THE ARBITRATION (INTERNATIONAL INVESTMENT DISPUTES) ACT- 2011

Law of Pakistan

THE ARBITRATION (INTERNATIONAL INVESTMENT DISPUTES) ACT, 2011

CONTENTS

SECTIONS:

1. Short title, extent and commencement.
2. Definitions.
3. Registration of awards.
4. Effect of registration.
5. Binding on the Government.
6. Government contribution to expenses under the Convention.
7. Exclusion of Arbitration Act.
8. Certain provisions of Convention to have force of law.
9. Power to make rules.
10. Federal Government to amend schedule.
SCHEDULE-[See sections 2(c) and 2(e)]

THE ARBITRATION (INTERNATIONAL INVESTMENT DISPUTES) ACT, 2011

ACT No. IX OF 2011

[30th April, 2011]

An Act to implement the International Convention on the Settlement of Investment Disputes between States and Nationals of other States

WHEREAS Pakistan has signed and ratified the International Convention on the Settlement of Investment Disputes between States and Nationals of Other States;

AND WHEREAS it is expedient to enact the law for that purpose.

It is hereby enacted as follows:­

1. Short title, extent and commencement.

(1) This Act may be called the Arbitration (International Investment Disputes) Act, 2011.
(1) It extends to the whole of Pakistan.
(2) It shall come to into force at once.

2. Definitions.

In this Act, unless there is anything repugnant in the subject or context,____

(a) “award” includes any decision interpreting, reversing or annulling an award, being a decision pursuant to the Convention, and any decision as to costs which under the Convention is to form part of the award;
(b) “Centre” means the International Centre for Settlement of Investment Disputes established by the Convention;
(c) “Convention” means the Convention on the Settlement of Investment Disputes between States and Nationals of Other States, incorporated in the Schedule;
(d) “Government ” means the Federal Government; and
(e) “Schedule” means the Schedule to this Act.

3. Registration of awards.
(1) An award shall be deemed to have been rendered pursuant to
the Convention on the date on which certified copies of the award were dispatched to the parties;
(2) Any person seeking recognition or enforcement of an award rendered pursuant to the
Convention shall be entitled to have the award registered in the High Court subject to proof of any
matters that may be prescribed and to the other provisions of this Act.
(3) In addition to the pecuniary obligations imposed by the award, the award shall be registered
for the reasonable costs of and incidental to registration.
(4) If at the date of the application for registration the pecuniary obligations imposed by the
award have been partly satisfied, the award shall be registered only in respect of the balance, and
accordingly if those obligations have been wholly satisfied, the award shall not be registered.

4. Effect of registration. Subject to the provisions of this Act, an award registered under section
3 shall, as respects the pecuniary obligations which it imposes, be of the same force and effect for the
purposes of execution as if it had been a judgment of the High Court given when the award was
rendered pursuant to the Convention and entered on the date of registration under this Act, and, so
far as it relates to such pecuniary obligations,____
(a) proceedings may be taken on the award;
(b) the sum for which the award is registered shall carry interest if the award so stipulates;
and
(c) the High Court shall have the same control over the execution of the award, as if the award had been a judgment of the High Court.

5. Binding on the Government. Sections 3 and 4 shall bind the Government but not so as to make an award enforceable against the Government in a manner in which a judgment would not be enforceable against the Government.

Provided that section 3 and 4 shall not be binding on the Government in the case of awards to which it is not a party.

6. Government contribution to expenses under the Convention. Any sums required to meet
any obligations of the Government arising out of Article 17 of the Convention (which obliges the
Contracting States to meet any deficit of the Centre) shall be charged on Government and paid
through the Budget.

7. Exclusion of Arbitration Act. The provisions of the Arbitration Act, 1940, (X of 1940) shall not
apply to proceedings pursuant to the Convention.

8. Certain provisions of Convention to have force of law. (1) Notwithstanding anything to the
contrary in any law, the provisions of Articles 18, 19, 20, 21(a), 22 of convention as it applies to
Articles 21(a), 23(1) and 24 shall have the force of law.
(2) Nothing in Article 24(1) of the Convention shall be construed as__
(a) entitling the Centre to import into Pakistan goods free of any customs duty without
restriction on their subsequent sale therein;
(b) conferring on the Centre and exemption from taxes or duties which form part of the price of goods sold; or
(c) conferring on the Centre any exemption from taxes or duties rendered.
(3) For the purposes of Article 20 and Article 21(a) of the Convention as given the force of law by this section, a statement to the effect that the Centre has waived an immunity in the circumstances specified in the statement, being a statement certified by the Secretary­General of the Centre, or by
the person acting as Secretary­ General, shall be conclusive evidence of such waiver.

9. Power to make rules. The Federal Government may make rules__
(a) to prescribe the procedure for applying for registration of an award under this Act, and to
require the applicant to give prior notice of his intention to register to other parties;
(b) to prescribe matters to be proved on the application and the manner of proof, and in
particular to require the applicant to furnish a copy of the award certified pursuant to the
Convention;
(c) to provide for the service of notice of registration of the award by the applicant on other
parties;
(d) to provide for the stay of execution whether provisionally or otherwise of any award
registered under this Act in accordance with the provisions of the Convention; and
(e) on any other matter which may be necessary to carryout the purposes of this Act.

