38040 IN TE RN ICSID Annual Report 2006 AT IO NA LC EN TRE FO R SET TLEM ENT OF IN VESTMENT DISPUTES 38040 38040 IN TE RN ICSID Annual Report 2006 AT IO NA LC EN TRE FO R SET TLEM ENT OF IN VESTMENT DISPUTES 38040 38040 CONTENTS Letter of Transmittal 1 ICSID Secretariat 2 Introduction 3 New Members 5 Disputes Before the Centre 5 Panels of Conciliators and of Arbitrators 7 Publications 8 Conferences 9 Thirty-ninth Annual Meeting of the Administrative Council 10 Finance 11 ANNEXES 1. List of Contracting States and Other Signatories of the Convention 12 2. Disputes Before the Centre 16 3. Panels of Conciliators and of Arbitrators 42 4. ICSID Documents and Publications 44 5. Resolutions Adopted by the Administrative Council 47 6. Report and Financial Statements 48 38040 38040 AL CE ION N AT TR N E R INTERNATIONAL CENTRE FOR TE FO • IN R • IC SI SETTLEMENT OF INVESTMENT DISPUTES SETTL UTES D SP EM DI EN T T OF EN INV ESTM August 30, 2006 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(1)(g) of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. This Annual Report covers the fiscal year July 1, 2005 to June 30, 2006. The Report includes the audited financial statements of the Centre, presented pursuant to Administrative and Financial Regulation 19. Sincerely yours, Scott B. White Acting Secretary-General Mr. Paul Wolfowitz Chairman Administrative Council International Centre for Settlement of Investment Disputes 38040 SECRETARIAT OF THE INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES JUNE 30, 2006 Scott B. White, Acting Secretary-General Margrete Stevens, Acting Lead Counsel LEGAL STAFF Gabriela Alvarez-Avila, Senior Counsel Gonzalo Flores, Senior Counsel Milanka Kostadinova, Senior Counsel Eloïse Obadia, Senior Counsel Ucheora Onwuamaegbu, Senior Counsel Aurélia Antonietti, Counsel Claudia Frutos-Peterson, Counsel Martina Polasek, Counsel Mercedes Cordido-Freytes de Kurowski, Consultant Frauke Nitschke, Consultant Emilio Rodriguez Larrain Miro Quesada, Consultant Natalí Sequeira, Consultant Tomás Solis, Consultant PARALEGAL STAFF Mireigne Denis Sylvie Grégoire Ashley Grubor Victoria Kent Haberkamp Francisca Murphy Morgan Ruthman BUDGET AND ACCOUNTING STAFF Ginette Moïse-Luabeya, Administrative Assistant ADMINISTRATIVE AND CLIENT SUPPORT STAFF Alix Ahimon, Language Program Assistant Sonia C. Lee, Program Assistant Gloria Peralta, Language Program Assistant Malkiat Singh, Conference Assistant 2 ICSID 38040 INTRODUCTION In fiscal year 2006, the number of ICSID pending cases reached an all-time high of 118. The total number of conciliation and arbitration proceedings registered with the Centre since its inception rose to 210 with the addition of 26 new arbitration cases instituted in the course of the fiscal year. The Secretariat continued its efforts to mitigate the impact of the significant caseload involving large and complex disputes by promoting more efficient ways of case management. During the year, ICSID’s membership grew to 143 Contracting States following the ratification of the ICSID Convention by Syria. A process of extensive consultations with ICSID Member States on further improvements of the procedural framework for ICSID arbitration was concluded in the fiscal year with the adoption of new amendments to the ICSID regulations and rules. During these consultations ICSID Member States confirmed their support for the ICSID dispute settlement mechanisms and made a number of recommendations for improvements which were reflected in the amended rules. Designed to allow for a more efficient and transparent process, the amended rules provide for preliminary procedures concerning provisional measures, expedited procedures for dismissal of unmeritorious claims, access of non-disputing parties to proceedings, publication of awards, and additional disclosure requirements for arbitrators. The Secretariat continued to promote greater awareness of the ICSID dispute settlement process during the year. An important component of the ICSID knowledge dissemination efforts is the ICSID Review—Foreign Investment Law Journal, which was launched in 1986. For 20 years ICSID has been working with authors making the journal a reputable source of knowledge on international investment arbitration. Two issues of the journal were published in the fiscal year in addition to the regular updates of the Centre’s collections of Investment Laws of the World and Investment Treaties and the two issues of ICSID’s newsletter, News from ICSID. The Centre’s website continued to be an important source of current information on ICSID and its activities. The Secretariat also organized and co-sponsored conferences on international arbitration. Staff of the Centre participated as speakers and panelists in some 34 conferences around the world. The Deputy Secretary- General delivered a course on current issues in international arbitration under the ICSID Convention at the Hague Academy of International Law. ANNUAL REPORT 2006 3 38040 Co-operation with other arbitration institutions and international organizations remains an important part of ICSID’s institutional activities. In the past fiscal year, ICSID signed a co-operation agreement with the German Institution of Arbitration (DIS). The agreement calls for the holding of ICSID proceedings, if so requested by the parties concerned, at the Frankfurt International Arbitration Center of DIS and the Frankfurt Chamber of Commerce and Industry. Moreover, in December 2005, ICSID co-hosted with the Organisation for Economic Co-operation and Development (OECD) and the United Nations Conference on Trade and Development (UNCTAD) a high level symposium on investor-State dispute settlement. Further, the Acting Lead Counsel co-chaired the 2006 Annual Workshop of the Institute for Transnational Arbitration. ICSID also continued during the year its collaboration with the International Council for Commercial Arbitration and the International Federation of Commercial Arbitration Institutions. Significant changes in the leadership of the Centre took place in the course of the fiscal year. In September 2005, Antonio R. Parra retired from the post of Deputy Secretary- General of the Centre. In January 2006, Roberto Dañino resigned as ICSID’s Secretary- General. Since then, Scott B. White has served as Acting Secretary-General and Margrete Stevens has served as Acting Lead Counsel. At the closure of the fiscal year Paul Wolfowitz, Chairman of ICSID’s Administrative Council, indicated his intent to nominate for election as new Secretary-General Ana Palacio, the incoming Senior Vice President and General Counsel of the World Bank Group. Details on the developments in the Centre’s activities in fiscal year 2006 are set forth below. 4 ICSID 38040 NEW MEMBERS Having deposited its instrument of ratification, Syria became the 143rd ICSID Contracting State in February 2006. Annex 1 provides a complete list of the Contracting States and other signatories of the ICSID Convention. DISPUTES BEFORE THE CENTRE The number of ICSID proceedings continued to rise during the year, resulting in a new record of 118 cases administered by the Centre in the course of a single fiscal year. By the end of FY 2006, the total number of cases registered with the Centre since its inception reached 210. These include 26 new arbitration proceedings registered during the fiscal year. Three of the new cases are conducted under the ICSID Additional Facility Rules, and the remaining 23 are ICSID Convention arbitration proceedings. Twenty-one of the new proceedings were based on bilateral and/or multilateral investment treaties. Of these, the jurisdiction of ICSID is being asserted under the North American Free Trade Agreement (NAFTA) in two cases and under the Energy Charter Treaty in three cases. The remaining five new proceedings were based on ICSID arbitration provisions contained in investment contracts. The Centre also registered two applications for the institution of annulment proceedings and an application for the rectification of an award. Fifteen ICSID cases were concluded in the course of FY 2006, of which 10 were original arbitration proceedings. The majority of these proceedings were discontinued following settlement at the request of one or both of the parties involved. Seven orders taking note of the discontinuance of ICSID arbitration proceedings were