CIADI - Annual report 2010

___L /ii | ICSIDANNUAL REPORT 2010 | iii Letter of Transmittal 1 ICSID Secretariat 2 Chapter 1: Introduction 4 Chapter 2: Membership 8 List of Contracting States and Other Signatories of the Convention 11 Chapter 3: Panels of Conciliators and of Arbitrators 16 Chapter 4: Disputes before the Centre 20 Chapter 5: Outreach 30 Chapter 6: Forty-third Annual Meeting of the Administrative Council 38 Chapter 7: Finance 40 Financial Statements 42 Independent Auditors’ Report 53 ANNEX Disputes before the Centre: Developments in Fiscal Y ear 2010 54

CONTENTSiv | ICSIDANNUAL REPORT 2010 | 1

September 8, 2010 Dear Mr. Chairman, Pursuant to Administrative and Financial Regulation 5(4), I am pleased to submit to the Administrative Council for its approval the Annual Report on the operation of the International Centre for Settlement of Investment Disputes required by Article 6(1)(g) of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. This Annual Report covers the fiscal year from July 1, 2009 to June 30, 2010. The Report includes the audited financial statements of the Centre, presented pursuant to Administrative and Financial Regulation 19. Y ours sincerely, Meg Kinnear Secretary-General Mr. Robert B. Zoellick Chairman Administrative Council International Centre for Settlement of Investment Disputes

INTERNATIONAL CENTRE FOR SETTLEMENT OF

INVESTMENT DISPUTES2 | ICSID

SECRETARIAT OF THE INTERNATIONAL CENTRE FOR

SETTLEMENT OF INVESTMENT DISPUTES

JUNE 30, 2010

Meg Kinnear, Secretary-General Nassib G. Ziadé, Deputy Secretary-General

LEgAL STAff

Aurélia Antonietti, Senior Counsel Gonzalo Flores, Senior Counsel Milanka Kostadinova, Senior Counsel Eloïse Obadia, Senior Counsel Ucheora Onwuamaegbu, Senior Counsel Martina Polasek, Senior Counsel Ekaterini Yannaca-Small, Senior Counsel Natalí Sequeira, Counsel Mercedes Cordido-Freytes de Kurowski, Consultant Aïssatou Diop, Consultant Anneliese Fleckenstein, Consultant Jenna Godfrey, Consultant Peter C. Hansen, Consultant Mike King, Consultant Marco Tulio Montañés-Rumayor, Consultant Frauke Nitschke, Consultant Sergio Puig de la Parra, Consultant fINANCIAL AND gENERAL ADMINISTRATION STAff Javier Castro, Program Officer Zelalem Tesfa Dagnaw, Financial Officer Rita A. Rovira, Information Analyst William D. Casson, Consultant Walter Meza-Cuadra, Paralegal Malkiat Singh, Conference Assistant Sonia Lee, Program Assistant

PARALEgAL, ADMINISTRATIVE AND CLIENT SUPPORT STAff

Anna D. Avilés-Alfaro, Paralegal Ivania Fernandez, Paralegal Maria Cristina Padrao, Paralegal Alix Ahimon, Language Program Assistant Sherrifa Akanni, Program Assistant Candice Ayento, Program Assistant Marie L. Bonhomme, Program Assistant Gloria Peralta, Program Assistant Analissa Johnson, ReceptionistANNUAL REPORT 2010 | 34 | ICSID Colleen Madamome, Zimbabwe I Swing My BabyANNUAL REPORT 2010 | 5 In 1965 the Executive Directors of the World Bank proposed the ICSID Convention and establishment of the International Centre for Settlement of Investment Disputes (ICSID). Their proposal was motivated by the “desire to strengthen the partnership between countries in the cause

In 1965 the Executive Directors of the World Bank proposed the ICSID Convention and establishment of the International Centre for Settlement of Investment Disputes (ICSID). Their proposal was motivated by the “desire to strengthen the partnership between countries in the cause of economic development,” and the conviction that an independent international facility such as ICSID was “a major step toward promoting an atmosphere of mutual confidence and thus stimulating a larger flow of private investment capital into those countries which wish to attract it.” This motivation continues to inspire the work of ICSID and seems especially apt in the face of recent challenges to the global economy. What could not have been predicted in 1965 was the exponential increase in international investment treaties and the wave of disputes settlement based on treaty provisions. By 2010 there were more than 2,700 investment treaties world-wide, compared to approximately 70 such treaties in 1965. Most of these treaties offer dispute settlement under the ICSID Convention or the ICSID Additional Facility

