Agreement for the Establishment of the African Risk Capacity (ARC) Agency
- Commenced on 15 April 2020
- [This is the version of this document at 23 November 2012.]
Part one – The ARC Agency and its objectives
Article 1 – DefinitionsFor the purpose of this Agreement the terms and expressions below shall have the following meaning:‘ARC’ means the African Risk Capacity;‘ARC Agency’ means the African Risk Capacity Agency as established by this Agreement;‘ARC Agency Subsidiary or Affiliated Entity’ means a subsidiary or affiliated entity established by or at the instigation of the ARC Agency for the purpose of carrying out Insurance, Reinsurance, derivatives transactions, and other means of risk transfer;‘AU’ means the African Union;‘AU Commission’ means the African Union Commission;‘Bureau’ means the Bureau of the Conference of the Parties as defined in paragraph 4 of Article 12:‘Certificate of Good Standing’ means a certificate attesting to the fact that the country concerned is in compliance with the requirements set out in rules adopted by the Conference of the Parties pursuant to paragraph 2(1) of Article 13;‘Conference of the Parties’ means the Conference of the Parties to this Agreement;‘Contingency Plans’ means detailed procedures formulated by individual Parties in cooperation with the ARC Agency, describing the steps to be taken in case of an Extreme Weather Event, as well as the intended uses of the emergency funds and Insurance proceeds paid out by an ARC Agency Subsidiary or Affiliated Entity in the case of such an event;‘Director General’ means the Director General of the ARC Agency;‘Extreme Weather Event’ means a weather phenomenon that is at the extreme of historical distribution‘Governing Board’ means the Governing Board of the ARC Agency;‘Insurance’ means a financial arrangement pursuant to which risk is pooled and then transferred to a third party who, in exchange for premium payments, will make payments upon the occurrence of certain trigger events;‘Natural Disaster’ means a sudden calamitous event caused by natural forces that results in serious disruption of the functioning of a community or a society causing widespread human, material, economic and/or environmental losses that exceed the ability of the affected community or society to cope using its own level of resources;‘Party’ means an AU Member State that is a Party to this Agreement;‘Reinsurance’ means the practice where an insurance company (the insurer) transfers a portion of its risks to another (the reinsurer).‘Risk Pool’ means an aggregation of individual country risks for the purpose of managing the consequences of independent risks which effectively disperse losses incurred by a few over a larger group;‘Risk transfer’ means shifting the burden of financial loss or responsibility for risk financing to another party, through insurance, reinsurance, or other means;‘Secretariat’ means the Secretariat of the ARC Agencycomprised of the Director General and the staff of the ARC Agency;‘Software’ means the software developed for the use of the ARC Agencyand the ARC Agency Subsidiary or Affiliated Entities for the purposes of weather risk assessment.
Article 2 – EstablishmentThe ARC Agency is hereby established as a Specialized Agency of the AU to help Member States of the African Union to improve their capacities to better plan, prepare and respond to Extreme Weather Events and Natural Disasters.
Article 3 – Objective of the ARC AgencyThe objective of the ARC Agency is to assist the Member states to reduce the risk of loss and damage caused by Extreme Weather Events and Natural Disasters affecting Africa’s populations by providing targeted responses to disasters in a more timely, cost-effective, objective and transparent manner.
Article 4 – Functions of the ARC Agency
Article 5 – Transparency and accountabilityThe ARC Agency shall operate in accordance with generally accepted international standards of governance, transparency and accountability.
Article 6 – Use of SoftwareThe Parties shall have the right to use the Software free of charge under licence from the ARC Agency for the purposes of this Agreement.
Part two – Status of the ARC Agency and its staff
Article 7 – Legal capacity
Article 8 – Privileges and immunities of the ARC AgencyThe Parties undertake to accord to the ARC Agency, its premises, property and assets, Representatives of Parties. Members of the Governing Board, staff members of the ARC Agency, and experts on mission providing advice or assistance to the ARC Agency the privileges and immunities as specified in the General Convention on the Privileges and Immunities of the Organization of African Unity and the Additional Protocol to the OAU General Convention on Privileges and Immunities, and such facilities and courtesies as are necessary for the exercise of their functions in connection with the ARC Agency.
Article 9 – Headquarters of the ARC Agency
Part three – Administration and institutional framework of the ARC Agency
Article 10 – Organs of the ARC AgencyThe ARC Agency shall have the following organs:
Article 11 – Subsidiary or affiliated entities of the ARC AgencyThere shall be such subsidiary or affiliated entities of the ARC Agency as the Conference of the Parties may decide it is necessary to establish for the purposes of carrying out the functions of the ARC Agency. Such entities may include, where the Conference of the Parties deems so appropriate, subsidiary or affiliated entity or entities to be established under the national laws. Such entities may be established under the national laws of a Member State of the African Union, unless decided otherwise by the Conference of the Parties, in order to benefit from more effective legal and regulatory conditions and until such time that an equally favourable legal and regulatory regime exists in an AU Member State.
Article 12 – The composition and sessions of the Conference of the Parties
Article 13 – Functions of the Conference of the Parties
Article 14 – Composition of the Governing Board
Article 15 – Functions of the Governing BoardThe functions of the Governing Board shall be to:
Article 16 – Meetings of the Governing Board
Article 17 – The Secretariat and the Director General of the ARC Agency
Part four – Financial provisions
Article 18 – Financial resources
Article 19 – Expenses
Part five – External relations of the ARC Agency
Article 20 – Relationship with the African Union
Article 21 – Relationship with States and other organizationsThe ARC Agency shall establish and maintain active co-operation with States, inter-governmental organizations and non-governmental organizations or institutions that are desirous of assisting the ARC Agency in achieving its objectives.
Part six – Final provisions
Article 22 – Working languagesThe working languages of the ARC Agency shall be those of the AU.
Article 23 – Amendment of the Agreement
Article 24 – Settlement of disputes
Article 25 – Dissolution
Article 26 – Signature, ratification and accession
Article 27 – ReservationsNo reservation shall be made to this Agreement if the reservation is incompatible with the object and purpose of this Agreement.
Article 28 – Withdrawal
History of this document
15 April 2020
23 November 2012 this version