Environmental Engineering Reference
In-Depth Information
the possibility to assign the arbitration costs to each party independently of the
outcome. On the other hand, there is the CAM. Unlike the ICC, the CAM is a
national arbitration institution which is located in Italy. It has been dealing with
international cases for quite some time. Its main focus is on the Mediterranean area.
It cooperates closely with other regional arbitration institutions, like the CRCICA,
to exchange knowledge and arbitrators. One of the major drawbacks is that the
CAM has no experience with international big-scale projects.
Overall, it depends on how the Desertec Concept is implemented. If an investor
decides to build one centralized plant, the ICC is the better option for the commer-
cial arbitration. Vice versa, if they want to build several decentralized plants, the
ICC is also the best choice, but the CAM offers a great arbitration possibility due to
its local focus. The argument that the CAM has not arbitrated a large-scale project
and therefore should not arbitrate one right now is not a persuasive one. As a result,
the CAM would never get the chance to arbitrate any large-scale project. However,
it is doubtful that this argument would be significant for an investor. The CAM is a
great solution to combine and solve European interests and MENA resentments
against European supremacy. Due to the focus on the MENA region and the
cooperation with “Arab” institutions, the CAM might have the most experience
of the cultural specifics of the MENA region, which might lead to it being more
widely accepted. Both contractual parties might be more willing to accept CAM
rulings as they represent both of them. Yet, this does not mean that the ICC is not
highly respected, even in the MENA region. The CAM might be a new solution for
a new project, but based on the new arbitration rules of the ICC, it is advisable to
choose it. Due to the importance of the project and the wide impact investors tend to
resort to a “safe harbor”. In the case of commercial arbitration there is no institution
as prominent as the ICC. The application of the ICC could therefore help to find and
enthrall more and new investors.
Finally, arbitration is also a widely accepted form of dispute resolution in Arab
countries. A historical assessment reveals that arbitration has a long tradition within
Islam. The fact that Moroccan laws deal with international arbitration and Moroc-
can courts accept arbitration verdicts are other indicators that arbitration is accepted
in the region. Although there are some inconsistencies within Moroccan laws on
international arbitration, due to its historical acceptance and importance, there are
no doubts that arbitration is the most effective form of dispute resolution for the
Desertec Concept.
4.6
Investment Arbitration Must Be According
to the ICSID Convention
No other arbitration institution offers the same amount of investment protection as
the ICSID Convention. First, ICSID arbitrators have a lot of experience with
investment disputes. Since 1965, ICSID tribunals have dealt with investment issues.
