Transcript The World Bank Inspection Panel

International Centre for
Settlement of Investment Disputes
(ICSID)
Arbitration Academy
July 10, 2012
INTRODUCTION TO ICSID
Martina Polasek, ICSID Team Leader/Legal Counsel
1
World Bank Paris Conference Center
2
ICSID
IBRD
IDA
IFC
MIGA
International Centre
for Settlement of
Investment Disputes
International Bank
for Reconstruction
and Development
International
Development
Association
International
Financial Corporation
Multilateral
Investment
Guarantee Agency
MISSION:
MISSION:
MISSION:
MISSION:
MISSION:
 Provides interestfree loans and grants
to governments of
poorest countries
 Provides loans,
equity and technical
assistance to
stimulate private
sector investment in
developing countries
 Guarantees for
investors in
developing countries
against noncommercial risk
 Provides facilities
for conciliation and
arbitration of
international
investment disputes
The World Bank Group
 Lends funds to
governments of
middle and lowincome countries
© 2012 by International Centre for Settlement of Investment Disputes.
Content may be reproduced for educational use with acknowledgement.
3
4
4
5
5
Map of ICSID Contracting States and Other Signatories
to the ICSID Convention
© 2012 by International Centre for Settlement of Investment Disputes.
Content may be reproduced for educational use with acknowledgement.
6
THE ICSID SYSTEM IS SELF-CONTAINED
 Domestic courts may not intervene
 ICSID awards are final and binding and only subject to the
remedies under the ICSID Convention
 Award must be recognized and any pecuniary aspect are
enforced by each ICSID Member as if it were a final
judgment of its local court
 No diplomatic protection
© 2012 by International Centre for Settlement of Investment Disputes.
Content may be reproduced for educational use with acknowledgement.
7
ICSID Proceedings
Convention
(ICSID Contracting
States only)
Additional Facility
(One disputing party
can be from nonContracting State)
Other
(Neither party need be
from a
Contracting State)
• Conciliation
• Arbitration
• Conciliation
• Arbitration
• Fact-finding




Institution Rules
Arbitration Rules
Conciliation Rules
Administrative and Financial
Regulations
 Arbitration (Additional Facility) Rules
 Conciliation (Additional Facility)
Rules
 Conciliation Rules
 Administrative and Financial
Regulations
• Administration of cases under other Rules or Treaties
(e.g.: UNCITRAL investment cases; State-to-State cases)
• Other functions on Consent of Parties
(Conciliation, Fact-finding, Mediation)
© 2012 by International Centre for Settlement of Investment Disputes.
Content may be reproduced for educational use with acknowledgement.
8
Negotiating The ICSID Convention
9
2,676 BITs Existing as of 2008
Total Number of BITs Concluded by Country Group
10
10
Pac-Rim v. El Salvador
© 2012 by International Centre for Settlement of Investment Disputes.
Content may be reproduced for educational use with acknowledgement.
11
Year
1
Year
2
Year
3
Year
4
12
Delay / Abuse of
Authority by
Government Agency
Year
1
Year
2
Year
3
Year
4
13
Delay / Abuse of
Authority by
Government Agency
Year
1
Year
2
Year
3
Year
4
Legislative
Amendments Nullify
Important Rights 14
390 Cases Registered under the ICSID Convention
and Additional Facility Rules as of June 30, 2012
40
38
37
35
31
30
27 27
25
25
26
23
21
21
19
20
14
15
10
11
12
10
1
2
2
3
4
4
1
2
1
3
3
3
1996
2
1995
1
1982
1
1981
4
5
1994
10
1
© 2012 by International Centre for Settlement of Investment Disputes.
Content may be reproduced for educational use with acknowledgement.
2011
2010
2009
2008
2007
2006
2005
2004
up to June 30, 2012
Cases Registered under the ICSID Convention and Additional Facility Rules
2003
2002
2001
2000
1999
1998
1997
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1980
1979
1978
1977
1976
1975
1974
1973
1972
0
15
16
STAGES OF AN ICSID CASE
© 2012 by International Centre for Settlement of Investment Disputes.
Content may be reproduced for educational use with acknowledgement.
17
Geographic Distribution of All ICSID Cases by State Party Involved
Central America &
the Carribean
7%
North America
(Canada, Mexico & U.S.)
5%
Eastern Europe &
Central Asia
23%
Western Europe
1%
South America
30%
Sub-Saharan Africa
16%
South & East Asia &
the Pacific
8%
© 2012 by International Centre for Settlement of Investment Disputes.
Content may be reproduced for educational use with acknowledgement.
Middle East &
North Africa
10%
18
Distribution of all ICSID Cases by Economic Sector
Agriculture, Fishing & Forestry
5%
Oil, Gas & Mining
25%
Information & Communication
6%
Finance
7%
Services &
Trade
4%
Electric Power &
Other Energy
13%
Transportation
11%
Water, Sanitation &
Flood Protection
6%
0%
Other Industry
11%
Tourism
5%
© 2012 by International Centre for Settlement of Investment Disputes.
Content may be reproduced for educational use with acknowledgement.
0%
Construction
7%
19
ICSID Arbitration Proceedings – Outcomes
Award rendered
by Tribunal
61%
© 2012 by International Centre for Settlement of Investment Disputes.
Content may be reproduced for educational use with acknowledgement.
Dispute settled
or proceedings
discontinued
39%
20
Outcomes of ICSID Awards
Award dismissing all
claims
31%
Award declining
jurisdiction
23%
Award deciding that
the claims are
manifestly without
legal merit
1% *
Award upholding
claims in part or in
full
45%
© 2012 by International Centre for Settlement of Investment Disputes.
Content may be reproduced for educational use with acknowledgement.
21