Environmental Engineering Reference
In-Depth Information
Finally, tribunal emphasized the fact that a contribution to the economic develop-
ment cannot be merely speculative (unlikely in cases of public infrastructure).
542
3.7.4.3 Tribunals Opposing Contribution to the Economic
Development Element
Especially within the liberal approach, there are some tribunals opposing the
requirement of contribution to the economic development of the host state.
543
These tribunals share the opinion that the criterion of economical contribution is
too vague and that the other characteristics of the Salini test encompass economic
contribution.
544
One tribunal pointed out that the contribution of an investment to
the development is almost impossible to assess and hence a less ambiguous
approach like the contribution to the economy should be taken.
545
Such a contri-
bution
) normally inherent in the mere concept of investment as shaped
by the elements of contribution/duration/risk, and should therefore in principle be
presumed.
(
...
)is(
...
'
546
Another tribunal mentioned that this element may be a result of the
investment, but is not a prerequisite.
547
Nevertheless, it viewed it as a given in the
present case.
548
Another tribunal supported this, as contribution to the development
of the local economy is not a mandatory criterion for an investment.
549
Contribution
to the local economy is an objective of the ICSID Convention, but there is no
interpretation of the preamble in the way which shows that it is a prerequisite for an
investment.
550
It is difficult to predict how an investment will evolve over time as it
may be fruitful at the beginning, but turn into a disaster at the end.
551
If the other
Salini elements exist, the contribution does not deliver any new aspects.
552
Vice
versa, if there is a only a partial fulfillment of the other Salini requirements, the
contribution to the economic development of the host state is necessary.
553
In 2012
'
542
ICSID [2007] ARB/05/10—Award, 48-49 para 144; This decision was later on annulled, in:
ICSID [2009], ARB/05/10—Annulment, 1 (35-36) para 80-82.
543
ICSID [2006] ARB/05/3, 16-17 para 72; ICSID [2005] ARB/03/08—Award, 426 (450) para 13
(iv); Arbitration under UNCITRAL Rules, in: Peterson (
2009b
).
544
ICSID [2006] ARB/05/3, 16-17 para 72; ICSID [2005] ARB/03/08—Award, 426 (449-450)
para 13.
545
ICSID [2009] ARB/06/5—Award, 34 para 85.
546
ICSID [2009] ARB/06/5—Award, 34 para 85.
547
ICSID [2008] ARB/98/2—Award, 76 para 232.
548
ICSID [2008] ARB/98/2—Award, 77 paras 233-234.
549
ICSID [2010] ARB/07/20—Award, 36 para 111.
550
ICSID [2010] ARB/07/20—Award, 36 para 111; ICSID [2008] ARB/98/2—Award, 76-77
para 232.
551
ICSID [2010] ARB/07/16—Award, 110 para 312; ICSID [2010] ARB/07/20—Award, 36 para
111; ICSID [2008] ARB/98/2—Award, 76-77 para 232.
552
ICSID [2010] ARB/07/16—Award, 110 para 312.
553
ICSID [2007] ARB/05/10—Award, 34 para 124;
(
...
) often included (
...
)
, in: ICSID [2005]
'
'
ARB/03/29, 37 para 137.