CHAPTER 1

INTRODUCTION6 | ICSID Rules. In addition, ICSID dispute settlement clauses continue to be incorporated in numerous international investment contracts and in the domestic investment laws of many States. These developments have dramatically altered ICSID’s caseload. Most obviously, the number of proceedings has increased, from a single case in 1972 to an average of slightly over 23 new cases per year in 2000–2009. This trend continued in FY2010, when ICSID registered 27 new cases, administered 154 on-going cases, and concluded 34 proceedings. At the same time, the range of issues addressed in ICSID cases became more diverse, including questions related to the availability of provisional measures, the proper role of third non-disputing parties, the meaning of substantive obligations, and the application of customary international law. ICSID has taken stock of recent developments and the environment in which it operates in FY2010. Our mission remains to provide facility users with expert, timely, cost-effective, and independent dispute settlement. Our priority is to enhance service delivery, recognizing that this is a key contributor

ICSID has taken stock of recent developments and the environment in which it operates in FY2010. Our mission remains to provide facility users with expert, timely, cost-effective, and independent dispute settlement. Our priority is to enhance service delivery, recognizing that this is a key contributor to maintaining ICSID’s place as the leader in administration of international investment disputes. T o this end, the 2010 fiscal year began with extensive consultations with facility users and the development of a multi-year strategic plan to respond to the needs identified by facility users. Substantial effort has been devoted to expediting the arbitral process, especially those steps which are undertaken by the ICSID Secretariat. As a result, currently the screening of requests for arbitration takes an average of 27 days and the constitution of tribunals by ICSID takes on average 6 weeks after the parties ask ICSID to make the appointment. We have tendered for installation of an electronic case management system that ultimately will be available to all participants in ICSID arbitration, and we have completely modernized our in-house archiving systems. ICSID also entered into a partnership with the newly opened Maxwell Chambers in Singapore, allowing ICSID parties to use those facilities for ICSID proceedings. ICSID now has partnership agreements with 8 institutions around the world. Numerous steps have also been taken to enhance prudent financial stewardship of ICSID as an institution and with respect to managing the funds held for the parties in individual proceedings. These include revised procedures to ensure timely refund of outstanding deposits at the conclusion of a case, and centralization of claims for fees and expenses.ANNUAL REPORT 2010 | 7 Given the importance of accessible, accurate, and complete information about investment arbitration and ICSID, we also began several new knowledge-sharing initiatives in FY2010. Among these initiatives were the first webcast of an ICSID investment arbitration hearing, greater use of the ICSID website to communicate current events, and a tri-lingual online statistical report profiling ICSID arbitration and conciliation. ICSID designed and taught a one-day seminar for

these initiatives were the first webcast of an ICSID investment arbitration hearing, greater use of the ICSID website to communicate current events, and a tri-lingual online statistical report profiling ICSID arbitration and conciliation. ICSID designed and taught a one-day seminar for new users of the facility covering all aspects of conducting an ICSID Convention proceeding. ICSID has also undertaken a comprehensive project to obtain consent to publish awards, decisions, and procedural orders from concluded cases. Many of these materials are currently unavailable in the public domain, and their publication will assist facility users significantly. These and other initiatives will continue in the upcoming fiscal year. It has been a privilege to serve as ICSID Secretary-General in the past year. I wish to thank facility users and the ICSID member States for their confidence in the Centre and to assure them that we will continue to strive for excellence as we build toward the ICSID of the future. This task could not be accomplished without the dedication, expertise, creativity, and hard work of every member of the ICSID Secretariat. T ogether we will accomplish the goals we have set for ICSID and, in turn, contribute to the partnership between countries in the cause of economic development. Meg Kinnear Secretary-General8 | ICSID Anonymous, Panama MolaANNUAL REPORT 2010 | 9 As of June 30, 2010, 155 States were signatory to the ICSID Convention. Of these, 144 States are ICSID Contracting States by virtue of their having deposited instruments of ratification, acceptance or approval of the ICSID Convention. By letter received on July 6, 2009, the Government of the Republic of Ecuador notified the depositary of its denunciation of the ICSID Convention. The denunciation took effect on January 7, 2010, consistent with Article 71 of the ICSID Convention. On October 27, 2009, Haiti deposited an instrument of ratification of the ICSID Convention with the International Bank for Reconstruction and Development (the W orld Bank). The ICSID Convention