issued, three of which were based on the request of both parties and four on the request of one party. Three original arbitration proceedings were concluded with awards, all of which rejected the respective claims on the merits. In addition, an ICSID conciliation proceeding was concluded and a report of the conciliation commission was issued. Following the parties’ failure to reach an agreement in the conciliation proceeding, a request for institution of an ICSID arbitration proceeding was filed. Four proceedings in which parties sought post-award remedies were also concluded in the fiscal year. These included an ad hoc committee decision concerning an application for the annulment of an award, a decision of an arbitral tribunal on a request for interpretation of an award, and a decision of another arbitral tribunal on an application for rectification of an award. A further annulment proceeding was discontinued by an order of an ICSID ad hoc committee following settlement by the parties concerned. ANNUAL REPORT 2006 5 38040 ICSID tribunals issued a number of decisions with procedural ramifications other than the conclusion of proceedings. These included ten decisions upholding jurisdiction; eight orders granting requests for a temporary suspension of proceedings; two decisions for the discontinuance of proceedings with regard to one of multiple claimants; a decision for the discontinuance of a proceeding in respect to a particular claim; a decision on stay of the proceeding for lack of payment of requested advances; and a large number of procedural orders for the conduct of the proceedings. A particular development in the caseload of the Centre during the fiscal year was the rising number of cases brought against States in Eastern Europe and Central Asia. Such cases represented 52 percent of all arbitration proceedings registered in FY 2006. According to the geographical location of respondent States, the largest number of pending cases during the year involved countries in the Latin America and Caribbean region and Eastern Europe and Central Asia. Such cases represented 74 percent of the total 118 ICSID cases administered in the fiscal year. A small portion of the pending caseload involved countries in South and East Asia. The remaining cases were almost evenly divided among countries in the Middle East and North Africa region and in Sub-Saharan Africa. Almost half of the current cases relate to projects in the energy and in the public utilities sectors and the remainder involves investments in a variety of other economic sectors. Altogether, 60 different sessions and hearings were held in the cases pending before the Centre during the fiscal year. The majority of these were held at the seat of the Centre in Washington, D.C., but a number of sessions and hearings took place at other venues in Europe, the Middle East and Latin America. Several organizational meetings and first sessions were held via video or telephone conferencing. Twenty-five ICSID arbitral tribunals, two ad hoc committees and one conciliation commission were constituted or reconstituted in the pending cases. Sixty-one individuals from 21 countries were appointed to serve as ICSID arbitrators, conciliators or ad hoc committee members. The parties or party-selected arbitrators nominated 85 percent of the total 82 appointments made in the cases pending during the year. The remaining 15 percent of the appointments were made by ICSID. One third of the appointees were nationals of developing countries. Women were appointed in three of the cases. The proceedings before the ICSID commissions, tribunals and ad hoc committees during the year were conducted in one of the three official languages of ICSID (English, French and Spanish) in half, or 59, of the cases. In the other half, two of these languages were used in different combinations as procedural languages of the proceedings. 6 ICSID 38040 During the fiscal year, ICSID continued to provide administrative support for 10 arbitration proceedings conducted under the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). Two of these proceedings were concluded with awards in the course of the fiscal year. One of the pending proceedings encompasses three separate disputes, instituted against the same State, being heard by the same tribunal following the first consolidation order ever issued under the consolidation provisions of the Investment Chapter of the NAFTA. The services provided by the Centre in the pending UNCITRAL proceedings range from limited assistance with the organization of hearings and holding of the account established in the case to full Secretariat services in the administration of the cases concerned. Also during the fiscal year, the Secretary-General of ICSID, in his capacity as appointing authority of arbitrators in UNCITRAL proceedings, decided on a challenge of an arbitrator in an UNCITRAL case. ICSID also handled the administration of an expert determination proceeding under the provisions of the Indus Waters Treaty 1960. Annex 2 provides details on the procedural developments in each of the ICSID Convention and the Additional Facility Rules proceedings pending before the Centre in FY 2006. PANELS OF CONCILIATORS AND OF ARBITRATORS Pursuant to the ICSID Convention, the Centre maintains a Panel of Conciliators and a Panel of Arbitrators. Under Article 13 of the Convention, each Contracting State may designate up to four persons to each Panel who will serve for a renewable period of six years. Up to 10 persons may be designated to each Panel by the Chairman of the Administrative Council. The Panels provide a source from which parties may choose to select conciliators or arbitrators for ICSID proceedings. In addition, when the Chairman of the ICSID Administrative Council is called upon to appoint conciliators, arbitrators or ad hoc committee members under Articles 30, 38 or 52 of the ICSID Convention, his appointees must be drawn from the Panels. During FY 2006, 13 Contracting States made designations to the ICSID Panels. These included Azerbaijan, Chile, Colombia, Egypt, France, Guyana, Lebanon, Malawi, Mongolia, Norway, Singapore, Slovak Republic and Switzerland. With these designations, there are now 509 persons listed on the ICSID Panels. Details on the new designations made in the course of fiscal year 2006 are provided in Annex 3. A complete list of all Panel members is posted on the ICSID website at http://www.worldbank.org/icsid. ANNUAL REPORT 2006 7 38040 PUBLICATIONS Fiscal Year 2006 marked the twentieth anniversary of ICSID’s flagship publication, ICSID Review—Foreign Investment Law Journal. Appearing twice yearly, the ICSID Review publishes materials on international and domestic law relating to foreign investment and investment dispute settlement. Two new issues were published in the course of the year. They featured articles on a number of current topics in the field such as the boundaries of indirect expropriation; most-favored-nation treatment in investment arbitration; the substance of nationality requirements in investment treaty arbitration; and certain global implications of the U.S. Federal Arbitration Act. Texts of several recent decisions and awards rendered in ICSID proceedings were also published with introductory notes by ICSID counsel. The Model International Agreement on Investment for Sustainable Development, drafted by the Institute for International Sustainable Development, was also reproduced in one of these issues. In addition, the Centre continued to maintain its multi-volume collections of Investment Laws of the World and Investment Treaties. Three new releases for the Investment Treaties collection were published during the year. These releases contained the texts of 60 bilateral investment treaties concluded by 57 countries. The collection now comprises 1,080 such treaties entered into by some 165 countries in the period 1959–2005. The Investment Laws of the World collection presently features investment legislation and contact information for the national investment agencies of 132 countries from all major regions of the world. Two new issues of the Centre’s newsletter, News from ICSID, were published in the course of the year. The first of these issues reported on the 40th anniversary of the signing of the ICSID Convention and on the appointment of Paul Wolfowitz as the