Environmental Engineering Reference
In-Depth Information
Chapter 2
Arbitration
This chapter deals with the question of international arbitration. This includes an
assessment of the best suited arbitration institution for the Desertec Concept.
International arbitration is frequently necessary because investors distrust the
judicial independence of the host state
s courts,
1
and its judicial system as a
whole.
2
This is especially valid for states in the Mediterranean Sea because most
of them apply the Shari
'
a.
3
The judicial system is often not independent and can be
highly corrupt.
4
Different understandings concerning legal terms and interpretation
within Islamic countries concerns foreign investors.
5
Especially in cases of a large
scale project arbitration is often recommended.
6
To find a good solution for the
Desertec Concept, it is necessary to review the different arbitration forms. This
includes an overview of arbitration institutions and arbitration regulations of
institutional and ad hoc arbitration.
As an example from the Islamic perspective, Turkish law views PPPs pertaining
to the service of general interest as contracts subject to public law.
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