2010, consistent with Article 71 of the ICSID Convention. On October 27, 2009, Haiti deposited an instrument of ratification of the ICSID Convention with the International Bank for Reconstruction and Development (the W orld Bank). The ICSID Convention entered into force for Haiti on November 26, 2009 pursuant to Article 68(2) of the Convention. A map showing the distribution of the current ICSID membership and a complete list of the Contracting States and other signatories of the ICSID Convention follow.

CHAPTER 2

MEMBERSHIP10 | ICSID IBRD 37490R JULY 2010ANNUAL REPORT 2010 | 11

The 155 States listed below have signed the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States on the dates indicated. The names of the 144 States that have deposited their instruments of ratification are in bold, and the dates of such deposit and of the attainment of the status of Contracting State by the entry into force of the Convention for each of them are also indicated. Deposit of Entry into force State Signature Ratification of Convention Afghanistan Sep. 30, 1966 June 25, 1968 July 25, 1968 Albania Oct. 15, 1991 Oct. 15, 1991 Nov. 14, 1991 Algeria Apr. 17, 1995 Feb. 21, 1996 Mar. 22, 1996 Argentina May 21, 1991 Oct. 19, 1994 Nov. 18, 1994 Armenia Sep. 16, 1992 Sep. 16, 1992 Oct. 16, 1992 Australia Mar. 24, 1975 May 2, 1991 June 1, 1991

Austria May 17, 1966 May 25, 1971 June 24, 1971 Azerbaijan Sep. 18, 1992 Sep. 18, 1992 Oct. 18, 1992 Bahamas, The Oct. 19, 1995 Oct. 19, 1995 Nov. 18, 1995 Bahrain Sep. 22, 1995 Feb. 14, 1996 Mar. 15, 1996 Bangladesh Nov. 20, 1979 Mar. 27, 1980 Apr. 26, 1980 Barbados May 13, 1981 Nov. 1, 1983 Dec. 1, 1983 Belarus July 10, 1992 July 10, 1992 Aug. 9, 1992 Belgium Dec. 15, 1965 Aug. 27, 1970 Sep. 26, 1970 Belize Dec. 19, 1986 Benin Sep. 10, 1965 Sep. 6, 1966 Oct. 14, 1966 Bosnia and Herzegovina Apr. 25, 1997 May 14, 1997 June 13, 1997 Botswana Jan. 15, 1970 Jan. 15, 1970 Feb. 14, 1970 Brunei Darussalam Sep. 16, 2002 Sep. 16, 2002 Oct. 16, 2002 Bulgaria Mar. 21, 2000 Apr. 13, 2001 May 13, 2001 Burkina Faso Sep. 16, 1965 Aug. 29, 1966 Oct. 14, 1966 Burundi Feb. 17, 1967 Nov. 5, 1969 Dec. 5, 1969 Cambodia Nov. 5, 1993 Dec. 20, 2004 Jan. 19, 2005 Cameroon Sep. 23, 1965 Jan. 3, 1967 Feb. 2, 1967 Canada Dec. 15, 2006

Cambodia Nov. 5, 1993 Dec. 20, 2004 Jan. 19, 2005 Cameroon Sep. 23, 1965 Jan. 3, 1967 Feb. 2, 1967 Canada Dec. 15, 2006 Central African Republic Aug. 26, 1965 Feb. 23, 1966 Oct. 14, 1966 Chad May 12, 1966 Aug. 29, 1966 Oct. 14, 1966 Chile Jan. 25, 1991 Sep. 24, 1991 Oct. 24, 1991 China Feb. 9, 1990 Jan. 7, 1993 Feb. 6, 1993

