75853 I c s I D REF K 3826.6 .158 1997 I c s I D 1997 .ANNUAL REPORT INTERNATIONAL MONETARY FUND JOINT LIBRARY NOV - 3 1997 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT WASHINGTON, D.C. 20431 International Centre for Settlement of Investment Disputes 2 Table of Contents Page 3 Letter of Transmittal 4 Introduction by the Secretary General 6 Membership 6 Disputes before the Centre 9 Panels of Conciliators and of Arbitrators 10 Publications and Activities 12 Conferences 13 Thirtieth Annual Meeting of the Administrative Council 13 Finance 3 International Centre for Settlement of Investment Disputes September 2, 1997 Dear Mr. Chairman: Pursuant to Administrative and Financial Regulation 5 ( 4), I am pleased to submit to the Administrative Council for its approval the Annual Report on the Operation of the International Centre for Settlement of Investment Disputes required by Article 6( l) (g) of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. This Annual Report covers thefiscalyearJuly l, l996toJune30, 1997. The Report includes the audited financial statements of the Centre, presented pursuant to Administrative and Financial Regu- lation 19. Sincerely yours, Ibrahim FI. Shihata Secretary -General Mr. James D Wolfensohn Chairman Administrative Council International Centre for Settlement of Investment Disputes 4 Introduction by the Secretary-General During fiscal year 1997, Croatia signed the tiona! Rules, which are also the first two ICSID Convention and Bosnia and Herze- to be submitted to arbitration under also ratified it. the investment provisions of the North Ameri- ,_,"'""''"'"'·'"""'"""' there are now 30 can Free Trade Agreement. In another case, an tries that are ICSID members Altogether, award was rendered in a initiated there were, at the close of the fiscal year, 141 under the provisions of an investment treaty States of the Convention and 127 Five ICSID arbitral tribunals were constituted members countries of ICSID the fiscal year, also a record for the Centre. In addition, the Centre received re- Investment treaties continued to be con- cluded in significant numbers. ICSID staff have designating him as the appoint- au\...j'V111Clll.:J counted almost 1.200 such treaties so far. They of arbitrators. One such request have estimated that some 900 investment trea- was made not as part of an arbitration pro- ties provide for the settlement by ICSID arbi- but in the context of the constitution of tration of disputes out of investments review board for out an covered by the treaties. Several recent invest- infrastructure project, another di- ment laws contain similar references to ICSID mension to the Centres role in the settlement arbitration. Some of the laws and many of the of more recent treaties also provide for the possi- bilny of submitting such disputes to arbitration As in past years, the Centre also carried under ICSIDs Additional Rules Others out research, publications and advisory work for ad hoc arbitration under the Arbi in the fields of arbitration and mvestment law. trat10n Rules of the United Nations Commission The staff continued its of contemporary on International Trade Law, with the ICSID to the treatment of foreign Secretary-General the designated appoint- investment Two issues of the ICSID Review - ~ng authority of arbitrators Investment were published the fiscal year. a corr_:rr..entary These trends were. as in previous years, on the ICSID ConventiOn. Staff efforts in the reflected in the Centre's caseload during 1997 collection of investment laws and treaties were Six nev,r cases. all of them arbitration pro- reflected in the of four new re- ceedings v,rere by the Secretary- 1eases for the Centre's multivolume Investment General during this bringing the total Laws of the World and Investment Treaties. The number of cases to 44 and new releases cover 85 treaties and nine invest- in a record number of cases pending before ment laws. A consolidated list of investment the Centre. Four of these new cases have been treaties concluded from 1959 to 1996 was also brought to the Centre on the basis of pub1ished during the year. Advisory work in- sions in investment treaties such as those men- cluded advice to countries upon their request tioned above. mclude the first two cases on seven draft investment laws and on the draft ever to be brought under the Centre's Addi- arbitration prov1sions of ten international in- 5 vestment contracts. ICSID continued to partici- pate in meetings of an Expert Group convened by the OECD to help develop the dispute- settlement provisions of the projected Multilat- eral Agreement on Investment. In sum, 1997 was a very active and fruitful year for the Centre in which it further devel- oped its significant role in the resolution