Albania–Croatia BIT (1993)

A G R E E MEN T BETWEEN THE GOVERNMENT OF THE REPUBLIC OF ALBANIA AND THE GOVERNMENT OF THE REPUBLIC OF CROATIA FOR THE ENCOURAGEMENT AND RECIPROCAL PROTECTION OF INVESTMENTS The Government of the Republic of Albania and the GOV8l' i)ment of the Republic of Croatia, hereinafter rRf0rred to as the r~ntr3cting Parties; DESIRING to intensify their economic =ooperation to ':I ' ~ mutual benefi t. of both countries on a long te"m basis; HAVING as their objective to creata favourable cordi !.ions for investments by investors of e i ther Pa rty in the teri!"ory of the other Part y ; RECOGNIZING t hat the enCO'Jragemen t ar,c protection of i l'~estment5 on the basis of the DT"eSent Ag i· e ~~ lnent. will sti:nl: lCtte. the initiat.ive in this field; HAVE AGREED AS FOLLOW: AR TICLE For the purposes of this pgreement: 1. "Investment" means every kind of a s set and in parti ::ular. though not exclusively. includes: a) moveble anc immovable property a l~c any OLher prooe l"ty rights; b) shares in stock and other securit i~ s and any oth~ ~ from of interests i n a comoany : c) loans, claims t o money or to any ::oer f ol'mance c ontr ~c t having an economica l value and acc omp ,1.ni e d by a.n i nv~~ tlnen t : d) inte ll ~cluai and i ndu5tria l propa .. ty r i ght s , includ i n g rights with respect to compyrights, ~rademarks, tr.adenames, patent.5, Lechno l ogical processes," ~: n' ; w-how a.nd goodwi l l;

e) rights confirmed by law or unljer contract w1 th a Contract~n~ Party. i ncl'Jding the right to research fer. cultivate, ex~ract of exploit natural resources. 2. "Returns" means the amaunts yielded by "in investment a~d in pa r t icu lar. though not exe 1l1Si ve 1 y. includes profit, in~ef'est, capital gains. dividends. royalities and other fees. 3. "I nvestitar" shall cornprise with regard to either' Cont a ·= t ing Party: a) natural per'SDns having t.he n~.tiDn"lity Df t " at Contracting P ~ rty in accordance with its law; b) legal persons constituted in accordance with the law of t at Contracting Party anrj having their seat wj t~in its territ.or'y 4 "Territory" means in respect. of e~t:,er Contracting r~rty. the territory under its sovereignity as ~~~~ll as the terr . 1: ,'t-ial sea the continent.:?l shelf and submarine ar.f.'as ove.- which ' h ·;t CXontracting Party exel·cises. in conformity ~I : th intern3tion,·). law. savereigr1 rights of juridictian. ARTICLE 2 1. Each Contracting Party shall in its terr ~ t,)ry promote. a~ : far as possible, investments by investors of ~he otl)er Cont r, ~c~ing Party and admit such investmerlts in accorciance wi th its le·)i·:;lation. 2. A possible change in form in which ~he investments h:lve been made does not affect tneir substance as investments. provided that such a change does not contradict the laws and regu ~ ations of the relevant Contracting Par ty. 3, Returns from the investment5 and, in ca$OS of approved r~i "v estme(lts the income ensuing therefrom enjoy rhe same pr'otec ·. i~n as t~e major investments.

ARTICLE 3 ~. Neither Contracting Party shall subject investments of tt:e other Contracting Party to treatment less favourable than tha~ which it accprds to inves~ments of its own investors or to i~yes:ments of investors of any third State. 2. Neither Contracting Party shall subject investors of the other Contracting Party. as regards :heir acitivity in cor,nectiof"'l with investments in 1;:S territory. to &reatment less favGur"able than that which it accords to its own investors or to invl!stors of any third state. 3. Such treatment shall not relates to privileges which either Cortr3cting Par~y accords to investors of third State on account cf its membership of, Dr association with. a customs of econo~ic union. a common market) a free trade area, or simi lar insti tutiOJr':5. 4. rhe treatment gran~eo under this Article shall not extend to ad~~:·tages which either Contracting Par~y accords to investors of i ,ird State by virute of a double taxation agreement of otn!~ agree~ents regardirg matters of taxation. ARTICLE 4 1. Invest~ents by investors of either Contracting Party shall enjoy full pro~ection and security in the territory of the other Co~tracting Par~y. 2. Inves:ments by investors of eitner Contracting Party shall not be exoropriated. natio~aliled or subjected to any other measure the effects of which would be tantamount to ex-p"'opriation or clatl0nalization in the territory of the other Contracting Party exceot for the public cenefit and against pro~t. adequate aGd effective compensation. and asways under due process of law ana without discrimination. Such compensation shall be equiva)e~t to the ~ark6t value of the expropriated investment immecli2tely before the da~e on which the actual or threatened fJ><propl'iation. :1ationalization or :::ompar,able measure has been taken or' become pub:icly known, Hhicheve~ is earlier. The c8mpensation shall De paid without delay, and shall carry the current bank interest untiel the time of payment_ It 5hall by effectiveY realizable and freely tra,sferable.

