Part V The International Law of Foreign Investment, XXXIII Concessions and Investment: Agreements between States and Foreign Companies

Subject(s):

Water — International investment law — International monetary law

This chapter describes the contractual and concession agreements made between States and foreign companies. It first considers the issues surrounding contractual arrangements, which have to cope with a structural problem flowing from the imbalance between a sovereign State and a foreign private enterprise: legal instability vis-à-vis all the regulatory powers of the host State. Regulations of the host State in favour of foreign investors are always subject to potential alterations in case of political change. After this overview, the chapter proceeds to the subject of concession agreements. These may refer to the extraction of raw materials, the provision of water and energy, or the operation of infrastructures. In the sectors of water, energy supply, and construction, concessions may establish the right to operate supply facilities or installations.