LIST OF CONTRACTING STATES AND OTHER SIGNATORIES

OF THE CONVENTION

AS Of JUNE 30, 2010

IBRD 37490R JULY 201012 | ICSID Deposit of Entry into force State Signature Ratification of Convention Colombia May 18, 1993 July 15, 1997 Aug. 14, 1997 Comoros Sep. 26, 1978 Nov. 7, 1978 Dec. 7, 1978 Congo, Democratic Rep. of Oct. 29, 1968 Apr. 29, 1970 May 29, 1970 Congo, Rep. of Dec. 27, 1965 June 23, 1966 Oct. 14, 1966 Costa Rica Sep. 29, 1981 Apr. 27, 1993 May 27, 1993 Côte d’Ivoire June 30, 1965 Feb. 16, 1966 Oct. 14, 1966 Croatia June 16, 1997 Sep. 22, 1998 Oct. 22, 1998 Cyprus Mar. 9, 1966 Nov. 25, 1966 Dec. 25, 1966 Czech Republic Mar. 23, 1993 Mar. 23, 1993 Apr. 22, 1993

Cyprus Mar. 9, 1966 Nov. 25, 1966 Dec. 25, 1966 Czech Republic Mar. 23, 1993 Mar. 23, 1993 Apr. 22, 1993 Denmark Oct. 11, 1965 Apr. 24, 1968 May 24, 1968 Dominican Republic Mar. 20, 2000 Egypt, Arab Rep. of Feb. 11, 1972 May 3, 1972 June 2, 1972 El Salvador June 9, 1982 Mar. 6, 1984 Apr. 5, 1984 Estonia June 23, 1992 June 23, 1992 July 23, 1992 Ethiopia Sep. 21, 1965 Fiji July 1, 1977 Aug. 11, 1977 Sep. 10, 1977 Finland July 14, 1967 Jan. 9, 1969 Feb. 8, 1969 France Dec. 22, 1965 Aug. 21, 1967 Sep. 20, 1967 Gabon Sep. 21, 1965 Apr. 4, 1966 Oct. 14, 1966 Gambia, The Oct. 1, 1974 Dec. 27, 1974 Jan. 26, 1975 Georgia Aug. 7, 1992 Aug. 7, 1992 Sep. 6, 1992 Germany Jan. 27, 1966 Apr. 18, 1969 May 18, 1969 Ghana Nov. 26, 1965 July 13, 1966 Oct. 14, 1966 Greece Mar. 16, 1966 Apr. 21, 1969 May 21, 1969

Grenada May 24, 1991 May 24, 1991 June 23, 1991 Guatemala Nov. 9, 1995 Jan. 21, 2003 Feb. 20, 2003 Guinea Aug. 27, 1968 Nov. 4, 1968 Dec. 4, 1968 Guinea-Bissau Sep. 4, 1991 Guyana July 3, 1969 July 11, 1969 Aug. 10, 1969 Haiti Jan. 30, 1985 Oct. 27, 2009 Nov. 26, 2009 Honduras May 28, 1986 Feb. 14, 1989 Mar. 16, 1989 Hungary Oct. 1, 1986 Feb. 4, 1987 Mar. 6, 1987 Iceland July 25, 1966 July 25, 1966 Oct. 14, 1966 Indonesia Feb. 16, 1968 Sep. 28, 1968 Oct. 28, 1968 Ireland Aug. 30, 1966 Apr. 7, 1981 May 7, 1981ANNUAL REPORT 2010 | 13 Israel June 16, 1980 June 22, 1983 July 22, 1983 Italy Nov. 18, 1965 Mar. 29, 1971 Apr. 28, 1971 Jamaica June 23, 1965 Sep. 9, 1966 Oct. 14, 1966 Japan Sep. 23, 1965 Aug. 17, 1967 Sep. 16, 1967 Jordan July 14, 1972 Oct. 30, 1972 Nov. 29, 1972 Kazakhstan July 23, 1992 Sep. 21, 2000 Oct. 21, 2000 Kenya May 24, 1966 Jan. 3, 1967 Feb. 2, 1967