new Chairman of the ICSID Administrative Council.The second issue featured an article on the role of Alternative Dispute Resolution (ADR) in investor-State dispute settlement. Further, the issue reported on the new amendments to the ICSID Rules and Regulations, and on a high level symposium which ICSID co-hosted with the OECD and UNCTAD in December 2005. During FY 2006, the Centre published a new edition of the ICSID Rules and Regulations and the ICSID Additional Facility Rules to reflect the amendments which took effect on April 10, 2006. The ICSID four-volume publication entitled History of the ICSID Convention was also reprinted in the period. The Secretariat continued to maintain the Centre’s website during the year, which provides details on procedural developments in ICSID proceedings and on the Centre’s institutional 8 ICSID 38040 activities. New postings in FY 2006 brought the total number of documents available on the website to over one hundred and thirty. A list of ICSID documents and publications is provided in Annex 4 to this report. CONFERENCES Since 1983, ICSID has co-sponsored, with the American Arbitration Association (AAA) and the International Court of Arbitration of the International Chamber of Commerce (ICC), a series of annual colloquia on international arbitration. The 22nd in this series was hosted by the AAA in New York City on November 18, 2005. The five sessions addressed current institutional developments; international mediation, dispute resolution boards, fact-finding and other ADR mechanisms in the field of international dispute resolution; impartiality and independence in arbitration; and public policy issues in international arbitration involving investment treaties. The interactive luncheon session focused on emerging and critical issues in international arbitration. In the past fiscal year, ICSID continued to consult with international arbitration experts to identify areas of possible improvements to the ICSID dispute settlement system. Consultations during the year were held on July 8, 2005 in London; on August 25, 2005 in Lima; and on August 27, 2005 in Mexico City. Together with the OECD and UNCTAD, ICSID co-hosted a high level symposium on international investment agreements. The symposium, which discussed issues related to investor-State dispute settlement proceedings and explored ways of possible co-operation among international organizations active in this field, took place on December 12, 2005 in Paris. Further, the Acting Lead Counsel co-chaired the 2006 Annual Workshop of the Institute for Transnational Arbitration. The workshop was held on June 15, 2006 in Dallas and dealt particularly with issues arising in the context of an ICSID arbitration. In response to invitations from international organizations, professional associations and arbitration institutions, ICSID staff participated as speakers, moderators or panelists in several conferences and seminars. These events included the Second Annual Seminar on International Commercial Arbitration (held on September 12, 2005 in Washington, D.C.); two meetings of the OECD Investment Committee (held on September 21, 2005 and April 12, 2006 in Paris); a conference on bilateral investment treaty arbitration organized by the London Court of International Arbitration (held on November 12, 2005 in New Delhi); the First Annual Conference on the Interpretation of Treaties under the Vienna Convention ANNUAL REPORT 2006 9 38040 (held on January 17, 2006 in London); a seminar organized by the World Bank Group’s Staff Development Committee (held on April 19, 2006 in Washington, D.C.); a Conference on International Arbitration (held on April 6, 2006 in Philadelphia); a Colloquium on Consolidation of Multiple Arbitration Proceedings (held on April 21–22, 2006 in Geneva); and the 18th ICCA Congress (held on May 31–June 3, 2006 in Montreal). Further, ICSID staff provided training sessions to practitioners at the Chamber of Commerce, Industry and Agriculture of Panama (held on August 4–5, 2005 in Panama City); at the Institute for Public-Private Partnerships (held on July 20, 2005 in Washington, D.C.); at a training course for government officials from Latin, Central American and Caribbean countries, jointly organized by UNCTAD and the Organization of American States (held on November 3–11, 2005 in Washington, D.C.); and at a Policy Dialogue Seminar on Settlement of Investment Disputes, organized by the International Development Law Organization (held on February 9, 2006 via video conference). In addition, the Secretariat’s staff gave presentations at courses organized by the International Law Institute (held on April 27, 2006 and June 14, 2006 in Washington, D.C.). And as part of a training program organized by UNCTAD, ICSID staff also provided two training courses on investor-State dispute settlement (held on July 18–21, 2005 in Bangkok and on May 29, 2006 in Jakarta). Finally, staff of the Secretariat contributed, on requests by the organizing institutions, lectures on the ICSID dispute settlement system to academic audiences. These included lectures at The Hague Academy of International Law (held on July 11–15, 2005 at The Hague); Xiamen University (held on July 12, 2005 in Xiamen); Georgetown University Law Center (held on November 14, 2005 in Washington, D.C.), the George Washington University Law School (held on February 15, 2006 in Washington, D.C.); Stockholm University (held on March 24, 2006 in Stockholm) and American University Washington College of Law (held on June 1, 2006 in Washington, D.C.). THIRTY-NINTH ANNUAL MEETING OF THE ADMINISTRATIVE COUNCIL The thirty-ninth Annual Meeting of the Administrative Council took place on September 24, 2005 in Washington, D.C., on the occasion of the Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund. At the meeting, the Council approved the Centre’s 2005 Annual Report and its administrative budget for fiscal year 2006. The Resolutions adopted at the Meeting are set forth in Annex 5. 10 ICSID 38040 FINANCE The administrative expenditures were, again, covered by the World Bank pursuant to the Memorandum of Administrative Arrangements concluded between the Bank and ICSID in February 1967, and by fee income and income from the sale of publications. It is therefore not necessary to assess any excess expenditures on Contracting States pursuant to Article 17 of the Convention. Expenditures relating to pending arbitration proceedings are borne by the parties in accordance with ICSID’s Administrative and Financial Regulations. The Financial Statements of ICSID for FY 2006 are set forth in Annex 6. ANNUAL REPORT 2006 11 38040 ANNEX 1 CONTRACTING STATES AND OTHER SIGNATORIES OF THE CONVENTION AS OF JUNE 30, 2006 The 155 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 143 States that have deposited their instruments of ratification 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. Deposit of Entry into Force State Signature Ratification of Convention 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 1,1991 Austria May 17, 1966 May 25, 1971 June 24, 1971 Azerbaijan Sep. 18, 1992 Sep. 18, 1992 Oct. 18, 1992 Bahamas Oct. 19, 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. 1, 1983 Dec. 1, 1983 Belarus July 10, 1992 July 10, 1992 Aug. 9, 1992 Belgium Dec. 15, 1965 Aug. 27, 1970 Sep. 26, 1970 Belize Dec. 19, 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 Brunei Darussalam Sep. 16, 2002 Sep. 16, 2002 Oct. 16, 2002 Bulgaria Mar. 21, 2000 Apr. 13, 2001 May 13, 2001 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 Dec. 20, 2004 Jan. 19, 2005 Cameroon Sep. 23, 1965 Jan. 3, 1967 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 12 ICSID 38040 Deposit of Entry into Force State Signature Ratification of Convention China Feb. 9, 1990 Jan. 7, 1993 Feb. 6, 1993 Colombia May 18, 1993 July 15, 1997 Aug. 14, 1997 Comoros Sep. 26, 1978 Nov. 7, 1978 Dec. 7, 1978 Congo Dec. 27, 1965 June 23, 1966 Oct. 14, 1966 Congo, Democratic Rep. of Oct. 29, 1968 Apr. 29, 1970 May 29, 1970 Costa Rica Sep. 29, 1981 Apr. 27, 1993 May 27, 1993 Côte d’Ivoire June 30, 1965 Feb. 16, 1966 Oct. 14, 1966 Croatia June 16, 1997 Sep. 22, 1998 Oct. 22, 1998 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 Dominican Republic Mar. 20, 2000 Ecuador Jan. 15, 1986 Jan. 15, 1986 Feb. 14, 1986 Egypt, Arab Rep. of Feb. 11, 1972 May 3, 1972 June 2, 1972 El Salvador June 9, 1982 Mar. 6, 1984 Apr. 5, 1984 Estonia June 23, 1992 June 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. 