2.
3.
Fair and adequate compensation shall be assessed in relation to the fair market value
of the expropriated investment immediately before the expropriation took place ("date
of expropriation") and shall not reflect any change in value occurring because the
Intended expropriation had become known earlier. However, where appropriate, the
assessment .of fair and adequate compensation shall be based on an equitable
balance between the public interest and interest of those affected, having regard to all
relevant circumstances and taking account of:
(a)
the current and past use of the property;
(b)
the history of its acquisition;
(c)
the fair market value of the investment;
(c)
the purpose of the expropriation;
(e)
the extent of previous profit made by the foreign investor through
investment; and
(f)
the duration of the investment.
the
Any payment shall be made in a freely. convertible currency. On . payment,
compensation shall be freely transferable in accordance with applicable legislation in
the Host State. · .
·.
. .
•
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4.
Payments that are significantly burdensome on a Host State may be paid yearly over a
three-year period or such other period as agreed between the Host State and the
investor, subject to payment of interest at the rate established by agreement of the
Host State and the investor.
5.
This Article shall not apply to the issuance of compulsory licences granted in relation to
intellectual property rights, or to the revocation, limitation or creation of intellectual
property rights, to the extent that such issuance, revocation, limitation or creation is
consistent with appHcable international agreements on intellectual property.
6.
A measure of general application shall not be considered an expropriation of a debt
security or loan solely on the ground that the measure imposes costs on the debtor
that causes it to default on the debt.
7.
A measure of ge'neral application by a State Party that is designed and applied to
protect or enhance legitimate public welfare objectives, such as public health, safety
and the environment, shall not constitute an indirect expropriation.
8.
The investor affected by the expropriation shall have a right Linder the law of the State
Party making the expropriation to a review by a judicial or other independent authority
of that State Party of the investor's case and the valuation of the investment in
accordance with the principles set out in this Article.
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