ICSID CONVENTION, REGULATIONS AND RULES

1 ICSID CONVENTION, REGULATIONS AND RULESI nternational Centre for Settlement of Investment Disputes1818 H Street, , 20433, 2006. Not for resale .Summary Table of ContentsPageIntroduction ..5 Convention on the Settlement of Investment disputes between States and Nationals of Other States ..7 Report of the Executive Directors of the International Bank for Reconstruction and Development on the Convention on the Settlement of Investment disputes between States and Nationals of Other States ..35 Administrative and Financial REGULATIONS ..51 RULES of Procedure for the Institution of Conciliation and Arbitration Proceedings (Institution RULES ) ..73 RULES of Procedure for Conciliation Proceedings (Conciliation RULES ).

2 81 RULES of Procedure for Arbitration Proceedings (Arbitration RULES ) ..993 IntroductionThe International Centre for Settlement of Investment disputes ( ICSID or the Centre) is established by the Convention on the Settle-ment of Investment disputes between States and Nationals of OtherStates (the ICSID Convention or the Convention). The Convention wasformulated by the Executive Directors of the International Bank forReconstruction and Development (the World Bank). On March 18,1965, the Executive Directors submitted the Convention, with anaccompanying Report, to member governments of the World Bank fortheir consideration of the Convention with a view to its signature andratification.

3 The Convention entered into force on October 14, 1966,when it had been ratified by 20 countries. As at April 10, 2006, 143countries have ratified the Convention to become Contracting accordance with the provisions of the Convention, ICSID pro-vides facilities for conciliation and arbitration of investment disputesbetween Contracting States and nationals of other Contracting provisions of the ICSID Convention are complemented by Regula-tions and RULES adopted by the Administrative Council of the Centrepursuant to Article 6(1)(a) (c) of the Convention (the ICSID Regula-tions and RULES ).The ICSID REGULATIONS and RULES comprise Administrative andFinancial REGULATIONS ; RULES of Procedure for the Institution of Concilia-tion and Arbitration Proceedings (Institution RULES ); RULES of Procedurefor Conciliation Proceedings (Conciliation RULES ); and RULES of Proce-dure for Arbitration Proceedings (Arbitration RULES ).

4 The latest amend-ments of the ICSID REGULATIONS and RULES adopted by the AdministrativeCouncil of the Centre came into effect on April 10, in this booklet are the ICSID Convention, the Report ofthe Executive Directors of the World Bank on the Convention, and theICSID REGULATIONS and RULES as amended effective April 10, ON THE SETTLEMENT OF INVESTMENTDISPUTES BETWEEN STATES ANDNATIONALS OF OTHER STATES7 ConventionCONVENTION ON THE SETTLEMENT OF INVESTMENT disputes BETWEEN STATES AND NATIONALS OF OTHER STATEST able of ContentsChapterSectionArticlesPagePreamb le11 IInternational Centre for Settlement of Investment disputes 1-24121 Establishment and Organization 1-3122 The Administrative Council4-8123 The Secretariat9-11144 The Panels12-16155 Financing the Centre17166 Status.

5 Immunities and Privileges18-2416 IIJurisdiction of the Centre25-2718 IIIC onciliation28-35191 Request for Conciliation28192 Constitution of the Conciliation Commission29-31203 Conciliation Proceedings32-3520 IVArbitration36-55221 Request for Arbitration36222 Constitution of the Tribunal37-40223 Powers and Functions ofthe Tribunal41-47234 The Award48-49255 Interpretation, Revision and Annulment of the Award50-52256 Recognition and Enforcement of the Award53-5527 VReplacement and Disqualificationof Conciliators and Arbitrators56-5828 VICost of Proceedings59-6129 VIIP lace of Proceedings62-63309 ConventionVIIID isputes Between Contracting States6430 IXAmendment65-6630X Final Provisions67-7531 Signature Clause3310 ConventionCONVENTION ON THE SETTLEMENT OF INVESTMENT disputes BETWEEN STATES AND NATIONALS OF OTHER STATESP reambleThe Contracting StatesConsideringthe need for international cooperation for economicdevelopment, and the role of private international investment therein.