7, 1992 Aug. 7, 1992 Sep. 6, 1992 Germany Jan. 27, 1966 Apr. 18, 1969 May 18, 1969 Ghana Nov. 26, 1965 July 13, 1966 Oct. 14, 1966 Greece Mar. 16, 1966 Apr. 21, 1969 May 21, 1969 Grenada May 24, 1991 May 24, 1991 June 23, 1991 Guatemala Nov. 9, 1995 Jan. 21, 2003 Feb. 20, 2003 Guinea Aug. 27,1968 Nov. 4, 1968 Dec. 4, 1968 Guinea-Bissau Sep. 4, 1991 Guyana July 3, 1969 July 11, 1969 Aug. 10, 1969 Haiti Jan. 30, 1985 Honduras May 28, 1986 Feb. 14, 1989 Mar. 16, 1989 Hungary Oct. 1, 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 Sep. 21, 2000 Oct. 21, 2000 ANNUAL REPORT 2006 13 38040 Deposit of Entry into Force State Signature Ratification of Convention Kenya May 24, 1966 Jan. 3, 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 Republic June 9, 1995 Latvia Aug. 8, 1997 Aug. 8, 1997 Sep. 7, 1997 Lebanon Mar. 26, 2003 Mar. 26, 2003 Apr. 25, 2003 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. 5, 1992 Luxembourg Sep. 28, 1965 July 30, 1970 Aug. 29, 1970 Macedonia, former Yugoslav Rep. of Sep. 16, 1998 Oct. 27, 1998 Nov. 26, 1998 Madagascar June 1, 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 Malta Apr. 24, 2002 Nov. 3, 2003 Dec. 3, 2003 Mauritania July 30, 1965 Jan. 11, 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 14, 1991 Morocco Oct. 11, 1965 May 11, 1967 June 10, 1967 Mozambique Apr. 4, 1995 June 7, 1995 July 7, 1995 Namibia Oct. 26, 1998 Nepal Sep. 28, 1965 Jan. 7, 1969 Feb. 6, 1969 Netherlands May 25, 1966 Sep. 14, 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. 16, 1967 Sep. 15, 1967 Oman May 5, 1995 July 24, 1995 Aug. 23, 1995 Pakistan July 6, 1965 Sep. 15, 1966 Oct. 15, 1966 Panama Nov. 22, 1995 Apr. 8, 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, 1978 Dec. 17, 1978 Portugal Aug. 4, 1983 July 2, 1984 Aug. 1, 1984 Romania Sep. 6, 1974 Sep. 12, 1975 Oct. 12, 1975 Russian Federation June 16, 1992 Rwanda Apr. 21, 1978 Oct. 15, 1979 Nov. 14, 1979 Samoa Feb. 3, 1978 Apr. 25, 1978 May 25, 1978 14 ICSID 38040 Deposit of Entry into Force State Signature Ratification of Convention Sao Tome and Principe Oct. 1, 1999 Saudi Arabia Sep. 28, 1979 May 8, 1980 June 7, 1980 Senegal Sep. 26, 1966 Apr. 21, 1967 May 21, 1967 Serbia and Montenegro July 31, 2002 Seychelles Feb. 16, 1978 Mar. 20, 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 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 Sept. 17, 1994 Sri Lanka Aug. 30, 1967 Oct. 12, 1967 Nov. 11, 1967 St. Kitts and Nevis Oct. 14, 1994 Aug. 4, 1995 Sep. 3, 1995 St. Lucia June 4, 1984 June 4, 1984 July 4, 1984 St. Vincent and the Grenadines Aug. 7, 2001 Dec. 16, 2002 Jan. 15, 2003 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 Syria May 25, 2005 Jan. 25, 2006 Feb. 24, 2006 Tanzania Jan. 10, 1992 May 18, 1992 June 17, 1992 Thailand Dec. 6, 1985 Timor-Leste July 23, 2002 July 23, 2002 Aug. 22, 2002 Togo Jan. 24, 1966 Aug. 11, 1967 Sep. 10, 1967 Tonga May 1, 1989 Mar. 21, 1990 Apr. 20, 1990 Trinidad and Tobago Oct. 5, 1966 Jan. 3, 1967 Feb. 2, 1967 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 Ukraine Apr. 3, 1998 June 7, 2000 July 7, 2000 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 Aug. 9, 2000 Sep. 8, 2000 Uzbekistan Mar. 17, 1994 July 26, 1995 Aug. 25, 1995 Venezuela Aug. 18, 1993 May 2, 1995 June 1, 1995 Yemen, Republic of Oct. 28, 1997 Oct. 21, 2004 Nov. 20, 2004 Zambia June 17, 1970 June 17, 1970 July 17, 1970 Zimbabwe Mar. 25, 1991 May 20, 1994 June 19, 1994 ANNUAL REPORT 2006 15 38040 ANNEX 2 DISPUTES BEFORE THE CENTRE DEVELOPMENTS IN FISCAL YEAR 2006 (1) Compañía de Aguas del Aconquija (2) Víctor Pey Casado and President S.A. and Vivendi Universal v. Argentine Allende Foundation v. Republic of Chile Republic (Case No. ARB/97/3) – (Case No. ARB/98/2) Resubmission August 23, 2005 July 12, 2005 The proceeding is suspended following The Claimants file a rejoinder a proposal for the disqualification of the on jurisdiction. three members of the Tribunal. August 16 – 17, 2005 August 26, 2005 The Tribunal holds a hearing on One of the arbitrators files a resignation jurisdiction in Washington, D.C. as a member of the Tribunal. August 31, 2005 February 13, 2006 The Claimants file a memorial on costs. After receiving observations from the parties and the members of the September 12, 2005 Tribunal, the Acting Secretary-General The Respondent files observations on moves to request the recommendation the Claimants’ memorial on costs. of the Secretary General of the Permanent Court of Arbitration (PCA) November 14, 2005 on the proposal for disqualification. The Tribunal issues a decision on jurisdiction. February 21, 2006 On the recommendation of the November 29, 2005 Secretary General of the PCA, the The Respondent files a counter- Chairman of the ICSID Administrative memorial on the merits. Council upholds the application for disqualification of one of the arbitrators. February 15, 2006 The Claimants file a reply on the merits. March 31, 2006 The Claimants appoint Mohamed May 19, 2006 Chemloul (Algerian) as arbitrator. The Respondent files a rejoinder on the merits. April 25, 2006 The Acting Secretary-General is notified by the other members of the Tribunal, pursuant to ICSID Arbitration Rule 8(2), of their decision not to consent to the resignation filed on August 26, 2005. 16 ICSID 38040 (3) Wena Hotels Limited v. Arab January 27, 2006 Republic of Egypt (Case No. ARB/98/4) The Claimant files authorities in support – Interpretation of its submission of January 18, 2006. July 1, 2005 February 21, 2006 The Tribunal declares the The Respondent files observations proceeding closed. on the Claimant’s submission of January 18, 2006. October 31, 2005 The Tribunal issues its decision on the Claimant’s application for interpretation (7) Antoine Goetz and others v. Republic of the award. of Burundi (Case No. ARB/01/2) There have been no new developments (4) Patrick Mitchell v. Democratic Republic in this case since the publication of the of the Congo (Case No. ARB/99/7) 2005 ICSID Annual Report. – Annulment Proceeding September 21, 2005 (8) Enron Corporation and Ponderosa The proceeding is stayed in accordance Assets, L.P. v. Argentine Republic with ICSID Administrative and (Case No. ARB/01/3) Financial Regulation 14(3)(d) and (e). July 6, 2005 The Respondent files a rejoinder on the (5) Consortium R.F.C.C. v. Kingdom merits concerning the ancillary claim. of Morocco (Case No. ARB/00/6) – Annulment Proceeding November 10, 2005 The Tribunal issues a procedural order January 18, 2006 concerning procedural matters. The ad hoc Committee issues its decision on the Claimant’s application November 28 – December 8, 2005 for annulment of the award. The Tribunal holds a hearing on the merits concerning the ancillary claim in Washington, D.C. (6) World Duty Free Company Limited v. Republic of Kenya (Case No. ARB/00/7) December 8, 2005 Further to the agreement of the parties, January 18 – 19, 2006 the Tribunal issues an order taking note of The Tribunal holds a hearing on the discontinuance of the original claim. preliminary issues at The Hague. The Claimant files a submission on February 26, 2006 preliminary issues. The parties file post-hearing briefs. ANNUAL REPORT 2006 17 38040 March 16, 2006 June 5, 2006 The Tribunal appoints, after consultation The ad hoc Committee holds its first with the parties, an independent expert. session in Paris. May 26, 2006 The proceeding is suspended following (11) Repsol YPF Ecuador S.A. v. the resignation of one of the arbitrators. Empresa Estatal Petroleos del Ecuador (Petroecuador) (Case No. ARB/01/10) – Annulment Proceeding (9) MTD Equity Sdn. Bhd. and MTD Chile S.A. v. Republic of Chile November 28, 2005 (Case No. ARB/01/7) – Annulment The proceeding is resumed following Proceeding payment of the requested advances. July 25, 2005 December 2, 2005 – January 27, 2006 The Respondent files a memorial. The ad hoc Committee issues successive procedural orders concerning the stay December 7, 2005 of enforcement of the award and the The Claimants file a counter-memorial. payment of a bond. January 25, 2006 January 31, 2006 The Respondent files a reply. The ad hoc Committee holds its first session in Quito. March 8, 2006 The Claimants file a rejoinder. February 23, 2006 The ad hoc Committee issues a procedural April 10, 2006 order concerning the termination of the The ad hoc Committee holds a stay of enforcement of the award. hearing in Paris. March 2, 2006 The Respondent files a memorial. (10) CMS Gas Transmission Company v. Argentine Republic (Case No. ARB/01/8) March 31, 2006 – Annulment Proceeding The Claimant files a counter-memorial. September 27, 2005 April 15, 2006 The Secretary-General registers an The Respondent files a reply. application for the institution of annulment proceedings. May 2, 2006 The Claimant files a rejoinder. April 18, 2006 The ad hoc Committee is constituted. Its June 28, 2006 members are: Gilbert Guillaume (French), The ad hoc Committee issues a President; James R. Crawford (Australian); procedural order concerning the and Nabil Elaraby (Egyptian). production of documents. 