New ICSID rules aim to modernize investment dispute proceedings
The World Bank's International Center for Settlement of Investment Disputes (ICSID) issued new rules in July 2022 to simplify its proceedings. As the fourth amendment to the existing set of rules, the changes comprise the most comprehensive review to date.
As the specialized rules of procedure for arbitration, conciliation, fact-finding, and mediation, ICSID Rules and Regulations are the most commonly used procedural rules in investor-State dispute settlement.
The main purpose of the recently-issued modernization steps is to make the proceedings more accessible, to increase their efficiency in terms of time and expenses, to reduce the environmental impacts with the use of increased technological opportunities, and to improve overall transparency in the dispute management.
The summary of the main changes are:
Efficiency in time and proceedings
The new amendment includes a number of new rules that set specific and shortened time limits for various procedural steps in order to accelerate the speed and increase the efficiency of the processes. Some of these time limits apply to the parties and some to the arbitrators.
In addition, the time-wasting process with papers comes to an end with the new changes by the practice of physical presentation of documents being abandoned and the practice of electronic submission of documents being introduced. In special cases, it is foreseen that the arbitral tribunal may also request that the documents be submitted in a different format. These steps will ensure efficiency in the proceedings by preventing loss of time.
Increasing accessibility and transparency
New regulations such as the publication of all awards and decisions on the annulments, with the consent of the parties and the participation of third parties in the hearings unless either party objects, will increase transparency and make the processes more accessible.
Reducing costs
An example regarding the reduction of costs is the arbitral tribunal's ruling on the guarantee and stay of enforcement of arbitral awards by an ad hoc committee. For a similar purpose, it is aimed to disclose the third party financier and thus to make transparent the costs that may arise during the proceedings.
Conclusion
These amendments which were long awaited represent the most extensive review of ICSID's Rules to date. It is foreseen with these final changes that the ICSID Rules will be one step closer to the required resolution methods of the modern investment disputes.