Kazakhstan July 23, 1992 Sep. 21, 2000 Oct. 21, 2000 Kenya May 24, 1966 Jan. 3, 1967 Feb. 2, 1967 Korea, Rep. of Apr. 18, 1966 Feb. 21, 1967 Mar. 23, 1967 Kosovo, Rep. of June 29, 2009 June 29, 2009 July 29, 2009 Kuwait Feb. 9, 1978 Feb. 2, 1979 Mar. 4, 1979 Kyrgyz Republic June 9, 1995 Latvia Aug. 8, 1997 Aug. 8, 1997 Sep. 7, 1997 Lebanon Mar. 26, 2003 Mar. 26, 2003 Apr. 25, 2003 Lesotho Sep. 19, 1968 July 8, 1969 Aug. 7, 1969 Liberia Sep. 3, 1965 June 16, 1970 July 16, 1970 Lithuania July 6, 1992 July 6, 1992 Aug. 5, 1992 Luxembourg Sep. 28, 1965 July 30, 1970 Aug. 29, 1970 Macedonia, former Yugoslav Rep. of Sep. 16, 1998 Oct. 27, 1998 Nov. 26, 1998 Madagascar June 1, 1966 Sep. 6, 1966 Oct. 14, 1966 Malawi June 9, 1966 Aug. 23, 1966 Oct. 14, 1966 Malaysia Oct. 22, 1965 Aug. 8, 1966 Oct. 14, 1966 Mali Apr. 9, 1976 Jan. 3, 1978 Feb. 2, 1978

Malaysia Oct. 22, 1965 Aug. 8, 1966 Oct. 14, 1966 Mali Apr. 9, 1976 Jan. 3, 1978 Feb. 2, 1978 Malta Apr. 24, 2002 Nov. 3, 2003 Dec. 3, 2003 Mauritania July 30, 1965 Jan. 11, 1966 Oct. 14, 1966 Mauritius June 2, 1969 June 2, 1969 July 2, 1969 Micronesia, Federated States of June 24, 1993 June 24, 1993 July 24, 1993 Moldova Aug. 12, 1992 Mongolia June 14, 1991 June 14, 1991 July 14, 1991 Morocco Oct. 11, 1965 May 11, 1967 June 10, 1967 Mozambique Apr. 4, 1995 June 7, 1995 July 7, 1995 Namibia Oct. 26, 1998 Nepal Sep. 28, 1965 Jan. 7, 1969 Feb. 6, 1969 Netherlands May 25, 1966 Sep. 14, 1966 Oct. 14, 1966 New Zealand Sep. 2, 1970 Apr. 2, 1980 May 2, 1980 Deposit of Entry into force State Signature Ratification of Convention14 | ICSID Deposit of Entry into force State Signature Ratification of Convention Nicaragua Feb. 4, 1994 Mar. 20, 1995 Apr. 19, 1995 Niger Aug. 23, 1965 Nov. 14, 1966 Dec. 14, 1966

Nigeria July 13, 1965 Aug. 23, 1965 Oct. 14, 1966 Norway June 24, 1966 Aug. 16, 1967 Sep. 15, 1967 Oman May 5, 1995 July 24, 1995 Aug. 23, 1995 Pakistan July 6, 1965 Sep. 15, 1966 Oct. 15, 1966 Panama Nov. 22, 1995 Apr. 8, 1996 May 8, 1996 Papua New Guinea Oct. 20, 1978 Oct. 20, 1978 Nov. 19, 1978 Paraguay July 27, 1981 Jan. 7, 1983 Feb. 6, 1983 Peru Sep. 4, 1991 Aug. 9, 1993 Sep. 8, 1993 Philippines Sep. 26, 1978 Nov. 17, 1978 Dec. 17, 1978 Portugal Aug. 4, 1983 July 2, 1984 Aug. 1, 1984 Romania Sep. 6, 1974 Sep. 12, 1975 Oct. 12, 1975 Russian Federation June 16, 1992 Rwanda Apr. 21, 1978 Oct. 15, 1979 Nov. 14, 1979 Samoa Feb. 3, 1978 Apr. 25, 1978 May 25, 1978 Sao T ome and Principe Oct. 1, 1999 Saudi Arabia Sep. 28, 1979 May 8, 1980 June 7, 1980 Senegal Sep. 26, 1966 Apr. 21, 1967 May 21, 1967

