ICSID is the International Center for Settlement of Investment Disputes. ICSID was established in 1966 by the ICSID convention to settle investment disputes between countries and investors of other countries. The ICSID Convention is a multilateral agreement drawn up by the World Bank’s board of directors with the aim of promoting the bank’s international investment activities. The ICSID Convention is an agreement ratified by 155 countries. This Convention entered into force on 14 October 1966, 30 days after it was ratified by the first 20 countries. Article 6 of the ICSID convention requires the ICSID Administrative Council to issue arbitration rules, conciliation rules and financial and administrative regulations of the centre.

ICSID is an independent, non-political dispute resolution organization. ICSID provides dispute resolution by conciliation, arbitration or evidence collection. The ICSID dispute resolution process is designed around the special characteristics of international investment disputes and related parties in order to balance the interests of investors and host countries. Each case is resolved by an independent conciliation commission or arbitrator after considering the evidence and legal arguments of the parties.

Aspects that are important in the enforcement of an ICSID arbitration award under Article 54.1 of the ICSID convention are: “Each Contracting State shall recognize an award rendered pursuant to this Convention as binding and enforce the pecuniary obliga- tions imposed by that award within its territories as if it were a final judgment of a court in that State”   

According to Article 53 of ICSID convention: “The award shall be binding on the parties and shall not be sub-ject to any appeal or to any other remedy except those provided for in this Convention. Each party shall abide by and comply with the terms of the award except to the extent that enforcement shall have been stayed pursuant to the relevant provisions of this Convention”.

Annulling or reviewing of an ICSID award is only possible through ICSID, and national courts are not authorized to make such decisions. According to Article 52.1 of ICSID convention, either party may request annulment of the award by an application in writing addressed to the Secretary-General on one or more of the following grounds: 

1. That the Tribunal was not properly constituted;
2. That the Tribunal has manifestly exceeded its powers;
3. That there was corruption on the part of a member of the Tribunal;
4. That there has been a serious departure from a fundamental rule of procedure or;
5. That the award has failed to state the reasons on which it is based. 

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