CIADI - Annual report 2011

2011

ANNUAL

REPORT

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WASHINGTON, DC 20433

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FACSIMILE (202) 522 26152011

ANNUAL REPORTii | ICSIDANNUAL REPORT 2011 | iii Letter of Transmittal 1 ICSID Secretariat 2 Chapter 1: Introduction 5 Chapter 2: Membership 9 Chapter 3: Panels of Conciliators and of Arbitrators 17 Chapter 4: Operations of the Centre 21 Chapter 5: Outreach 41 Chapter 6: Forty-fourth Annual Meeting of the Administrative Council 51 Chapter 7: Finance 53 Financial Statements 54 Independent Auditors’ Report 67 The photos of art in this Annual Report come from the World Bank collection and are reproduced with the kind permission of the curator of the World Bank.

CONTENTSiv | ICSIDANNUAL REPORT 2011 | 1

September 9, 2011 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, 2010 to June 30, 2011. 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, 2011

Meg Kinnear, Secretary-General

LEgAL STAFF

INTERNATIONAL CENTRE FOR SETTLEMENT OF

INVESTMENT DISPUTES2 | ICSID

SECRETARIAT OF THE INTERNATIONAL CENTRE FOR

SETTLEMENT OF INVESTMENT DISPUTES JUNE 30, 2011

Meg Kinnear, Secretary-General

LEgAL STAFF

Aurélia Antonietti, Senior Counsel Gonzalo Flores, Senior Counsel Milanka Kostadinova, Senior Counsel Eloïse Obadia, Senior Counsel Martina Polasek, Senior Counsel Paul-Jean Le Cannu, Counsel Natalí Sequeira, Counsel Mercedes Cordido-Freytes de Kurowski, Junior Counsel Aïssatou Diop, Junior Counsel Marco Tulio Montañés-Rumayor, Junior Counsel Frauke Nitschke, Junior Counsel Anneliese Fleckenstein, Consultant Jenna Godfrey, Consultant Ann Catherine Kettlewell, Consultant Mike King, Consultant Lindsey Marchessault, Consultant Janet Whittaker, Consultant

FINANCIAL AND gENERAL ADMINISTRATION STAFF

Javier Castro, Program Officer Zelalem Tesfa Dagnaw, Financial Officer Rita A. Rovira, Information Analyst, Information Management 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 Fernández, Paralegal Maria Cristina Padrao, Paralegal Eric Stanculescu, Paralegal Alix Ahimon, Language Program Assistant Sherrifa Akanni, Program Assistant Candice Ayento, Program Assistant Cinthya Ibañez, Program Assistant Gloria Ruiz, Program Assistant Analissa Johnson, ReceptionistANNUAL REPORT 2011 | 34 | ICSID Zwelethu Mthethwa, South Africa Waiting, 1996ANNUAL REPORT 2011 | 5 The Convention on the Settlement of Investment Disputes between States and Nationals of Other

Analissa Johnson, ReceptionistANNUAL REPORT 2011 | 34 | ICSID Zwelethu Mthethwa, South Africa Waiting, 1996ANNUAL REPORT 2011 | 5 The Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention) is a multilateral international treaty that came into force in 1966. Inspired by the desire to increase cross-border flows of private capital, the Convention sought to create a positive investment climate by depoliticizing investment disputes. The vehicle to achieve this goal was the creation of a neutral, independent, and effective facility for resolution of investment disputes under the auspices of the World Bank. That facility is the International Centre for Settlement of Investment Disputes (ICSID). The design of the ICSID system is very much the product of its purpose. Use of ICSID facilities is voluntary, and requires consent of both the investor and the State concerned. Once such consent is given, it cannot be withdrawn unilaterally and it becomes a binding undertaking. Perhaps the

CHAPTER 1

INTRODUCTION6 | ICSID most unique feature of ICSID is that it is the only arbitral system that is de-localized from national jurisdictions, or self-contained. Proceedings are conducted under the ICSID rules of procedure by a neutral panel of arbitrators or conciliators. National courts may not intervene in an ICSID proceeding, and the ICSID Convention provides the sole mechanism for recourse against an ICSID award (ICSID Convention, Article 53). In turn, the ICSID Convention imposes an obligation on each member State to recognize an ICSID award as binding and to enforce its pecuniary obligations “as if it were a final judgment of a court in that State” (ICSID Convention, Article 54). This aspect of ICSID is especially important to ensuring that all facility users are confident in the neutrality and efficacy of the process. The ICSID system is now 45 years old, and ICSID remains a unique legal institution. ICSID has