10. Federal Government to amend Schedule. The Federal Government may, by notification in the official Gazette; amend the Schedule in conformity with any amendments to the provisions, of the
Convention set out therein which may hereafter be duly made and adopted.

SCHEDULE

[See sections 2(c) and 2 (e)]

CONVENTION OF THE SETTLEMENT OF INVESTMENT DISPUTES BETWEEN STATE AND NATIONALS OF OTHER STATES

PREAMBLE

The Contracting States

CONSIDERING the need for international cooperation for economic development, and the role
of private international investment therein;

BEARING IN MIND the possibility that from time to time disputes may arise in connection with
such investment between Contracting States and nationals of other Contracting States;

RECOGNIZING that while such disputes would usually be subject to national legal processes,
international methods of settlement may be appropriate in certain cases;

ATTACHING PARTICULAR IMPORTANCE to the availability of facilities for international
conciliation or arbitration to which Contracting States and nationals of other contracting States may
submit such disputes if they so desire;

DESIRING to establish such facilities under the auspices of the International Bank for Reconstruction and Development;

RECOGNIZING that mutual consent by the parties to submit such disputes to conciliation or to
arbitration through such facilities constitutes a binding agreement which requires in particular that
due consideration be given to any recommendation of conciliators, and that any arbitral award be
complied with; and

DECLARING that no Contracting State shall by the mere fact of its ratification acceptance or
approval of this Convention and without its consent be deemed to be under any obligation to submit
any particular dispute to conciliation or arbitration,

HAVE AGREED as follows:­

CHAPTER I

INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES

SECTION 1: ESTABLISHMENT AND ORGANIZATION
ARTICLE 1
(1) There is hereby established the International Centre for Settlement of Investment Disputes
(hereinafter called the Centre).
(2) The purpose of the Centre shall be to provide facilities for conciliation and arbitration of
investment disputes between Contracting States and nationals of other Contracting States in
accordance with the provisions of this Convention.
ARTICLE 2
The seat of the Centre shall be at the principal office of the International Bank for Reconstruction
and Development (hereinafter called the Bank). The seat may be moved to another place by decision
of the Administrative Council adopted by a majority of two­thirds of its members.
ARTICLE 3
The Centre shall have an Administrative Council and a Secretariat and shall maintain a Panel of
Conciliators and a Panel of Arbitrators.

SECTION 2.__ THE ADMINISTRATIVE COUNCIL
ARTICLE 4
(1) The Administrative Council shall be composed of one representative of each Contracting
State. An alternate may act as representative in case of his principal’s absence from a meeting or
inability to act.
(2) In the absence of a contrary designation, each Governor and alternate Governor of the Bank
appointed by a Contracting State shall be ex­officio its representative and its alternate respectively.
ARTICLE 5
The President of the Bank shall be ex­officio Chairman of the Administrative Council
(hereinafter called the Chairman) but shall have no vote. During his absence or inability to act and
during any vacancy in the office of President of the Bank, the person for the time being acting as
President shall act as Chairman of the Administrative Council.
ARTICLE 6
(1) Without prejudice to the powers and functions vested in it by other provisions of this
Convention, the Administrative Council shall;__
(a) adopt the administrative and financial regulations of the Centre;
(b) adopt the rules of procedure for the institution of conciliation and arbitration proceedings;
(c) adopt the rules of procedure for conciliation and arbitration proceedings (hereinafter
called the Conciliation Rules and the Arbitration Rules);
(d) approve arrangements with the Bank for the use of the Bank’s administrative facilities and
services;
(e) determine the conditions of service of the Secretary General and of any Deputy SecretaryGeneral;
(f) adopt the annual budget of revenues and expenditures of the centre;
(g) approve the annual report on the operation of the Centre.
The decisions referred to in sub­paragraphs (a), (b),(c) and (f) above shall be adopted by a
majority of two­thirds of the members of the Administrative Council.
(2) The Administrative Council may appoint such committees as it considers necessary.
(3) The Administrative Council shall also exercise such other powers and perform such other
functions as it shall determine to be necessary for the implementation of the provisions of the
Convention.

ARTICLE 7
(1) The Administrative Council shall hold an annual meeting and such other meetings as may be
determined by the Council, or convened by the Chairman, or convened by the Secretary­General at
the request of not less than five members of the Council.
(2) Each member of the Administrative Council shall have one vote and, except as otherwise
herein provided, all matters before the Council shall be decided by a majority of the votes cast.
(3) A quorum for any meeting of the Administrative Council shall be a majority of its members.
(4) The Administrative Council may establish, by a majority of two­thirds of its members, a
procedure whereby the Chairman may seek a vote of the Council without convening a meeting of the
Council. The vote shall be considered valid only if the majority of the members of the Council cast
their votes within limit fixed by the said procedure.
ARTICLE 8
Members of the Administrative Council and the Chairman shall serve without remuneration from
the Centre.