of legal disputes relating to foreign investment and in the progressive development of the law governing such investment. Ibrahim F. I. Shihata Secretary-General 6 Membership Disputes before the Centre In the fiscal year, the Convention was During the year, there were fifteen cases and ratified by Bosnia and Herzegovina before the Centre Developments in these and signed by Croatia. At June 30, 1997, there cases are summarized below. were 141 signatory States of the Convention; of these, 127 had also ratified the Convention. A ( l) Amencan Manufacturing & Tradmg, Inc. v complete list of Contracting States and Other Republic of Zaire (Case Signatories of the Convention as of 1997 appears in Annex 1. September 5, 1996-The expert, who was appointed the Tribunal in June 1996 to prepare a regarding dam- ages, submits his November 12. 1996-The Tribunal in- forms the that the proceeding is closed. February 21, 1997-The Award is ren- dered. (2) SEDITEX Engineering Beratungsge- sellschaft fur die Textilindustrie m.b.H v Government of Madagascar CONC/9411) July 19, 1996-The Conciliation Com- mission draws up its report. (3) Tradex Hellas S.A. v Republlc of Albania (Case August 1, 1996-The Claimant files its further Observations on the Objections to Jurisdiction August 9, 19 9 6-The Respondent files its further Observations on the Objec- tions to Jurisdiction. ----------------------~~ .-"' w 1'1 ot1 • g u- :: • 7 September l 0, 1996-The Tribunal (7) Campania del Desarrollo de Santa Elena meets with the parties in London. S.A. v Republic of Costa Rica (Case ARB! 9611) December 24, 1996-The Tribunal's decision upholding jurisdiction is ren- May 28, 1997-The Tribunal is consti- dered. tuted. Its members are: Mr. L. Yves Fortier, GG, QG (Canadian), President, ( 4) Leaf Tobacco A. Michaelides S.A. and Professor Elihu Lauterpacht, Q G (British) Greek Albanian Leaf Tobacco & Co. SA. v: and Professor Prosper Weil (French). Republic of Albania (Case ARB/9511) (8) Misima Mines Pty Ltd. v: Independent State January 30, 1997-Following a settle- of Papua New Guinea (Case ARB/ 9612) ment agreed by the parties, the proceed- ing is discontinued at the request of the December 24, 1996-Dr. Gavan Claimants. Griffith, Q C (Australian) accepts his appointment as Sole Arbitrator. (5) Cable Television of Nevis, Ltd. and Cable Television of Nevis Holdings, Ltd. v: Federa- February 26, 1997-The Sole Arbitra- tion of St. Kitts and Nevis (Case ARB/9512) tor meets with the parties in Sydney July l-2, 1996-The Tribunal meets April 9, 1997-The Claimant files its with the parties in Barbados. Points of Claim. January 13, 1997-The Award declin- May 21, 1997-The Respondent files ing jurisdiction is rendered. its Points of Defence. (6) Antoine Goetz and others v Republic of June l 0, 1997 -The Sole Arbitrator Burundi (Case ARB/9513) meets with the parties in Sydney December 4, 1996-The Tribunal (9) Fed ax NV v: Republic of Venezuela (Case holds its first session with the parties in ARB/9613) Paris. November 27, 1996-The Tribunal is March 4, 1997-The Claimants file constituted. Its members are Professor their Memorial. Francisco Orrego Vicuna (Chilean), President. Professor Meir Heth (Israeli) and Mr. Roberts B. Owen (US.). 8 January 17-18, 1997-The Tribunal May 30, 1997-The Tribunal is consti- holds its first session with the parties in tuted. Its members are Mr. Aron Broches Washington, D G (Nether lands), President, Mr. Sen a Agbayissah (Togolese) and Professor The Respondent files a Memorial on its Pierre Tercier (Swiss). objections to jurisdiction. ( 12) Societe Kufpec (Congo) Limited v Repub- February 26, 1997-The Claimant files Jlc of Congo (Case ARB/9712) its Counter-Memorial on the Respon- dent's objections to jurisdiction. January 29, 1997-The Secretary- General registers a request for the institu- May 16, 1997-The Tribunal meets tion of arbitration proceedings. with the parties in Washington. (13) Compaiiia de Aquas del Aconqwja S.A. (l 0) Metalclad Corporation v United Mexican and Compagnie Generale des Eaux v States (Case ARB(AF)/971 I) Argentine Republlc (Case ARB/9713) January 13, 1997-The Secretary- February 19, 1997-The Secretary- General registers a request for the institu- General registers a request for the institu- tion of arbitration proceedings under the tion of arbitration proceedings. Additional Facility Arbitration Rules. ( 14) Robert Azinian and others v Umted Mexi- May 19, 1997-The Tribunal is consti- can States (Case ARB(AF)/9712) tuted. Its members are Professor Elihu Lauterpacht, Q G (British), President. March 24, 1997- The Secretary- Mr. Benjamin R Civiletti (US.) and General registers a request for the insti- Mr. Jose Luis Siqueiros (Mexican) tution of arbitration proceedings under the Additional Facility Arbitration Rules. (ll) Societe d'Investigation de Recherche et d'ExplOitatlon Mimere (SIREXM) v Repub- (15) Ceskoslovenska obchodm banka, a.s. v llc of Burkina Faso (Case ARB/9711) Slovak Republlc (Case ARB/9714) January 27, 1997-The Secretary- April 25, 1997-The Secretary- General registers a request for the institu- General registers a request for the insti- tion of arbitration proceedings. tution of arbitration proceedings. 