THEARBITRATION(INTERNATIONALINVESTMENTDISPUTES)ACT,2011

CONTENTS

SECTIONS:
1. Shorttitle,extentandcommencement.
2. Definitions.
3. Registrationofawards.
4. Effectofregistration.
5. BindingontheGovernment.
6. GovernmentcontributiontoexpensesundertheConvention.
7. ExclusionofArbitrationAct.
8. CertainprovisionsofConventiontohaveforceoflaw.
9. Powertomakerules.
10. FederalGovernmenttoamendschedule.
SCHEDULE
[Seesections2(c)and2(e)]

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THEARBITRATION(INTERNATIONALINVESTMENTDISPUTES)ACT,
2011
ACTNo.IXOF2011

[30thApril,2011]

AnActtoimplementtheInternationalConventionontheSettlementofInvestmentDisputesbetween
StatesandNationalsofotherStates

WHEREAS Pakistan has signed and ratified the International Convention on the Settlement of
InvestmentDisputesbetweenStatesandNationalsofOtherStates

ANDWHEREASitisexpedienttoenactthelawforthatpurpose.

Itisherebyenactedasfollows:

1. Short title, extent and commencement.__ (1) This Act may be called the Arbitration
(InternationalInvestmentDisputes)Act,2011.

(1)ItextendstothewholeofPakistan.

(2)Itshallcometointoforceatonce.

2.Definitions.____InthisAct,unlessthereisanythingrepugnantinthesubjectorcontext,____

(a) "award" includes any decision interpreting, reversing or annulling an award, being a
decision pursuant to the Convention, and any decision as to costs which under the
Conventionistoformpartoftheaward

(b) "Centre" means the International Centre for Settlement of Investment Disputes
establishedbytheConvention

(c) "Convention"meanstheConventionontheSettlementofInvestmentDisputesbetween
StatesandNationalsofOtherStates,incorporatedintheSchedule

(d)"Government"meanstheFederalGovernmentand

(e)"Schedule"meanstheScheduletothisAct.

3.Registrationofawards.__ (1)Anawardshallbedeemedtohavebeenrenderedpursuantto
theConventiononthedateonwhichcertifiedcopiesoftheawardweredispatchedtotheparties

(2) Any person seeking recognition or enforcement of an award rendered pursuant to the
ConventionshallbeentitledtohavetheawardregisteredintheHighCourtsubjecttoproofofany
mattersthatmaybeprescribedandtotheotherprovisionsofthisAct.

(3)Inadditiontothepecuniaryobligationsimposedbytheaward,theawardshallberegistered
forthereasonablecostsofandincidentaltoregistration.

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 (4) If at the date of the application for registration the pecuniary obligations imposed by the
award have been partly satisfied, the award shall be registered only in respect of the balance, and
accordinglyifthoseobligationshavebeenwhollysatisfied,theawardshallnotberegistered.

4.Effectofregistration.SubjecttotheprovisionsofthisAct,anawardregisteredundersection
3shall,asrespectsthepecuniaryobligationswhichitimposes,beofthesameforceandeffectforthe
purposes of execution as if it had been a judgment of the High Court given when the award was
renderedpursuanttotheConventionandenteredonthedateofregistrationunderthisAct,and,so
farasitrelatestosuchpecuniaryobligations,____

(a)proceedingsmaybetakenontheaward

(b)thesumforwhichtheawardisregisteredshallcarryinterestiftheawardsostipulates
and

(c) the High Court shall have the same control over the execution of the award, as if the
awardhadbeenajudgmentoftheHighCourt.

5. Binding on the Government. Sections 3 and 4 shall bind the Government but not so as to
makeanawardenforceableagainsttheGovernmentinamannerinwhichajudgmentwouldnotbe
enforceableagainsttheGovernment.

Providedthatsection3and4shallnotbebindingontheGovernmentinthecaseofawardsto
whichitisnotaparty.

6. Government contribution to expenses under the Convention. Any sums required to meet
any obligations of the Government arising out of Article 17 of the Convention (which obliges the
Contracting States to meet any deficit of the Centre) shall be charged on Government and paid
throughtheBudget.

7.ExclusionofArbitrationAct.TheprovisionsoftheArbitrationAct,1940,(Xof1940)shallnot
applytoproceedingspursuanttotheConvention.

8.CertainprovisionsofConventiontohaveforceoflaw. (1)Notwithstandinganythingtothe
contrary in any law, the provisions of Articles 18, 19, 20, 21(a), 22 of convention as it applies to
Articles21(a),23(1)and24shallhavetheforceoflaw.

(2)NothinginArticle24(1)oftheConventionshallbeconstruedas__

(a) entitling the Centre to import into Pakistan goods free of any customs duty without
restrictionontheirsubsequentsaletherein

(b)conferringontheCentreandexemptionfromtaxesordutieswhichformpartoftheprice
ofgoodssoldor

(c)conferringontheCentreanyexemptionfromtaxesordutiesrendered.

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 (3)ForthepurposesofArticle20andArticle21(a)oftheConventionasgiventheforceoflaw
bythissection,astatementtotheeffectthattheCentrehaswaivedanimmunityinthecircumstances
specifiedinthestatement,beingastatementcertifiedbytheSecretaryGeneraloftheCentre,orby
thepersonactingasSecretaryGeneral,shallbeconclusiveevidenceofsuchwaiver.

9.Powertomakerules.__TheFederalGovernmentmaymakerules__

(a)toprescribetheprocedureforapplyingforregistrationofanawardunderthisAct,andto
requiretheapplicanttogivepriornoticeofhisintentiontoregistertootherparties

(b) to prescribe matters to be proved on the application and the manner of proof, and in
particulartorequiretheapplicanttofurnishacopyoftheawardcertifiedpursuanttothe
Convention

(c)toprovidefortheserviceofnoticeofregistrationoftheawardbytheapplicantonother
parties

(d) to provide for the stay of execution whether provisionally or otherwise of any award
registeredunderthisActinaccordancewiththeprovisionsoftheConventionand

(e)onanyothermatterwhichmaybenecessarytocarryoutthepurposesofthisAct.

