Agreement between the Government of the Kyrgyz Republic and Government of the Republic of Tajikistan on encouragement and mutual protection of investments

of January 19, 2000

The government of the Kyrgyz Republic and the Government of the Republic of Tajikistan which are hereinafter referred to as with "Parties"

understanding that encouragement and mutual protection of investments will promote development mutually advantageous trade and economic and sci-tech cooperation between two Parties, and also will increase welfare of both states,

wishing to create favorable conditions for investments of investors of one Party in the territory of other Party,

based on the principles of equality, mutual respect, sovereignty and mutual advantage,

agreed as follows:

Article 1 of Determination

For the purposes of this agreement the following terms mean:

1. "Investor" - means concerning each of the Parties:

a) the physical person who is the citizen of the either party and performing investments in the territory of other Party according to its legislation;

b) the legal entity, other organizations with the right of the legal entity or without it, the investments registered according to the legislation of the either party, having the location in its territory and performing in the territory of other Party.

2. "Investments" - means all types of property and the rights to them, including the intellectual property rights, one Party enclosed for the purpose of income acquisition by investors in the territory of other Party, in particular, include:

a) shares, money and other securities or forms of participation in the companies;

b) personal and real estate (buildings, constructions, the equipment and other material values) and the related property rights, including the pledge right;

c) monetary claims and rights to claim on any activities having economic value;

d) copyright, intellectual property rights (such as inventions, patents, industrial projects and samples, trademarks, brand names, indexes of origin, technology, "know-how" and others);

e) the rights to economic activity, including the right to concession which is expressed in investigation, to development, production or operation of natural resources, other objects of operation, received under the law or the agreement.

3. "Income" - means the amounts received as a result of investments as profit, including in income type from productive, trading activity, including profit for technical assistance and maintenance and other types of activity, dividends, interest payments, the fees, license and commission fees.

4. "Territory" - means the state territory of each Party as it is determined by the legislation of the Parties and according to international law.

Article 2 Encouragement and protection of investments

1. Each of the Parties will encourage investors of other Party to perform investments in the territory and will allow such investments according to the legislation.

2. Investments as they are determined according to Item 2 of Article 1, and the related income will use complete protection according to this agreement. The same treats without prejudice to provisions of Item 1 of this Article and all income gained in case of reinvestment of such income. Performed within the law expansion, change or transformation of investments will be considered as new investments.

Article 3 National treatment of investments

1. Each of the Parties shall provide in the territory concerning investments of investors of other Party and activities in connection with investments the fair and equal mode excluding application of measures of discrimination nature which could interfere with management and the order of investors.

2. The mode mentioned in Item 1 of this Article will be at least favorable, than the mode which is provided concerning investments of own investors or investors of any other state and the activities connected with such investments.

3. Provisions of this Article do not extend to privileges and benefits which each of the Parties provides or will provide in the future to investors of any other third state or their investments on basis:

a) its participations in the free trade area, custom or economic union, organization of economic mutual assistance or in the international agreement providing privileges and benefits, similar to those which are provided by the Party to members of the specified organizations;

b) the international agreement about avoidance of double taxation or other arrangement on tax questions;

c) arrangements concerning border trade;

d) separate decision of the Parties.

Article 4 Compensation of Losses

1. The mode, at least favorable concerning indemnification and compensation will be provided to investors of one Party to whose investments damage in the territory of other Party is caused owing to any unexpected force majeur circumstances in the territory of the last Party, than that which it provides to own investors or investors of any third states.

2. Without prejudice to Item 1 of this Article to investors of one Party who owing to any unexpected force majeur circumstances suffered in the territory of other Party damage as a result:

a) requisitions of their property by its forces or authorities;

b) destructions of their property by its forces or the authorities which happened not during fighting and was not caused by the necessity in that situation,

on the other hand damages will be paid or adequate compensation is provided.

Article 5 of the Guarantee from expropriation

1. The investments of investors of one of the Parties performed in the territory of other Party cannot be nationalized, expropriated or subjected to other equivalent measures, except as specified, when such measures are taken in public concerns, in case of observance of the procedure established by the legislation, on non-discriminatory basis and are followed by adequate compensation.

2. The specified compensation equals market value of expropriated investment directly for decision date about expropriation and shall be paid without unreasonable delay and include the commonly accepted bank interest of the country calculated for the period between date of expropriation and payment date of compensation in the territory of the Party where investments were performed. Compensation, including percent, shall be convertible and freely translated.

3. Investors injured with nationalization will have the right according to the legislation of the Party performing expropriation to bystry consideration of their cases by judicial or other independent authority of this Party and to cost determination of its investments according to the principles stated in this Article.

4. If one of the Parties nationalizes the investments of investors registered by the current legislation on any part of the territory in which investors of other Party hold shares or other property rights, then application of provisions of Item 1 of this Article in that measure as far as it is necessary for ensuring adequate and effective compensation concerning investments of the investors of other Party holding such shares or other property rights will be guaranteed.

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