18 ICSID 38040 (12) Noble Ventures, Inc. v. Romania September 2, 2005 (Case No. ARB/01/11) Canada files a NAFTA Article 1128 submission. (a) Original Arbitration Proceeding September 21, 2005 October 12, 2005 The parties file pre-hearing briefs. The Tribunal renders its award. September 27 – October 1, 2005 (b) Rectification Proceeding The Tribunal holds a hearing on the merits in Washington, D.C. October 26, 2005 The Secretary-General registers a request for rectification of the award. (16) LG&E Energy Corp., LG&E Capital Corp. and LG&E International Inc. v. May 19, 2006 Argentine Republic (Case No. ARB/02/1) The Tribunal issues a decision on the request for rectification of the award. There have been no new developments in this case since the publication of the 2005 ICSID Annual Report. (13) Azurix Corp. v. Argentine Republic (Case No. ARB/01/12) (17) Aguas del Tunari S.A. v. Republic of April 17, 2006 Bolivia (Case No. ARB/02/3) The Tribunal declares the proceeding closed. October 21, 2005 The Tribunal issues its decision on the Respondent’s objections to jurisdiction. (14) F-W Oil Interests, Inc. v. Republic of Trinidad and Tobago (Case No. ARB/01/14) January 27, 2006 The Respondent files a request for the February 28, 2006 discontinuance of the proceedings. The Tribunal declares the proceeding closed. March 28, 2006 The Tribunal issues an order taking March 3, 2006 note of the discontinuance of the The Tribunal renders its award. proceeding pursuant to ICSID Arbitration Rule 44. (15) Fireman’s Fund Insurance Company v. United Mexican States (Case No. ARB(AF)/02/1) August 4, 2005 The Respondent files a rejoinder on the merits. ANNUAL REPORT 2006 19 38040 (18) PSEG Global Inc. and Konya Ilgin March 30, 2006 Elektrik Üretim ve Ticaret Limited Sirketi The Claimant files a reply. v. Republic of Turkey (Case No. ARB/02/5) May 15, 2006 September 19, 2005 The Respondent files a rejoinder. The Respondent files a counter-memorial on the merits. June 13 – 14, 2006 The ad hoc Committee holds a hearing December 12, 2005 on the application for annulment in The Claimants file a reply on the merits. Washington, D.C. March 17, 2006 The Respondent files a rejoinder (21) Siemens A.G. v. Argentine Republic on the merits. (Case No. ARB/02/8) April 3 – 12, 2006 October 10 – 18, 2005 The Tribunal holds a hearing on the The Tribunal holds a hearing on the merits in Washington, D.C. merits in Washington, D.C. May 26, 2006 November 23, 2005 The parties file post-hearing briefs. The parties file post-hearing briefs. (19) SGS Société Générale de (22) Champion Trading Company and Surveillance S.A. v. Republic of the Ameritrade International, Inc. v. Arab Philippines (Case No. ARB/02/6) Republic of Egypt (Case No. ARB/02/9) There have been no new developments September 30, 2005 in this case since the publication of the The Respondent files a counter- 2005 ICSID Annual Report. memorial on the merits. October 30, 2005 (20) Hussein Nuaman Soufraki v. United The Claimants file a reply on the merits. Arab Emirates (Case No. ARB/02/7) – Annulment Proceeding November 30, 2005 The Respondent files a rejoinder August 31, 2005 on the merits. The Claimant files a memorial. June 5 – 6, 2006 January 20, 2006 The Tribunal holds a hearing on The Respondent files a the merits in Paris. counter-memorial. 20 ICSID 38040 (23) Salini Costruttori S.p.A. and May 9 – 10, 2006 Italstrade S.p.A. v. The Hashemite The Tribunal holds a hearing on oral Kingdom of Jordan (Case No. ARB/02/13) arguments in Geneva. July 5, 2005 The Claimants file a reply on the merits. (25) Sempra Energy International v. Argentine Republic (Case No. ARB/02/16) August 1, 2005 The Respondent files a rejoinder August 1, 2005 on the merits. The Respondent files a counter- memorial on the merits. September 20, 2005 The Tribunal holds a hearing on September 28, 2005 the merits in Paris. The Claimants file a reply on the merits. January 10, 2006 December 5, 2005 The Tribunal declares the The Respondent files a rejoinder proceeding closed. on the merits. January 31, 2006 February 6 – 14, 2006 The Tribunal renders its award. The Tribunal holds a hearing on the merits in Santiago de Chile. (24) Ahmonseto, Inc. and others v. Arab April 3, 2006 Republic of Egypt (Case No. ARB/02/15) The parties file post-hearing briefs. September 2, 2005 The Tribunal issues a procedural (26) AES Corporation v. Argentine order concerning the organization of Republic (Case No. ARB/02/17) the hearing of witnesses. September 8, 2005 September 18, 2005 The Respondent files a The Tribunal holds a hearing of counter-memorial on the merits. witnesses in Cairo. January 23, 2006 September 20 – 21, 2005 The Tribunal suspends the proceeding The September 18, 2005 hearing of following the request of the parties. witnesses continues in Geneva. June 29, 2006 January 23, 2006 The Tribunal further suspends the The Claimants file a post-hearing brief. proceeding following the request of the parties. March 20, 2006 The Respondent files a post-hearing brief. ANNUAL REPORT 2006 21 38040 ˙ s v. Ukraine (27) Tokios Tokele December 5, 2005 (Case No. ARB/02/18) The Respondent files a rejoinder on the merits. July 29, 2005 The Respondent files a counter- February 6 – 14, 2006 memorial on the merits. The Tribunal holds a hearing on the merits in Santiago de Chile. August 10, 2005 The Respondent files a request for the April 3, 2006 discontinuance of the proceeding. The parties file post-hearing briefs. September 9, 2005 The Claimant files a reply on the merits. (29) Impregilo S.p.A. v. Islamic Republic of Pakistan (Case No. ARB/03/3) September 22, 2005 The Tribunal holds a hearing on September 25, 2005 procedural matters by video conference. The Tribunal issues an order taking note of the discontinuance of the October 10, 2005 proceeding pursuant to ICSID The Respondent files a rejoinder Arbitration Rule 44. on the merits. November 4, 2005 (30) Empresas Lucchetti, S.A. and The Tribunal issues a procedural order Lucchetti Peru, S.A. v. Republic of Peru concerning the Respondent’s additional (Case No. ARB/03/4) – objections to jurisdiction and its request Annulment Proceeding for the discontinuance of the proceeding. July 1, 2005 January 16 – 19, 2006 The Acting Secretary-General registers The Tribunal holds a hearing on the an application for the institution of merits in Paris. annulment proceedings. March 27, 2006 November 17, 2005 The parties file post-hearing briefs. The ad hoc Committee is constituted. Its members are: Hans Danelius (Swedish), President; Franklin Berman (28) Camuzzi International S.A. v. (British); and Andrea Giardina (Italian). Argentine Republic (Case No. ARB/03/2) February 16, 2006 August 1, 2005 The ad hoc Committee holds its first The Respondent files a counter- session in Washington, D.C. memorial on the merits. May 18, 2006 September 28, 2005 The Claimant files a memorial. The Claimants file a reply on the merits. 