A SHORT BRIEF OF THE ICSID

24.10.2018

 

Countless disputes are resolved by arbitration nowadays. As one to find solutions for such disputes, “International Centre for Settlement of Investment Disputes” (ICSID or the Center) is an independent, depoliticized and effective dispute-settlement institution devoted to international investment dispute settlement. Its availability to investors and States helps to promote international investment by providing confidence in the dispute resolution process. It is also available for state disputes under investment treaties and free trade agreements, and as an administrative registry.

The main purpose of the Centre shall be to provide facilities for conciliation and arbitration of investment disputes between Contracting States and nationals of other Contracting States in accordance with the provisions of Washington Convention (the Convention).

The jurisdiction of the Centre shall extend to any legal dispute arising directly out of an investment, between a Contracting State (or any constituent subdivision or agency of a Contracting State designated to the Centre by that State) and a national of another Contracting State, which the parties to the dispute consent in writing to submit to the Centre according the Convention. When the parties have given their consent, no party may withdraw its consent unilaterally.

Conciliation and arbitration proceedings shall be held at the seat of the Centre as a rule. But it may be held, if the parties so agree, at the seat of the Permanent Court of Arbitration or of any other appropriate institution, whether private or public, with which the Centre may make arrangements for that purpose; or at any other place approved by the Commission or Tribunal after consultation with the Secretary-General.

It is clear that the role of ICSID arbitration in investment disputes will continue to develop in the future, given both the acceptance by many states of ICSID arbitration in international investment disputes and the increasing number of applications for ICSID arbitration. The system established by the ICSID Convention gives the investors opportunity to raise international claims for the disputes regarding international investment on their own.