Common use of Nationalization and Expropriation Clause in Contracts

Nationalization and Expropriation. 1 - Investments of investors of either Contracting Party shall not be nationalized, expropriated or subjected to any measures having effect equivalent to nationalization or expropriation (hereinafter referred to as "expropriation") in the territory of the other Contracting Party except for a public purposes related to internal needs, on a non discriminatory basis in accordance with the applicable laws in that Contracting Party. -1o- (1*6V) 4-La.mjJI 2 - Any measures for expropriation shall include prompt, adequate and effective Compensation to be calculated on the basis of the market value of the investments immediately before the decision for expropriation was announced or became publicly known, whichever is earlier. Where the market value cannot be readily ascertained, the compensation shall be determined in accordance with the generally recognized principles of valuation and on equitable principles taking into account, inter alia, the capital invested, depreciation, replacement value and other relevant factors. 3 - ^e amounts of compensation, as mentioned in paragraph (2) of this Article, Shall be determined and paid without delay and shall carry an annual rate of interest equal to 3 months LIBOR quoted for the currency in which the investments have been made from the date of expropriation until the date of payment. 4 - Investors of either Contracting Party whose investments have been affected by Expropriation, shall be entitled to prompt review of their case in relation to the valuation of its investment and the payment of compensation in accordance with the provision of this Article, by a Judicial authority or any other competent authority of the host Contracting Party for the investment.