ICSID

ICSID is the International Centre for Settlement of Investment Disputes. ICSID was established under the 1965 Convention on the Settlement of Investment Disputes between States and the Nationals of Other States, which entered into force in 1966 ("the Washington Convention"). ICSID is an autonomous international organisation with very close links to the World Bank.

From an arbitration perspective, ICSID's importance stems from its conciliation and arbitration rules, and the fact that an award rendered under such rules is recognised and can be enforced, without challenge, in the more than 150 countries that have ratified the Washington Convention.

As the title of the Washington Convention suggests, the scope of ICSID arbitration is limited to the resolution of disputes between a Washington Convention State and the nationals of another Washington Convention State regarding an investment in the former State. What follows is a basic precedent ICSID clause. Because of its limited scope, and other unusual features, you should not opt for ICSID arbitration without seeking further advice.

"[Subject to [ ADR ],] any dispute arising out of or connected with this Agreement, including a dispute as to the validity or existence of the agreement, shall be submitted to the International Centre for Settlement of Investment Disputes for settlement by arbitration conducted in the English language pursuant to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. There shall be three arbitrators, appointed in accordance with Article 37(2)(b) of the said Convention."

For the ICSID Rules click here. For more general information on ICSID, visit the ICSID Website.