Environmental Engineering Reference
In-Depth Information
The
MHS v Malaysia
tribunal was one of the few applying the requirement of
contribution to the economic development in a very strict and decisive way.
531
It
claimed that ICSID tribunals must ignore every political and cultural benefit
resulting from the project, except when these benefits result in economic bene-
fits.
532
Hence, there should be a difference between benefits for the business
(investor) and benefits for the local economy.
533
A frequent argument supporting
the application of this element rests in the Preamble of the Convention, which
already mentions the need for “economic development”.
534
In addition, it is some-
times mentioned that the ICSID Convention was concluded under the auspices of
the IBRD.
535
Since one of the main tasks of the IBRD is the support of developing
countries, investment must contribute to the local economy. One ICSID tribunal
claims that all ICSID tribunals take the criterion of contributing to the economic
development into account, explicitly or implicitly.
536
Other tribunals just simply
assessed the criterion without further explanation.
537
Another ICSID tribunal
pointed out that the ICSID Convention does not protect 100 %- owned foreign
property, but only projects which fulfill the Salini test and hence contribute to the
economic development.
538
Then, the tribunal mentioned that:
(
) [A]n essential - although not sufficient - characteristic or unquestionable criterion of
the investment, (which) does not mean that this contribution must always be sizable or
successful (
...
).
539
...
The same tribunal highlighted that there can be an expression in various forms in
the economic development which varies from case to case.
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In a dissenting
opinion it is highlighted that the criterion should be part of the notion of investment,
but it is part of the other Salini criteria and does not need a separate assessment.
541
88; The bank operated in the area of host state and investor
s home state (however both countries
used to be one), in ICSID [1999] ARB/97/4—Decision, 251 (252) para 2; Widening and deepening
southern stretches of the Suez Canal in Egypt, in: ICSID [2006] ARB/04/13, 6 para 9 and 29 para
92; BOT/concession power plant in Turkey, in: ICSID [2004] ARB/02/5—Decision, 8-9 paras
18-20.
531
ICSID [2007] ARB/05/10—Award, 47 para 138.
532
ICSID [2007] ARB/05/10—Award, 47 para 138.
533
ICSID [2007] ARB/05/10—Award, 47 para 138.
534
'
ICSID [2007] ARB/05/10—Award, 20 para 66; ICSID [2006] ARB/99/7—Annulment, 12-13
paras 28-30; ICSID [2005] ARB/03/29, 37 para 137; ICSID [1999] ARB/97/4—Decision,
251 (273) para 64.
535
ICSID [2006] ARB/99/7—Annulment, 12 para 28.
536
ICSID [2006] ARB/99/7—Annulment, 12 para 29; E.g. implicitly checked, in: ICSID [1999]
ARB/94/2—Award, 197 (228-229) paras 119-125.
537
ICSID [2010] ARB/08/20, 28-29 para 80.
538
ICSID [2006] ARB/99/7—Annulment, 15 para 38.
539
ICSID [2006] ARB/99/7—Annulment, 14 para 33.
540
ICSID [2006] ARB/99/7—Annulment, 14 para 33.
541
ICSID [2012] ARB/09/2—Dissenting Opinion of Makhdoom Ali Khan, 17-18 paras 46-48.