Provision shall have been made in an acpropriate manner at or prior to the time of axpro~ria:ion. nationalization or comparable measure for the determination and payment of such ccmpensation~ 3. Investors of either Centracting Party shatl enjoy mostfavoured naticns :reatment in the territory of the other Centracting Party ie respeet of the matters provided for in this Article. ARTICLS 5 ~. Inv83tcrs of one Contractin~ Party who~e investments in tne terri~ory of the other Contracting Party suffer losses owing to w~r' or other armed conflict, revolution. a state of national emerga~cv', revolt. insurrection Or riot in tne territory of the latter Centraeting Party, shall be accorded by the latter Contracting ?c;ty treatment~ as regards restitution, indemnification. compe:'~Qtion ~r other 5et~lement. no less fu'_'ourable than that whic." !he :atter Contractillg Party accor,ds to its o~n investors c'~ to investors of any tnird State_ Resulting oayments shall te freely transferable. ARTICLE 6 1. Each r.:cntracting Party guarantees, in respect of investments of ~nve5tO!'S of the other Contracting Party. the free and prDmpt transfer cf the investments and its returns. The transfers shall be effected, without delay in the freely convertible curren~a in ~hich the investment was made. or in another freel)' convertIble currency to be agreed upon between the investor and the Ccntracting Party concerned and at the rate of exchange applicable on the date of :rarsfec. 2. SUCh transf8rs include in oarticular~ though not exclusively: a) Capi tal and addi tic,'lal alOounts t.o maintain or increase the investment; b) profits, interes:, dividents and other current income; c) funds in repay~en: of loans; d) royalities ard other fees;

e) proceeds of sale Or liquidation of the whole or any part of the investment; f) personal earnings of foreign citizen employed by the fore:90 investor. as par legislation of ea=h Contracting Party ARTICLE 7 If the investments of an investor of one of tns Contracting Parties are insured against non-commercial risks under a legal system of guaranteey any subroga~ion of the insurer or re-insurer into the rights of the said investor pursuant to the terms of such isurance shall be recognized by the other Contracting Party. ARTICLE !l This Agreement shall a.t!.a apply to investments made prior to its entry into force, by i"1Vestors of either Contracting Party in the teritary of the ather Contracting Party consistent ~'ith the latter~s legislat~on. ART !CLE '. 1. Any dispute between the Ccntractir")g Parties concerning the in~erpretation or application of this Agreement shall, if possible, be settled thrcJgh diplomatic channels. 2. If the dispute cannot thus be settled within six roan ttlS from the beginring of the negotiations 1 it s~a~l, upon the reqUest of either Contracting Darty, be submitted to an aroi tration tribunal. 3. The arbitration cricunal shall be constituted as follow: Each Contracting Party shall appoint one arbiter a~d these two arbiters shell agree upon a national of a third State as Chairman. The arbiters shall be appointed within three months,

the Chairman within five months from th~ date on which either Contracting Party has informed the other Contracting Party that it intends to submit the dispute to an arbitration tribunal. 4. If one of tje Parties fails to appoint its arbite~ and has not proceeded to do so wi thin t~)e speci fied period~ the otner Party may invite the President of the International Court of Justice to make the necessary appointments. If the two arbiters are unable to reach an agreement. in the specified period, on the chaise of the third arbiter. either Party may invite the President of the Internation8l Court of Jus~ice to make the necessary appointments_ 5. !f~ in the Cases provide~ for in the fourth paragraph of the present Article, rhe President of the International Court of Justice is prevented fro~ e~ercising the said function, or is a national of either Contracting Party, the Vice President shall be invited to make the necessary appoint~ents. If the Vice President is orevented fDa fulfiling of tre said function or is a national of ~ither Party, the most senior member of the Court available. wt·o is not a citizen of either Party, shall be invited t~ make the necessary appointmentsw 6. The arbitration tribunal s~all decide o~ tne basis of respecting International Law, inclucing Dartic~larly the present Agreement and other relevant agr"sements existing between the two Contracting Parties, as we~l as the generall~ acknowledged rules and principles of Internatiora"i Law. 7. Unless the Parties decide oherwise. the tribunal shall de termine its own procedure. 8. Tne tribunal shall reach its decision by a majority af vates. Such decision shall be finai and binding on the Parties. 9. Each Contracting Par:y sha~l bear the costs of arbiter appointed by itself and of its representatives. The cost of the Chairwan as well as the other costs will be born in equal parts by the Contracting Parties.