9 Panels of Conciliators and of Arbitrators Pursuant to Article 3 of the Convention, the ICELAND Centre maintains a Panel of Conciliators and a Panels of Conciliators and of Arbitrators- Panel of Arbitrators. Each Contracting State Designations effective as of August 9, 1996: may designate to each Panel up to four per- Dr. Gunnar G. Schram and Messrs. Gud- sons, and the Chairman of the Administrative mundur Eiriksson and Eirikur Tomasson. Council may designate up to ten persons to IRELAND each Panel. Panels of Conciliators and of Arbitrators- Designations effective as of May 30, 1997 In the course of the fiscal year, 49 designa- Ms. Fidelma Macken, Messrs. Eoghan tions were made to the Panels. These are listed Fitzsimmons, Paul Gallagher and Ercus below With these designations, the Panels Stewart. comprise 404 names. KENYA Panel of Conciliators-Designations effec- BAHRAIN tive as of July 22, 1996 Messrs. DanK. Ameyo, Panel of Conciliators-Designations effec- Joseph N.K. Arap Ng'ok, Peter Wanyaga tive as of September 23, 1996 Messrs. Ahmed Muthoka and Godfrey Kassim Owango. E. Al-Balushi, Ali Y Al-Khayatta and Yousif Yacoob Yousif and Dr. Jaffer Al-Sayegh. Panel of Arbitrators-Designation effective as ofJuly 22, 1996 Mr. SA.Wako. Panel of Arbitrators-Designations effec- tive as of September 23, 1996 Messrs. Yousif NORWAY Al-Abdeen Moh'd Zaynal, Mahmood Hashim Panels of Conciliators and of Arbitrators- Al-Kooheji, Aref Saleh Khamis and Mohamed Designations effective as of August 27, 1996: Ali Taleb. Mrs. Else Bugge Fougner, Messrs. Henrik Bull, Hans Wilhelm Longva and Jens Fredrik COSTA RICA Wilhelmsen. Panels of Conciliators and of Arbitrators- Designation effective as of January 9, 1997: PARAGUAY Professor Thomas Buergenthal. Panel of Conciliators-Designations effec- tive as of September ll, 1996: Messrs. James FRANCE Spalding Hellmer, Francisco Ogura Kono, Panel of Arbitrators-Designation effective Ovidio Otazu and Luis Fernando Villalba. as of July 26, 1996 Judge Gilbert Guillaume. Panel of Arbitrators-Designations effec- tive as of September ll, 1996: Messrs. Gregorio Poletti, Jorge Ramirez Ramirez, Walter Villalba Zaldivar and Gabriel Martinez Zarza. 10 Publications and Advisory Activities TURKEY News from ICSID Panel of Conciliators-Designations effec- tive as ofMay 9, 1997: Messrs. SabihArkan, This newsletter provides information on Or han Azizoglu and Serdar activities of the Centre and on pend- before ICSID, as well as articles on topics of Panel of Arbitrators--Designations effec- current interest. During the fiscal year, two tive as of May 9. l 997: Messrs. Aydin Sefa Ak:ay issues of News from JCSID were published: and Mahmut Birsel, Professor Fadlullah Vol. 13. No.2 (Summer 1 and Vol. 14, No.1 Cerrahoglu and Professor Haluk Gunugur. (Winter 1997). The Summer 1996 issue in- cluded an article on ICSID Conciliation The Winter 1997 issue included articles on Institu- UNITED KINGDOM tional and Legal Reform in Africa and on Insti- Panel of Conciliators-Designations effec- tutional Discretion to Foster Arbitral Efficiency tive as of October 9, 1996: Sir Adrian Cadbury, Sir Sydney Lipworth, Messrs. Francis Neate ICSID Review-Foreign and Mark Sheldon Investment Law Journal Panel of Arbitrators-Designations effec- Appearing twice the ICSID Review tive as of October 9, 1996: Mr. David C. Calcutt, publishes materials on domestic and interna- The Honorable Lord Dervaird, Professor Rob- tional law relating to foreign investments. The ert B. Jack and Professor Elihu Lauterpacht, twenty-second (Fall 1996) and twenty-third Q.G 1997) issues of the Review were com- during the year. The Fall 1996 issue fea- tured articles on U.S. "Helms-Burton" legisla- tion and on the settlement of investment disputes in the energy sector. The Fall issue also included the first of a commentary on Article 25 of the ICSID Convention, the final part of which was included in the Spring 1997 issue. This issue also included articles on the framework for investment in Nepal and on the harmonization of business laws in francophone Africa. ll Investment Laws the ICSID Convention into 15 different lan- guages and to some 300 articles and books of the World dealing with ICSID and the ICSID Convention. During the year, ICSID issued a new re- In addition, a brochure listing signature