An agreement between a foreign investor and a local or host government governing the rights and obligations of the foreign investor and the host government with respect to the development, construction, and operation of a project by the foreign investor. 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.

For more information on these agreements, see Practice Notes, Understanding Stabilization Clauses in International Investment Agreements and Securing Investment Protection.