22 ICSID 38040 (31) Metalpar S.A. and Buen Aire S.A. v. (34) Continental Casualty Company v. Argentine Republic (Case No. ARB/03/5) Argentine Republic (Case No. ARB/03/9) April 27, 2006 February 22, 2006 The Tribunal issues its decision The Tribunal issues a decision on on jurisdiction. objections to jurisdiction and issues a procedural order concerning the continuance of the proceedings on (32) M.C.I. Power Group, L.C. and New the merits. Turbine, Inc. v. Republic of Ecuador (Case No. ARB/03/6) May 8, 2006 The Respondent files a counter- July 22, 2005 memorial on the merits. The Claimants file a reply on the merits. August 31, 2005 (35) Gas Natural SDG, S.A. v. Argentine The Respondent files a rejoinder Republic (Case No. ARB/03/10) on the merits. November 11, 2005 February 2, 2006 The Tribunal suspends the proceeding The Tribunal issues a procedural order following the request of the parties. concerning the organization of the hearing on the merits. (36) Joy Mining Machinery Limited March 20 – 24, 2006 v. Arab Republic of Egypt (Case No. The Tribunal holds a hearing on the ARB/03/11) – Annulment Proceeding merits in Washington, D.C. December 16, 2005 The ad hoc Committee issues an order (33) Camuzzi International S.A. v. taking note of the discontinuance of Argentine Republic (Case No. ARB/03/7) the proceeding pursuant to ICSID Arbitration Rule 43(1). August 24, 2005 The Respondent files a counter- memorial on the merits. (37) Pan American Energy LLC and BP Argentina Exploration Company v. October 7, 2005 Argentine Republic (Case No. ARB/03/13) The Tribunal issues a procedural order concerning procedural matters. There have been no new developments in this case since the publication of the February 3, 2006 2005 ICSID Annual Report. The Tribunal issues a procedural order suspending the proceeding following the request of the parties. ANNUAL REPORT 2006 23 38040 (38) Miminco LLC and others v. January 17 – 25, 2006 Democratic Republic of the Congo The Tribunal holds a hearing on (Case No. ARB/03/14) jurisdiction and the merits in London. There have been no new developments March 10, 2006 in this case since the publication of the The parties file post-hearing briefs. 2005 ICSID Annual Report. (41) Aguas Provinciales de Santa Fe, S.A., (39) El Paso Energy International Suez, Sociedad General de Aguas de Company v. Argentine Republic Barcelona, S.A. and Interagua Servicios (Case No. ARB/03/15) Integrales de Agua, S.A. v. Argentine Republic (Case No. ARB/03/17) July 28, 2005 The Tribunal issues a procedural order March 17, 2006 concerning the production of documents. The Tribunal issues an order concerning the petition filed by non-disputing parties April 27, 2006 for participation as Amicus Curiae. The Tribunal issues a decision on jurisdiction and a procedural order April 14, 2006 concerning the continuance of the Following Aguas Provinciales de Sante proceeding on the merits. Fe, S.A.’s withdrawal of its claim, the Tribunal issues an order concerning the discontinuance of the proceeding (40) ADC Affiliate Limited and ADC & with respect to Aguas Provinciales de ADMC Management Limited v. Republic of Sante Fe, S.A. Hungary (Case No. ARB/03/16) May 16, 2006 July 25, 2005 The Tribunal issues a decision on The Claimants file a reply on jurisdiction jurisdiction and a procedural order and the merits. concerning the continuance of the proceeding on the merits. November 4, 2005 The Respondent files a rejoinder. (42) Aguas Cordobesas, S.A., Suez, and December 12, 2005 Sociedad General de Aguas de Barcelona, The Claimants file a sur-rejoinder S.A. v. Argentine Republic (Case No. on jurisdiction. ARB/03/18) December 19, 2005 March 17, 2006 The Tribunal holds an organizational The Tribunal suspends the proceeding meeting in London. following the request of the parties. 24 ICSID 38040 (43) Aguas Argentinas, S.A., Suez, (47) EDF International S.A., SAUR Sociedad General de Aguas de Barcelona, International S.A. and Léon S.A. and Vivendi Universal, S.A. v. Participaciones Argentinas S.A. v. Argentine Republic (Case No. ARB/03/19) Argentine Republic (Case No. ARB/03/23) March 24, 2006 July 15, 2005 Following Aguas Argentinas, S.A.’s The Respondent files a memorial withdrawal of its claim, the Tribunal on jurisdiction. issues an order concerning the discontinuance of the proceeding with October 3, 2005 respect to Aguas Argentinas, S.A. The Claimants file a counter-memorial on jurisdiction. (44) Telefónica S.A. v. Argentine Republic November 17, 2005 (Case No. ARB/03/20) The Respondent files a reply on jurisdiction. There have been no new developments in this case since the publication of the January 13, 2006 2005 ICSID Annual Report. The Claimants file a rejoinder on jurisdiction. (45) Enersis, S.A. and others v. Argentine March 8, 2006 Republic (Case No. ARB/03/21) The Tribunal holds a hearing on jurisdiction in Washington, D.C. March 28, 2006 The Tribunal suspends the proceeding May 26, 2006 following the request of the parties. The Tribunal suspends the proceeding following the request of the parties. (46) Electricidad Argentina S.A. and EDF International S.A. v. Argentine Republic (48) Plama Consortium Limited v. Republic (Case No. ARB/03/22) of Bulgaria (Case No. ARB/03/24) August 24, 2005 September 6, 2005 The Respondent files a reply The Tribunal issues an order on jurisdiction. concerning provisional measures. October 3, 2005 October 6, 2005 The Claimants file a rejoinder The Tribunal issues a procedural on jurisdiction. order concerning the schedule for the filing of written submissions and the November 17, 2005 presentation of oral arguments. The Tribunal suspends the proceeding following the request of the parties. ANNUAL REPORT 2006 25 38040 October 28, 2005 December 9, 2005 The Claimant files a memorial The Tribunal issues a procedural order on the merits. concerning various requests made by the parties. April 27, 2006 The Tribunal issues a procedural order December 15, 2005 concerning the production of documents. The Tribunal holds a pre-hearing conference in Washington, D.C. May 25, 2006 The Tribunal issues a further procedural December 20 – 29, 2005 order concerning the schedule for the The Tribunal issues successive filing of written submissions and the procedural orders concerning various presentation of oral arguments. requests made by the parties. January 6 – 17, 2006 (49) Fraport AG Frankfurt Airport The Tribunal holds a hearing on Services Worldwide v. Republic of the jurisdiction and liability in Philippines (Case No. ARB/03/25) Washington, D.C. July 8, 2005 June 6, 2006 The Tribunal issues a procedural order The Tribunal issues a procedural order concerning the production of documents. concerning the schedule for additional written filings by the parties. July 13, 2005 The Respondent files a rejoinder on June 6 – 23, 2006 jurisdiction and liability. The Tribunal issues successive procedural orders concerning the July 19 – August 3, 2005 amendment of the schedule for The Tribunal issues successive additional written filings by the parties. procedural orders concerning the hearing on jurisdiction and liability. (50) Inceysa Vallisoletana S.L. v. Republic August 29 – 30, 2005 of El Salvador (Case No. ARB/03/26) The Tribunal holds a hearing in Washington, D.C. There have been no new developments in this case since the publication of the August 30 – November 8, 2005 2005 ICSID Annual Report. The Tribunal issues successive procedural orders concerning procedural matters and the production of documents. (51) Unisys Corporation v. Argentine Republic (Case No. ARB/03/27) November 23, 2005 The Claimant files a sur-rejoinder. November 10, 2005 The Tribunal postpones the first session following the request of the parties. 