10 State Parties agree that DFI's will, through the forum of the Network, for purposes of facilitating the use of the instruments contemplated in paragraph 7 above, co-operate in the creation of an enabling regulatory environment in order to develop vibrant financial and capital markets in the Region. 11 State Parties agree that, in accordance with paragraph 8 above, DFis may, through the forum of the Network, engage in transactions amongst themselves aimed at financing different project cycles of a sustainable development or investment project, depending upon the nature of the project, the individual financing mandates of the respective DFis and the financing requirements at each project cycle. ARTICLE 10 PREFERRED CREDITOR STATUS OR PARI PASSU RANKING 1. State Parties agree that in order to enable DFis, through the forum of the Network to operate effectively and with minimal risk in the financing of investment projects in the public sector, the State Party will grant Preferred Creditor Status to those DFis which are or will be financing such investment projects. 2. State Parties agree that any State Party unable to grant Preferred Creditor Status, as contemplated in paragraph 1 above, will confer Pari Passu Ranking on the DFis concerned. ARTICLE 11 POLITICAL RISK INSURANCE GUARANTEE FACILITY State Parties agree that, in order to enable DFis, through the forum of the Network to mitigate against and minimize Political Risk in the financing of public sector projects, they will support the Network in investigating the feasibility and provide resources towards the establishment of a regional insurance guarantee facility aimed specifically at insuring against Political Risk in such projects. ARTICLE 12 WAIVER OF STATE IMMUNITIES AND RECOGNITION AND ENFORCEMENT OF FOREIGN JUDGMENTS AND ARBITRAL AWARDS 1. Each State Party acknowledges that this Annex 9 contemplates cooperation in activities of a commercial nature. To this end, each State Party unconditionally and irrevocably agrees that: (a) if any proceedings, including any arbitration proceedings, are brought against that State Party or its assets in relation to any commercial transactions contemplated in this Annex 9 no immunity from such proceedings shall be claimed by or on behalf of that State Party or with respect to its assets; 95