dates, lease (97 -1) of its ten-volume collection of In- and, where applicable, entry into force dates of vestment Laws of the World. This release nearly l, 150 bilateral investment treaties (BITs) contained the texts of the basic investment leg- as well as publications on BITs, was issued by islation of Lithuania, the Maldives, Moldova, the Centre during the year. Myanmar and Papua New Guinea, and supple- ments related to such legislation of Mexico, Advisory Activities Morocco, the Philippines and Ukraine. The col- lection now contains the text of the basic in- The Secretariat continued to provide ad- vestment laws of some 126 countries. vice on arbitration and investment law Such advisory activities included reviewing and commenting on draft investment laws and draft Investment Treaties arbitration provisions of investment contracts, In the course of the year, three new re- at the request of governments and foreign in- leases (Releases 96-3, 96-4 and 97 -2) for the vestors. During FY97, ICSID Secretariat staff Centre's seven-volume collection of Investment provided such advice in respect of seven draft Treaties were published. These releases con- investment laws and on the draft arbitration tained the texts of 85 bilateral investment trea- provisions of l 0 investment contracts. ties concluded by 76 countries in the period 1991-1995. The collection now contains 640 bilateral investment treaties entered into by over 140 countries. Other Publication Activities Among the other publications issued by the Centre during the year was a new edition of ICSID Cases. The ICSID Cases brochure pro- vides summary data on each of the cases reg- istered by ICSID up to November 30, 1996 (e.g. dates of the commencement of proceed- ings, information on their outcomes, and names and nationalities of tribunal members). An expanded version of the ICSID Bibliography was also issued during the year. The ICSID Blb- liography provides references to translations of 12 Conferences The Centre two arbitration ICSID Secretariat contributed a paper on conferences in fiscal year 1997. 7hese in- ICSID and the Americas. cluded the thirteenth ICSID/American Ar '?he Secretariat also in a bitration Association/International Chamber of on Funding of and Access to Interna- Commerce (ICC) International Court of Arbi- tional Courts and Dispute Settlement Bodies, tration colloquium on international arbitration. held in London on January 31-February l, This colloquium was held in ='JewYork on No- 1997. The meetmg was jointly by vember 15, l 996. At the which was the Programme on International Law and Sus- devoted to the topic of the role of party au- tainable Development of the Foundation for tonomy in international the Secre- International Environmental Law and Develop- tary-General ment (FIELD). and the Center on International developments in ICSID New York ICSID also At the 91 st Annual of the Arne- tion of Arbitrators rican Society of International Law held in International Court of Arbitration and the Lon- D G on April l l the Se- don Court of International Arbitration a confer- cretariat contributed a paper on the Interna- ence on the Resolution of International Trade tional Legal Framework Invest and Investment in Africa. At the con- ment. The Secretariat in the XVI ference. which was held in Johannesburg on Inter-American Conference on Commercial March 6-8, 1997. the Secretary-General con Arbitration held in Rio de on May 10- tributed a keynote address on institut10nal and 13, 1997 with a paper on ICSID arbitration me- legal reform in Africa. The Secretary-General chanisms. The Secretariat also contributed a also contributed to the conference a paper on paper on ICSID and New Investment Instru- ICSID and Africa. ments to the Expert Meet- During the fiscal year. the Secretariat par- on Existing International Agreements on ticipated in three of the Expert Investment and Their Dimen- Group convened the Organisation for Eco-· held m Geneva on l 997, un- nomic Co-operation and Development to der the auspices of the United Nations Confer- develop the provisions of ence on Trade and Development The the projected Multilateral Agreement on In- Secretary-General delivered a paper on the vestment '?he Secretariat also took part in the settlement of at the 5th Economic Fifth Meeting of the Free Trade Area of the Forum of the for Security and Americas on Investment. The Cooperation in meeting took m San on September ll-13, 1997. 2-3. 