Serbia May 9, 2007 May 9, 2007 June 8, 2007 Seychelles Feb. 16, 1978 Mar. 20, 1978 Apr. 19, 1978 Sierra Leone Sep. 27, 1965 Aug. 2, 1966 Oct. 14, 1966 Singapore Feb. 2, 1968 Oct. 14, 1968 Nov. 13, 1968 Slovak Republic Sep. 27, 1993 May 27, 1994 June 26, 1994 Slovenia Mar. 7, 1994 Mar. 7, 1994 Apr. 6, 1994 Solomon Islands Nov. 12, 1979 Sep. 8, 1981 Oct. 8, 1981 Somalia Sep. 27, 1965 Feb. 29, 1968 Mar. 30, 1968 Spain Mar. 21, 1994 Aug. 18, 1994 Sept. 17, 1994 Sri Lanka Aug. 30, 1967 Oct. 12, 1967 Nov. 11, 1967 St. Kitts & Nevis Oct. 14, 1994 Aug. 4, 1995 Sep. 3, 1995 St. Lucia June 4, 1984 June 4, 1984 July 4, 1984 St. Vincent and the Grenadines Aug. 7, 2001 Dec. 16, 2002 Jan. 15, 2003 Sudan Mar. 15, 1967 Apr. 9, 1973 May 9, 1973 Swaziland Nov. 3, 1970 June 14, 1971 July 14, 1971 Sweden Sep. 25, 1965 Dec. 29, 1966 Jan. 28, 1967ANNUAL REPORT 2010 | 15 Switzerland Sep. 22, 1967 May 15, 1968 June 14, 1968

Sweden Sep. 25, 1965 Dec. 29, 1966 Jan. 28, 1967ANNUAL REPORT 2010 | 15 Switzerland Sep. 22, 1967 May 15, 1968 June 14, 1968 Syria May 25, 2005 Jan. 25, 2006 Feb. 24, 2006 Tanzania Jan. 10, 1992 May 18, 1992 June 17, 1992 Thailand Dec. 6, 1985 Timor-Leste July 23, 2002 July 23, 2002 Aug. 22, 2002 Togo Jan. 24, 1966 Aug. 11, 1967 Sep. 10, 1967 Tonga May 1, 1989 Mar. 21, 1990 Apr. 20, 1990 Trinidad and Tobago Oct. 5, 1966 Jan. 3, 1967 Feb. 2, 1967 Tunisia May 5, 1965 June 22, 1966 Oct. 14, 1966 Turkey June 24, 1987 Mar. 3, 1989 Apr. 2, 1989 Turkmenistan Sep. 26, 1992 Sep. 26, 1992 Oct. 26, 1992 Uganda June 7, 1966 June 7, 1966 Oct. 14, 1966 Ukraine Apr. 3, 1998 June 7, 2000 July 7, 2000 United Arab Emirates Dec. 23, 1981 Dec. 23, 1981 Jan. 22, 1982 United Kingdom of Great Britain and Northern Ireland May 26, 1965 Dec. 19, 1966 Jan. 18, 1967

United States of America Aug. 27, 1965 June 10, 1966 Oct. 14, 1966 Uruguay May 28, 1992 Aug. 9, 2000 Sep. 8, 2000 Uzbekistan Mar. 17, 1994 July 26, 1995 Aug. 25, 1995 Venezuela Aug. 18, 1993 May 2, 1995 June 1, 1995 Y emen, Republic of Oct. 28, 1997 Oct. 21, 2004 Nov. 20, 2004 Zambia June 17, 1970 June 17, 1970 July 17, 1970 Zimbabwe Mar. 25, 1991 May 20, 1994 June 19, 1994 Deposit of Entry into force State Signature Ratification of Convention16 | ICSID El Anatsui, Ghana One Out of a Crowd, 1993ANNUAL REPORT 2010 | 17 The ICSID Convention requires the Centre to maintain a Panel of Conciliators and a Panel of Arbitrators. Under Article 13 of the Convention, each Contracting State may designate up to four persons to each Panel. The designees serve for a renewable period of six years and may be nationals or non-nationals of the designating country. In addition, up to ten persons may be designated to each Panel by the Chairman of the Administrative Council. The Panels are an important component of the ICSID system of dispute settlement. When the Chairman of the ICSID Administrative Council is called upon to appoint conciliators, arbitrators or ad hoc committee members under Articles 30, 38 or 52 of the ICSID Convention, these appointees must be drawn from the Panels. With an increasing ICSID caseload, it has become ever more important for States to exercise their right to designate nominees to the ICSID Panels. T o this end, the Centre continues to encourage States to name qualified candidates where nominations have expired or the panels are otherwise incomplete.

CHAPTER 3

PANELS OF CONCILIATORS AND

important for States to exercise their right to designate nominees to the ICSID Panels. T o this end, the Centre continues to encourage States to name qualified candidates where nominations have expired or the panels are otherwise incomplete.