10.FederalGovernmenttoamendSchedule.TheFederalGovernmentmay,bynotificationin
theofficialGazetteamendtheScheduleinconformitywithanyamendmentstotheprovisions,ofthe
Conventionsetoutthereinwhichmayhereafterbedulymadeandadopted.

_________

SCHEDULE

[Seesections2(c)and2(e)]

CONVENTIONOFTHESETTLEMENTOFINVESTMENTDISPUTESBETWEENSTATE
ANDNATIONALSOFOTHERSTATES

PREAMBLE

TheContractingStates

CONSIDERINGtheneedforinternationalcooperationforeconomicdevelopment,andtherole
ofprivateinternationalinvestmenttherein

BEARINGINMINDthepossibilitythatfromtimetotimedisputesmayariseinconnectionwith
suchinvestmentbetweenContractingStatesandnationalsofotherContractingStates

RECOGNIZING that while such disputes would usually be subject to national legal processes,
internationalmethodsofsettlementmaybeappropriateincertaincases

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 ATTACHING PARTICULAR IMPORTANCE to the availability of facilities for international
conciliationorarbitrationtowhichContractingStatesandnationalsofothercontractingStatesmay
submitsuchdisputesiftheysodesire

DESIRING to establish such facilities under the auspices of the International Bank for
ReconstructionandDevelopment

RECOGNIZINGthatmutualconsentbythepartiestosubmitsuchdisputestoconciliationorto
arbitration through such facilities constitutes a binding agreement which requires in particular that
due consideration be given to any recommendation of conciliators, and that any arbitral award be
compliedwithand

DECLARING that no Contracting State shall by the mere fact of its ratification acceptance or
approvalofthisConventionandwithoutitsconsentbedeemedtobeunderanyobligationtosubmit
anyparticulardisputetoconciliationorarbitration,

HAVEAGREEDasfollows:

CHAPTER__I

INTERNATIONALCENTREFORSETTLEMENT

OFINVESTMENTDISPUTES

SECTION1:ESTABLISHMENTANDORGANIZATION

ARTICLE1

(1) There is hereby established the International Centre for Settlement of Investment Disputes
(hereinaftercalledtheCentre).

(2) The purpose of the Centre shall be to provide facilities for conciliation and arbitration of
investment disputes between Contracting States and nationals of other Contracting States in
accordancewiththeprovisionsofthisConvention.

ARTICLE2

TheseatoftheCentreshallbeattheprincipalofficeoftheInternationalBankforReconstruction
andDevelopment(hereinaftercalledtheBank).Theseatmaybemovedtoanotherplacebydecision
oftheAdministrativeCounciladoptedbyamajorityoftwothirdsofitsmembers.

ARTICLE3

TheCentreshallhaveanAdministrativeCouncilandaSecretariatandshallmaintainaPanelof
ConciliatorsandaPanelofArbitrators.

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 SECTION2.__THEADMINISTRATIVECOUNCIL

ARTICLE4

(1) The Administrative Council shall be composed of one representative of each Contracting
State. An alternate may act as representative in case of his principal's absence from a meeting or
inabilitytoact.

(2)Intheabsenceofacontrarydesignation,eachGovernorandalternateGovernoroftheBank
appointedbyaContractingStateshallbeexofficioitsrepresentativeanditsalternaterespectively.

ARTICLE5

The President of the Bank shall be exofficio Chairman of the Administrative Council
(hereinaftercalledtheChairman)butshallhavenovote.Duringhisabsenceorinabilitytoactand
during any vacancy in the office of President of the Bank, the person for the time being acting as
PresidentshallactasChairmanoftheAdministrativeCouncil.

ARTICLE6

(1) Without prejudice to the powers and functions vested in it by other provisions of this
Convention,theAdministrativeCouncilshall__

(a)adopttheadministrativeandfinancialregulationsoftheCentre

(b)adopttherulesofprocedurefortheinstitutionofconciliationandarbitrationproceedings

(c) adopt the rules of procedure for conciliation and arbitration proceedings (hereinafter
calledtheConciliationRulesandtheArbitrationRules)

(d)approvearrangementswiththeBankfortheuseoftheBank'sadministrativefacilitiesand
services

(e)determinetheconditionsofserviceoftheSecretaryGeneralandofanyDeputySecretary
General

(f)adopttheannualbudgetofrevenuesandexpendituresofthecentre

(g)approvetheannualreportontheoperationoftheCentre.

The decisions referred to in subparagraphs (a), (b),(c) and (f) above shall be adopted by a
majorityoftwothirdsofthemembersoftheAdministrativeCouncil.

(2)TheAdministrativeCouncilmayappointsuchcommitteesasitconsidersnecessary.

(3) The Administrative Council shall also exercise such other powers and perform such other
functions as it shall determine to be necessary for the implementation of the provisions of the
Convention.

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 ARTICLE7

(1)TheAdministrativeCouncilshallholdanannualmeetingandsuchothermeetingsasmaybe
determinedbytheCouncil,orconvenedbytheChairman,orconvenedbytheSecretaryGeneralat
therequestofnotlessthanfivemembersoftheCouncil.

(2) Each member of the Administrative Council shall have one vote and, except as otherwise
hereinprovided,allmattersbeforetheCouncilshallbedecidedbyamajorityofthevotescast.

(3)AquorumforanymeetingoftheAdministrativeCouncilshallbeamajorityofitsmembers.

(4) The Administrative Council may establish, by a majority of twothirds of its members, a
procedurewherebytheChairmanmayseekavoteoftheCouncilwithoutconveningameetingofthe
Council.ThevoteshallbeconsideredvalidonlyifthemajorityofthemembersoftheCouncilcast
theirvoteswithinlimitfixedbythesaidprocedure.

ARTICLE8

MembersoftheAdministrativeCouncilandtheChairmanshallservewithoutremunerationfrom
theCentre.

SECTION3.__THESECRETARIAT

ARTICLE9

TheSecretariatshallconsistofaSecretaryGeneral,oneormoreDeputySecretariesGeneraland
Staff.

