Stabilization Clause
Stabilization clauses have also been criticized by international human rights organization Amnesty International as placing a price tag on human rights because they may exempt either explicitly (through the freezing clauses) or implicitly (through economic equilibrium clauses by making it expensive for the government) foreign investors and ...
Stabilization Clauses and Human Rights
Stabilization Clauses For the purposes of this study, "stabilization clauses" are those clauses in private contracts between investors and host states that address changes in law in the host state during the life the project. Use of stabilization clauses is widespread across industries and …
(PDF) Renegotiation and Stabilisation Clauses in Nigeria's …
Background/Aim: The study seeks to explore the relevance of renegotiation and stabilisation clauses in the Nigerian petroleum industry's contracts due to various inconsistencies in domestic laws ...
Tanzania Relief Initiative
2.0 The Legal dimensions and Rationale of Stabilization Clauses in the Mining Investment Agreements Stabilization clause consists of set of mechanisms which are entrenched in the contract with a view of maintaining specific economic and legal conditions that are considered essential and crucial for validity of the contract.2 It seeks to
The Stabilization Clause / Regulatory Power Antinomy …
The antinomy between the stabilization clause and the host state's regulatory power is part of the broader private vs. public and stability vs. flexibility debates in international investment law, constituting probably the best manifestation thereof. Footnote 6 Indeed, the issue of finding an appropriate balance between the protection of foreign investors' interests for …
Freezing government policy: Stabilization clauses in …
In particular, they can include stabilization clauses in host government contracts, which commit governments to not alter regulatory frameworks in a way that undermines the economic …
Problematika Stabilization Clauses dalam Kontrak Karya …
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THE LEGISLATIVE STABILIZATION CLAUSE
THE LEGISLATIVE STABILIZATION CLAUSE JARROD WONG* & ABDALLAH ABUELFUTUH ALI** Stabilization clauses do something quite miraculous: They stop time itself. More specifically, stabilization clauses freeze the laws and regulations applicable to the foreign investment as they existed at the time the investment was established and are thus prized by ...
The Legal Status of Stabilization Clauses Under National Law
National law may apply to investment contracts, including the stabilization clause contained therein, by means of a choice-of-law clause contained in the contract (lex contractus).Footnote 2 Such an expression of party autonomy for the application of the host state's law is the case in the majority of investment contracts. Footnote 3 Even in cases where …
Stabilization Clauses: Do They Have a Future?
T1 - Stabilization Clauses. T2 - Do They Have a Future? AU - Cameron, Peter. PY - 2020/6. Y1 - 2020/6. N2 - There are three pillars of legal stability in international oil and gas investments: stabilization clauses, expectations of a stable legal framework under an investment treaty and guarantees set out in the host state's domestic legislation.
STABILIZATION CLAUSES IN ENERGY SECTOR
STABILIZATION CLAUSES IN ENERGY SECTOR This article deals with the importance of the stabilization clauses in the energy industry. Characterized by the important capital investments and ... 24 Henry G. Burnett, Louis-Alexis Bret, Arbitration of International Mining Dis-putes: Law and Practice, Oxford University Press 2017, 260.
(PDF) Legal Status of Stabilisation Clauses vis-à-vis …
stabilization clause: these clauses tend to remove all or part of a n agreement from the internal law and to provide for its correlative submission to sui generis rules as stated in the Aramco ...
Stabilization Clauses: The hidden provisions that can hinder …
An upcoming practice note by the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), whose Secretariat is hosted by IISD, will provide further guidance on the content and implementation of the OECD Principles, emphasizing their …
STABILIZATION CLAUSES IN NATURAL RESOURCE …
Known commonly as "stabilization clauses", these contractual and statutory guarantees are aimed at preserving "the law of the host country as it applies to the investment at the time the State …
Stabilization Clauses and Human Rights
stabilization clauses is widespread across industries and regions of the world. From an investor's perspective, stabilization clauses constitute a risk-mitigation tool to protect foreign investments from such sovereign risks as nationalization, expropriation, or the obsolescence bargain, in
A CRITICAL EXAMINATION OF KEY ISSUES AND …
A lot of focus has been on stabilization clauses, its relevance in protecting investors, and maintaining stability in EPAs. This paper argues that stabilization clauses have not achieved …
A CRITICAL EXAMINATION OF KEY ISSUES AND …
This paper argues that stabilization clauses have not achieved the much needed efficiency13 and stability it purports to provide, rather they may have actually done more harm than good and failed in aiding efficiency14 and stability in long term petroleum agreements and suggest that renegotiation clauses are a better option and way of ...