26 ICSID 38040 April 10, 2006 (54) Azurix Corp. v. Argentine Republic The Tribunal further postpones the (Case No. ARB/03/30) first session following the request of the parties. There have been no new developments in this case since the publication of the 2005 ICSID Annual Report. (52) Duke Energy International Peru Investments No. 1 Ltd v. Republic of Peru (Case No. ARB/03/28) (55) Corn Products International, Inc. v. United Mexican States February 1, 2006 (Case No. ARB(AF)/04/1) The Tribunal issues a decision on jurisdiction. August 20, 2005 The Tribunal issues a procedural order June 19, 2006 concerning the production of documents. The Claimant files a memorial on the merits. September 20, 2005 The Respondent files a counter- memorial on issues of state responsibility. (53) Bayindir Insaat Turizm Ticaret Ve Sanayi A.S. v. Islamic Republic of October 27, 2005 Pakistan (Case No. ARB/03/29) The Claimant files a reply on issues of state responsibility. July 25 – 26, 2005 The Tribunal holds a hearing on December 12, 2005 jurisdiction in Paris. The Respondent files a rejoinder on issues of state responsibility. November 14, 2005 The Tribunal issues a decision June 28, 2006 on jurisdiction. After considering the parties’ observations, the Tribunal issues its final December 9, 2005 decision regarding certain disclosures The Tribunal holds a procedural session and issues of state responsibility. with the parties by telephone conference. December 23, 2005 (56) Total S.A. v. Argentine Republic The Tribunal issues an order (Case No. ARB/04/1) concerning the further procedure. August 1, 2005 April 25, 2006 The Claimant files a counter-memorial The Claimant files a memorial on jurisdiction. on the merits. September 15, 2005 The Tribunal holds a hearing on jurisdiction in Washington, D.C. ANNUAL REPORT 2006 27 38040 (57) Western NIS Enterprise Fund v. November 28, 2005 Ukraine (Case No. ARB/04/2) The parties file post-hearing briefs. July 15, 2005 The Claimant files a counter-memorial (59) SAUR International v. Argentine on jurisdiction. Republic (Case No. ARB/04/4) August 16, 2005 November 10, 2005 The Respondent files a reply The Tribunal holds a hearing on on jurisdiction. jurisdiction in Washington, D.C. November 26, 2005 February 28, 2006 The Tribunal holds a hearing on The Tribunal issues a decision jurisdiction in Paris and issues an order on jurisdiction. concerning post-hearing briefs. March 10, 2006 December 30, 2005 The Tribunal issues a procedural order The Claimant files a post-hearing brief. concerning the continuance of the proceedings on the merits. January 27, 2006 The Respondent files a post- April 7, 2006 hearing brief. The Tribunal suspends the proceeding following the request of the parties. March 16, 2006 The Tribunal issues an order concerning proper notice of the claim. (60) Compagnie d’Exploitation du Chemin de Fer Transgabonais v. May 26, 2006 Gabonese Republic (Case No. ARB/04/5) The parties file a joint request for the discontinuance of the proceeding. July 11, 2005 The Respondent files a reply on June 1, 2006 objections to jurisdiction. The Tribunal issues an order taking note of the discontinuance of the August 10, 2005 proceeding pursuant to ICSID The Claimant files a rejoinder on Arbitration Rule 43(1). objections to jurisdiction. September 15, 2005 (58) Cemex Asia Holdings Ltd v. The Tribunal holds a hearing on Indonesia (Case No. ARB/04/3) jurisdiction in Paris. July 28 – 29, 2005 December 19, 2005 The Tribunal holds a hearing on The Tribunal issues a decision on jurisdiction in Washington, D.C. jurisdiction. 28 ICSID 38040 January 27, 2006 April 14, 2006 The Tribunal issues a procedural order The Claimant files a rejoinder concerning the schedule for the filings on jurisdiction. on the merits. May 17, 2006 (63) BP America Production Company The Claimant files a memorial and others v. Argentine Republic on the merits. (Case No. ARB/04/8) There have been no new developments (61) OKO Osuuspankkien Keskuspankki in this case since the publication of the Oyj and others v. Republic of Estonia 2005 ICSID Annual Report. (Case No. ARB/04/6) October 16 – 21, 2005 (64) CIT Group Inc. v. Argentine Republic The Tribunal holds a hearing on the (Case No. ARB/04/9) merits in Paris. October 13, 2005 March 8, 2006 The Claimant files a memorial The parties file submissions on costs. on the merits. March 17, 2006 December 28, 2005 The parties file reply submissions on costs. The Respondent files a memorial on jurisdiction. (62) Sociedad Anónima Eduardo Vieira v. March 2, 2006 Republic of Chile (Case No. ARB/04/7) The Claimant files a counter-memorial on jurisdiction. July 14, 2005 The Tribunal issues a schedule for the April 25, 2006 filing of pleadings on jurisdiction. The Respondent files a reply on jurisdiction. September 26, 2005 The Respondent files a memorial May 25, 2006 on jurisdiction. The Claimant files a rejoinder on jurisdiction. December 20, 2005 The Claimant files a counter-memorial on jurisdiction. (65) Alstom Power Italia SpA and Alstom SpA v. Republic of Mongolia February 13, 2006 (Case No. ARB/04/10) The Respondent files a reply on jurisdiction. August 24, 2005 The Respondent files objections to jurisdiction and admissibility. ANNUAL REPORT 2006 29 38040 October 5, 2005 (68) Jan de Nul N.V. and Dredging The Claimant files a counter-memorial International N.V. v. Arab Republic of on jurisdiction and admissibility. Egypt (Case No. ARB/04/13) November 2, 2005 September 20, 2005 The Respondent files a reply on The Claimants file a counter-memorial jurisdiction and admissibility. on jurisdiction. December 6, 2005 October 31, 2005 The parties inform the Tribunal that they The Respondent files a reply have reached a settlement agreement. on jurisdiction. January 6, 2006 December 15, 2005 The Claimant files a request for the The Claimants file a rejoinder discontinuance of the proceeding on jurisdiction. pursuant to ICSID Arbitration Rule 43(1). December 22, 2005 January 9, 2006 The Tribunal holds a pre-hearing The Respondent confirms its meeting by telephone conference. agreement to the Claimant’s request of January 6, 2006. January 30, 2006 The Tribunal holds a hearing on March 13, 2006 jurisdiction in Paris. The Tribunal issues an order taking note of the discontinuance of the June 16, 2006 proceeding pursuant to ICSID The Tribunal issues a decision Arbitration Rule 43(1). on jurisdiction. (66) Russell Resources International (69) Wintershall Aktiengesellschaft v. Limited and others v. Democratic Argentine Republic (Case No. ARB/04/14) Republic of the Congo (Case No. ARB/04/11) September 7, 2005 The Tribunal is constituted. Its There have been no new developments members are: Fali S. Nariman (Indian), in this case since the publication of the President; Piero Bernardini (Italian); and 2005 ICSID Annual Report. Santiago Torres Bernárdez (Spanish). November 22, 2005 (67) ABCI Investments N.V. v. Republic The Tribunal holds its first of Tunisia (Case No. ARB/04/12) session in Paris. There have been no new developments March 10, 2006 in this case since the publication of the The Claimant files a memorial 2005 ICSID Annual Report. on the merits. 30 ICSID 38040 June 13, 2006 (71) Mobil Exploration and Development The Respondent files a memorial Inc. Suc. Argentina and Mobil Argentina containing objections to jurisdiction. S.A. v. Argentine Republic (Case No. ARB/04/16) (70) Telenor Mobile Communications AS v. February 14, 2006 Republic of Hungary (Case No. ARB/04/15) The Claimants present an ancillary claim. August 9, 2005 The Claimant files a memorial on the merits. (72) Interbrew Central European Holding B.V. v. Republic of Slovenia October 11, 2005 (Case No. ARB/04/17) The Respondent files objections to jurisdiction. July 18, 2005 The Tribunal issues an order taking November 16, 2005 note of the discontinuance of the The Claimant files a response to the proceeding pursuant to ICSID Respondent’s objections to jurisdiction. Arbitration Rule 44. December 9, 2005 The Respondent files a reply in further (73) France Telecom S.A. v. Argentine support of its objections to jurisdiction. Republic (Case No. ARB/04/18) April 28, 2006 March 29, 2006 The Tribunal holds a hearing on The Acting Secretary-General issues an jurisdiction in London. order taking note of the discontinuance of the proceeding pursuant to ICSID May 15, 2006 Arbitration Rule 44. The Respondent files a submission on costs. (74) Gemplus, S.A., SLP, S.A. and May 16, 2006 Gemplus Industrial, S.A. de C.V. v. United The Claimant files a submission Mexican States (Case No. ARB(AF)/04/3) on costs. October 14, 2005 May 23, 2006 The Claimants file a memorial The Respondent files a further on the merits. submission on costs. June 1, 2006 The Respondent files a counter- memorial on the merits. ANNUAL REPORT 2006 31 38040 (75) Talsud, S.A. v. United Mexican November 21, 2005 States (Case No. ARB(AF)/04/4) The Respondent files a counter- memorial on the merits and a October 14, 2005 memorial on jurisdiction. The Claimaint files a memorial on the merits. January 18, 2006 The Claimants file a reply on the June 1, 2006 merits and a counter-memorial The Respondent files a counter- on jurisdiction. memorial on the merits. March 6, 2006 The Respondent files a rejoinder on (76) Archer Daniels Midland Company the merits and a reply on jurisdiction. and Tate & Lyle Ingredients Americas, Inc. v. United Mexican States March 17, 2006 (Case No. ARB(AF)/04/5) The President of the Tribunal holds a pre-hearing conference with the August 11, 2005 parties via telephone. The Tribunal is constituted. Its members are: Bernardo M. Cremades (Spanish), March 23, 2006 President; Arthur W. Rovine (U.S.); and The Tribunal issues a procedural order Eduardo Siqueiros (Mexican). concerning the organization of the hearing on jurisdiction and the merits. October 7, 2005 The Tribunal holds its first session in March 31, 2006 Washington, D.C. The Claimants file a rejoinder on jurisdiction. December 21, 2005 The Claimants file a memorial April 24 – 27, 2006 on the merits. The Tribunal holds a hearing on jurisdiction and the merits in May 16, 2006 Washington, D.C. The Respondent files a counter- memorial on the merits. May 4, 2006 The Tribunal issues a procedural order concerning the procedural calendar. (77) Duke Energy Electroquil Partners and Electroquil S.A. v. Republic of June 30, 2006 Ecuador (Case No. ARB/04/19) The parties file post-hearing briefs. September 3, 2005 The Claimants file a memorial on the merits. 