/>iRead the report here.
ICSID is part of the World Bank Group specializing in the conciliation and arbitration of international investment disputes between foreign investors and sovereign states. It has been in operation for nearly six decades.
The report covered 91% (353) of the 383 ICSID Convention international arbitration awards known to have been rendered as of December 31, 2021, where damages or costs were ordered by tribunals.
The report indicates that 66% (100) of the 151 awards that ordered compensation to a party for damages suffered, were voluntarily complied with or there was a post-award settlement. Enforcement was pursued in relation to 31% of the total awards.
As indicated in the chart below, where the outcome was known, award creditors were unsuccessful in their enforcement in the remaining 3% of instances. Thus, satisfaction was obtained in 97% of awards, either through voluntary compliance, post-award settlement between the parties, or a successful enforcement.
For costs ordered in relation to the arbitration, satisfaction was obtained in relation to 83% of costs awards.
The statistics set out in the report indicate that the Centre can be an effective platform for resolving investor-state disputes. Further, the fiscal year ending on June 30 saw the second-highest number of cases administered by the Centre since its inception.
The report should alleviate some investors’ fears regarding the failure of states to comply with ICSID awards as, in most cases, satisfaction was ultimately achieved.
All signs therefore suggest that the Centre continues not only to be a preferred forum for claimants bringing international dispute resolution proceedings against sovereign states, but also has a track record demonstrating that its awards have a high degree of compliance and enforceability.