1996 and included a session at which the 13 Thirtieth Annual Finance Meeting of the Administrative Council The Thirtieth Annual Meeting of the The Financial Statements of ICSID for fis- Administrative Council took place on October cal year 1997 are set forth in Annex 3. l-3, 1996, in Washington, DC. on the occasion of the Annual Meeting of the Board of Gover- The administrative expenditures of ICSID nors of the World Bank. were, again, entirely covered by the World Bank pursuant to the Memorandum of Admin- At the meeting, the Council considered a istrative Arrangements concluded between report by the Secretary-General on recent de- the World Bank and ICSID in February 1967, velopments in ICSID and approved the and by income from the sale of publications. Centre's 1996 Annual Report and its Budget for fiscal year 1997. The Resolutions adopted at It was therefore not necessary to assess the Meeting are set forth in Annex 2. any excess expenditures on Contracting States pursuant to Article l 7 of the Convention. ICSID expenditures relating to pending arbitration proceedings are borne by the par- ties in accordance with ICSID's Administrative and Financial Regulations. 14 .Annexes Page 15 l. List of Contracting States and Other Signatories of the Convention 18 2. Resolutions of the Administrative Council 19 3 Report and Financial Statements 23 4. Publications of ICSID 15 Annex 1 Contracting States and Other Signatories of the Convention (As of June 30, 1997) The 141 States listed below have signed the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States on the dates indicated. The names of the 127 States that have deposited their instruments ofratification are in bold, and the dates of such deposit and of the attainment of the status of Contracting State by the entry into force of the Convention for each of them are also indicated. Afghanistan Sep. 30, 1966 June 25. 1968 July 25, 1968 Albania Oct 15, 1991 Oct. 15, 1991 Nov 14, 1991 Algeria Apr. 17' 1995 Feb. 21' 1996 Mar. 22. 1996 Argentina May 21, 1991 Oct 19, 1994 Nov 18. 1994 Armenia Sep. 16. 1992 Sep. 16, 1992 Oct 16, 1992 Australia Mar. 24, 1975 May 2, 1991 June l. 1991 Austria May 17, 1966 May 25, 1971 june 24. 1971 Azerbaijan Sep. 18, 1992 Sep. 18, 1992 Oct. 18, 1992 Bahamas Oct. I 9, 1995 Oct 19, 1995 Nov 18, 1995 Bahrain Sep. 22, 1995 Feb 14, 1996 Mar 15. 1996 Bangladesh Nov 20, 1979 Mar. 27, 1980 Apr. 26, 1980 Barbados May 13, 1981 Nov. I, 1983 Dec. l' 1983 Belarus July 10, 1992 july 10, 1992 Aug 9, 1992 Belgium Dec. 15, 1965 Aug. 27, 1970 Sep. 26, 1970 Belize Dec l 9, 1986 Benin Sep. 10. 1965 Sep. 6, 1966 Oct. 14, 1966 Bolivia May 3, 1991 June 23, 1995 july 23, 1995 Bosnia and Herzegovina Apr. 25, 1997 May 14. 1997 june 13, 1997 Botswana Jan. 15, 1970 jan. 15, 1970 Feb. 14, 1970 Burkina Faso Sep. 16, 1965 Aug. 29, 1966 Oct 14, 1966 Burundi Feb 17, 1967 Nov 5, 1969 Dec. 5. 1969 Cambodia Nov 5, 1993 Cameroon Sep 23, 1965 Jan. 3, !967 Feb 2, 1967 Central African Republic Aug 26, 1965 Feb 23, 1966 Oct 14, 1966 Chad May 12, 1966 Aug 29, 1966 Oct 14, 1966 Chile Jan 25, 1991 Sep. 24, 1991 Oct. 24, 1991 China Feb 9, 1990 Jan. 7, 1993 Feb. 6, 1993 Colombia May 18, 1993 Comoros Sep. 26, 1978 Nov 7, 1978 Dec. 7, 1978 Congo Dec 27, 1965 June 23. 1966 Oct 14, 1966 Congo, Democratic Republic of Oct. 29, 1968 Apr. 29. 1970 May 29. 1970 Costa Rica Sep. 29. 1981 Apr 27 1993 May 27, 1993 C&te d'Ivoire June 30, 1965 Feb. 16. 1966 Oct. 14, 1966 Croatia June 16, 1997 Cyprus Mar. 9, 1966 Nov 25 1966 Dec 25, 1966 Czech Republic Mar. 23, 1993 Mar. 23, 1993 Apr 22, 1993 Denmark Oct 11. 1965 Apr. 24, 1968 May 24, 1968 Ecuador Ja!1. 15, 1986 Jan. 15. 1986 Feb 14. 1986 Egypt, Arab Rep. of Feb ll' 1972 May 3. 1972 june 1972 El Salvador june 9, 1982 Mar. 6 1984 Apr 5, 1984 Estonia. June 23, 1992 Ju::e 23, 1992 jul 23 1992 Ethiopia Sep. 21 1965 Fiji july 1, 1977 Aug 11' 1977 Sep. 10. 1977 Finland july 14. 1967 Jan. 9 1969 Feb. 8. 1969 France Dec. 22 1965 Aug. 21' 1967 Sep 20. 1967 Gabon Sep 21' 1965 Apr. 4, 1966 Oct. 14. 1966 Gambia, The Oct 1. 1974 Dec. 27, 1974 Jan. 26. 1975 Georgia. Aug 1992 Aug 7 1992 Sep 6. 1992 Germany Jan. 27, 1966 Apr 18. 1969 May 18. 1969 16 Ghana Nov. 26, 1965 July 13, 1966 Oct. 14, !966 Greece Mar. !6, 1966 Apr. 21' 1969 May 2!, 1969 Grenada May 24, 1991 May 24, 1991 June 23. 1991 Guatemala Nov. 9, 1995 Guinea Aug 27, 1968 Nov. 4, 1968 Dec. 4, 1968 Guinea-Bissau Sep. 4. 1991 Guyana july 1969 July II' 1969 Aug. 10, 1969 Haiti Jan 30, 1985 Honduras May 28. !986 Feb. 14, 1989 Mar. 16, 1989 Hungary Oct I, 1986 Feb. 4, 1987 Mar 6, 1987 Iceland July 25, 1966 July 25, 1966 Oct 14, 1966 Indonesia Feb. 16. 1968 Sep. 28, 1968 Oct. 28. 1968 Ireland Aug 30, 1966 Apr 7, 1981 May 7, 1981 Israel june 16, 1980 June 22, 1983 July 22, 1983 Italy Nov 18, 1965 Mar 29, 1971 Apr. 28, 1971 Jamaica June 23, 1965 Sep. 9, 1966 Oct 14, 1966 Japan Sep 23, 1965 Aug. 17, 1967 Sep. 16. 1967 Jordan July 14. 1972 Oct 30, 1972 Nov 29, 1972 Kazakhstan July 23, 1992 Kenya May 24, 1966 Jan 1967 Feb 2, 1967 Korea, Rep. of Apr. 18, 1966 Feb. 21, 1967 Mar. 23. 