ARTICLE10

(1) The SecretaryGeneral and any Deputy SecretaryGeneral shall be elected by the
Administrative Council by a majority of twothirds of its members upon the nomination of the
Chairman for a term of service not exceeding six years and shall be eligible for reelection. After
consulting the members of the Administrative Council, the Chairman shall propose one or more
candidatesforeachsuchoffice.

(2)TheofficesofSecretaryGeneralandDeputySecretaryGeneralshallbeincompatiblewiththe
exerciseofanypoliticalfunction.NeithertheSecretaryGeneralnoranyDeputySecretaryGeneral
mayholdanyotheremploymentorengageinanyotheroccupationexceptwiththeapprovalofthe
AdministrativeCouncil.

(3) During the SecretaryGeneral's absence or inability to act, and during any vacancy of the
office of SecretaryGeneral, the Deputy Secretary General shall act as SecretaryGeneral. If there
shall be more than one Deputy SecretaryGeneral, the Administrative Council shall determine in
advancetheorderinwhichtheyshallactasSecretaryGeneral.

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 ARTICLE11

TheSecretaryGeneralshallbethelegalrepresentativeandtheprincipalofficeroftheCentreand
shallberesponsibleforitsadministration,includingtheappointmentofstaffinaccordancewiththe
provisionsofthisConventionandtherulesadoptedbytheAdministrativeCouncil.Heshallperform
thefunctionofregistrarandshallhavethepowertoauthenticatearbitralawardsrenderedpursuantto
thisConvention,andtocertifycopiesthereof.

SECTION4.__THEPANELS

ARTICLE12

The Panel of Conciliators and the Panel of Arbitrators shall each consist of qualified, persons,
designatedashereinafterprovided,whoarewillingtoservethereon.

ARTICLE13

(1)EachContractingStatemaydesignatetoeachPanelfourpersonswhomaybutneednotbeits
nationals.

(2)TheChairmanmaydesignatetenpersonstoeachPanel.ThepersonssodesignatedtoaPanel
shalleachhaveadifferentnationality.

ARTICLE14

(1) Person designated to serve on the Panels shall be persons of high moral character and
recognizedcompetenceinthefieldsoflaw,commerce,industryorfinance,whomaybereliedupon
toexerciseindependentjudgment.CompetenceintheFieldoflawshallbeofparticularimportancein
thecaseofpersonsonthePanelofArbitrators.

(2)TheChairman,indesignatingpersonstoserveonthePanels,shallinadditionpaydueregard
totheimportanceofassuringrepresentationonthePanelsoftheprincipallegalsystemsoftheworld
andofthemainformsofeconomicactivity.

ARTICLE15

(1)Panelmembersshallserveforrenewableperiodsofsixyears.

(2) In case of death or resignation of a member of a Panel, the authority which designated the
membershallhavetherighttodesignateanotherpersontoservefortheremainderofthatmember's
term:

(3)Panelmembersshallcontinueinofficeuntiltheirsuccessorshavebeendesignated.

ARTICLE16

(1)ApersonmayserveonbothPanels.

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 (2) If a person shall have been designated to serve on the same Panel by more than one
Contracting State, or by one or more Contracting States and the Chairman, he shall be deemed to
havebeendesignatedbytheauthoritywhichFirstdesignatedhimor,ifonesuchauthorityistheState
orwhichheisanational,bythatState.

(3)AlldesignationsshallbenotifiedtotheSecretaryGeneralandshalltakeeffectfromthedate
onwhichthenotificationisreceived.

SECTION5.__FINANCINGTHECENTRE

ARTICLE17

IftheexpenditureoftheCentrecannotbemetoutofchargesfortheuseofitsfacilities,oroutof
other receipts, the excess shall be borne by Contracting States which are members of the Bank in
proportiontotheirrespectivesubscriptionstothecapitalstockoftheBank,andbyContractingStates
whicharenotmembersoftheBankinaccordancewithrulesadoptedbytheAdministrativeCouncil.

SECTION6:STATUS,IMMUNITIESANDPRIVILEGES

ARTICLE18

TheCentreshallhavefullinternationallegalpersonality.ThelegalcapacityoftheCentreshall
includethecapacity:

(a)tocontract

(b)toacquireanddisposeofmovableandimmovableproperty

(c)toinstitutelegalproceedings.

ARTICLE19

To enable the Centre to fulfill its functions, it shall enjoy in the territories of each Contracting
Statetheimmunitiesandprivilegessetforthinthesection.

ARTICLE20

TheCentre,itspropertyandassetsshallenjoyimmunityfromalllegalprocess,exceptwhenthe
Centrewaivesthisimmunity.

ARTICLE21

The Chairman, the Members of the Administrative Council, persons acting as conciliators or
arbitrators or Members of a Committee appointed pursuant to paragraph (3) of Article 52, and the
officersandemployeesoftheSecretariat:

(a) shall enjoy immunity from legal process with respect to acts performed by them in the
exerciseoftheirfunctions,exceptwhentheCentrewaivesthisimmunity

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 (b)notbeinglocalnationals,shallenjoythesameimmunitiesfromimmigrationrestrictions,
alien registration requirements and national service obligations, the same facilities as
regardsexchangerestrictionsandthesametreatmentinrespectoftravelingfacilitiesas
are accorded by Contracting States to the representatives, officials and employees of
comparablerankofotherContractingStates.

ARTICLE22

The provisions of Article 21 shall apply to persons appearing in proceedings under this
Conventionasparties,agents,counsel,advocates,witnessesorexpertsprovided,however,thatsub
paragraph(b)thereofshallapplyonlyinconnectionwiththeirtraveltoandfrom,andtheirstayat,
theplacewheretheproceedingsareheld.

ARTICLE23

(1)ThearchivesoftheCentreshallbeinviolable,wherevertheymaybe.

(2)Withregardtoitsofficialcommunications,theCentreshallbeaccordedbyeachContracting
Statetreatmentnotlessfavorablethanthataccordedtootherinternationalorganizations.