CONTRACTUAL ASSURANCES OF FISCAL STABILITY
2 Stability clauses have been used to insulate investors from having to implement new environmental and social laws. See, International Finance Corporation, "Stabilization Clauses and Human Rights," March 11, 2008. 3 Thus the paper is not concerned with fiscal stabilization in a macroeconomic sense.
STABILIZATION CLAUSES IN NATURAL RESOURCE …
However, the nature of contractual stabilization clauses has evolved in the last few decades, culminating in a variant of stabilization clauses that attempts to maintain economic equilibrium between the parties. Unlike the 'freezing' stabilization clause, the 'economic equilibrium clause' does not prohibit changes to the legal and fiscal
Stabilization Clauses in International Investment Law: …
The study defines stabilization clauses as "contractual clauses in pri- vate contracts between investors and host states that address the issue of changes in law in the host state …
Understanding the Ramifications of Stabilisation Clauses in …
"A stabilization clause or a stabilization curse? A look at the effects of Stabilization clauses on Host Country, by measuring the effects of the LNG Act on the Nigerian economy," p.12. Ibid. at p.13. Jagritti, S.(2015), op.cit at p.7. Ibid. Damon Vis-Dunbar,(2008)'Tanzania bad deals with foreign mining companies' Ibid.
When is compensation payable for breach of a stabilisation clause…
This has allowed mining companies to operate with impunity resulting in irreversible damage to the environment and whose effects may linger long after the cessation of mining activities. Unfortunately, the law that places a responsibility on citizens, local authorities and the government to protect the environment is otiose.
Stabilization Clauses: The hidden provisions that can hinder …
An upcoming practice note by the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), whose Secretariat is hosted by IISD, will provide further guidance on the content and implementation of the OECD Principles, emphasizing their approach to more limited and narrow uses of stabilization clauses in mining and ...
Mining Arbitrations
Mining companies have also managed to reduce the risks of legislative and regulatory changes by inserting "stabilization clauses" in their contracts with host States. These clauses may be drafted in a variety of forms, but the main purpose is to provide a certain level of predictability and protection to foreign investors.
THE LEGAL DILEMMA OF STABILIZATION CLAUSES IN THE …
Renegotiation of mining agreement which contain stability clause is very technical and requires effective ... THE LEGAL DILEMMA OF STABILIZATION CLAUSES IN THE RENEGOTIATION OF STANDARD MINING AGREEMENTS IN TANZANIA: CHALLENGES AND PROSPECTS. gaspardus rwebangira. 2019, Law Sschool of Tanzania (LST) Law Review, Volume 2 Issue …
Introduction to International Energy Arbitration Disputes in …
Section 3 explores the drivers and sources of energy disputes, including the breach of stabilization clauses. ... but it has also necessitated continued reliance on arbitration clauses/agreements and stabilization clauses in petroleum and mining agreements. There are indeed various issues which cannot fully be explored in this chapter. However ...
Chapter 5 The Legal Status of Stabilization Clauses …
role of stabilization clauses and their limits within the current legal regime for the protection and promotion of foreign investments, which itself operates within the broader context of law. Finally, the revisiting process is relevant to revealing certain important functions of stabilization clauses that go beyond the expectations arising
Freezing government policy: Stabilization clauses in …
Stabilization clauses and regulatory chill The most sustained examination of stabilization clauses is in a 2008 study spearheaded by John Ruggie and the International Financial Corporation (IFC) of the World Bank.1 The Ruggie/IFC report mostly understands the problem of stabilization clauses as a tradeoff between the need
Riding with stabilisers: using stabilisation clauses to …
Such clauses can be of great value to participants in long-term contracts, such as production sharing contracts, power purchase agreements or, as in a recently reported case, mining concessions. Somilo v Mali. The dispute in this case concerned a gold mine situated in south-eastern Mali. The mining venture was governed by an establishment ...