6 DE MAIO DE 1988

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b) No member shall be liable lo pay any amount on a call pursuant to the provisions of this article if as a result toial payments made by that member will exceed the total amount of guarantees covering investments sponsored by it.

c) Upon the expiry of any guarantee covering an investment sponsored by a member, the liability of that member shall be decreased by an amount equivalent to the amount of such guarantee; such liability shall also be decreased on a pro rata basis upon payment by the Agency of any claim related to a sponsored investment and shall otherwise continue in effect until the expiry of all guarantees of sponsored investments outstanding at the time of such payment.

d) If any sponsoring member shall not be liable for an amount of a call pursuant the provisions of this article because of the limitation contained in sections ¿>)and c) above, or if any sponsoring member shall default in payment of an amount due in response to any such call, the liability for payment of such amount shall be shared pro rata by the other sponsoring members. Liability of members pursuant to this section shall be subject to the limitation set forth in sections b) and c) above.

e) Any payment by a sponsoring member pursuant to a call in accordance with this article shall be made prompüy and in freely usable currency.

Article 4

Valuation of currencies and refunds

The provisions on valuation of currencies and refunds contained in this Convention with respect to capital subscriptions shall be applied mutatis mutandis to funds paid by members on account of sponsored investments.

Article 5 Reinsurance

a) The Agency may, under the conditions set forth in article 1 of this annex, provide reinsurance to a member, an agency thereof, a regional agency as defined in section a) of article 20 of this Convention or a private insurer in a member country. The provisions of this annex concerning guarantees and of articles 20 and 21 of this Convention shall be applied mutatis mutandis to reinsurance provided under this section.

b) The Agency may obtain reinsurance for investments guaranteed by it under this annex and shall meet the cost of such reinsurance out of the Sponsorship Trust Fund. The Board may decide whether and to what extent the loss-sharing obligation of sponsoring members referred to in section b) of article 1 of this annex may be reduced on account of the reinsurance cover obtained.

Article 6

Operational principles

Without prejudice to the provisions of this annex, the provisions with respect to guarantee operations under chapter m of this Convention and to financial management under chapter rv of this Convention shall be applied mutatis mutandis to guarantees of sponsored investments except that: /) such investments shall qualify for sponsorship if made in the territories of any member, and in particular of any developing member, by an investor or investors eligible under section a) of article 1 of this annex; and ii) the Agency shall not be liable with respect to its own assets for any guarantee or reinsurance issued

under this annex and each contract of guarantee or reinsurance concluded pursuant to this annex shall expressly so provide.

Article 7

Voting

For decisions relating to sponsored investments, each sponsoring member shall have one additional vote for each 10,000 special drawing rights equivalent of the amount guaranteed or reinsured on the basis of its sponsorship, and each member hosting a sponsored investment shall have one additional vote for each 10,000 special drawing rights equivalent of the amount guaranteed or reinsured with respect to any sponsored investment hosted by it. Such additional votes shall be cast only for decisions related to sponsored investments and shall otherwise be disregarded in determining the voting power of members.

annex h

Settlement of disputes between a member and the Agency under article 57

Article 1

Application of the annex

All disputes within the scope of article 57 of this Convention shall be settled in accordance with the procedure set out in this annex, except in the cases where the Agency has entered into an agreement with a member pursuant to section b), if), of article 57.

Article 2 Negotiation

The parties to a dispute within the scope of this annex shall attempt to settle such dispute by negotiation before seeking conciliation or arbitration. Negotiations shall be deemed to have been exhausted if the parties fail to reach a settlement within a period of one hundred and twenty days from the date of the request to enter into negotiation.

Article 3 Conciliation

a) If the dispute is not resolved through negotiation, either party may submit the dispute to arbitration in accordance with the provisions of article 4 of this annex, unless the parties, by mutual consent, have decided to resort first to the conciliation procedure provided for in this article.

b) The agreement for recourse to conciliation shall specify the matter in dispute, the claims of the parties in respect thereof and, if available, the name of the conciliator agreed upon by the parties. In the absence of agreement on the conciliator, the parlies may jointly request either the secretary-general of the International Centre for Settlement of Investment Disputes (hereinafter called ICSID) or the president of the International Court of Justice to appoint a conciliator. The conciliation procedure shall terminate if the conciliator has not been appointed within ninety days after the agreement for recourse to conciliation.

c) Unless otherwise provide in this annex or agreed upon by the parties, the conciliator shall determine the rules governing the conciliation procedure and shall be guided in this regard by the conciliation rules adopted pursuant to the Convention on ihe SctUcmcnt of Investment Disputes between Stales and Nationals of Other States.

d) The parties shall cooperate in good faith with the conciliator and shall, in particular, provide him with all