cooperation by creating favourable conditions for investments by nationals of one of the Contracting Parties in the territory of the other Contracting Party,

Considering that such a convention would stimulate private business initiatives and strengthen confidence in the area of investments,

Recognizing that discrimination by either Contracting Party, on the basis of nationality, against investments made in its territory by investors of the other Contracting Party is incompatible with any stable investment structure and with the optimal and efficient use of economic resources,

Have agreed as follows:

For the purposes of this Convention:

b.

Any corporation constituted in accordance with Belgian, Luxembourg or Burundian law having its head office in the territory of the Kingdom of Belgium, the Grand Duchy of Luxembourg or the Republic of Burundi, respectively.

a.

Movable and immovable property, as well as any other right in rem, such as mortgages, securities, security interests, usufructs and similar rights;

b.

Company shares, shares and any other kinds of interest in companies;

c.

Bonds issued by companies, debts and rights to any performance having economic value;

d.

Intellectual and industrial property rights, including copyrights, patents, trade marks, trade names, technical processes and goodwill;

e.

Business concessions under public law or by contract, including concessions in respect of agricultural research and the extraction or exploitation of natural resources.

3.

The term "income" shall mean any amount produced by an investment including; although not exclusively, profits, interests, capital gains, dividends, royalties and other remunerations.

Any change in the form in which assets and capital have been invested or reinvested shall have no effect on their status as "investments" for the purposes of this Convention.

1.

Each Contracting Party shall encourage and admit into its territory, in accordance with its legislation, investments made by investors of the other Contracting Party as well as all activities relating thereto.

2.

In particular, each Contracting Party shall authorize the conclusion and execution of licensing contracts and commercial, administrative or technical assistance agreements, provided that these activities relate to the investments mentioned in paragraph 1.

3.

The treatment and protection guaranteed in paragraphs 1 and 2 be no less favourable than those enjoyed by nationals of the State where the investment is made. They shall in any case be at least equal those enjoyed by investors of the most favoured nation and shall in no case be less favourable than those recognized by international law.

a.

The measures shall be taken in accordance with a legal procedure;

3.

Investors of either Contracting Party whose investments have suffered losses in the territory of the other Contracting Party as a result of war or other armed conflict, national emergency, disturbances or unrest shall he accorded by the latter Party non-discriminatory treatment at least equal to that accorded to investors of the most favoured nation in respect of restitutions, indemnifications or other compensation.

Compensation due under this paragraph shall be paid in accordance with the provisions of paragraph 2.

4.

The treatment mentioned in paragraph 1, 2 and 3 shall apply to investors of either Contracting Party possessing any form of direct or indirect interest in any enterprise whatsoever in the territory of the other Contracting Party.

5.

In all cases, the treatment shall be at least equal to that which the State where the investment is made grants to its own nationals and may not be less favourable than that enjoyed by investors of the most favoured nation. It may not be inferior to the treatment accorded under international law.

Article 5

TRANSFERS

1.

With regard to investments made in its territory, each Contracting Party shall guarantee to investors of the other Contracting Party the free transfer of their assets, in particular but not exclusively.

a.

Income as defined in article 1, paragraph 3;

b.

Amounts intended for the repayment of loans regularly contracted;

c.

Proceeds from the recovery of debts and the total or partial liquidation of the investments;

d.

Compensation paid pursuant to article 4.

2.

Each contracting party undertakes to grant the necessary authorizations to ensure that transfers are effected without delay and without taxes or costs other than the usual bank charges.

A transfer shall be considered to have been effected "without delay" within the meaning of this article if it took place within the time normally needed for the completion of transfer formalities. The time period shall start to run on the date of presentation of a request to this effect and shall in no case exceed two months.

3.

The transfers envisaged in paragraph 1 shall be effected at the rate of exchange applicable on the date of the transfer under the exchange regulations in force for various categories of operations.

4.

The treatment envisaged in paragraphs 1, 2 and 3 shall be no less favourable than that accorded to investors of the most favoured nation who are in a similar situation.

Article 6

SUBROGATION

1.

If, by virtue of a legal or contractual guarantee covering non-commercial risks of investments, compensation is paid to an investor of one Contracting Party, the other Contracting Party shall recognize the subrogation of the insurer with regard to the rights of the compensated investor.

2.