of ICSID is especially important to ensuring that all facility users are confident in the neutrality and efficacy of the process. The ICSID system is now 45 years old, and ICSID remains a unique legal institution. ICSID has seen unprecedented growth since its first case was instituted in 1972. ICSID has established itself as the premier facility in international investment dispute settlement and takes pride in being a leader in the field. Confidence in the ICSID system continues, demonstrated by the increase in membership to 147 Contracting States and a 20% growth in caseload in FY2011. As always, the Centre remains dedicated to meeting the needs of facility users and providing expert, timely, and cost-effective service. Numerous initiatives have been taken in FY2011 to improve our capacity to meet user needs. We have improved our knowledge management tools, made organizational changes within the Secretariat, increased staffing, developed best practices in case administration, and offered new technical assistance programs. These initiatives are detailed in chapters 4 and 5 of this Annual Report and will continue in FY2012.ANNUAL REPORT 2011 | 7 It is a privilege to serve as Secretary-General of ICSID and I would like to thank ICSID member States and facility users for their confidence in the Centre. I would also like to thank the Centre staff for their extraordinary support, dedication, and hard work over the year. It is inspiring to work in an international institution dedicated to serving the public good and we will continue to make every effort to fulfill the promise of the ICSID system. Meg Kinnear Secretary-General8 | ICSIDANNUAL REPORT 2011 | 9 As of June 30, 2011, 157 States were signatory to the ICSID Convention. Of these, 147 States are ICSID Contracting States by virtue of their having deposited instruments of ratification, acceptance or approval of the ICSID Convention. On September 30, 2010, the State of Qatar signed the ICSID Convention and deposited its instrument of ratification of the Convention with the International Bank for Reconstruction and

ICSID Contracting States by virtue of their having deposited instruments of ratification, acceptance or approval of the ICSID Convention. On September 30, 2010, the State of Qatar signed the ICSID Convention and deposited its instrument of ratification of the Convention with the International Bank for Reconstruction and Development on December 21, 2010. The Republic of Cape Verde signed the ICSID Convention on December 20, 2010 and within the same month deposited its instrument of ratification on December 27, 2010. The ICSID Convention entered into force for the State of Qatar on January 20, 2011 and for the Republic of Cape Verde on January 26, 2011. Having signed the ICSID Convention on August 12, 1992, the Republic of Moldova deposited its instrument of ratification on May 5, 2011. On its ratification of the Convention, the Republic of Moldova notified the depositary pursuant to Article 70 of the ICSID Convention of the exclusion of certain territory from the coverage of the Convention. The ICSID Convention entered into force for the Republic of Moldova on June 4, 2011.

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

MEMBERSHIP Talha Rathore, Pakistan Daughter Bulb III, 200210 | ICSIDANNUAL REPORT 2011 | 11 The 157 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 147 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

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

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 Cape Verde Dec. 20, 2010 Dec. 27, 2010 Jan. 26, 2011 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 LIST OF CONTRACTING STATES AND OTHER SIGNATORIES OF THE CONVENTION AS OF JUNE 30, 201112 | ICSID Deposit of Entry into Force State Signature Ratification of Convention China Feb. 9, 1990 Jan. 7, 1993 Feb. 6, 1993 Colombia May 18, 1993 July 15, 1997 Aug. 14, 1997

Deposit of Entry into Force State Signature Ratification of Convention China Feb. 9, 1990 Jan. 7, 1993 Feb. 6, 1993 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 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

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

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, 1968ANNUAL REPORT 2011 | 13 Ireland Aug. 30, 1966 Apr. 7, 1981 May 7, 1981 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 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

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 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 May 5, 2011 June 4, 2011

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 Deposit of Entry into Force State Signature Ratification of Convention14 | ICSID Deposit of Entry into Force State Signature Ratification of Convention New Zealand Sep. 2, 1970 Apr. 2, 1980 May 2, 1980 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

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 Qatar Sep. 30, 2010 Dec. 21, 2010 Jan. 20, 2011 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

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, 1973ANNUAL REPORT 2011 | 15 Swaziland Nov. 3, 1970 June 14, 1971 July 14, 1971 Sweden Sep. 25, 1965 Dec. 29, 1966 Jan. 28, 1967 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

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 Dolorosa Sinaga, Indonesia SolidarityANNUAL REPORT 2011 | 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 ICSID Administrative Council. The Panels are an important component of the ICSID system of dispute settlement. When the Chairman of the 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 OF ARBITRATORS18 | ICSID During FY2011, eleven ICSID Contracting States made designations to the ICSID Panels, namely, Albania, Australia, Burundi, Costa Rica, Lebanon, Paraguay, Peru, Portugal, the Slovak Republic, Somalia, and Spain. Thirty-seven persons were designated or re-designated to the Panels. At the end

