Environmental Engineering Reference
In-Depth Information
2.2.3.1 Ad Hoc and Institutional Arbitration
First of all, the question of institutional arbitration or ad hoc arbitration is important.
There are arguments supporting both these forms of arbitration. With regard to the
Desertec Concept, both types have advantages and disadvantages. As mentioned
above in the final stage, the Desertec Concept involves a lot of different actors. It
would be advisable to unify the different contracts, especially concerning the
question of arbitration. Institutional arbitration has several advantages. There is a
list of arbitrators in cases of institutional arbitration. All these arbitrators have
experience in the field of international arbitration.
Furthermore, cases within institutional arbitration are more predictable than in
ad hoc arbitration. Institution rules and case law can make it easier for the parties to
foresee the outcome of a case. This is also an example of the “know-how” of
arbitration institutions, which the parties can use. Compensation of higher costs can
happen through a faster arbitration process because the parties cannot delay insti-
tutional arbitration, unlike in the case of ad hoc arbitration, where delay caused by
the parties is a big problem. Finally, the fact that institutional arbitration awards are
more widely recognized than ad hoc awards underlines that parties to the Desertec
Concept should choose institutional arbitration.
2.2.3.2 SCC, LCIA and CRCICA
Secondly, one question remains—which institutional arbitration framework best
suits the Desertec Concept. It is important that the chosen arbitration court has some
experience with conducting an arbitration process.
228
As mentioned above,
European dominance is often understood as neo-colonialism in Africa.
229
There-
fore, the selected arbitration institution should be acceptable for MENA countries.
As highlighted above, almost all courts have negotiated cases with African or
Middle Eastern parties. There are no indicators that any MENA country completely
opposes any of the above-mentioned arbitration institutions. Most authors view
the ICC, SCC and the LCIA as Western arbitration courts. Since the CAM is a
rather new player in the field of international arbitration, it is impossible to
categorize them.
First of all, there is the LCIA, which has experience with African parties. Yet,
the big problem lies in the fact that the LCIA is not as involved in the arbitration
process as other arbitration institutions. This involvement is one of the benefits,
which ad hoc arbitration cannot offer, due to the missing of a permanent institution.
In the case of the Desertec Concept, which potentially involves various actors,
guidance is essential. Since the Desertec Concept is going to provide energy for
numerous people, institutional “leadership” is vital to guarantee a fair and fast
228
Euro-Mediterranean Association for Cooperation and Development e.V. (
2010
), 3.
229
Euro-Mediterranean Association for Cooperation and Development e.V. (
2010
), 3.
