Page 362 - Regional Comprehensive Economic Partnership (RCEP)

nationalisation (hereinafter referred to as “expropriation” in this
Chapter), except:

(a) for a public purpose;

(b) in a non-discriminatory manner;

(c) on payment of compensation in accordance with
paragraphs 2 and 3; and

(d) in accordance with due process of law.

2. The compensation referred to in subparagraph 1(c) shall:

(a) be paid without delay;
26

(b) be equivalent to the fair market value of the expropriated
investment at the time when the expropriation was publicly
announced, or when the expropriation occurred,
27
whichever is earlier (hereinafter referred to as the “date of
expropriation” in this Chapter); 28, 29, 30

(c) not reflect any change in value occurring because the
intended expropriation had become known earlier; and

(d) be effectively realisable and freely transferable.

3. In the event of delay, the compensation shall include an
appropriate interest in accordance with the expropriating Party’s
laws, regulations, and policies provided that such laws,

26 The Parties understand that there may be legal and administrative processes that
need to be observed before payment can be made.

27 For the Philippines, the time when the expropriation was publicly announced for the
purpose of calculating the fair market value of the expropriated investment refers to the
date of filing of the Petition for Expropriation.

28 For Australia, Brunei Darussalam, Korea, Malaysia, New Zealand, and Singapore,
the date of expropriation for the purpose of calculating the fair market value of the
expropriated investment means the date immediately before the expropriation occurs.

29 For Cambodia, Lao PDR, Myanmar, and Viet Nam, the date of expropriation for the
purpose of calculating the fair market value of the expropriated investment means the
date when the expropriation decision is issued by the competent authority.

30 For Thailand, the date of expropriation for the purpose of calculating the fair market
value of the expropriated investment means the date when the expropriation occurs.

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