Environmental Engineering Reference
In-Depth Information
Directors of the World Bank formulated the ICSID Convention, which was opened
for signature in 1965.
60
Thus, the ICSID is a part of the so-called World Bank
Group, however it is an own legal entity of international law.
61
According to its
Preamble, the goal of the ICSID Convention is to promote foreign investment.
Nevertheless, the ICSID is not a court as it only delivers a forum to investment
arbitration.
62
The ICSID Convention delivers a comprehensive procedure for
investment arbitration and consequently excludes the application of national arbi-
tration regulations.
Today, ICSID tribunals deal with more than half of all investment disputes
worldwide.
63
The amount of new cases has been constantly growing since the
mid-1990s.
64
Although the headquarters are in Washington D.C., the ICSID is an
international arbitration institution.
65
One of the main purposes of the ICSID
Convention is the balance between the parties, because an investor (private) faces
a state.
66
Most importantly, the ICSID Convention
(
...
) imposes an international
'
67
law obligation upon host states to comply (
...
).
'
2.1.2.2.3 The Emergence of BITs
As mentioned above, the main difference between international investment arbi-
tration and international commercial arbitration is that international investment
arbitration deals with treaty claims. Unlike contract claims, treaty claims have an
international law background. Most treaty claims within the jurisdiction of the
ICSID tribunals relate to BITs. BITs are investment contracts between states.
Their main purpose is to legally coordinate investment of nationals of state A in
the territory of state B and vice versa. Today, the basis for investment protection is a
BIT,
68
which emerged in the mid-1950s.
69
However, the roots of bilateral invest-
ment treaties date back to the eighteenth century.
70
Today, BITs are the backbone
60
ICSID (
2014
) About ICSID.
61
Tietje (
2003
), 5 (8).
62
Krajewski (
2009
), 179; Schobener et al. (
2010
), 313-314, Kap. 4
§
19 para 377.
63
Leading investment forum worldwide, in: Vannieuwenhuyse (
2009
), 115 (116); Griebel (
2008
),
115; cf Dolzer and Schreuer (
2008
), 222.
64
Reinisch (
2008
), 107 (110).
65
McIlwrath and Savage (
2010
), 51 para 1-113.
66
Alexandrov (
2009
), 322 (323).
67
Reinisch (
2008
), 107 (113); Alexandrov (
2009
), 322 (329).
68
Tietje (
2010
), 5 (6); Mostly due to the complexity of foreign direct investments (FDIs) and
portfolio investments, in: Tietje (
2003
), 5 (7); cf Krajewski (
2009
), 171; cf Sch
€
obener et al. (
2010
),
48, Kap. 1 §4 para 159.
69
Tschanz and Vi
nuales (
2009
), 729 (731); Karl (
2003
), 37 (38).
70
Metje (
2008
), 75.
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