ARTICLE 10 1. Any dispuce bet~een either Contracting Party and an nvestor of the other Con~racting Party concerning investments or he expropriation or nationalization of an investment shall, as ar as possible, b settlea by the disputing parties in a amicable r"ay. 2. If such discute cannot be settled within six monthS #rom the date either party requested amicable settlement. tne ~nvestor or the Contraceing Party conserned may submit the ~ispute ei~her to the c~mpetent COt!rt of the Co~tracting Party, ;)r to an international arbitration trib~n81_ ~ach Contracting ·Jarty here with declares its acceptance of such arbitration ~)rocedure~ In the latter case t the orovisions of Article 9, parf. ~-9 shall be applied. Nevertheless the President of the Court of 'he International Arbi:ratio of the InternatiDnal Chamber of ommerce in Paris sral 1 be invi ted to mal<.e the necessary ·.ppointmen~s where as the arbitration tribunal snaIl determine ~ts procedure by applying the UNCITRAl Arbitratio. Rules. as then ·n force. The award shall be bindin~ and enforce~ in accordance ~ith domestic law. 3. During arbi~ration Or the enforce~e~t of an award. Lhe Contracting Party involved in the dispute sha~_l not raise the Jbjection that the investor of the other Contr~cting Party has ··eceived comperl~ation uncer an insurance contract in respect of all or part 0+ the "damage. 4. In case both Coritracting Parties ha~ei become members ~f the Convention of 18 March 1965 on the Settlement of tnvestment Disputes bdt~een States and national of ~he Otner 3tates, disputes between either Contracting Party and the 'nvestor of the other C61tracting Party uncer the first paragraph 0f this Article, snaIl be submitted for settlement by :.:onciliation Or arbi tration t'o the InternationE.l Center for the Settlement of Investment Disoutes. It can be submitted and to ~egional Centers for International Commercial Arbitration.

ARTICLE 11 If the provisions of law of either Contracting Party, or obligations under international law existing at present or established here after between the Contracting P3,ties in acditio~ to the present Agreemen: contain a regulation~ whether general or specific entitling investments by investors of the other C~n:racting Party to a treatment more favourable that is provi·je;1 for by the present Agreement, such regulation ·'5hall. to the extenc that it is more favourable~ prevail over the' present Ag ree r:1S:) t. ARTICLE 12 ReDresentatives of the Contracting Parties Bh.ll, when ever .r1i:~cessary I hold consul tation on any matter af1'e~;ting the imple~.ntat~on of this Agreement. These consultations shall be held :]r the proposal of one of the Contracting Parties a~ a place and a~ ~ time agreed upon throught diplomatic channels. ARTICLE 13 1. This Agreement shall enter into force thirty days after the date on which the Contractil'lg Par~ies inform e;"ch other throu"ht diplomatic channels for its ratification 01 approval. according to their respective legislation. It shall ~emain in force f8r a period of 10 years. 2. Unless notice of termination has beed given by ei:he!" Contracting Party at least six months Defore th~ date of expity 0f its validity. this Agreement shall be extende~ tacitly for periOdS of 10 years. each Contracting Party reset'ving the right to terminate the Agreement upon notice of at least six months before the date of expiry of the current period of )k~~'

3. ~n respect of investments made prier to the da:e of the term~nation of t!1is Agreement the moregoing Articles shall continue to be efective for a further period cd 10 years from ~hat date. Done in dublicatB in Zagreb this day ad 5 th March )993 in three originals texts in Albanian. Croa~ian and Englisch languages al" texes being equally authentic In case of t~e di~ferent int.erpretation, the Englisch text shall prevail. FOR THE GOVERN~ENT OF FOR THE GOVERNMENT OF THE REPUBLIC Q' ALBANIA THE REPUBLIC OF CROATIA f ~