ARTICLE24

(1)TheCentre,itsassets,propertyandincome,anditsoperationsandtransactionsauthorizedby
this Convention shall be exempt from all taxation and customs duties. The Centre shall also be
exemptfromliabilityforthecollectionorpaymentofanytaxesorcustomsduties.

(2) Except in the case of local nationals, no tax shall be levied on or in respect of expense
allowancespaidbytheCentretotheChairmanormembersoftheAdministrativeCouncil,oronorin
respect of salaries, expense allowances or other emoluments paid by the Centre to officials or
employeesoftheSecretariat.

(3) No tax shall be levied on or in respect of fees or expense allowances received by persons
actingasconciliators,orarbitrators,ormembersofaCommitteeappointedpursuanttoparagraph(3)
ofArticle52,inproceedingsunderthisConvention,ifthesolejurisdictionalbasisforsuchtaxisthe
locationoftheCentreorplacewheresuchproceedingsareconductedortheplacewheresuchfeesor
allowancesarepaid.

________

CHAPTER__II

JURISDICTIONOFTHECENTRE

ARTICLE25

(1) The jurisdiction of the Centre shall extend to any legal dispute arising directly out of an
investment,betweenaContractingState(oranyconstituentsubdivisionoragencyofaContracting
StatedesignatedtotheCentrebythatState)andanationalofanotherContractingState,whichthe
partiestothedisputeconsentinwritingtosubmittotheCentre.Whenthepartieshavegiventheir
consent,nopartymaywithdrawitsconsentunilaterally.

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 (2)"NationalofanotherContractingState"means:

(a) any natural person who had the nationality of a Contracting State other than the State
partytothedisputeonthedateonwhichthepartiesconsentedtosubmitsuchdisputeto
conciliation or arbitration as well as on the date on which the request was registered
pursuant to paragraph (3) of Article 28 or paragraph (3) of Article 36, but does not
include any person who on either date also had the nationality of the Contracting State
partytothedisputeand

(b)anyjuridicalpersonwhichhadthenationalityofaContractingStateotherthantheState
partytothedisputeonthedateonwhichthepartiesconsentedtosubmitsuchdisputeto
conciliation or arbitration and any juridical person which had the nationality of the
ContractingStatepartytothedisputeonthatdateandwhich,becauseofforeigncontrol,
the'partieshaveagreedshouldbetreatedasanationalofanotherContractingStatefor
thepurposesofthisConvention.

(3) Consent by a constituent subdivision or agency of a Contracting State shall require the
approvalofthatStateunlessthatStatenotifiestheCentrethatnosuchapprovalisrequired.

(4) Any Contracting State may, at the time of ratification, acceptance or approval of this
Convention or at any time thereafter, notify the Centre of the class or classes of disputes which it
wouldorwouldnotconsidersubmittingtothejurisdictionoftheCentre.TheSecretaryGeneralshall
forthwithtransmitsuchnotificationtoallContractingStates.Suchnotificationshallnotconstitutethe
consentrequiredbyparagraph(1).

ARTICLE26

ConsentofthepartiestoarbitrationunderthisConventionshall,unlessotherwisestated,be
deemedconsenttosucharbitrationtotheexclusionofanyotherremedy.AContractingStatemay
requiretheexhaustionoflocaladministrativeorjudicialremediesasaconditionofitsconsentto
arbitrationunderthisConvention.

ARTICLE27

(1) No Contracting State shall give diplomatic protection, or bring an international claim, in
respectofadisputewhichoneofitsnationalsandanotherContractingStateshallhaveconsentedto
submit or shall have submitted to arbitration under this Convention, unless such other Contracting
Stateshallhavefailedtoabidebyandcomplywiththeawardrenderedinsuchdispute.

(2)Diplomaticprotection,forthepurposesofparagraph(1),shallnotincludeinformaldiplomatic
exchangesforthesolepurposeoffacilitatingasettlementofthedispute.

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 CHAPTER__III

CONCILIATION

SECTION1.__REQUESTFORCONCILIATION.

ARTICLE28

(1)AnyContractingStateoranynationalofaContractingStatewishingtoinstituteconciliation
proceedingsshalladdressarequesttothateffectinwritingtotheSecretaryGeneralwhoshallsenda
copyoftherequesttotheotherparty.

(2) The request shall contain information concerning the issues in dispute, the identity of the
partiesandtheirconsenttoconciliationinaccordancewiththerulesofprocedurefortheinstitution
ofconciliationandarbitrationproceedings.

(3) The SecretaryGeneral shall register the request unless he finds, on the basis of the
information contained in the request that the dispute is manifestly outside the jurisdiction of the
Centre.Heshallforthwithnotifythepartiesofregistrationorrefusaltoregister.

SECTION2.__CONSTITUTIONOFTHECONCILIATIONCOMMISSION.

ARTICLE29

(1)TheConciliationCommission(hereinaftercalledtheCommission)shallbeconstitutedassoon
aspossibleafterregistrationofarequestpursuanttoArticle28.

(2)(a)TheCommissionshallconsistofasoleconciliatororanyunevennumberofconciliators
appointedasthepartiesshallagree.

(b)Wherethepartiesdonotagreeuponthenumberofconciliatorandthemethodoftheir
appointment,theCommissionshallconsistofthreeconciliators,oneconciliatorappointed
byeachpartyandthethird,whoshallbethePresidentoftheCommission,appointedby
agreementoftheparties.

ARTICLE30

IftheCommissionshallnothavebeenconstitutedwithin90daysafternoticeofregistrationof
therequesthasbeendispatchedbytheSecretaryGeneralinaccordancewithparagraph(3)ofArticle
28,orsuchotherperiodasthepartiesmayagree,theChairmanshall,attherequestofeitherparty
and after consulting both parties as far as possible, appoint the conciliator or conciliators not yet
appointed.

ARTICLE31

(1)ConciliatorsmaybeappointedfromoutsidethePanelofConciliators,exceptinthecaseof
appointmentsbytheChairmanpursuanttoArticle30.