6 Bearing in mindthe possibility that from time to time disputesmay arise in connection with such investment between ContractingStates and nationals of other Contracting States;Recognizingthat while such disputes would usually be subject tonational legal processes, international methods of settlement may beappropriate in certain cases;Attaching particular importanceto the availability of facilities forinternational conciliation or arbitration to which Contracting Statesand nationals of other Contracting States may submit such disputes ifthey so desire;Desiringto establish such facilities under the auspices of the Inter-national Bank for Reconstruction and Development;Recognizingthat mutual consent by the parties to submit such dis-putes to conciliation or to arbitration through such facilities constitutesa binding agreement which requires in particular that due considera-tion be given to any recommendation of conciliators, and that any arbi-tral award be complied with.

7 AndDeclaringthat no Contracting State shall by the mere fact of its rat-ification, acceptance or approval of this Convention and without itsconsent be deemed to be under any obligation to submit any particulardispute to conciliation or arbitration,Have agreedas follows:11 ConventionChapter IInternational Centre for Settlement of Investment DisputesSection 1 Establishment and OrganizationArticle 1(1) There is hereby established the International Centre for Settle-ment of Investment disputes (hereinafter called the Centre).(2) The purpose of the Centre shall be to provide facilities for con-ciliation and arbitration of investment disputes between ContractingStates and nationals of other Contracting States in accordance with theprovisions of this 2 The seat of the Centre shall be at the principal office of the Inter-national Bank for Reconstruction and Development (hereinafter calledthe Bank).

8 The seat may be moved to another place by decision of theAdministrative Council adopted by a majority of two-thirds of 3 The Centre shall have an Administrative Council and a Secretariatand shall maintain a Panel of Conciliators and a Panel of 2 The Administrative CouncilArticle 4(1) The Administrative Council shall be composed of one repre-sentative of each Contracting State. An alternate may act as representa-tive in case of his principal s absence from a meeting or inability to act.(2) In the absence of a contrary designation, each governor andalternate governor of the Bank appointed by a Contracting State shallbe ex officioits representative and its alternate 5 The President of the Bank shall be ex officioChairman of theAdministrative Council (hereinafter called the Chairman) but shall12 Conventionhave no vote.

9 During his absence or inability to act and during anyvacancy in the office of President of the Bank, the person for the timebeing acting as President shall act as Chairman of the 6(1) Without prejudice to the powers and functions vested in it byother provisions of this Convention, the Administrative Council shall:(a) adopt the administrative and financial REGULATIONS of theCentre;(b) adopt the RULES of procedure for the institution of concilia-tion and arbitration proceedings;(c) adopt the RULES of procedure for conciliation and arbitra-tion proceedings (hereinafter called the Conciliation Rulesand the Arbitration RULES );(d) approve arrangements with the Bank for the use of theBank s administrative facilities and services;(e) determine the conditions of service of the Secretary-Gen-eral and of any Deputy Secretary-General;(f ) adopt the annual budget of revenues and expenditures ofthe Centre;(g) approve the annual report on the operation of the decisions referred to in sub-paragraphs (a), (b), (c) and (f )above shall be adopted by a majority of two-thirds of the members ofthe Administrative Council.

10 (2) The Administrative Council may appoint such committees as itconsiders necessary.(3) The Administrative Council shall also exercise such otherpowers and perform such other functions as it shall determine to benecessary for the implementation of the provisions of this 7(1) The Administrative Council shall hold an annual meeting andsuch other meetings as may be determined by the Council, or convenedby the Chairman, or convened by the Secretary-General at the requestof not less than five members of the Council.(2) Each member of the Administrative Council shall have onevote and, except as otherwise herein provided, all matters before theCouncil shall be decided by a majority of the votes cast.