Albania, Australia, Burundi, Costa Rica, Lebanon, Paraguay, Peru, Portugal, the Slovak Republic, Somalia, and Spain. Thirty-seven persons were designated or re-designated to the Panels. At the end of FY2011, there were 526 individuals on the ICSID Panels of Conciliators and of Arbitrators. Details about the designations to the ICSID Panels made in FY2011 are provided below. ALbANIA Panels of Conciliators and of Arbitrators Designations effective June 16, 2011: Eris Hysi, Inida Methoxha, Adrian Neritani, and Masim Qoku

AUSTRALIA

Panel of Conciliators Designations effective July 7, 2010: Neil Brown, Ian Hanger, Henry Jolson, and Laurence Street Panel of Arbitrators Designations effective July 7, 2010: Gavan Griffith, Doug Jones, Michael Kirby, and Michael C. Pryles bURUNDI Panel of Arbitrators Designations effective September 17, 2010: Nicolas Angelet, Sixte Sizimwe Kazirukanyo, Gérard Niyugeko, and Fabien Segatwa COSTA RICA Panels of Conciliators and of Arbitrators Designations effective July 26, 2010: Rodrigo Barahona Israel, Thomas Buergenthal, Rodrigo Oreamuno, and Oscar Solcy Soler

LEbANON

Panel of Arbitrators Designations effective July 6, 2010: Ghaleb S. Mahmassani and Nathalie Najjar

PARAgUAy

Panel of Arbitrators Designations effective September 17, 2010: Rafael Llano Oddone and Diego Zavala Serrati PERU Panels of Conciliators and of Arbitrators Designations effective March 22, 2011: Eduardo Ferrero Costa, Delia Revoredo de Mur, Alfonso De los Heros Pérez Albela, and

Serrati PERU Panels of Conciliators and of Arbitrators Designations effective March 22, 2011: Eduardo Ferrero Costa, Delia Revoredo de Mur, Alfonso De los Heros Pérez Albela, and Shoschana Zusman TinmanANNUAL REPORT 2011 | 19

PORTUgAL

Panel of Conciliators Designation effective March 16, 2011: José Manuel Ribeiro Sérvulo Correia Panel of Arbitrators Designation effective March 16, 2011: Miguel Galvâo T eles Panels of Conciliators and of Arbitrators Designations effective March 16, 2011: José Miguel Júdice, Agostinho Miranda, and Dário Moura Vicente

SLOVAk REPUbLIC

Panel of Arbitrators Designation effective July 7, 2010: David A. Pawlak

SOMALIA

Panel of Arbitrators Designation effective October 28, 2010: Abdu Lqawi Ahmed Y usuf SPAIN Panels of Conciliators and of Arbitrators Designations effective July 14, 2010: Bernardo M. Cremades and José Carlos Fernández Rozas20 | ICSIDANNUAL REPORT 2011 | 21

CHAPTER 4

OPERATIONS OF THE CENTRE gENERAL OVERVIEw ICSID Cases ICSID is an autonomous international institution established under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID or the Washington Convention). Its primary purpose is to provide facilities for conciliation and arbitration of international investment disputes. The Centre itself does not conciliate or arbitrate disputes; rather, it provides the institutional and procedural framework for independent Conciliation Commissions, arbitral tribunals, and ad hoc Committees constituted in each case to resolve the dispute. T wo sets of procedural rules may govern the initiation and conduct of cases under the Centre’s auspices. These are the ICSID Convention,

procedural framework for independent Conciliation Commissions, arbitral tribunals, and ad hoc Committees constituted in each case to resolve the dispute. T wo sets of procedural rules may govern the initiation and conduct of cases under the Centre’s auspices. These are the ICSID Convention, Regulations and Rules or the ICSID Additional Facility Rules. Disputes under the ICSID Convention must be between an ICSID Contracting State and a national of another ICSID Contracting State. Additionally, the dispute must be a legal dispute arising directly out of an investment and the disputing parties must have consented in writing to the submission of their dispute to ICSID. Conciliation and arbitration under the ICSID Additional Facility Rules have been available since

1978. These rules allow the ICSID Secretariat to administer conciliation and arbitration of investment disputes where either the State party or the home State of the foreign investor is not an ICSID Contracting State. They also authorize conciliation and arbitration of disputes that do not arise directly out of an investment where at least one of the disputing parties is a Contracting State or a national of a Contracting State. In addition, the Additional Facility Rules offer factfinding proceedings.

