- Friday, October 5, 2018
Author: Tilbe Birengel
At the 2016 Annual Meeting of the Administrative Council, the International Centre for Settlement of Investment Disputes ("ICSID") launched an amendment process on its' rules and regulations ("ICSID Rules and Regulations"). This has been the fourth amendment process since 1984, 2003 and 20061.
As per Article 6 of the ICSID Convention, the amendments will only be effective upon the approval of two-thirds of the contracting states2. Hence, ICSID invited contracting states and the public3 to provide their amendment suggestions on topics worthy of consideration, which will be used as background papers throughout the process.
Targets of the Amendment on ICSID Rules and Regulations
The amendments focus on the targets of modernization of the rules, time and cost efficiency, increase in consistency during procedures and availability of the decisions4.
Modernization of the Rules
One of the major tasks of the amendments is modernization of the ICSID Rules and Regulations in order to incorporate the common outcomes of case law, and to reflect the common and modern practice of the arbitrators in the rules.
Streamlining the appointment of arbitrators, providing more elaborated codes of conduct on the qualifications of the arbitrators and new procedures in relation to the challenge of arbitrators may be discussed. Under the subject of challenge of arbitrators, the capacity of the arbitrators to resign prior to the constitution of the tribunal, automatic stay of proceedings, and award of costs stemming from illegitimate challenges are likely to be considered.