Introduction

8.1 Bilateral and multilateral investment treaties confer on foreign investors and investments important protections and rights. By relying on investment treaties, investors are offered an alternative avenue of redress when they operate in foreign countries and suffer damages as a result of government interference and unfair measures defined in the treaty. Most investment treaties allow foreign investors the right to bring a claim for compensation directly against the host state in arbitration proceedings whenever the latter has violated the protections promised in the treaty with respect to foreign investments. Arbitration proceedings may be commenced even if the investor is not a party to a contract with the host state or a state entity. As construction companies are increasingly involved in projects located outside of their home countries, investment treaties may significantly improve the protection of their businesses.