CHAPTER 3

PANELS OF CONCILIATORS AND OF ARBITRATORS18 | ICSID During FY2010, thirteen ICSID Contracting States made designations to the ICSID Panels, namely, Belgium, China, Costa Rica, Georgia, Jordan, Mauritius, Morocco, Nigeria, Panama, Spain, Sri Lanka, Syria, and Uganda. Fifty-one persons were designated or re-designated to the Panels. At the end of FY2010, there were 514 Members of the ICSID Panels of Conciliators and of Arbitrators. Details about the designations to the ICSID Panels made in FY2010 are provided below.

BELgIUM

Panel of Arbitrators Designations effective April 5, 2010: Bernard Hanotiau, Guy Keutgen, and Didier Matray CHINA Panel of Conciliators Designations effective May 5, 2010: Wang Chuanli, Anthony Neoh, Shen Sibao, and Jingchun Shao Panel of Arbitrators Designations effective May 5, 2010: An Chen, Zhidong Chen, Jin Huang, and Y u Jinsong COSTA RICA Panels of Conciliators and of Arbitrators Designations effective July 22, 2010: Rodrigo Oreamuno and Rodrigo Barahona Israel gEORgIA Panels of Conciliators and of Arbitrators Designation effective March 9, 2010: Ana Palacio

JORDAN

Panel of Conciliators Designations effective March 3, 2010: Salaheddin Al-Bashir, Hamzeh A. Haddad, Nabil Yacoub Rabah, and Ahmad Nouri Ziadat Panel of Arbitrators Designations effective March 3, 2010:

Panel of Conciliators Designations effective March 3, 2010: Salaheddin Al-Bashir, Hamzeh A. Haddad, Nabil Yacoub Rabah, and Ahmad Nouri Ziadat Panel of Arbitrators Designations effective March 3, 2010: Awn Shawkat Al-Khasawneh, Mohammad E. Bundukji, Taher Mustafa Hikmet, and Omar N. Nabulsi MAURITIUS Panels of Conciliators and of Arbitrators Designations effective September 8, 2009: Urmila Boolell, Rajsoomer Lallah, and Salim Moollan MOROCCO Panels of Conciliators and of Arbitrators Designations effective May 27, 2010: Abdelilah Barjani, Idriss Bouziane, El Hassan El Guassim, and Abdelkader LahlouANNUAL REPORT 2010 | 19

NIgERIA

Panel of Conciliators Designations effective October 20, 2009: Folasade O. Adetiba, Mercy Uzoamaka Agbamuche, Fatima Kwaku, and Abdoullahi Ahmed Y ola Panel of Arbitrators Designations effective August 3, 2009: Bola A. Ajibola, Abubakar Balarabe Mahmoud, Onyeabo C. Obi, and Christopher Bayo Ojo PANAMA Panels of Conciliators and of Arbitrators Designations effective January 26, 2010: Cecilia Arosemena de González Ruiz, Eric Alexander Britton Gallardo, María Fábrega, and Esteban López Moreno SPAIN Panel of Conciliators Designation effective March 21, 2010: Evelio Verdera y Tuells Panel of Arbitrators Designation effective February 16, 2010: Juan Fernández-Armesto Panels of Conciliators and of Arbitrators Designations effective July 14, 2010:

Designation effective March 21, 2010: Evelio Verdera y Tuells Panel of Arbitrators Designation effective February 16, 2010: Juan Fernández-Armesto Panels of Conciliators and of Arbitrators Designations effective July 14, 2010: Bernardo M. Cremades and José Carlos Fernández Rozas SRI LANkA Panels of Conciliators and of Arbitrators Designation effective June 7, 2010: Srilal M. Perera SyRIA Panels of Conciliators and of Arbitrators Designations effective April 8, 2010: Mohammed Al-Ghafari, Humoud Altabban, Riad Daoudi, and Fouad Raji Dib

UgANDA

Panel of Arbitrators Designation effective January 19, 2010: Francis M. Ssekandi20 | ICSID Victor Ekpuk, Nigeria I Be You You Be Me, 2007ANNUAL REPORT 2010 | 21

