Icsid Settlement Agreement

Any arbitral tribunal formed under this agreement has the power to rule on a dispute tied and bono. If the investor is a legal entity with the nationality of the host state at the time of consent, Article 25, paragraph 2, under b), of the agreement still allows the Centre to assume jurisdiction when the parties have agreed that the corporation should be treated “as a national of another State party on the basis of foreign control” within the meaning of the agreement. In this case, the parties may mention their agreement on the investor`s nationality in a clause such as the one outlined below. (b) conciliation and arbitration procedures between parties in which at least one contracting state or a national of a contracting state is in order to settle disputes that are not a direct result of an investment; and (a) conciliation and arbitration procedures to settle investment disputes between parties, one of which is not a contracting state or a national of a contracting state; A number of states have developed systems to insure their nationals, usually through governments, against losses that may be incurred as a result of foreign investment. There are currently two intergovernmental agencies, the MultilateralInvestment Guarantee Agency and the Inter-Arab Investment Guarantee Corporation, which manage similar investment insurance systems. When such a government or intergovernmental agency compensates an investor, the Agency is generally overestimated by the rights of the investor. However, the Agency cannot resort to such an agreement, which provides for the resolution of disputes that could have been originally concluded between the investor and the host state. This is because ICSID institutions are not available for procedures between governments or between governments and intergovernmental organizations. It may therefore be necessary for the investor to conduct the proceedings in any dispute. The following clause can be used to cover this situation.

Under the agreement, consent to a particular category of future litigation may be given in advance. Future dispute clauses are a common feature of investment agreements between States Parties and investors who are nationals of other States Parties. Considering that the mutual consent of the parties to submit these disputes to mediation or arbitration proceedings against these bodies is a binding agreement which requires, among other things, that every recommendation of the conciliators be properly considered and that any arbitration award be respected; and from time to time, parties to existing or potential disputes seek the assistance of the Secretary-General of the Centre in the organisation of an ad hoc (i.e. non-institutional) arbitration procedure by having him appointed, in certain defined contingencies, or all arbitrators. This can be done in particular within the framework of agreements providing for arbitration procedures in accordance with the arbitration rules of the United Nations Commission for International Trade Law (UNCI) [18] specially designed for ad hoc procedures. Although the Secretary-General has often committed himself to being the authority vested with the decision-making power of ad hoc arbitrators, he is not bound to do so. It is therefore desirable that parties wishing to entrust such a task to the Secretary-General should obtain their agreement in advance, preferably before the conclusion of the agreement containing the mandate. Since CMC`s merits were more or less based on the existence of a transaction agreement, the Tribunal rejected everyone.