October 19, 2022

 

The International Centre for Settlement of Investment Disputes of the World Bank (ICSID) published its 2022 Annual Report on 14 October 2022.

Highlights of the report include:

  • 346 cases administered by ICSID, marking the largest number of cases ever administered at ICSID in a single fiscal year.
  • A record 77 concluded cases, reflecting ICSID’s ongoing efforts to reduce the time of cases.
  • Individuals of 42 nationalities were represented amongst the appointments made in the fiscal year. This is the second largest number of different nationalities appointed in a single year at ICSID.
  • 45% of first-time appointees in FY2022 were women and 25% involved nationals of low- or middle-income economies.

(https://icsid.worldbank.org/news-and-events/news-releases/icsid-publishes-2022-annual-report)

Other notable report highlights in the Report are as follows:

  • ICSID administered 18 cases governed by non-ICSID rules in FY2022 with the majority (13 cases) applying the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL). (p. 14 of the Report)
  • Distribution of cases registered in FY2022 by region:
    • 22%: South America
    • 20%: Eastern Europe and Central Asia
    • 12%: Central America and the Caribbean
    • 12%: Middle East and North Africa
    • 12%: Sub-Saharan Africa
    • 8%: South and East Asia and the Pacific
    • 8&: Western Europe
    • 6%: North America (Canada, Mexico, and the US)

(p. 15 of the Report)

  • Basis of consent to establish jurisdiction in FY2022:
    • 56%: Bilateral Investment Treaty
    • 13%: Investment Contract between the Investor and the Host-State
    • 11%: Energy Charter Treaty
    • 4%: U.S.-Mexico-Canada Agreement
    • 4%: North American Free Trade Agreement
    • 4%: Investment Law of the Host State
    • 2%: Dominican Republic-United States-Central America Free Trade Agreement
    • 2%: Colombia-El Salvador, Guatemala and Honduras Free Trade Agreement
    • 2%: Central America-Panama Trade Promotion Agreement

(p. 15 of the Report)

  • Distribution of cases registered in FY2022 by economic sector:
    • 24%: Electric Power and Other Energy
    • 22%: Oil, Gas and Mining
    • 12%: Construction
    • 10%: Information and Communication
    • 8%: Other Industry
    • 8%: Water, Sanitation and Flood Protection
    • 6%: Finance
    • 6%: Transportation

(p. 16 of the Report)

  • Top three distribution of cases registered in FY2022 by country:
    • Peru: 5
    • Romania: 4
    • Spain: 3

(p. 16 of the Report)

  • 91% of hearings or sessions were conducted remotely in cases administered by ICSID during FY2022 using ICSID audio/video conferencing services. (p. 18 of the Report)
  • 77 proceedings concluded in FY2022: 56 original arbitrations, 20 post-award proceedings, and one conciliation proceeding. (p. 19 of the Report)
  • Of the 56 original arbitration proceedings that concluded in FY2022, 27 were settled or otherwise discontinued, and 29 were decided by the tribunal. (p. 19 of the Report)
  • Outcomes of arbitration proceedings under the ICSID Convention and Additional Facility in FY2022:
    • 25%: Award upholding claims in part or in full.
    • 23%: Proceeding discontinued at the request of both parties.
    • 14%: Award dismissing all claims.
    • 14%: Proceeding discontinued at the request of one party.
    • 11%: Award declining jurisdiction.
    • 9%: Proceeding discontinued for lack of payment of the required advances.
    • 2%: Settlement agreement embodied in an award at parties’ request.
    • 2%: Award deciding that the claims are manifestly without legal merit.

(p. 19 of the Report)

Link to the Report in English: https://icsid.worldbank.org/sites/default/files/publications/ICSID_AR.EN.pdf

Author: Mahmoud Abuwasel

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