(2)ConciliatorsappointedfromoutsidethePanelofConciliatorsshallpossessthequalitiesstated
inparagraph(1)ofArticle14.

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 SECTION3.__CONCILIATIONPROCEEDINGS

ARTICLE32

(1)TheCommissionshallbetheJudgeofitsowncompetence.

(2)Anyobjectionbyapartytothedisputethatthedisputeisnotwithinthejurisdictionofthe
Centre,orforotherreasonsisnotwithinthecompetenceoftheCommission,shallbeconsideredby
theCommissionwhichshalldeterminewhethertodealwithitasapreliminaryquestionortojoinitto
themeritsofthedispute.

ARTICLE33

Anyconciliationproceedingshallbeconductedinaccordancewiththeprovisionsofthissection
and,exceptasthepartiesotherwiseagree,inaccordancewiththeConciliationRulesineffectonthe
dateonwhichthepartiesconsentedtoconciliation.Ifanyquestionofprocedureariseswhichisnot
coveredbythissectionortheConciliationRulesoranyrulesagreedbytheparties,theCommission
shalldecidethequestion.

ARTICLE34

(1)ItshallbethedutyoftheCommissiontoclarifytheissuesindisputebetweenthepartiesand
toendeavortobringaboutagreementbetweenthemuponmutuallyacceptableterms.Tothatend,the
Commission may at any stage of the proceedings and from time to time recommend terms of
settlementtotheparties.ThepartiesshallcooperateingoodfaithwiththeCommissioninorderto
enabletheCommissiontocarryoutitsfunctions,andshallgivetheirmostseriousconsiderationtoits
recommendations.

(2) If the parties reach agreement, the Commission shall draw up a report noting the issues in
disputeandrecordingthatthepartieshavereachedagreement.If,atanystageoftheproceedings,it
appearstotheCommissionthatthereisnolikelihoodofagreementbetweentheparties,itshallclose
the proceedings and shall draw up a report noting the submission of the dispute and recording the
failureofthepartiestoreachagreement.Ifonepartyfailstoappearorparticipateintheproceedings,
theCommissionshallclosetheproceedingsandshalldrawupareportnotingthatparty'sfailureto
appearorparticipate.

ARTICLE35

Except as the parties to the dispute shall otherwise agree, neither party to a conciliation
proceedingshallbeentitledinanyotherproceeding,whetherbeforearbitratorsorinaCourtoflaw
or otherwise to invoke or rely on any views expressed or statements or admissions or offers of
settlement made by the other party in the conciliation proceedings, or the report of any
recommendationsmadebytheCommission.

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 CHAPTERIV

ARBITRATION

SECTION1.__REQUESTFORARBITRATION

ARTICLE36

(1)AnyContractingStateoranynationalofaContractingStatewishingtoinstitutearbitration
proceedingsshalladdressarequesttothateffectinwritingtotheSecretaryGeneralwhoshallsenda
copyoftherequesttotheotherparty.

(2) the request shall contain information concerning the issues in dispute, the identity of the
partiesandtheirconsenttoarbitrationinaccordancewiththerulesofprocedurefortheinstitutionof
conciliationandarbitrationproceedings.

(3) The SecretaryGeneral shall register the request unless he finds, on the basis of the
information contained in the request that the dispute is manifestly outside the jurisdiction of the
Centre.Heshallforthwithnotifythepattiesofregistrationorrefusaltoregister.

SECTION2.__CONSTITUTIONOFTHETRIBUNAL

ARTICLE37

(1)TheArbitralTribunal(hereinaftercalledtheTribunal)shallbeconstitutedassoonaspossible
afterregistrationofarequestpursuanttoArticle36.

(2)(a)Tribunalshallconsistofasolearbitratororanyunevennumberofarbitratorsappointedas
thepartiesshallagree.

(b)Where the parties do not agree upon the number of arbitrators and the method of their
appointment, the Tribunal shall consist of three arbitrators, one arbitrator appointed by
each party and the third, who shall be the President of the Tribunal, appointed by
agreementoftheparties.

ARTICLE38

IftheTribunalshallnothavebeenconstitutedwithin90daysafternoticeofregistrationofthe
requesthasbeendispatchedbytheSecretaryGeneralinaccordancewithparagraph(3)ofArticle36,
orsuchotherperiodasthepartiesmayagree,theChairmanshall,attherequestofeitherpartyand
afterconsultingbothpartiesasfaraspossible,appointthearbitratororarbitratorsnotyetappointed.
Arbitrators appointed by the Chairman pursuant to this Article shall not be nationals of the
Contracting State party to the dispute. or of the Contracting State whose national is a party to the
dispute.

ARTICLE39

ThemajorityofthearbitratorsshallbenationalsofStatesotherthantheContractingStateparty
tothedisputeandtheContractingStatewhosenationalisaparty

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 tothedisputeprovided,however,thattheforegoingprovisionsofthisArticleshallnotapplyif
thesolearbitratororeachindividualmemberoftheTribunalhasbeenappointedbyagreementofthe
parties.

ARTICLE40

(1) Arbitrators may be appointed from outside the Panel of Arbitrators, except in the case of
appointmentsbytheChairmanpursuanttoArticle38.

(2)ArbitratorsappointedfromoutsidethePanelofArbitratorsshallpossessthequalitiesstatedin
paragraph(1)ofArticle14.

SECTION3.__POWERSANDFUNCTIONSOFTHETRIBUNAL

ARTICLE41

(1)TheTribunalshallbethejudgeofitsowncompetence.

(2)AnyobjectionbyapartytothedisputethatdisputeisnotwithinthejurisdictionoftheCentre,
orforotherreasonsisnotwithinthecompetenceoftheTribunal,shallbeconsideredbytheTribunal
whichshalldeterminewhethertodealwithitasapreliminaryquestionortojoinittothemeritsofthe
dispute.

ARTICLE42

(1)TheTribunalshalldecideadisputeinaccordancewithsuchrulesoflawasmaybeagreedby
the parties. In the absence of such agreement, the Tribunal shall apply the law of the Contracting
Statepartytothedispute(includingitsrulesontheconflictoflaws)andsuchrulesofinternational
lawasmaybeapplicable.

