A Bilateral Investment Promotion and Protection Agreement (BIPA) between the Government of the Republic of India and the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam was signed today. Hon'ble Finance Minister Mr. P. Chidambaram has signed the agreement on behalf of India and Mr. Pehin Dato Rahman Ibrahim, Minister of Finance, Brunei of behalf of Brunei Darussalam.
Welcoming the Hon'ble Minister of Finance, Brunei Darussalam, Mr. P. Chidambaram, Finance Minister stated that Brunei becomes the 70th country with whom India has so far signed BIPA. He also observed that Brunei is the third largest producer of oil in South East Asia and the fourth largest producer of Liquefied Natural Gas (LNG). He hoped that the Agreement would serve as a catalyst in boosting investment flows between the two countries.
Mr. Pehin Dato Rahman Ibrahim, Minister of Finance, Brunei reciprocating the views of the Indian Finance Minister that the signing of the Agreement would pave a way for increased investment flows, indicated that signing of the Agreement marked a new beginning in the relationship between both the countries.
The Agreement, which seeks to promote and protect investments from either country in the territory of the other country with the ultimate objective of increasing bilateral investment flow, has been reached after three rounds of negotiations held and correspondence exchanged between both countries during 2003-2007. The Agreement requires each country to encourage and create favourable conditions for investors of the other country to make investments it its territory and to admit investments in accordance with its laws.
The Agreement stipulates principles of Most Favoured Nation Treatment and National Treatment (NT), grant of compensation in specified circumstances and provides for elaborate dispute resolution mechanism.
The Agreement shall remain in force for a period of ten years. Thereafter, it shall continue to remain in force until the expiration of twelve months from the date on which either party gives a written termination notice. With respect to investments made prior to the date of termination of the Agreement, the provisions of the Agreement shall continue to be effective for a further period of fifteen years from the date of its termination.
Permanent Secretary of Brunei Darussalam, High Commissioner of Brunei Darussalam, Indian High Commissioner to Brunei Darussalam and senior officers of Government of India were present on the occasion.