SECTION 3. THE SECRETARIAT
ARTICLE 9
The Secretariat shall consist of a Secretary­General, one or more Deputy Secretaries­General and
Staff.
ARTICLE 10
(1) The Secretary­General and any Deputy Secretary­General shall be elected by the
Administrative Council by a majority of two­thirds of its members upon the nomination of the
Chairman for a term of service not exceeding six years and shall be eligible for re­election. After
consulting the members of the Administrative Council, the Chairman shall propose one or more
candidates for each such office.
(2)The offices of Secretary­General and Deputy Secretary­General shall be incompatible with the
exercise of any political function. Neither the Secretary­General nor any Deputy Secretary­General
may hold any other employment or engage in any other occupation except with the approval of the
Administrative Council.
(3) During the Secretary­General’s absence or inability to act, and during any vacancy of the
office of Secretary­General, the Deputy Secretary General shall act as Secretary­General. If there
shall be more than one Deputy Secretary­General, the Administrative Council shall determine in
advance the order in which they shall act as Secretary­General.

ARTICLE 11
The Secretary­General shall be the legal representative and the principal officer of the Centre and
shall be responsible for its administration, including the appointment of staff in accordance with the
provisions of this Convention and the rules adopted by the Administrative Council. He shall perform
the function of registrar and shall have the power to authenticate arbitral awards rendered pursuant to
this Convention, and to certify copies thereof.

SECTION 4. THE PANELS
ARTICLE 12
The Panel of Conciliators and the Panel of Arbitrators shall each consist of qualified, persons,
designated as hereinafter provided, who are willing to serve thereon.
ARTICLE 13
(1) Each Contracting State may designate to each Panel four persons who may but need not be its
nationals.
(2) The Chairman may designate ten persons to each Panel. The persons so designated to a Panel
shall each have a different nationality.
ARTICLE 14
(1) Person designated to serve on the Panels shall be persons of high moral character and
recognized competence in the fields of law, commerce, industry or finance, who may be relied upon
to exercise independent judgment. Competence in the Field of law shall be of particular importance in
the case of persons on the Panel of Arbitrators.
(2) The Chairman, in designating persons to serve on the Panels, shall in addition pay due regard
to the importance of assuring representation on the Panels of the principal legal systems of the world
and of the main forms of economic activity.
ARTICLE 15
(1) Panel members shall serve for renewable periods of six years.
(2) In case of death or resignation of a member of a Panel, the authority which designated the
member shall have the right to designate another person to serve for the remainder of that member’s
term:
(3) Panel members shall continue in office until their successors have been designated.
ARTICLE 16
(1) A person may serve on both Panels.

(2) If a person shall have been designated to serve on the same Panel by more than one
Contracting State, or by one or more Contracting States and the Chairman, he shall be deemed to
have been designated by the authority which First designated him or, if one such authority is the State
or which he is a national, by that State.
(3) All designations shall be notified to the Secretary­General and shall take effect from the date
on which the notification is received.
SECTION 5.__ FINANCING THE CENTRE
ARTICLE 17
If the expenditure of the Centre cannot be met out of charges for the use of its facilities, or out of
other receipts, the excess shall be borne by Contracting States which are members of the Bank in
proportion to their respective subscriptions to the capital stock of the Bank, and by Contracting States
which are not members of the Bank in accordance with rules adopted by the Administrative Council.
SECTION 6: STATUS, IMMUNITIES AND PRIVILEGES
ARTICLE 18
The Centre shall have full international legal personality. The legal capacity of the Centre shall
include the capacity:
(a) to contract;
(b) to acquire and dispose of movable and immovable property;
(c) to institute legal proceedings.
ARTICLE 19
To enable the Centre to fulfill its functions, it shall enjoy in the territories of each Contracting
State the immunities and privileges set forth in the section.
ARTICLE 20
The Centre, its property and assets shall enjoy immunity from all legal process, except when the
Centre waives this immunity.
ARTICLE 21
The Chairman, the Members of the Administrative Council, persons acting as conciliators or
arbitrators or Members of a Committee appointed pursuant to paragraph (3) of Article 52, and the
officers and employees of the Secretariat:
(a) shall enjoy immunity from legal process with respect to acts performed by them in the
exercise of their functions, except when the Centre waives this immunity;
(b) not being local nationals, shall enjoy the same immunities from immigration restrictions,
alien registration requirements and national service obligations, the same facilities as
regards exchange restrictions and the same treatment in respect of traveling facilities as
are accorded by Contracting States to the representatives, officials and employees of
comparable rank of other Contracting States.

ARTICLE 22
The provisions of Article 21 shall apply to persons appearing in proceedings under this
Convention as parties, agents, counsel, advocates, witnesses or experts; provided, however, that subparagraph (b) thereof shall apply only in connection with their travel to and from, and their stay at,
the place where the proceedings are held.