1967 Kuwait Feb. 9 1978 Feb 2, 1979 Mar. 4, 1979 Kyrgyz, Rep.of June 9, 1995 Lesotho Sep 19, 1968 July 8, 1969 Aug. 7, 1969 Liberia Sep. 3. 1965 June 16, 1970 July 16, 1970 Lithuania July 6, 1992 July 6, 1992 Aug 1992 Luxembourg Sep. 28, 1965 July 30, 1970 Aug 29, 1970 Madagascar June I. 1966 Sep. 6, 1966 Oct 14. 1966 Malawi June 9, 1966 Aug 23 1966 Oct 14' 1966 Malaysia Oct 22, 1965 Aug. 8. 1966 Oct 14' 1966 Mali Apr 9, 1976 Jan 3, 1978 Feb 2. 1978 Mauritania July 30, 1965 Jan. ll 1966 Oct 14, 1966 Mauritius June 2, 1969 june 2, 1969 July 2. 1969 Micronesia June 24, 1993 June 24. 1993 July 24, 1993 Moldova Aug. 12, 1992 Mongolia June 14, 1991 June 14, 1991 july 4 1991 Morocco Oct 11' 1965 May 11. 1967 June10, 1967 Mozambique Apr. 1995 June 7 1995 July 7, 1995 Nepal Sep 28. 1965 Jan 7. 1969 Feb 6, 1969 Netherlands May 25, 1966 Sep :4. 1966 Oct 14, 1966 New Zealand Sep. 2, 1970 Apr. 2 1980 May 2 1980 Nicaragua Feb 4. 1994 Mar 20 1995 Apr 19, 1995 Niger Aug. 23, 1965 Nov 14 1966 Dec 14, 1966 Nigeria July 13. 1965 Aug 23. 1965 Oct 14' 1966 Norway June 24. 1966 Aug !6, 1967 Sep 15. 1967 Oman May 5. 1995 July 24. 1995 Aug.23. 1995 Pakistan July 6, !965 Sep. 15. 1966 Oct.15, 1966 Panama Nov 22 1995 Apr 1996 May 8. 1996 Papua New Guinea Oct 20. 1978 Oct 20. 1978 Nov 19. 1978 Paraguay July 27 1981 Jan 7. 1983 Feb 6 1983 Peru Sep 4 1991 Aug 9. 1993 Sep 8. 1993 Philippines Sep. 26. 1978 Nov 17 !978 Dec 17' 1978 Portugal Aug 4 1983 July 2 1984 Aug l. 1984 Romania Sep. 6 1974 Sep 12 1975 Oct 1975 Russian Federation June 16. 1992 Rwanda Apr 21 1978 Oct 15 L979 Nov 14. 1979 Saudi Arabia Sep 28. 1979 May 8 1980 June 7 \98C Senegal Sep 26 1966 Apr 21. 1967 May 21. 1967 Seychelles Feb 16. 1978 Mar 2C 1978 Apr 19. 1978 Sierra Leone Sep 27. 1965 Aug 2. 1966 Oct. 14, 1966 Singapore Feb. 2 1968 Oct 14. 1968 Nov 13 1968 17 Slovak Republic Sep. 27, 1993 May 27, 1994 june 26. 1994 Slovenia Mar. 7, 1994 Mar. 7, 1994 Apr. 6, 1994 Solomon Islands Nov. 12, 1979 Sep. 8, 1981 Oct 8, 1981 Somalia Sep. 27, 1965 Feb. 29, 1968 Mar 30, 1968 Spain Mar. 21' 1994 Aug. 18, 1994 Sep. 17. 1994 Sri Lanka Aug. 30, 1967 Oct 12, 1967 Nov 11. 1967 St. Kitts & Nevis Oct 14, 1994 Aug. 4, 1995 Sep. 3, 1995 St. Lucia June 4, 1984 June 4, 1984 July 4, 1984 Sudan Mar. 15, 1967 Apr. 9, 1973 May 9, 1973 Swaziland Nov. 3, 1970 june 14, 1971 July 14, 1971 Sweden Sep. 25, 1965 Dec. 29, 1966 Jan 28, 1967 Switzerland Sep 22, 1967 May 15, 1968 June 14, 1968 Tanzania Jan. 10, 1992 May 18, 1992 June 17, 1992 Thailand Dec. 6, 1985 Togo Jan. 24, 1966 Aug. 11. 1967 Sep. I 0, 1967 Tonga May I. 1989 Mar. 21 !990 Apr. 20, 1990 Trinidad and Tobago Oct. 5, 1966 Jan 3, 1967 Feb. 2, !967 Tunisia May 5. 1965 June 22, 1966 Oct 14, 1966 Turkey June 24. 1987 Mar. 3. 1989 Apr. 2, 1989 Turkmenistan Sep. 26. 1992 Sep. 26. 1992 Oct. 26, 1992 Uganda June 7, 1966 June 7, 1966 Oct 14, 1966 United Arab Emirates Dec 23. 1981 Dec. 23, 1981 Jan. 22, 1982 United Kingdom of Great Britain and Northern Ireland. May 26, 1965 Dec. 19, 1966 Jan. 18, 1967 United States of America Aug. 27, 1965 June 10, 1966 Oct 14, 1966 Uruguay May 28, 1992 Uzbekistan Mar. 17, 1994 July 26. 1995 Aug. 25, 1995 Venezuela Aug. 18, 1993 May 2, 1995 June I, 1995 Western Samoa Feb. 3. 1978 Apr. 25, 1978 May 25, 1978 [Yugoslavia, Socialist Federal Republic of Mar. 21. 1967 Mar. 21' 1967 Apr. 20, 1967] Zambia June 17. 1970 June 17. 1970 July 17' 1970 Zimbabwe Mar. 25, 1991 May 20, 1994 June 19, 1994 18 Annex 2 Resolutions of the .Administrative Council The following resolutions were adopted by AC(JO)/RES/85 -Adoption of Budget for the Administrative Council at its Thirtieth Fiscal Year 1997 Annual Meeting on October l 1996 The Administrative Council RESOLVES To adopt, for the period July l, 1996 to AC(30)/RES/84 -Approval of the Annual June 30, 1997 the budget set forth in para- Report graph 2 of Document AC/96/2. The Administrative Council RESOLVES To approve the 1996 Annual Report on the Operation of the Centre as set forth in the attachment to Document AC/96/3. 19 Annex 3 Report and Financial Statements Expressed in United States dollars Statement of Net Assets june 30, I 997 june 30, 1996 Cash and investments .... $ 199,804 $ 1 -~~·-~ Funds available for arbitration proceedings: Advances from parties to arbitration proceedings , . 177,938 119,926 Investment income due to parties to arbitration proceedings '''''' '' 21,866 Total funds available for arbitration proceedings 199,804 Net assets ..... , , , , , , , . Statement of Activities june 30, 1997 june 30, 1996 Support and revenue: In-kind contributions (Note 2) $ 883,548 $ 867,334 Sale of publications and registration fees 24,804 10,179 Revenues from parties to arbitration proceedings (Note 2) 13 ~313,655 Total support and revenue .. 