In accordance with the guarantee accorded to the investor concerned, the insurer shall be allowed to claim all the rights which the investor would have been able to exercise if the insurer had not subrogated him.

3.

Any dispute between one Contracting Party and the insurer of an investor of the other Contracting Party shall be settled in accordance with the provisions of article 8 of this Convention.

1.

This Convention shall not affect:

a.

The laws, regulations, administrative practices or procedures or administrative or judicial decisions of either Contracting Party;

b.

International legal obligations;

c.

Obligations contracted by either Contracting Party, including those contained in a specific investment agreement or an investment authorization which exist prior or subsequent to its entry into force.

3.

Investors of one Contracting Party may conclude specific agreements with the other Contracting Party but the provisions of such agreements may not be contrary to this Convention.

Investments made under such specific agreements shall in other respects be governed by this Convention.

a.

The interpretation or application of a specific investment agreement between a Contracting Party and an investor of the other Contracting Party;

c.

The alleged violation of any right conferred or established by this Convention with regard to investments.

4.

Neither Contracting Party being a party to a dispute may, at any stage of any judicial, arbitral or other procedure and on any grounds, raise an objection because the investor who is the opposing party in the dispute has received compensation covering all or part of his losses under an insurance policy or under the guarantee mentioned in article 6.

- The domestic law of the Contracting Party which is a party to the dispute in whose territory the investment is situated, including the rules of conflicts of laws;

- The provisions of the Convention;

- The terms of the specific commitment entered into on the subject of the investment;

- The generally recognized rules and principles of international law.

6.

Arbitral decisions shall be final and binding on the parties to the dispute.

Article 9

DISPUTES BETWEEN THE CONTRACTING PARTIES CONCERNING THE INTERPRETATION AND APPLICATION OF THE CONVENTION

1.

Any dispute between the Contracting Parties concerning the interpretation or application of the Convention shall, as far as possible, be settled through consultations between the two Parties or through any other diplomatic channel.

If the dispute cannot be resolved, it shall be referred to a joint commission composed of representatives of the two Contracting Parties. The commission shall meet, within two months, at the request of the most diligent Party.

2.

If the dispute cannot be resolved by the joint commission within six months of the date of its notification, it shall be referred to arbitration at the request of either of the Contracting Parties.

3.

In each case, the arbitral tribunal shall be composed of three arbitrators: each Contracting Party shall appoint an arbitrator within two months following the notification of the request for arbitration. The two arbitrators thus appointed shall together select as chairman a third arbitrator, who shall be a national of a third State. The chairman shall be appointed within two months of the appointment of the other two arbitrators.

4.

If the tribunal has not been constituted within the time limits set in paragraph 3, either Contracting Party may, in the absence of any other arrangement, invite the President of the International Court of Justice to make the necessary appointments.

If the President is a national of one of the Contracting Parties or if he is unable to act, the Vice-President shall be invited to make the necessary appointments. If the Vice-President is a national of one of the Contracting Parties of if he is unable to act, the oldest member of the International Court of Justice who is not a national of one of the Contracting Parties and who is able to act shall be invited to make the necessary appointments.

5.

Unless otherwise agreed by the Contracting Parties, the decision of the arbitral tribunal shall be handed down no later than ten months after the date on which the tribunal is finally constituted.

6.

The tribunal shall adopt its own rules of procedure.

Its decisions shall be taken by a majority vote and shall be final and binding on the Contracting Parties.

7.

Each Contracting Party shall bear the costs of the appointment of its arbitrator and of its representation in the arbitration proceedings. The costs of the appointment of the chairman and the other procedural costs shall be borne equally by the Contracting Parties.

However, the tribunal may rule in its decision that a larger share of the costs shall be borne by one of the Contracting Parties and this ruling shall be final.

Article 10

ENTRY INTO FORCE AND DURATION

1.

This Convention shall enter into force 30 days after the date of exchange of the instruments of ratification. It shall remain in force for an initial period of ten years and shall then be tacitly renewed for ten years, unless one Contracting Party notifies the other Party through the diplomatic channel of its termination at least six months before the date of expiry of the current period of validity.

2.

Investments made before the date of expiry of the Convention shall continue to be governed by it for a further period of ten years following such expiry.

IN WITNESS WHEREOF the undersigned representatives, being duly authorized by their respective Governments, have signed this Convention.

DONE in Brussels, on 13 April 1989, in duplicate in the French language.

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