ARTICLE 23
(1) The archives of the Centre shall be inviolable, wherever they may be.
(2) With regard to its official communications, the Centre shall be accorded by each Contracting
State treatment not less favorable than that accorded to other international organizations.

ARTICLE 24
(1) The Centre, its assets, property and income, and its operations and transactions authorized by
this Convention shall be exempt from all taxation and customs duties. The Centre shall also be
exempt from liability for the collection or payment of any taxes or customs duties.
(2) Except in the case of local nationals, no tax shall be levied on or in respect of expense
allowances paid by the Centre to the Chairman or members of the Administrative Council, or on or in
respect of salaries, expense allowances or other emoluments paid by the Centre to officials or
employees of the Secretariat.
(3) No tax shall be levied on or in respect of fees or expense allowances received by persons
acting as conciliators, or arbitrators, or members of a Committee appointed pursuant to paragraph (3)
of Article 52, in proceedings under this Convention, if the sole jurisdictional basis for such tax is the
location of the Centre or place where such proceedings are conducted or the place where such fees or
allowances are paid.

CHAPTER II
JURISDICTION OF THE CENTRE

ARTICLE 25
(1) The jurisdiction of the Centre shall extend to any legal dispute arising directly out of an
investment, between a Contracting State (or any constituent sub­division or agency of a Contracting
State designated to the Centre by that State) and a national of another Contracting State, which the
parties to the dispute consent in writing to submit to the Centre. When the parties have given their
consent, no party may withdraw its consent unilaterally.
(2) “National of another Contracting State” means:
(a) any natural person who had the nationality of a Contracting State other than the State
party to the dispute on the date on which the parties consented to submit such dispute to
conciliation or arbitration as well as on the date on which the request was registered
pursuant to paragraph (3) of Article 28 or paragraph (3) of Article 36, but does not
include any person who on either date also had the nationality of the Contracting State
party to the dispute; and
(b) any juridical person which had the nationality of a Contracting State other than the State
party to the dispute on the date on which the parties consented to submit such dispute to
conciliation or arbitration and any juridical person which had the nationality of the
Contracting State party to the dispute on that date and which, because of foreign control,
the’ parties have agreed should be treated as a national of another Contracting State for
the purposes of this Convention.
(3) Consent by a constituent sub­division or agency of a Contracting State shall require the
approval of that State unless that State notifies the Centre that no such approval is required.
(4) Any Contracting State may, at the time of ratification, acceptance or approval of this
Convention or at any time thereafter, notify the Centre of the class or classes of disputes which it
would or would not consider submitting to the jurisdiction of the Centre. The Secretary­General shall
forthwith transmit such notification to all Contracting States. Such notification shall not constitute the
consent required by paragraph (1).
ARTICLE 26
Consent of the parties to arbitration under this Convention shall, unless otherwise stated, be
deemed consent to such arbitration to the exclusion of any other remedy. A Contracting State may
require the exhaustion of local administrative or judicial remedies as a condition of its consent to
arbitration under this Convention.
ARTICLE 27
(1) No Contracting State shall give diplomatic protection, or bring an international claim, in
respect of a dispute which one of its nationals and another Contracting State shall have consented to
submit or shall have submitted to arbitration under this Convention, unless such other Contracting
State shall have failed to abide by and comply with the award rendered in such dispute.
(2) Diplomatic protection, for the purposes of paragraph (1), shall not include informal diplomatic
exchanges for the sole purpose of facilitating a settlement of the dispute.

CHAPTER III
CONCILIATION

SECTION 1. REQUEST FOR CONCILIATION.

ARTICLE 28
(1) Any Contracting State or any national of a Contracting State wishing to institute conciliation
proceedings shall address a request to that effect in writing to the Secretary­General who shall send a
copy of the request to the other party.
(2) The request shall contain information concerning the issues in dispute, the identity of the
parties and their consent to conciliation in accordance with the rules of procedure for the institution
of conciliation and arbitration proceedings.
(3) The Secretary­General shall register the request unless he finds, on the basis of the
information contained in the request that the dispute is manifestly outside the jurisdiction of the
Centre. He shall forthwith notify the parties of registration or refusal to register.

SECTION 2. CONSTITUTION OF THE CONCILIATION COMMISSION.
ARTICLE 29
(1) The Conciliation Commission (hereinafter called the Commission) shall be constituted as soon
as possible after registration of a request pursuant to Article 28.
(2) (a) The Commission shall consist of a sole conciliator or any uneven number of conciliators
appointed as the parties shall agree.
(b) Where the parties do not agree upon the number of conciliator and the method of their
appointment, the Commission shall consist of three conciliators, one conciliator appointed
by each party and the third, who shall be the President of the Commission, appointed by
agreement of the parties.
ARTICLE 30
If the Commission shall not have been constituted within 90 days after notice of registration of
the request has been dispatched by the Secretary­General in accordance with paragraph (3) of Article
28, or such other period as the parties may agree, the Chairman shall, at the request of either party
and after consulting both parties as far as possible, appoint the conciliator or conciliators not yet
appointed.
ARTICLE 31
(1) Conciliators may be appointed from outside the Panel of Conciliators, except in the case of
appointments by the Chairman pursuant to Article 30.
(2) Conciliators appointed from outside the Panel of Conciliators shall possess the qualities stated
in paragraph (1) of Article 14.