(2)TheTribunalmaynotbringinafindingofnonliquetonthegroundofsilenceorobscurityof
thelaw.

(3) The provisions of paragraphs (1) and (2) shall not prejudice the power of the Tribunal to
decideadisputeexaequoetbonoifthepartiessoagree.

ARTICLE43

(1)Exceptasthepartiesotherwiseagree,theTribunalmay,ifitdeemsitnecessaryatanystage
oftheproceedings

(a)calluponthepartiestoproducedocumentsorotherevidence,and

(b) visit the scene connected with the dispute, and conduct such inquiries there as it may
deemappropriate.

ARTICLE44

Anyarbitrationproceedingshallbeconductedinaccordancewiththeprovisionsofthissection
and,exceptasthepartiesotherwiseagree,inaccordancewiththe

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 Arbitration Rules in effect on the date on which the parties consented to arbitration. If any
questionofprocedureariseswhichisnotcoveredbythissectionortheArbitrationRulesoranyrules
agreedbytheparties,theTribunalshalldecidethequestion.

ARTICLE45

(1) Failure of a party to appear or to present his case shall not be deemed an admission of the
otherparty'sassertions.

(2)Ifapartyfailstoappearortopresenthiscaseatanystageoftheproceedingstheotherparty
mayrequesttheTribunaltodealwiththequestionssubmittedtoitandtorenderanaward.Before
rendering an award, the Tribunal shall notify, and grant a period of grace to, the party failing to
appearortopresentitscase,unlessitissatisfiedthatpartydoesnotintendtodoso.

ARTICLE46

Exceptasthepartiesotherwiseagree,theTribunalshall,ifrequestedbyaparty,determineany
incidentaloradditionalclaimsorcounterclaimsarisingdirectlyoutofthesubjectmatterofthe
disputeprovidedthattheyarewithinthescopeoftheconsentofthepartiesandareotherwisewithin
thejurisdictionoftheCentre.

ARTICLE47

Exceptasthepartiesotherwiseagree,theTribunalmay,ifitconsidersthatthecircumstancesso
require,recommendanyprovisionalmeasureswhichshouldbetakentopreservetherespectiverights
ofeitherparty.

SECTION4.__THEAWARD

ARTICLE48

(1)TheTribunalshalldecidequestionsbyamajorityofthevotesofallitsmembers.

(2) The award of the Tribunal shall be in writing and shall be signed by the Members of the
Tribunalwhovotedforit.

(3)TheawardshalldealwitheveryquestionsubmittedtotheTribunal,andshallstatethereasons
uponwhichitisbased.

(4) Any Member of the Tribunal may attach his individual opinion to the award, whether he
dissentsfromthemajorityornot,orastatementofhisdissent.

(5)TheCentreshallnotpublishtheawardwithouttheconsentoftheparties.

ARTICLE49

(1)TheSecretaryGeneralshallpromptlydispatchcertifiedcopiesoftheawardtotheparties.The
awardshallbedeemedtohavebeenrenderedonthedateonwhichthe

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 certifiedcopiesweredispatched.

(2) The Tribunal upon the request of a party made within 45 days after the date on which the
awardwasrenderedmayafternoticetotheotherpartydecideanyquestionwhichithadomittedto
decide in the award, and shall rectify any clerical, arithmetical or similar error in the award. Its
decisionshallbecomepartoftheawardandshallbenotifiedtothepartiesinthesamemannerasthe
award. The periods of time provided for under paragraph (2) of Article 51 and paragraph (2) of
Article52shallrunfromthedateonwhichthedecisionwasrendered.

SECTION5.__INTERPRETATION,REVISIONANDANNULMENTOFTHEAWARD

ARTICLE50

(1)Ifanydisputeshallarisebetweenthepartiesastothemeaningorscopeofanaward,either
partymayrequestinterpretationoftheawardbyanapplicationinwritingaddressedtotheSecretary
General.

(2)Therequestshall,ifpossible,besubmittedtotheTribunalwhichrenderedtheaward.Ifthis
shallnotbepossible,anewTribunalshallbeconstitutedinaccordancewithsection2ofthisChapter.
The Tribunal may, if it considers that the circumstances so require, stay enforcement of the award
pendingitsdecision.

ARTICLE51

(1)Eitherpartymayrequestrevisionoftheawardbyanapplicationinwritingaddressedtothe
SecretaryGeneralonthegroundofdiscoveryofsomefactofsuchanatureasdecisivelytoaffectthe
award,providedthatwhentheawardwasrenderedthatfactwasunknowntotheTribunalandtothe
applicantandthattheapplicant'signoranceofthatfactwasnotduetonegligence.

(2)Theapplicationshallbemadewithin90daysafterthediscoveryofsuchfactandinanyevent
withinthreeyearsafterthedateonwhichtheawardwasrendered.

(3)Therequestshall,ifpossible,besubmittedtotheTribunalwhichrenderedtheaward.Ifthis
shallnotbepossible,anewTribunalshallbeconstitutedinaccordancewithsection2ofthisChapter.

(4)TheTribunalmay,ifitconsidersthatthecircumstancessorequire,stayenforcementofthe
award pending its decision. If the applicant requests a stay of enforcement of the award in his
application,enforcementshallbestayedprovisionallyuntiltheTribunalrulesonsuchrequest.

ARTICLE52

(1)Eitherpartymayrequestannulmentoftheawardbyanapplicationinwritingaddressedtothe
SecretaryGeneralononeormoreofthefollowinggrounds:___

(a)thattheTribunalwasnotproperlyconstituted

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 (b)thattheTribunalhasmanifestlyexceededitspowers

(c)thattherewascorruptiononthepartofaMemberoftheTribunal

(d)thattherehasbeenaseriousdeparturefromafundamentalruleofprocedureor

(e)thattheawardhasfailedtostatethereasonsonwhichitisbased.

