host government agreement
- host government agreement
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host government agreement (HGA)
USA
A legal agreement between a foreign investor and a local or host government governing the rights and obligations of the foreign investor and the host government concerning the development, construction and operation of a project by the foreign investor. These agreements also set out the obligations of the host government concerning the project and the foreign investor (for example, the extent of the government's support of the project and/or its indemnification obligations). Many HGAs include a stabilization clause designed to minimize the financial and political risks posed to foreign investors as a result of sudden changes in national law. An HGA is often required by foreign investors in countries where foreign investors' rights are not otherwise protected by a bilateral investment treaty.
Practical Law Dictionary. Glossary of UK, US and international legal terms.
www.practicallaw.com.
2010.
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