SECTION 3. CONCILIATION PROCEEDINGS
ARTICLE 32
(1) The Commission shall be the Judge of its own competence.
(2) Any objection by a party to the dispute that the dispute is not within the jurisdiction of the
Centre, or for other reasons is not within the competence of the Commission, shall be considered by
the Commission which shall determine whether to deal with it as a preliminary question or to join it to
the merits of the dispute.
ARTICLE 33
Any conciliation proceeding shall be conducted in accordance with the provisions of this section
and, except as the parties otherwise agree, in accordance with the Conciliation Rules in effect on the
date on which the parties consented to conciliation. If any question of procedure arises which is not
covered by this section or the Conciliation Rules or any rules agreed by the parties, the Commission
shall decide the question.
ARTICLE 34
(1) It shall be the duty of the Commission to clarify the issues in dispute between the parties and
to endeavor to bring about agreement between them upon mutually acceptable terms. To that end, the Commission may at any stage of the proceedings and from time to time recommend terms of
settlement to the parties. The parties shall cooperate in good faith with the Commission in order to
enable the Commission to carry out its functions, and shall give their most serious consideration to its
recommendations.
(2) If the parties reach agreement, the Commission shall draw up a report noting the issues in
dispute and recording that the parties have reached agreement. If, at any stage of the proceedings, it
appears to the Commission that there is no likelihood of agreement between the parties, it shall close
the proceedings and shall draw up a report noting the submission of the dispute and recording the
failure of the parties to reach agreement. If one party fails to appear or participate in the proceedings,
the Commission shall close the proceedings and shall draw up a report noting that party’s failure to
appear or participate.
ARTICLE 35
Except as the parties to the dispute shall otherwise agree, neither party to a conciliation
proceeding shall be entitled in any other proceeding, whether before arbitrators or in a Court of law
or otherwise to invoke or rely on any views expressed or statements or admissions or offers of
settlement made by the other party in the conciliation proceedings, or the report of any
recommendations made by the Commission.

CHAPTER IV
ARBITRATION

SECTION 1. REQUEST FOR ARBITRATION
ARTICLE 36
(1) Any Contracting State or any national of a Contracting State wishing to institute arbitration
proceedings shall address a request to that effect in writing to the Secretary­General who shall send a
copy of the request to the other party.
(2) the request shall contain information concerning the issues in dispute, the identity of the
parties and their consent to arbitration in accordance with the rules of procedure for the institution of
conciliation and arbitration proceedings.
(3) The Secretary­General shall register the request unless he finds, on the basis of the
information contained in the request that the dispute is manifestly outside the jurisdiction of the
Centre. He shall forthwith notify the patties of registration or refusal to register.
SECTION 2.
CONSTITUTION OF THE TRIBUNAL
ARTICLE 37
(1) The Arbitral Tribunal (hereinafter called the Tribunal) shall be constituted as soon as possible
after registration of a request pursuant to Article 36.
(2) (a) Tribunal shall consist of a sole arbitrator or any uneven number of arbitrators appointed as
the parties shall agree.
(b) Where the parties do not agree upon the number of arbitrators and the method of their
appointment, the Tribunal shall consist of three arbitrators, one arbitrator appointed by
each party and the third, who shall be the President of the Tribunal, appointed by
agreement of the parties.

ARTICLE 38
If the Tribunal shall not have been constituted within 90 days after notice of registration of the
request has been dispatched by the Secretary­General in accordance with paragraph (3) of Article 36,
or such other period as the parties may agree, the Chairman shall, at the request of either party and
after consulting both parties as far as possible, appoint the arbitrator or arbitrators not yet appointed.
Arbitrators appointed by the Chairman pursuant to this Article shall not be nationals of the
Contracting State party to the dispute. or of the Contracting State whose national is a party to the
dispute.

ARTICLE 39
The majority of the arbitrators shall be nationals of States other than the Contracting State party
to the dispute and the Contracting State whose national is a party to the dispute; provided, however, that the foregoing provisions of this Article shall not apply if the sole arbitrator or each individual member of the Tribunal has been appointed by agreement of the parties.

ARTICLE 40
(1) Arbitrators may be appointed from outside the Panel of Arbitrators, except in the case of
appointments by the Chairman pursuant to Article 38.
(2) Arbitrators appointed from outside the Panel of Arbitrators shall possess the qualities stated in
paragraph (1) of Article 14.

SECTION 3. POWERS AND FUNCTIONS OF THE TRIBUNAL

ARTICLE 41
(1) The Tribunal shall be the judge of its own competence.
(2) Any objection by a party to the dispute that dispute is not within the jurisdiction of the Centre,
or for other reasons is not within the competence of the Tribunal, shall be considered by the Tribunal
which shall determine whether to deal with it as a preliminary question or to join it to the merits of the
dispute.