(2) The application shall be made within 120 days after the date on which the award was
renderedexceptthatwhenannulmentisrequestedonthegroundofcorruptionsuchapplicationshall
bemadewithin120daysafterdiscoveryofthecorruptionandinanyeventwithinthreeyearsafter
thedateonwhichtheawardwasrendered.

(3)OnreceiptoftherequesttheChairmanshallforthwithappointfromthePanelofArbitrators
anadhoc Committee of three persons. None of the Members of the Committee shall have been a
Member of the Tribunal which rendered the award, shall be of the same nationality as any such
member,shallbeanationaloftheStatepartytothedisputeoroftheStatewhosenationalisaparty
tothedispute,shallhavebeendesignatedtothePanelofArbitratorsbyeitherofthoseStates,orshall
haveactedasaconciliatorinthesamedispute.TheCommitteeshallhavetheauthoritytoannulthe
awardoranypartthereofonanyofthegroundssetforthinparagraph(1).

(4)TheprovisionsofArticles41, 45,48,49,53and54,andofChaptersVIandVIIshallapply
mutatismutandistoproceedingsbeforetheCommittee.

(5)TheCommitteemay,ifitconsidersthatthecircumstancessorequire,stayenforcementofthe
award pending its decision. If the applicant requests a stay of enforcement of the award in his
application,enforcementshallbestayedprovisionallyuntiltheCommitteerulesonsuchrequest.

(6)Iftheawardisannulledthedisputeshall,attherequestofeitherparty,besubmittedtoanew
Tribunalconstitutedinaccordancewithsection2ofthisChapter.

SECTION6.__RECOGNITIONANDENFORCEMENTOFTHEAWARD

ARTICLE53

(1) The award shall be binding on the parties and shall not be subject to any appeal or to any
other remedy except those provided for in this Convention. Each party shall abide by and comply
withthetermsoftheawardexcepttotheextentthatenforcementshallhavebeenstayedpursuantto
therelevantprovisionsofthisConvention.

(2)Forthepurposesofthis.section,"award"shallincludeanydecisioninterpreting,revisingor
annullingsuchawardpursuanttoArticles50,51or52.

ARTICLE54

(1)EachContractingStateshallrecognizeanawardrenderedpursuanttothis

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 Convention as binding and enforce the pecuniary obligations imposed by that award within its
territoriesasifitwereafinaljudgmentofaCourtinthatState.AContractingStatewithafederal
constitutionmayenforcesuchanawardinorthroughitsfederalCourtsandmayprovidethatsuch
Courtsshalltreattheawardasifitwereafinaljudgmentofthecourtsofaconstituentstate.

(2) A party seeking recognition or enforcement in the territories of a Contracting State shall
furnish to a competent Court or other authority which such State shall have designated for this
purposeacopyoftheawardcertifiedbytheSecretaryGeneral.EachContractingStateshallnotify
theSecretaryGeneralofthedesignationofthecompetentCourtorotherauthorityforthispurpose
andofanysubsequentchangeinsuchdesignation.

(3)Executionoftheawardshallbegovernedbythelawsconcerningtheexecutionofjudgments
inforceintheStateinwhoseterritoriessuchexecutionissought.

ARTICLE55

NothinginArticle54shallbeconstruedasderogatingfromthelawinforceinanyContracting
StaterelatingtoimmunityofthatStateorofanyforeignStatefromexecution.

________

CHAPTERV

REPLACEMENTANDDISQUALIFICATIONOF

CONCILIATORSANDARBITRATORS

ARTICLE56

(1) After a Commission or a Tribunal has been constituted and proceedings have begun, its
compositionshallremainunchangedprovided,however,thatifaconciliatororanarbitratorshould
die, become incapacitated, or resign, the resulting vacancy shall be filled in accordance with the
provisionsofsection2ofChapterIIIorsection2ofChapterIV.

(2) A member of a Commission or Tribunal shall continue to serve in that capacity

notwithstandingthatheshallhaveceasedtobeamemberofthePanel.

(3)Ifaconciliatororarbitratorappointedbyapartyshallhaveresignedwithouttheconsentof
theCommissionorTribunalofwhichhewasamember,theChairmanshallappointapersonfromthe
appropriatePaneltofilltheresultingvacancy.

ARTICLE57

ApartymayproposetoaCommissionorTribunalthedisqualificationofanyofitsmemberson
accountofanyfactindicatingamanifestlackofthequalitiesrequiredbyparagraph(1)ofArticle14.
A party to arbitration proceedings may, in addition, propose the disqualification of an arbitrator on
thegroundthathewasineligibleforappointmenttotheTribunalundersection2ofChapterIV.

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 ARTICLE58

Thedecisiononanyproposaltodisqualifyaconciliatororarbitratorshallbetakenbytheother
membersoftheCommissionorTribunalasthecasemaybe,providedthatwherethosemembersare
equallydivided,orinthecaseofaproposaltodisqualifyasoleconciliatororarbitrator,oramajority
of the conciliators or arbitrators, the Chairman shall take that decision. If it is decided that the
proposalwellfoundedtheconciliatororarbitratortowhomthedecisionrelatesshallbereplacedin
accordancewiththeprovisionsofsection2ofChapterIIIorSection2ofChapterIV.

_______

CHAPTER__VI

COSTOFPROCEEDINGS

ARTICLE59

ThechargespayablebythepartiesfortheuseofthefacilitiesoftheCentreshallbedetermined
bytheSecretaryGeneralinaccordancewiththeregulationsadoptedbytheAdministrativeCouncil.

ARTICLE60

(2) Each Commission and each Tribunal shall determine the fees and expenses of its members
withinlimitsestablishedfromtimetotimebytheAdministrativeCouncilandafterconsultationwith
theSecretaryGeneral.

(2) Nothing in paragraph (1) of this Article shall preclude the parties from agreeing in advance
withtheCommissionorTribunalconcerneduponthefeesandexpensesofitsmembers.

ARTICLE61

(1)InthecaseofconciliationproceedingsthefeesandexpensesofMembersoftheCommission
aswellasthechargesfortheuseofthefacilitiesoftheCentre,shallbeborneequallybytheparties.
Eachpartyshallbearanyotherexpensesitincursinconnectionwiththeproceedings.

