International Centre for Settlement of Investment Disputes

ICSID is a specialized agency of United Nations that's a part of World Bank Group. This is an international arbitration institution for international investors and states. It looks forwards to provide dispute resolution and conciliation in matters of investment disputes. The ICSID is funded by the World Bank Group, headquartered in Washington, D.C., United States of America. This is an independent, multiparty specialized institution that encourages international flow of investment and mitigation of non-commercial risks by a treaty drafted by the International Bank for Reconstruction and Development's executive directors and signed by member countries. As of May 2016, 153 contracting member states agreed to enforce and uphold arbitral awards in accordance with the ICSID Convention which is a landmark step in facilitating investments and their smooth flow internationally. ICSID is governed by all its members who meet annually to decide on matters of business. Member states also elect the Director General and Deputy Director General of International Centre for Settlement of Investment Disputes which constitutes the Secretariat along with other employees. The Secretariat manages and monitors the daily operations of ICSID. The elected council of ICSID is headed by the President of World Bank group.

 

ICSID is not indulged in organising and conducting arbitration procedures but giving institutional and procedural support to tribunals, commissions and committees working for such matters of arbitration internationally. It has framed two sets of guidelines for handling arbitration procedures which are:

 

1. International Centre for Settlement of Investment Disputes' Convention, Rules and Regulations

These are guidelines for disputes related directly to investments and that have arisen between one of the center's contracting member states and a national of another contracting member states. Here there is another condition that dispute should be of legal nature.

 

2. International Centre for Settlement of Investment Disputes' Additional Facility Rules

These are guidelines for disputes related directly to investments and that have arisen in a case where one of the parties involved is not centre's contracting member state or a national of another contracting member state. Using ICSID Convention is entirely voluntary.

However once either of the parties that have entered the ICSID Convention for relief, the consent given by them is not withdrawable. As per the United Nations Commission on International Trade Law, ICSID Secretariat is authorised to administer dispute resolution proceedings under other treaties and can regularly aid tribunals or arbitrations amongst disputing parties among investors and states. ICSID provide support to international tribunals, commissions and committees for investment dispute redressals some of which are:

1. Permanent Court of Arbitration, The Hague, Netherlands

2. London Court of International Arbitration, London, United Kingdom

3. International Chamber of Commerce, Paris, France.

 

 

The ICSID also organizes advisory functions, research and publishes Investment Laws of the World and of Investment Treaties. Since April 1986, ICSID has been publishing a semi-annual law journal entitled ICSID Review: Foreign Investment Law Journal.

Though ICSID's proceedings generally take place in Washington, D.C., parties can apply for that proceedings be held at one of a number of possible substitute locations which are:

1. Permanent Court of Arbitration, The Hague, Netherlands

2. The Regional Arbitration Centres of the Asian-African Legal Consultative Committee in Cairo, in Kuala Lumpur or in Lagos.

3. The Australian Centre for International Commercial Arbitration in Melbourne.

4. The Australian Commercial Disputes Centre in Sydney.

5. The Singapore International Arbitration Centre.

6. The Gulf Cooperation Council Commercial Arbitration Centre in Bahrain.

7. The German Institution of Arbitration.

8. The Maxwell Chambers in Singapore.

9. The Hong Kong International Arbitration Centre.

10. The Centre for Arbitration and Conciliation at the Chamber of Commerce of Bogota.


Bilateral investment treaties (BITs) reproduced during the first decade of the 21st century, which reached more than 2,500 by 2007. Many such treaties contain texts that refer present and future investment disputes to the ICSID. From its launch to 30 June 2012, the ICSID has registered 390 dispute cases. The ICSID's caseload comprised of 88% convention arbitration cases, 2% convention conciliation cases, as well as 9% additional facility arbitration cases, and 1% additional facility conciliation cases. The ICSID's registered cases were distributed across oil, gas and mining (25%), electricity and other energy (13%), other industries (12%), transportation industry (11%), construction industry (7%), financial industry (7%), information industry and communication industry (6%), water industry, sanitation, and food protection (6%), agriculture, fishing, and forestry (5%), services and trade (4%), and tourism industry (4%).