ARTICLE 42
(1) The Tribunal shall decide a dispute in accordance with such rules of law as may be agreed by
the parties. In the absence of such agreement, the Tribunal shall apply the law of the Contracting
State party to the dispute (including its rules on the conflict of laws) and such rules of international
law as may be applicable.
(2) The Tribunal may not bring in a finding of non liquet on the ground of silence or obscurity of
the law.
(3) The provisions of paragraphs (1) and (2) shall not prejudice the power of the Tribunal to
decide a dispute ex aequo et bono if the parties so agree.
ARTICLE 43
(1) Except as the parties otherwise agree, the Tribunal may, if it deems it necessary at any stage
of the proceedings;
(a) call upon the parties to produce documents or other evidence, and
(b) visit the scene connected with the dispute, and conduct such inquiries there as it may
deem appropriate.
ARTICLE 44
Any arbitration proceeding shall be conducted in accordance with the provisions of this section
and, except as the parties otherwise agree, in accordance with the Arbitration Rules in effect on the date on which the parties consented to arbitration. If any question of procedure arises which is not covered by this section or the Arbitration Rules or any rules agreed by the parties, the Tribunal shall decide the question.

ARTICLE 45
(1) Failure of a party to appear or to present his case shall not be deemed an admission of the
other party’s assertions.
(2) If a party fails to appear or to present his case at any stage of the proceedings the other party
may request the Tribunal to deal with the questions submitted to it and to render an award. Before
rendering an award, the Tribunal shall notify, and grant a period of grace to, the party failing to
appear or to present its case, unless it is satisfied that party does not intend to do so.

ARTICLE 46
Except as the parties otherwise agree, the Tribunal shall, if requested by a party, determine any
incidental or additional claims or counter­claims arising directly out of the subject­matter of the
dispute provided that they are within the scope of the consent of the parties and are otherwise within
the jurisdiction of the Centre.
ARTICLE 47
Except as the parties otherwise agree, the Tribunal may, if it considers that the circumstances so
require, recommend any provisional measures which should be taken to preserve the respective rights
of either party.

SECTION 4. THE AWARD
ARTICLE 48
(1) The Tribunal shall decide questions by a majority of the votes of all its members.
(2) The award of the Tribunal shall be in writing and shall be signed by the Members of the
Tribunal who voted for it.
(3) The award shall deal with every question submitted to the Tribunal, and shall state the reasons
upon which it is based.
(4) Any Member of the Tribunal may attach his individual opinion to the award, whether he
dissents from the majority or not, or a statement of his dissent.
(5)The Centre shall not publish the award without the consent of the parties.
ARTICLE 49
(1)The Secretary­General shall promptly dispatch certified copies of the award to the parties. The
award shall be deemed to have been rendered on the date on which the certified copies were dispatched.
(2) The Tribunal upon the request of a party made within 45 days after the date on which the
award was rendered may after notice to the other party decide any question which it had omitted to
decide in the award, and shall rectify any clerical, arithmetical or similar error in the award. Its
decision shall become part of the award and shall be notified to the parties in the same manner as the
award. The periods of time provided for under paragraph (2) of Article 51 and paragraph (2) of
Article 52 shall run from the date on which the decision was rendered.

SECTION 5.
INTERPRETATION, REVISION AND ANNULMENT OF THE AWARD

ARTICLE 50
(1) If any dispute shall arise between the parties as to the meaning or scope of an award, either
party may request interpretation of the award by an application in writing addressed to the SecretaryGeneral.
(2) The request shall, if possible, be submitted to the Tribunal which rendered the award. If this
shall not be possible, a new Tribunal shall be constituted in accordance with section 2 of this Chapter.
The Tribunal may, if it considers that the circumstances so require, stay enforcement of the award
pending its decision.

ARTICLE 51
(1) Either party may request revision of the award by an application in writing addressed to the
Secretary­General on the ground of discovery of some fact of such a nature as decisively to affect the
award, provided that when the award was rendered that fact was unknown to the Tribunal and to the
applicant and that the applicant’s ignorance of that fact was not due to negligence.
(2) The application shall be made within 90 days after the discovery of such fact and in any event
within three years after the date on which the award was rendered.
(3) The request shall, if possible, be submitted to the Tribunal which rendered the award. If this
shall not be possible, a new Tribunal shall be constituted in accordance with section 2 of this Chapter.
(4) The Tribunal may, if it considers that the circumstances so require, stay enforcement of the
award pending its decision. If the applicant requests a stay of enforcement of the award in his
application, enforcement shall be stayed provisionally until the Tribunal rules on such request.