1,153,965 1' 191' 168 Expenses: Value of services provided by the Bank (Notes 2 and 3) related to arbitration proceedings Total expenses , , , . Change in net assets . Statement of Changes in Cash and Investments For the year ended june 30 19 9 i996 Cash and investments at beginning of fiscal year ''' $ 139,444 $ 114,777 Advances to Centre from parties to arbitration proceedings 313,000 335,000 Investment income earned 16 Disbursements by Centre for fees and expenses for arbitration proceedings . , . , .... 613) (313,655) Advances and related investment income refunded to parties upon completion of arbitration proceedings (14,870) (4,094) ---·- Cash and investments at end of fiscal year $ 199,804 $ 139,444 The accompanying notes are an integral part of these financial statements. (continued) 20 Annex 3 (continued) Notes to Financial Statements June 30, 1997 and June 30, 1996 Note !-Organization The International Bank for Reconstruction and Development (the Bank) and the International Cen- tre for Settlement of Investment Disputes Centre) entered into Administrative Arrangements effective October 14, 1966. The Memorandum of Administrative Arrangements (the Memoran- dum) provides that, except to the extent that the Centre may be reimbursed by the to pro- ceedings for fees and expenses of members of Conciliation Commissions, Arbitral Tribunals or ad hoc Committees, the Bank shall provide facilities and services, as described in Notes 2 and 3, to the Centre. Note 2-Summary of Significant Accounting Policies Basis of Accounting: The financial statements have been prepared in accordance with generally accepted accounting principles in the United States and with International Accounting Standards, and in accordance with the Memorandum. Financial Statement Presentation: As of June 30, 1996, the Centre adopted the revised Stan- dards for Financial Reporting set forth in the Statement of Financial Accounting Standards No. 117, "Financial Statements of Not-For-Pmflt-Organizations" (SFAS No. 117). As of July 1, 1 the Cen- tre changed its method of accounting for contributions received from the Bank to adopt the provi- sion of Statement of Financial Accounting Standards No. 116, "Accounting for Contributions Recewed and Contributions Made" (SFAS No 116). The implementation of SFAS No. 116 resulted in the adoption of the Statement of Activities to reflect non-cash transactions related to the value of those services provided by the Bank which are Identified as directly related to the Centre. There has been no effect on net assets previously reported as a result of this implementation, however prior year's financial statements are restated to conform to the current year presentation. Value of services provided by the Bank and in-kind contributions: The value of services pro- vided the Bank is determined by the fair value of these services and is recorded by the Centre as in-kind contributions and also as expenses of the Centre 21 Annex 3 (continued) The Bank provides the following facilities and services to the Centre: ( 1) the services of staff members and consultants; and (2) other administrative services and facilities, such as travel, communications, office accommodations, furniture, equipment, supplies and printing. Revenue recognition from arbitration proceedings: The Centre does not have resources of its own. The Centre's expenses attributable to arbitration proceedings are borne by the parties in accordance with the Centre's Administrative and Financial Regulations. In accordance with these Regulations, the Secretary-General calls on the parties to make advance deposits with the Cen- tre from time to time to defray these expenses. Accordingly, the Centre recognizes revenues dur- ing the period of and to the extent of expenses incurred related to arbitration proceedings. If, after the completion of an arbitration proceeding, it is determined that there is a cash surplus, such sur- plus shall be refunded to the parties in proportion to the amounts advanced to the Centre Note 3 -Value of Services Provided by the Bank The value of services provided by the Bank, less sale of publications and registration fees by the Centre, are shown below : For th.e year ended june 30 1997 1996 Staff services (including benefits) $654,988 $ 599,877 Administrative services and facilities: Travel . . ....... . 29,941 23,748 Contractual services ..... 94.633 105,236 Office accommodations 91,770 91,770 Other .. 37,020 56,882 --···- Total services ........ . 908,352 Less: Sale of publications and registration fees Total in-kind contributions ~_,_,_,. ____ ,, ____ d_>tj"J_,_,__l"" ......