CIADI - Annual report 2012

2012

ANNUAL

REPORT

1818 H STREET, NW

WASHINGTON, D.C. 20433

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FACSIMILE (202) 522 26152012

ANNUAL REPOR Tii | ICSIDANNUAL REPORT 2012 | 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 43 Chapter 6: Forty-fifth 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 2012 | 1

September 6, 2012 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, 2011 to June 30, 2012. The Report includes the audited financial statements of the Centre, presented pursuant to Administrative and Financial Regulation 19. Y our s sincerely, Meg Kinnear Secr etary-General Dr. Jim Y ong Kim 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, 2012

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, 2012

Meg Kinnear, Secretary-General

LEgAL STAFF

Aurélia Antonietti, T eam Leader/Legal Counsel Gonzalo Flores, T eam Leader/Legal Counsel Milanka Kostadinova, T eam Leader/Legal Counsel Eloïse Obadia, T eam Leader/Legal Counsel Martina Polasek, T eam Leader/Legal Counsel Mercedes Cordido-Freytes de Kurowski, Legal Counsel Aïssatou Diop, Legal Counsel Anneliese Fleckenstein, Legal Counsel Michael Gagain, Legal Counsel – Institutional Matters Ann Catherine Kettlewell, Legal Counsel Mike King, Legal Counsel – Institutional Matters Paul-Jean Le Cannu, Legal Counsel Lindsey Marchessault, Legal Counsel – Institutional Matters Alicia Martín Blanco, Legal Counsel Marco Tulio Montañés-Rumayor, Legal Counsel Frauke Nitschke, Legal Counsel Natalí Sequeira, Legal Counsel Mairée Uran Bidegain, Legal Counsel Janet Whittaker, Legal Counsel Shingirirai Chaza, Intern Louis-Philippe Coulombe, Intern

FINANCIAL AND gENERAL ADMINISTRATION STAFF

Javier Castro, T eam Leader/Program Officer Zelalem Tesfa Dagnaw, Financial Officer Rita A. Rovira, Information Analyst William D. Casson, Consultant Lamiss Al-Tashi, Hearings Organizer Sonia Lee, Financial Assistant Walter Meza-Cuadra, Financial Assistant Malkiat Singh, Financial Assistant Richard Carter, Information Specialist

PARALEgAL, ADMINISTRATIVE AND CLIENT SUPPORT STAFF

Daniela Argüello, Paralegal Anna D. Avilés-Alfaro, Paralegal Ivania Fernandez, Paralegal Maria Cristina Padrao, Paralegal Danielle Paas, Paralegal Eric Stanculescu, Paralegal Angela Ting, Paralegal

Daniela Argüello, Paralegal Anna D. Avilés-Alfaro, Paralegal Ivania Fernandez, Paralegal Maria Cristina Padrao, Paralegal Danielle Paas, Paralegal Eric Stanculescu, Paralegal Angela Ting, Paralegal Alix Ahimon, Program Assistant Cindy Ayento, Administrative Assistant to Secretary-General Claudio Batista, Program Assistant Paula Carazo, Program Assistant Cinthya Ibáñez Rodríguez, Program Assistant Lanny Isimbi, Program Assistant Annie An, ReceptionistANNUAL REPORT 2012 | 34 | ICSIDANNUAL REPORT 2012 | 5 The recent growth in investor-State arbitration has continued apace. ICSID registered a record 38 cases in 2011, and had registered 19 further cases by June 30, 2012. Included in these numbers are 3 new conciliation cases, showing an increased resort not simply to arbitration but also to alternative methods of dispute resolution available under the ICSID Convention and Additional Facility. Over the past year, ICSID administered more than 100 hearings in cities around the world, and numerous case decisions and awards were rendered by tribunals and ad hoc Committees. Approximately 45% of all cases ever registered at ICSID are currently on the docket, so one can safely predict that these trends will continue in the upcoming year.