ARTICLE 52
(1) Either party may request annulment of the award by an application in writing addressed to the
Secretary­General on one or more of the following grounds:___
(a) that the Tribunal was not properly constituted;
(b) that the Tribunal has manifestly exceeded its powers;
(c) that there was corruption on the part of a Member of the Tribunal;
(d) that there has been a serious departure from a fundamental rule of procedure; or
(e) that the award has failed to state the reasons on which it is based.
(2) The application shall be made within 120 days after the date on which the award was
rendered except that when annulment is requested on the ground of corruption such application shall
be made within 120 days after discovery of the corruption and in any event within three years after
the date on which the award was rendered.
(3) On receipt of the request the Chairman shall forthwith appoint from the Panel of Arbitrators
an ad hoc Committee of three persons. None of the Members of the Committee shall have been a
Member of the Tribunal which rendered the award, shall be of the same nationality as any such
member, shall be a national of the State party to the dispute or of the State whose national is a party
to the dispute, shall have been designated to the Panel of Arbitrators by either of those States, or shall
have acted as a conciliator in the same dispute. The Committee shall have the authority to annul the
award or any part thereof on any of the grounds set forth in paragraph (1).
(4) The provisions of Articles 41, 45, 48, 49, 53 and 54, and of Chapters VI and VII shall apply
mutatis mutandis to proceedings before the Committee.
(5) The Committee may, if it considers that the circumstances so require, stay enforcement of the
award pending its decision. If the applicant requests a stay of enforcement of the award in his
application, enforcement shall be stayed provisionally until the Committee rules on such request.
(6) If the award is annulled the dispute shall, at the request of either party, be submitted to a new
Tribunal constituted in accordance with section 2 of this Chapter.

SECTION 6.  RECOGNITION AND ENFORCEMENT OF THE AWARD

ARTICLE 53
(1) The award shall be binding on the parties and shall not be subject to any appeal or to any
other remedy except those provided for in this Convention. Each party shall abide by and comply
with the terms of the award except to the extent that enforcement shall have been stayed pursuant to
the relevant provisions of this Convention.
(2) For the purposes of this .section, “award” shall include any decision interpreting, revising or
annulling such award pursuant to Articles 50, 51 or 52.

ARTICLE 54
(1) Each Contracting State shall recognize an award rendered pursuant to this Convention as binding and enforce the pecuniary obligations imposed by that award within its
territories as if it were a final judgment of a Court in that State. A Contracting State with a federal
constitution may enforce such an award in or through its federal Courts and may provide that such
Courts shall treat the award as if it were a final judgment of the courts of a constituent state.
(2) A party seeking recognition or enforcement in the territories of a Contracting State shall
furnish to a competent Court or other authority which such State shall have designated for this
purpose a copy of the award certified by the Secretary­General. Each Contracting State shall notify
the Secretary­General of the designation of the competent Court or other authority for this purpose
and of any subsequent change in such designation.
(3) Execution of the award shall be governed by the laws concerning the execution of judgments
in force in the State in whose territories such execution is sought.

ARTICLE 55
Nothing in Article 54 shall be construed as derogating from the law in force in any Contracting
State relating to immunity of that State or of any foreign State from execution.

CHAPTER V
REPLACEMENT AND DISQUALIFICATION OF CONCILIATORS AND ARBITRATORS

ARTICLE 56
(1) After a Commission or a Tribunal has been constituted and proceedings have begun, its
composition shall remain unchanged; provided, however, that if a conciliator or an arbitrator should
die, become incapacitated, or resign, the resulting vacancy shall be filled in accordance with the
provisions of section 2 of Chapter III or section 2 of Chapter IV.
(2) A member of a Commission or Tribunal shall continue to serve in that capacity
notwithstanding that he shall have ceased to be a member of the Panel.
(3) If a conciliator or arbitrator appointed by a party shall have resigned without the consent of
the Commission or Tribunal of which he was a member, the Chairman shall appoint a person from the
appropriate Panel to fill the resulting vacancy.

ARTICLE 57
A party may propose to a Commission or Tribunal the disqualification of any of its members on
account of any fact indicating a manifest lack of the qualities required by paragraph (1) of Article 14.
A party to arbitration proceedings may, in addition, propose the disqualification of an arbitrator on
the ground that he was ineligible for appointment to the Tribunal under section 2 of Chapter IV.

ARTICLE 58
The decision on any proposal to disqualify a conciliator or arbitrator shall be taken by the other
members of the Commission or Tribunal as the case may be, provided that where those members are
equally divided, or in the case of a proposal to disqualify a sole conciliator or arbitrator, or a majority
of the conciliators or arbitrators, the Chairman shall take that decision. If it is decided that the
proposal well­founded the conciliator or arbitrator to whom the decision relates shall be replaced in
accordance with the provisions of section 2 of Chapter III or Section 2 of Chapter IV.

CHAPTER VI
COST OF PROCEEDINGS

ARTICLE 59
The charges payable by the parties for the use of the facilities of the Centre shall be determined
by the Secretary­General in accordance with the regulations adopted by the Administrative Council.

ARTICLE 60
(2) Each Commission and each Tribunal shall determine the fees and expenses of its members
within limits established from time to time by the Administrative Council and after consultation with
the Secretary­General.
(2) Nothing in paragraph (1) of this Article shall preclude the parties from agreeing in advance
with the Commission or Tribunal concerned upon the fees and expenses of its members.