_,....... ~- ·-----Ui:""'""'""·'-11, .. __ ... ,._~-,:~~~~!loft--------------- 22 Annex 3 (continued) Report of Independent Accountants 130 l K Street, N.VV: Washington, D. G 20005 July 1997 To International Centre for Settlement of Investment In our opinion the accompanying statement of net assets and the related statements of activities and of changes in cash and investments present fairly, in all material respects, the financial posi- tion of the International Centre for Settlement of Investment at June 30, 1997 and 1996 and its activities and changes in its cash and investments for the years then ended, in conformity with generally accepted accounting principles in the United States and with International Accounting Standards, and in accordance with the Administrative Arrangement between the International Bank for Reconstruction and Development (the Bank) and the International Centre for Settlement of In- vestment Disputes (the Centre). These financial statements are the responsibility of the Bank and the Centre's management; our responsibility is to express an opinion on these financial statements based on our audits. vVe conducted our audits of these statements in accordance with generally accepted auditing standards, including International Standards on Auditing, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining. on a test evidence support- ing the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial state- ment presentation. vVe believe that our audits provide a reasonable basis for the opinion ex- pressed above. As discussed in Note 2 to the financial statements, effective July l, 1996 the Centre adopted State- ment of Financial Accounting Standards No. 116, "Accounting lor Contributions Received and Con- tributions Made." This standard was adopted on a retroactive basis, and accordingly, the June 30, 1996 financial statements have been restated. r~w~ (~fT~) 23 Annex 4 Publications of ICSID (Publications available from the Centre free of charge unless otherwise indicated) Convention on the Settlement ofinvestment Disputes between States and Nationals of Other States, and Accompanying Report of the Executive Directors of the International Bank for Reconstruction and Development, Doc. ICSID/2 (English, French and Spamsh) List of Contracting States and Other Signatories of the Convention, Doc. ICSID/3 (periodic up- dates) (English, French and Spanish) ICSID Regulations and Rules, Doc. ICSID/4/Rev l (May l (contains the texts of the Centre's Regulations and Rules in effect from January 1, 1968 to September (English, French and Spanish) ICSID Model Clauses, Doc. ICSID/5/Rev. 2 (February I, 1993) (English, French, and Spanish) Contracting States and Measures Taken by Them for the Purpose of the Convention, Doc. ICSID/8 (periodic updates) (English, French and Spanish) Members of the Panels of Conciliators and of Arbitrators, Doc. ICSID/ l 0 (periodic updates) (English) ICSID Additional Facility for the Administration of Conciliation, Arbitration and Fact-Finding Pro- ceedings, Doc. ICSID/ll Qune 1979) (English, French and Spanish) ICSID Bibliography, Doc. ICSID/i3/Rev 4 (Aprill5, l (English) ICSID Basic Documents, Doc. ICSID/15 Oanuary 1985) (contains the texts of the Centre's Regula- tions and Rules in effect from September i 984 and the text of the ICSID Convention) (English, French and Spanish) ICSID Cases, Doc. ICSID/16/Rev 5 (November 30, l (English) Bilateral Investment Treaties l 959-1996 Chronological Country Data and Bibliography, Doc. ICSID/17 30. 1 (English) ICSIDAnnG.a!Report (1967-) French and Spanish) News from ICSID (semi-annual) (English) 24 Annex 4 (continued) Towards A Greater Depoliticization of Investment Disputes The Roles of ICSID and MIGA by Ibrahim FL Shibata 1992) (English and Spanish) Documents Concerning the Origin and Formulation of the Convention on the Settlement of Invest- ment Disputes between States and Nationals of Other States ( 1967) (English, French and Spanish) (available from the Centre at US$40) Investment Laws of the World (ten looseleaf volumes) and Investment Treaties (six looseleaf vol- umes) from Oceana Publications, Inc, 75 Main Street, Dobbs Ferry; NY 10522, USA at US$1 ,500 for both sets of volumes, US$950 for the ten Investments Laws of the World volumes only and US$595 for the six Investment Treaties volumes only) ICSID Review-Foreign Investment Law Journal (semi-annual) (available on a subscription basis, at US$57 per year for those with a mailing address in an OECD country and US$28.50 for others, plus postal charges, from Journals Publishing Division, The Johns Hopkins University Press, 2715 North Charles Street, Baltimore, Maryland 21218-4319, U.SA) Bilateral Investment Treaties by Rudolf Dolzer and Margrete Stevens (Martinus Ni]hoff Publishers, 1995) (US$1 ICSID 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. Telephone: (202) 477-1234 Fax: (202) 522-2615