The vast majority of cases before the Centre are arbitrations administered under the ICSID Convention. Jean Marc Siangue, Cameroon Entretien22 | ICSID Non-ICSID Cases The ICSID Secretariat also administers international dispute settlement proceedings under other rules or treaties. In particular, the Secretariat frequently assists parties and tribunals in investor-State arbitrations conducted under the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). The services provided in UNCITRAL proceedings are similar to those available under the ICSID Rules, ranging from handling specific aspects of a case to full administrative services. In the past fiscal year, the Centre administered 4 UNCITRAL proceedings. T wo of these proceedings concluded with an award and 2 further cases are currently pending. The Secretary-General also acted as appointing authority in 2 UNCITRAL cases following a request by the parties involved.

full administrative services. In the past fiscal year, the Centre administered 4 UNCITRAL proceedings. T wo of these proceedings concluded with an award and 2 further cases are currently pending. The Secretary-General also acted as appointing authority in 2 UNCITRAL cases following a request by the parties involved. Finally, the ICSID Secretariat offers administrative and logistical services for other international dispute proceedings including arbitrations conducted under the auspices of other arbitral institutions. In the course of FY2011, the Centre assisted with the organization of hearings in cases administered by the London Court of International Arbitration, the Permanent Court of Arbitration, and the International Chamber of Commerce. ICSID Convention Conciliation Cases 6 2% ICSID Additional Facility Arbitration Cases 32 9% ICSID Convention Arbitration Cases 313 89% Types of Cases Registered under the ICSID RulesANNUAL REPORT 2011 | 23 general Overview of ICSID Convention Arbitration An ICSID Convention arbitration is initiated by the submission of a Request for Arbitration to the Secretary-General of ICSID. The Request is filed by the potential Claimant and outlines the facts and legal issues to be addressed. The Request must be registered unless the dispute is manifestly outside the jurisdiction of ICSID. On average, Requests for Arbitration are processed within a month of being filed at ICSID. The next procedural step is constitution of the arbitral tribunal. The ICSID Arbitration Rules allow significant flexibility regarding the number of arbitrators and the method of their appointment. In most instances, the tribunals consist of 3 arbitrators: 1 arbitrator appointed by each party, and the third, presiding, arbitrator appointed by agreement of the parties or by their party-appointed arbitrators. The parties may also ask the Centre to assist with the appointment of arbitrators, either in accordance

with a previous agreement or pursuant to the default provisions in the ICSID Rules. Non-ICSID Cases Administered by ICSID in FY2011 0 UNCITRAL Cases Other Cases 1 2 3 4 5 6 7 6 324 | ICSID Proceedings are deemed to have begun once the tribunal is constituted. The tribunal holds a first session within 60 days of its constitution. Preliminary questions of procedure are dealt with at the first session. Subsequently, the proceeding usually comprises 2 distinct phases: a written procedure followed by in-person hearings. After the parties present their case, the tribunal deliberates and renders its award. Once an ICSID Convention award is rendered, it is binding and not subject to any appeal or other remedy except those provided by the Convention. The Convention allows the parties to request a supplementary decision or rectification of the award, or to seek the post-award remedies of annulment, interpretation or revision. Conduct of an ICSID Convention Arbitration Request for Arbitration Registration Refusal to Register Constitution of the Tribunal First Session Written Procedure Oral Procedure Deliberations Award Supplementary Decision and Rectification

Post-Award Remedies: Annulment, Interpretation, RevisionANNUAL REPORT 2011 | 25

ADMINISTRATION OF PROCEEDINgS IN Fy2011

New ICSID Cases Registered in Fy2011 In the past fiscal year, the number of ICSID cases continued to increase: 32 new arbitration proceedings were registered. T wenty-eight of the new cases registered in FY2011 are being conducted under the ICSID Convention, and 4 are under the Additional Facility Rules. Cases Registered under the ICSID Convention and Additional Facility Rules in FY2011 This represents a 20% increase over the number of cases registered during FY2010 and continues a trend which began in the mid 1990s of increasing resort to investor-State arbitration. As of June 30, 2011, the Centre had registered 351 ICSID cases since its establishment. Of those, 159 ICSID cases

trend which began in the mid 1990s of increasing resort to investor-State arbitration. As of June 30, 2011, the Centre had registered 351 ICSID cases since its establishment. Of those, 159 ICSID cases were administered by the Centre during the past year. This represents the largest caseload managed by the Secretariat in a single fiscal year. 0 ICSID Convention Arbitration Cases ICSID Additional Facility Arbitration Cases 5