ARTICLE 61
(1) In the case of conciliation proceedings the fees and expenses of Members of the Commission
as well as the charges for the use of the facilities of the Centre, shall be borne equally by the parties.
Each party shall bear any other expenses it incurs in connection with the proceedings.
(2) In the case of arbitration proceedings the Tribunal shall, except as the parties otherwise agree,
assess the expenses incurred by the parties in connection with the proceedings, and shall decide how
and by whom those expenses, the fees and expenses of the members of the Tribunal and the charges
for the use of the facilities of the Centre shall be paid. Such decision shall form part of the award.

CHAPTER VII
PLACE OF PROCEEDINGS

ARTICLE 62
Conciliation and arbitration proceedings shall be held at the seat of the Centre except as
hereinafter provided.

ARTICLE 63
Conciliation and arbitration proceedings may be held, if the parties so agree,
(a) at the seat of the Permanent Court of Arbitration or of any other appropriate institution,
whether private or public, with which the Centre may make arrangements for that
purpose; or
(b) at any other place approved by the Commission or Tribunal after consultation with the
Secretary­General.

CHAPTER VIII
DISPUTES BETWEEN CONTRACTING STATES

ARTICLE 64
Any dispute arising between, Contracting States concerning the interpretation or application of
this Convention which is not settled by negotiation shall be referred to the International Court of
Justice by the application of any party to such dispute, unless the States concerned agree to another
method of settlement.

CHAPTER IX
AMENDMENT

ARTICLE 65
Any Contracting State may propose amendment of this Convention. The text of a proposed
amendment shall be communicated “to the Secretary­General not less than 90 days prior to the
meeting of the Administrative Council at which such amendment is to be considered and shall
forthwith be transmitted by him to all the Members of the Administrative Council.

ARTICLE 66
(1) If the Administrative Council shall so decide by a majority of two­thirds of its members, the
proposed amendment shall be circulated to all Contracting States for ratification, acceptance or
approval. Each amendment shall enter into force 30 days after dispatch by the depository of the
Convention of a notification to Contracting States that all Contracting States have ratified, accepted
or approved the amendment.
(2) No amendment shall affect the rights or obligations under this Convention of any Contracting
State or of any of its constituent sub­divisions or agencies, or of any national of such State arising out
of consent to the jurisdiction of the Centre given before the date of entry into force of the amendment.

CHAPTER X
FINAL PROVISIONS

ARTICLE 67
This Convention shall be open for signature on behalf of States members of the Bank. It shall
also be open for signature on behalf of any other State which is a party to the Statute of the
International Court of Justice and which the Administrative Council, by a vote of two­thirds of its
members, shall have invited to sign the Convention.

ARTICLE 68
(1)This Convention shall be subject to ratification, acceptance or approval by the signatory States
in accordance with their respective constitutional procedures.
(2) This Convention shall enter into force 30 days after the date of deposit of the twentieth
instrument of ratification, acceptance or approval. It shall enter into force for each State which
subsequently deposits its instrument of ratification, acceptance or approval 30 days after the date of
such deposit.

ARTICLE 69
Each Contracting State shall take such legislative or other measures as may be necessary for
making the provisions of this Convention effective in its territories.

ARTICLE 70
This Convention shall apply to all territories for whose international relations a Contracting
State is responsible, except those which are excluded by such State by written notice to the
depository of this Convention either at the time of ratification, acceptance, or approval or
subsequently.

ARTICLE 71
Any Contracting State may denounce this Convention by written notice to the depositary of this Convention. The denunciation shall take effect six months after receipt of such notice.

ARTICLE 72
Notice by Contracting State pursuant to Article 70 or 71 shall not affect the rights or obligations under this Convention of that State or of any of its constituent sub­divisions or agencies or of any national of that State arising out of consent to the jurisdiction of the Centre given by one of them before such notice was received by the depositary.

ARTICLE 73
Instruments of ratification, acceptance or approval of this Convention and of amendments thereto shall be deposited with the Bank which shall act as the depositary of this Convention. The depositary shall transmit certified copies of this Convention to States members of the Bank and to any other State invited to sign the Convention.

ARTICLE 74
The depositary shall register this Convention with the Secretariat of the United Nations in accordance
with Article 102 of the Charter of the United Nations and the Regulations there under adopted by the
General Assembly.

ARTICLE 75
The depositary shall notify all signatory States of the following:
(a) signatures in accordance with Article 67;
(b) deposits of instruments of ratification, acceptance and approval in accordance with Article 73;
(c) the date on which this Convention enters into force in accordance with Article 68;
(d) exclusions from territorial application pursuant to Article 70;
(e) the date on which any amendment of this Convention enters into force in accordance with
Article 66; and
(f) denunciations in accordance with Article 71.

DONE at Washington, in the English, French and Spanish languages, all three texts being equally
authentic, in a single copy which shall remain deposited in the archives of the International Bank for
Reconstruction and Development, which has indicated by its signature below its agreement to fulfill
the functions with which it is charged under this Convention.