BIPPA is an Agreement Between India And Nepal (Signed during Dr Baburam Bhattaris India visit ) Which Seeks to promote and protect investments from either country in the territory of the other country with a view to increasing bilateral investment. The agreement requires each country to encourage and create favourable conditions for investors of the other country to make investments in its territory and to admit investments in accordance with its laws. Nepal will now have to treat Indian companies at par with the national ones. Article 6 of BIPPA has provisions for compensation to investors if their investments suffer losses owing to war, armed conflict and state of emergency. “Such investors shall be accorded treatment by the host country, no less than the treatment accorded to its own investors or investors of any third state. Any payment made under this Article shall be freely transferable,” states the agreement. Now, except for public interest, nationalisation or expropriation of investments cannot take place. Article 5 of the agreement says that investments of either contracting party will not be expropriated, nationalised or subjected to measures having effect equivalent to nationalisation or expropriation in the territory of the other contracting party except in public interests. The agreement also provides an elaborate dispute resolution mechanism to help settle disputes between investor and the host government as well as between the two governments. The mechanism includes resources to negotiations, conciliation and international arbitration. If the dispute goes to arbitration, there will be an arbitration tribunal consisting of three arbitrators, one each from two countries and the chairman who will be a national of a third state that has diplomatic relations with both the governments. The agreement that will remain in force for a period of 10 years will not be applicable to any dispute related to investment that has already arisen before this agreement was signed or on the claims that have already been settled. Nepal has signed BIPPA with France, Germany, Britain, Mauritius, Qatar and Finland, countries that do not have significant investments in Nepal.
Posted on: Sun, 09 Mar 2014 03:49:56 +0000
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