Define: International Centre For The Settlement Of Investment Disputes

The International Centre for the Settlement of Investment Disputes (ICSID) is an international arbitration institution established under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention). It provides a forum for the settlement of investment disputes between foreign investors and host states.

ICSID resolves investment disputes through arbitration proceedings. These proceedings are conducted by independent arbitrators who are appointed by the parties involved in the dispute. The decisions made by the arbitral tribunals are binding and enforceable.

Any foreign investor who has a dispute with a host state can bring a case to ICSID. The investor must be a national of a state that is a party to the ICSID Convention, and the dispute must arise out of an investment made in the territory of another state that is also a party to the ICSID Convention.

ICSID can handle disputes related to investments made by foreign investors, including disputes arising from breaches of investment contracts, expropriation of investments, and violations of investment protection laws.

The duration of a dispute resolution process at ICSID can vary depending on the complexity of the case and the cooperation of the parties involved. On average, it takes around two to three years to resolve a dispute, but some cases may take longer.

ICSID can award various remedies to the parties involved in a dispute, including monetary compensation, restitution, and injunctive relief. The specific remedies awarded depend on the circumstances of each case.

ICSID decisions are final and binding, and there is no formal mechanism for appeal. However, parties can seek annulment of an award in limited circumstances, such as if there was a serious procedural irregularity or if the tribunal exceeded its powers.

ICSID arbitrators are selected through a process of appointment by the parties involved in the dispute. Each party typically appoints one arbitrator, and the two party-appointed arbitrators then select a presiding arbitrator. If the parties cannot agree on the selection of arbitrators, ICSID can appoint them.

Yes, ICSID is primarily designed to handle disputes between foreign investors and host states. It does not have jurisdiction over disputes between private parties or disputes between states.

To initiate a case at ICSID, the investor must file a request for arbitration with the ICSID Secretariat. The request should include relevant details about the dispute, such as the parties involved, the nature of the investment, and the alleged breaches of investment obligations.