Such statistics should not be considered in isolation from their broader economic context. There have been unprecedented increases in global flows of foreign direct investment in the last two decades. Globalization, increased cross-border trade and investment, and growing economic interdependence between sovereign States have resulted in numerous States becoming simultaneously importers and exporters of capital. In turn, a number of States have updated their investment treaties, adopted model

treaties, and entered into new agreements with diverse governmental and private partners. These statistics must also be read in light of the fact that international investment law and investorState dispute settlement are a new discipline. The first bilateral investment treaty (BIT) was signed by Pakistan and Germany in 1959, only 53 years ago. The first BIT offering investor-State arbitration was concluded between the Netherlands and Indonesia in 1968, and the first investment treaty case at ICSID was decided in 1990, only 22 years ago. Indeed, some commentators estimate that about 75% of all investor-State awards have been issued in the last five years. ICSID continues to play a vital role in the evolving international investment legal system. Its primary job is very specific: to offer foreign investors and host States an impartial, effective and accessible facility for arbitration and conciliation of international investment disputes. ICSID has taken numerous steps in the past year to enhance its capacity to fulfill this role. In September of

CHAPTER 1

INTRODUCTION

Arthur Fata, Zimbabwe The Prayer6 | ICSID 2011, ICSID announced a new list of Chairman’s appointees to the Panel of Arbitrators and Panel of Conciliators. A number of States have also updated their arbitrator and conciliator lists, offering disputing parties more potential panelists for disputes. These designations are most welcome, as increasing the number of qualified arbitrators and conciliators is one of the keys to ensuring that the caseload is addressed in a timely and expert fashion. The Centre continued to improve its internal practices to ensure optimal service for facility users. For example, we developed electronic document management and case management systems to better manage the substantial documentation generated in each case. We have implemented consistent best practices in case administration, incorporating service standards by which we can ensure timely, high quality, and consistent practices in each case. ICSID continues to encourage transparent proceedings, for example by offering parties the option to webcast proceedings and to publish decisions and awards rendered in individual cases. The operations of the Centre and the profile of its caseload are detailed in Chapter 4 of this report, and demonstrate the dynamism of

transparent proceedings, for example by offering parties the option to webcast proceedings and to publish decisions and awards rendered in individual cases. The operations of the Centre and the profile of its caseload are detailed in Chapter 4 of this report, and demonstrate the dynamism of the work done by the ICSID Secretariat. ICSID will continue its efforts to provide excellent service to disputing parties in the upcoming year. Work has already begun on designing a revised website which will provide better navigation, have enhanced search capacity, an improved look and feel, and expanded information about arbitration and conciliation under the ICSID Convention and Additional Facility. Similarly, the Centre will start planning the second phase of our case management system which will allow facility users to file and access case-related materials electronically. These and other initiatives will allow ICSID to remain the premier facility for resolution of international investment disputes.ANNUAL REPORT 2012 | 7 It is an extraordinary privilege to serve as Secretary-General of ICSID, and I would like to thank Contracting States and facility users for their confidence in the Centre. We will make every effort to continue to earn this confidence over the coming year. Finally, I am most grateful to the staff of ICSID for their collegiality, work ethic, skill, and enthusiasm. Their efforts make the Centre a unique facility, and I look forward to our achievements in the upcoming year. Meg Kinnear Secretary-General8 | ICSID Gerald Chukwuma, Nigeria The Thin LineANNUAL REPORT 2012 | 9 As of June 30, 2012, 158 States were signatory to the ICSID Convention. Of these, 148 States were ICSID Contracting States by virtue of their having deposited instruments of ratification, acceptance or approval of the ICSID Convention. On January 24, 2012, the World Bank received a written notice of denunciation of the Convention from the República Bolivariana de Venezuela. The denunciation took effect on July 25, 2012. The Republic of South Sudan signed and deposited its instrument of ratification of the Convention

On January 24, 2012, the World Bank received a written notice of denunciation of the Convention from the República Bolivariana de Venezuela. The denunciation took effect on July 25, 2012. The Republic of South Sudan signed and deposited its instrument of ratification of the Convention with the World Bank on April 18, 2012. The ICSID Convention entered into force for South Sudan on May 18, 2012. Shortly following the end of FY2012, on July 19, 2012, Montenegro signed the ICSID Convention. A map showing the distribution of current ICSID membership and a complete list of the Contracting States and other signatories of the ICSID Convention, both as of June 30, 2012, follow.

