Common use of Compensation for Expropriation and Losses Clause in Contracts

Compensation for Expropriation and Losses. (1) None of the Contracting Parties shall take, either directly or indirectly, measures of expropriation, nationalisation or any other measures having the same nature or effect against investments of investors of the other Contracting Party, unless the measures are taken in the public interest as established by law, on a non discriminatory basis, and under due process of law, and provided that provisions are made for effective and adequate compensation. The amount of compensation, interest included, shall be settled and paid without delay to the investor entitled thereto. Resulting payments shall be freely and promptly transferable in convertible currency. Such compensation shall amount to the market value of the investment expropriated, immediately before the expropriation became public knowledge. (2) Investors of either Contracting Party whose investments suffer losses in the State territory of the other Contracting Party owing to war or other armed conflict, state of emergency, revolt or riot, shall be accorded treatment no less favourable than that accorded to its own investors or that of any third State as regards compensation. Such payments shall be freely transferable.