CHAPTER 4

DISPUTES BEFORE THE CENTRE The Centre’s caseload continued to increase in the past fiscal year. As of June 30, 2010, the number of cases registered by the Centre since its inception reached 319. Roughly half of those 319 cases were being administered by the Centre in FY2010, making it another dynamic year for the ICSID Secretariat. In FY2010 the Centre registered 27 new proceedings. This represents a 12 percent increase from the previous fiscal year and indicates that ICSID continues to play a leadership role in institutional investor-State dispute settlement. The nationality of the parties involved in these new cases also suggests that the ICSID mechanism is invoked by investors from States at all levels of development. Increasingly, investors from developing economies initiate arbitration proceedings against host States. T wenty-five percent of the new cases registered during FY2010 were initiated by investors from the developing world. The new cases also demonstrate a noticeable geographic diversity. T wenty-four of

Increasingly, investors from developing economies initiate arbitration proceedings against host States. T wenty-five percent of the new cases registered during FY2010 were initiated by investors from the developing world. The new cases also demonstrate a noticeable geographic diversity. T wenty-four of the 27 new cases registered by ICSID were brought against 24 different respondent States, with only one State being involved in more than one new ICSID proceeding.22 | ICSID All of the new cases registered in FY2010 are arbitration proceedings. T wenty-five of these are conducted under the ICSID Convention and 2 under the ICSID Additional Facility Rules. The majority (19) of the new cases asserted ICSID jurisdiction on the basis of dispute settlement provisions contained in bilateral investment treaties (BITs), and 1 case was instituted on the basis of the Investment Chapter of the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA). In 9 cases, the parties invoked ICSID arbitration clauses contained in investment laws or in investment contracts between the investor and the host State. T wo of the 9 cases also relied on BITs, in the alternative. The number of cases brought on the basis of investment contracts increased considerably compared to FY2009, during which only 3, i.e., half as many cases were initiated on a contractual basis. Bilateral Investment Treaty (BIT) 66% Dominican RepublicUnited StatesCentral American Free Trade Agreement

(DR-CAFTA)

3% Investment Contract between the Investor and the Host-State 21% Investment Law of the Host-State 10% Basis of Consent Invoked to Establish ICSID Jurisdiction in ICSID Cases Registered in FY2010ANNUAL REPORT 2010 | 23 The Centre further registered 4 proceedings in which the parties sought post-award remedies. These proceedings include 1 request for interpretation and correction of an award previously rendered under the ICSID Additional Facility Rules. Three applications for annulment under the ICSID Convention

The Centre further registered 4 proceedings in which the parties sought post-award remedies. These proceedings include 1 request for interpretation and correction of an award previously rendered under the ICSID Additional Facility Rules. Three applications for annulment under the ICSID Convention were also registered. This is a sharp decline compared to the 8 and 9 applications for annulment registered during FY2009 and FY2008, respectively, and indicates that fewer parties sought review of an ICSID award on the grounds of Article 52 of the ICSID Convention in the past year. Thirty-four proceedings were concluded in the course of FY2010. T wenty-four arbitration proceedings, concluded in the past fiscal year. T wenty-one awards were rendered. Five tribunals declined ICSID jurisdiction, 7 awards dismissed all of the investor’s claims, and a further 7 awards partially upheld the claims. In 2 proceedings, the parties’ settlement agreement was embodied in an arbitral award. Three additional arbitration cases were discontinued at the request of one or both of the parties. Seven annulment proceedings were also concluded during the fiscal year, the highest number ever in the Centre’s history. In 4 cases, the respective ad hoc Committees rejected the application for annulment of the award. In 1 case, the ad hoc Committee annulled the award partially, 1 ad hoc Committee annulled the arbitral award in full, and 1 annulment proceeding was discontinued at the request of both parties. T wo revision proceedings were also concluded during FY2010. One 0 2 4 6 8 10 FY2008 9 8 3

FY2009 FY2010

Number of Annulment Applications Registered by ICSID in the Past Three Fiscal Years24 | ICSID tribunal issued a decision on a party’s request for revision of the award, and another revision proceeding was discontinued at the request of both parties concerned. In a further case, a tribunal issued a decision on interpretation and correction of the award. In the past fiscal year, the geographic location of State parties involved in ongoing ICSID proceedings

tribunal issued a decision on a party’s request for revision of the award, and another revision proceeding was discontinued at the request of both parties concerned. In a further case, a tribunal issued a decision on interpretation and correction of the award. In the past fiscal year, the geographic location of State parties involved in ongoing ICSID proceedings remained largely steady; however, the Centre noticed a diversification of the respondent States in the new cases registered in FY201