CHAPTER 2

MEMBERSHIP10 | ICSID JUNE 2012ANNUAL REPORT 2012 | 11

The 158 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 148 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 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, 201212 | 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 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 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, 1968ANNUAL REPORT 2012 | 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 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 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 Solomon Islands Nov. 12, 1979 Sep. 8, 1981 Oct. 8, 1981 Somalia Sep. 27, 1965 Feb. 29, 1968 Mar. 30, 1968 South Sudan Apr. 18, 2012 Apr. 18, 2012 May 18, 2012 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, 2003ANNUAL REPORT 2012 | 15 Sudan Mar. 15, 1967 Apr. 9, 1973 May 9, 1973

St. Vincent and the Grenadines Aug. 7, 2001 Dec. 16, 2002 Jan. 15, 2003ANNUAL REPORT 2012 | 15 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, 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 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

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 | ICSIDANNUAL REPORT 2012 | 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 State. 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

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 make designations 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. During FY2012, Mr. Robert B. Zoellick, then-President of the World Bank in his capacity as Chairman of the ICSID Administrative Council, designated 10 persons to each Panel. In addition, 17 ICSID Contracting States made designations to the ICSID Panels, namely, the Bahamas, Bahrain, Chile, Colombia, Democratic Republic of the Congo, Denmark, France, Grenada, Honduras, Japan, Kuwait, Lebanon, Moldova, Nepal, Seychelles, Switzerland, and Timor-Leste. In all, 77 persons were designated or re-designated to the Panels. At the end of FY2012, there were 556 individuals on the ICSID Panels of Conciliators and of Arbitrators. The names of designees to the ICSID Panels made in FY2012 are provided on the following page.

CHAPTER 3

PANELS OF CONCILIATORS AND

OF ARBITRATORS

Michael Heindorff, Germany Tasso’s Trees Vi, 198618 | ICSID

CHAIRMAN OF THE

ADMINISTRATIVE COUNCIL

Panel of Conciliators Designations effective September 15, 2011: Luiz Olavo Baptista, Lawrence Boo, Laurence Boulle, David J. A. Cairns, Nayla Comair-Obeid, Roberto Echandi, Siegfried H. Elsing, Anna Joubin-Bret, James Ogoola, and Jeswald W . Salacuse Panel of Arbitrators

Boulle, David J. A. Cairns, Nayla Comair-Obeid, Roberto Echandi, Siegfried H. Elsing, Anna Joubin-Bret, James Ogoola, and Jeswald W . Salacuse Panel of Arbitrators Designations effective September 15, 2011: T eresa Cheng, Azzedine Kettani, Makhdoom Ali Khan, Donald M. McRae, Tinuade Oyekunle, Alain Pellet, Lucy Reed, Pierre T ercier, Claus von Wobeser, and Eduardo Zuleta BAHAMAS Panels of Conciliators and of Arbitrators Designations effective March 30, 2012: Bertha Cooper-Rousseau, Caryl Lashley, and Rubie Nottage

BAHRAIN

Panel of Arbitrators Designations effective December 1, 2011: Tariq Baloch, Jan Paulsson, and Stephen

M. Schwebel

CHILE Panel of Conciliators Designations effective September 1, 2011: Gonzalo Biggs, Jorge Carey, Carlos Eugenio Jorquiera Malschafsky, and León Larrain Abascal Panel of Arbitrators Designations effective September 1, 2011: Enrique Barros Bourie, Hernán Fontaine Talavera, Andrés Jana Linetzky, and Arturo Yrarrázaval Covarrubias

COLOMBIA

Panel of Conciliators Designations effective February 27, 2012: Juan Pablo Cárdenas Mejía, Néstor Humberto Martínez Neira, José Antonio Rivas, and Jorge Suescún Melo Panel of Arbitrators Designations effective February 27, 2012: Martín Carrizosa Calle, Enrique Gómez-Pinzón, Nicolás Lloreda, and Carlos Urrutia Valenzuela

DEMOCRATIC REPUBLIC OF

THE CONgO

Panel of Arbitrators Designation effective March 26, 2012:

Martín Carrizosa Calle, Enrique Gómez-Pinzón, Nicolás Lloreda, and Carlos Urrutia Valenzuela

DEMOCRATIC REPUBLIC OF

THE CONgO

Panel of Arbitrators Designation effective March 26, 2012: Adèle Kalambay Ndaya Moleka DENMARk Panels of Conciliators and of Arbitrators Designations effective May 15, 2012: Jan Schans Christensen, Per Magid, Mogens Skipper-Pedersen, and Jon Ulrik Stokholm

FRANCE

Panel of Conciliators Designations effective May 16, 2012: Claire Favre, Pierre Mayer, Pierre Raoul-Duval, and Henri T outée Panel of Arbitrators Designations effective May 16, 2012: Geneviève Bastid Burdeau, Magali Bouvier, Emmanuel Gaillard, and Gilbert GuillaumeANNUAL REPORT 2012 | 19 gRENADA Panels of Conciliators and of Arbitrators Designation effective November 21, 2011: Jonathan Jacob Gass HONDURAS Panels of Conciliators and of Arbitrators Designations effective September 13, 2011: Joaquín Donato Alcerro Díaz, César Augusto Batres Galeano, Juan Carlos Basombrío, and Juan Arnaldo Hernández Espinoza JAPAN Panel of Conciliators Designations effective March 30, 2012: Hiroshi Fukuda and Kiyoto Ido kUwAIT Panels of Conciliators and of Arbitrators Designations effective August 17, 2011: Ahmed Al-Melhem, Eli Whitney Debevoise II,