(2)InthecaseofarbitrationproceedingstheTribunalshall,exceptasthepartiesotherwiseagree,
assesstheexpensesincurredbythepartiesinconnectionwiththeproceedings,andshalldecidehow
andbywhomthoseexpenses,thefeesandexpensesofthemembersoftheTribunalandthecharges
fortheuseofthefacilitiesoftheCentreshallbepaid.Suchdecisionshallformpartoftheaward.

________

CHAPTERVII

PLACEOFPROCEEDINGS

ARTICLE62

Conciliation and arbitration proceedings shall be held at the seat of the Centre except as
hereinafterprovided.

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 ARTICLE63

Conciliationandarbitrationproceedingsmaybeheld,ifthepartiessoagree,

(a)attheseatofthePermanentCourtofArbitrationorofanyotherappropriateinstitution,
whether private or public, with which the Centre may make arrangements for that
purposeor

(b) at any other place approved by the Commission or Tribunal after consultation with the
SecretaryGeneral.

________

CHAPTER__VIII

DISPUTESBETWEENCONTRACTINGSTATES

ARTICLE64

Any dispute arising between, Contracting States concerning the interpretation or application of
this Convention which is not settled by negotiation shall be referred to the International Court of
Justicebytheapplicationofanypartytosuchdispute,unlesstheStatesconcernedagreetoanother
methodofsettlement.

________

CHAPTER__IX

AMENDMENT

ARTICLE65

AnyContractingStatemayproposeamendmentofthisConvention.Thetextofaproposed
amendmentshallbecommunicated"totheSecretaryGeneralnotlessthan90dayspriortothe
meetingoftheAdministrativeCouncilatwhichsuchamendmentistobeconsideredandshall
forthwithbetransmittedbyhimtoalltheMembersoftheAdministrativeCouncil.

ARTICLE66

(1)IftheAdministrativeCouncilshallsodecidebyamajorityoftwothirdsofitsmembers,the
proposed amendment shall be circulated to all Contracting States for ratification, acceptance or
approval. Each amendment shall enter into force 30 days after dispatch by the depository of the
ConventionofanotificationtoContractingStatesthatallContractingStateshaveratified,accepted
orapprovedtheamendment.

(2)NoamendmentshallaffecttherightsorobligationsunderthisConventionofanyContracting
Stateorofanyofitsconstituentsubdivisionsoragencies,orofanynationalofsuchStatearisingout
of consent to the jurisdiction of the Centre given before the date of entry into force of the
amendment.

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 CHAPTER__X

FINALPROVISIONS

ARTICLE67

ThisConventionshallbeopenforsignatureonbehalfofStatesmembersoftheBank.Itshall
alsobeopenforsignatureonbehalfofanyotherStatewhichisapartytotheStatuteofthe
InternationalCourtofJusticeandwhichtheAdministrativeCouncil,byavoteoftwothirdsofits
members,shallhaveinvitedtosigntheConvention.

ARTICLE68

(1)ThisConventionshallbesubjecttoratification,acceptanceorapprovalbythesignatoryStates
inaccordancewiththeirrespectiveconstitutionalprocedures.

(2)ThisConventionshallenterintoforce30daysafterthedateofdepositofthetwentieth
instrumentofratification,acceptanceorapproval.ItshallenterintoforceforeachStatewhich
subsequentlydepositsitsinstrumentofratification,acceptanceorapproval30daysafterthedateof
suchdeposit.

ARTICLE69

EachContractingStateshalltakesuchlegislativeorothermeasuresasmaybenecessaryfor
makingtheprovisionsofthisConventioneffectiveinitsterritories.

ARTICLE70

ThisConventionshallapplytoallterritoriesforwhoseinternationalrelationsaContracting
Stateisresponsible,exceptthosewhichareexcludedbysuchStatebywrittennoticetothe
depositoryofthisConventioneitheratthetimeofratification,acceptance,orapprovalor
subsequently.

ARTICLE71

AnyContractingStatemaydenouncethisConventionbywrittennoticetothedepositaryof
thisConvention.Thedenunciationshalltakeeffectsixmonthsafterreceiptofsuchnotice.

ARTICLE72

NoticebyContractingStatepursuanttoArticle70or71shallnotaffecttherightsor
obligationsunderthisConventionofthatStateorofanyofitsconstituentsubdivisionsoragenciesor
ofanynationalofthatStatearisingoutofconsenttothejurisdictionoftheCentregivenbyoneof
thembeforesuchnoticewasreceivedbythedepositary.

ARTICLE73

Instrumentsofratification,acceptanceorapprovalofthisConventionandof

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 amendments thereto shall be deposited with the Bank which shall act as the depositary of this
Convention. The depositary shall transmit certified copies of this Convention to States members of
theBankandtoanyotherStateinvitedtosigntheConvention.

ARTICLE74

ThedepositaryshallregisterthisConventionwiththeSecretariatoftheUnitedNationsinaccordance
withArticle102oftheCharteroftheUnitedNationsandtheRegulationsthereunderadoptedbythe
GeneralAssembly.

ARTICLE75

ThedepositaryshallnotifyallsignatoryStatesofthefollowing:__

(a)signaturesinaccordancewithArticle67

(b) deposits of instruments of ratification, acceptance and approval in accordance with

Article73

(c)thedateonwhichthisConventionentersintoforceinaccordancewithArticle68

(d)exclusionsfromterritorialapplicationpursuanttoArticle70

(e)thedateonwhichanyamendmentofthisConventionentersintoforceinaccordancewith
Article66and

(f)denunciationsinaccordancewithArticle71.

DONEatWashington,intheEnglish,FrenchandSpanishlanguages,allthreetextsbeingequally
authentic,inasinglecopywhichshallremaindepositedinthearchivesoftheInternationalBankfor
ReconstructionandDevelopment,whichhasindicatedbyitssignaturebelowitsagreementtofulfill
thefunctionswithwhichitischargedunderthisConvention.

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