Mahmoud Ahmed Mahmoud, and Nassib G. Ziadé

LEBANON

Panel of Arbitrators Designation effective July 4, 2011: Nayla Comair-Obeid

MOLDOVA

Panel of Conciliators Designations effective October 13, 2011: Violeta Cojocaru and Natalia Suceveanu Panel of Arbitrators Designations effective October 13, 2011: Ion Capatina and Mark A. Meyer Panels of Conciliators and of Arbitrators Designations effective October 13, 2011: Victor Burac and Mihail Buruiana NEPAL Panels of Conciliators and of Arbitrators Designation effective March 12, 2012: Surya P . Subedi

SEyCHELLES

Panel of Arbitrators Designation effective May 14, 2012: Mahnaz Malik

SwITzERLAND

Panel of Arbitrators Designation effective April 30, 2012: Paolo Michele Patocchi TIMOR-LESTE Panels of Conciliators and of Arbitrators Designation effective August 17, 2011: Ruth Wedgwood Panel of Arbitrators Designation effective June 28, 2012: Cherie Booth20 | ICSID UntitledANNUAL REPORT 2012 | 21

CHAPTER 4

OPERATIONS OF THE CENTRE

SUMMARy OF ICSID OPERATIONS ICSID Cases ICSID is an autonomous international institution established by the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention or the Washington Convention). Its primary purpose is to provide facilities for conciliation and arbitration of international investment disputes. The initiation and conduct of cases under the Centre’s auspices may be governed by one of ICSID’s two sets of procedural rules. These are the ICSID Convention, Regulations and Rules or the ICSID Additional Facility Rules. Conciliation and arbitration under the ICSID Convention must involve a legal dispute between an

may be governed by one of ICSID’s two sets of procedural rules. These are the ICSID Convention, Regulations and Rules or the ICSID Additional Facility Rules. Conciliation and arbitration under the ICSID Convention must involve a legal dispute between an ICSID Contracting State and a national of another ICSID Contracting State. Additionally, such disputes must arise directly out of an investment and the disputing parties must have consented in writing to the submission of their dispute to ICSID.22 | ICSID The ICSID Additional Facility 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. These rules have been available since 1978. While the vast majority of cases before the Centre are arbitrations administered under the ICSID Convention, the last year has seen an increase in the use of ICSID conciliation services. Non-ICSID Cases The ICSID Secretariat also administers international dispute settlement proceedings under rules and treaties other than the ICSID Convention or the ICSID Additional Facility. In particular, the Secretariat often assists parties and tribunals with investment arbitrations conducted pursuant to the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL Arbitration Rules). The services provided in non-ICSID proceedings are similar to those available under the ICSID Rules, ranging from handling specific aspects of a case to offering full administrative services. In the past fiscal year, the Centre administered 2 investor-State proceedings under the UNCITRAL rules, which are pending. ICSID also received requests to act as appointing authority in 4 non-ICSID cases. Finally, ICSID provided hearing organization services in 1 case administered by the London Court of International Arbitration.

past fiscal year, the Centre administered 2 investor-State proceedings under the UNCITRAL rules, which are pending. ICSID also received requests to act as appointing authority in 4 non-ICSID cases. Finally, ICSID provided hearing organization services in 1 case administered by the London Court of International Arbitration. Non-ICSID Cases Administered by the ICSID Secretariat in FY2012 0 Investor-State UNCITRAL Arbitrations Other Cases 1 2 3 4 2

3ANNUAL REPORT 2012 | 23

Overview of ICSID Arbitration ICSID Convention arbitration is initiated by the submission of a Request for Arbitration to the Secretary-General. The Request is filed by the potential claimant and outlines the basic facts and legal issues to be addressed. The Request must be registered unless the dispute is manifestly outside the jurisdiction of ICSID. In the past year, Requests for Arbitration were processed on average within 25 days 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 of the party-appointed arbitrators. The parties may 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. In FY2012, ICSID made such appointments on average within 38 days of receivin