32 ICSID 38040 (78) Vannessa Ventures Ltd. v. November 21, 2005 Bolivarian Republic of Venezuela The Tribunal issues an order taking (Case No. ARB(AF)/04/6) note of the discontinuance of the proceeding pursuant to ICSID January 13, 2006 Arbitration Rule 43(1). The Claimant files a memorial on the merits. (81) DaimlerChrysler Services AG v. February 28, 2006 Argentine Republic (Case No. ARB/05/1) The Claimant presents an ancillary claim. There have been no new developments in this case since the publication of the March 15, 2006 2005 ICSID Annual Report. The Tribunal authorizes the presentation of the Claimant’s ancillary claim in accordance with Article (82) Compañía General de Electricidad 47(2) of the ICSID Additional Facility S.A. and CGE Argentina S.A. v. Argentine Arbitration Rules. Republic (Case No. ARB/05/2) June 5, 2006 (79) RGA Reinsurance Company v. The Tribunal is constituted. Its Argentine Republic (Case No. ARB/04/20) members are: Pierre Tercier (Swiss), President; Georges Abi-Saab (Egyptian); July 18, 2005 and Henri C. Alvarez (Canadian). The Tribunal is constituted. Its members are: Fali S. Nariman (Indian), President; Georges Abi-Saab (Egyptian); (83) LESI, S.p.A. and Astaldi, S.p.A. v. and Piero Bernardini (Italian). People’s Democratic Republic of Algeria (Case No. ARB/05/3) November 22, 2005 The Tribunal holds its first October 31, 2005 session in Paris. The Claimants file a memorial on the merits. (80) Motorola Credit Corporation, Inc. v. March 27, 2006 Republic of Turkey (Case No. ARB/04/21) The Respondent files a counter- memorial on the merits and a July 8, 2005 memorial on jurisdiction. The Tribunal holds its first session in Paris. May 8, 2006 The Claimants file a counter-memorial August 30, 2005 on jurisdiction. The Claimant files a memorial on the merits. ANNUAL REPORT 2006 33 38040 May 17, 2006 (86) Bernardus Henricus Funnekotter The Tribunal holds a hearing on and others v. Republic of Zimbabwe jurisdiction in Paris. (Case No. ARB/05/6) There have been no new developments (84) I&I Beheer B.V. v. Bolivarian in this case since the publication of the Republic of Venezuela (Case No. ARB/05/4) 2005 ICSID Annual Report. September 30, 2005 The Tribunal is constituted. Its members (87) Saipem S.p.A. v. People’s are: Karl-Heinz Böckstiegel (German), Republic of Bangladesh President; Charles N. Brower (U.S.); and (Case No. ARB/05/7) Pierre-Marie Dupuy (French). July 26, 2005 November 29, 2005 The Respondent files a proposal The Tribunal holds its first session by for the disqualification of one of telephone conference. the arbitrators. December 2, 2005 – January 6, 2006 August 22, 2005 The Tribunal issues successive procedural The Tribunal is constituted. Its orders concerning procedural matters. members are: Gabrielle Kaufmann- Kohler (Swiss), President; Philip February 17, 2006 Otton (British); and Christoph H. The Claimant files a memorial Schreuer (Austrian). The proceeding is on the merits. suspended in accordance with ICSID Arbitration Rule 9(6). March 30, 2006 The Respondent files objections October 11, 2005 to jurisdiction. The proposal for the disqualification of one of the arbitrators is declined and May 4, 2006 the proceeding is resumed. The Tribunal issues a further procedural order concerning procedural matters. December 1, 2005 The Tribunal holds its first session in London. (85) TSA Spectrum de Argentina, S.A. v. Argentine Republic (Case No. ARB/05/5) February 20, 2006 The Claimant files a memorial June 12, 2006 on the merits. The Tribunal is constituted. Its members are: Hans Danelius (Swedish), May 15, 2006 President; Georges Abi-Saab (Egyptian); The Respondent files a counter- and Grant D. Aldonas (U.S.). memorial on jurisdiction and the merits. 34 ICSID 38040 (88) Parkerings-Compagniet AS v. Republic February 24, 2006 of Lithuania (Case No. ARB/05/8) The Claimant notifies the Commission that the parties have failed to reach an October 12, 2005 agreement and files a request for the The Tribunal is constituted. Its members closure of the proceeding. are: Laurent Lévy (Swiss/Brazilian), President; Marc Lalonde (Canadian); March 7, 2006 and Julian D.M. Lew (British). The Respondent files a request for the closure of the proceeding. November 25, 2005 The Tribunal holds a first session March 27, 2006 in London. The Commission declares the proceeding closed. February 24, 2006 The Claimant files a memorial April 6, 2006 on the merits. The Commission issues a report in accordance with Article 34(2) of the ICSID Convention and Rule 30(2) (89) Togo Electricité v. Republic of Togo of ICSID Conciliation Rules. (Case No. CONC/05/1) September 21, 2005 (90) Empresa Eléctrica del Ecuador, Inc. The Commission is constituted. Its (EMELEC) v. Republic of Ecuador members are: António Maria Ribeiro (Case No. ARB/05/9) de Sampaio Caramelo (Portuguese), President; Bernard Hanotiau (Belgian); February 28, 2006 and Pierre B. Meunier (Canadian). The Tribunal is constituted. Its members are: Bernardo Sepúlveda Amor (Mexican), October 24, 2005 President; W. Michael Reisman (U.S.); The Commission holds its first session in and John Rooney (U.S.). Paris; the Respondent files observations on the request for conciliation. June 5, 2006 The Tribunal holds a first session by November 25, 2005 telephone conference. The Claimant files a written instrument of its position. (91) Malaysian Historical Salvors SDN December 26, 2005 BHD v. Malaysia (Case No. ARB/05/10) The Respondent files a written instrument of its position. November 1, 2005 The Tribunal is constituted. The January 9 – 10, 2006 Sole Arbitrator is Michael Hwang The Commission holds a hearing (Singaporean). in Paris. ANNUAL REPORT 2006 35 38040 December 29, 2005 February 14, 2006 The Sole Arbitrator holds a first session at The Tribunal holds a first session in The Hague. Washington, D.C. March 16, 2006 April 20, 2006 The parties file memorials on jurisdiction. The Respondent files a memorial on jurisdiction. April 24, 2006 The parties file replies on jurisdiction. June 23, 2006 The Claimants file a counter-memorial on jurisdiction. (92) Asset Recovery Trust S.A. v. Argentine Republic (Case No. ARB/05/11) (94) Noble Energy Inc. and Machala March 24, 2006 Power Cía. Ltd. v. Republic of Ecuador The Tribunal is constituted. Its members and Consejo Nacional de Electricidad are: Jaime Irarrázabal Covarrubias (Case No. ARB/05/12) (Chilean), President; Ernesto Canales Santos (Mexican); and A.A. Cançado July 29, 2005 Trindade (Brazilian). The Secretary-General registers a request for the institution of May 19, 2006 arbitration proceedings. The proceeding is suspended following a proposal for disqualification of one January 4, 2006 of the arbitrators. The Tribunal is constituted. Its members are: Gabrielle Kaufmann-Kohler (Swiss), June 7, 2006 President; Henri C. Alvarez (Canadian); The Claimant files observations and Bernardo M. Cremades (Spanish). on the proposal for disqualification. March 9, 2006 The Tribunal holds a first session in (93) Bayview Irrigation District and Washington, D.C. others v. United Mexican States (Case No. ARB(AF)/05/1) June 26, 2006 The Claimants file a memorial July 1, 2005 on the merits. The Secretary-General registers a request for the institution of arbitration proceedings. (95) EDF (Services) Limited v. Romania (Case No. ARB/05/13) December 15, 2005 The Tribunal is constituted. Its members July 29, 2005 are: Vaughan Lowe (British), President; The Secretary-General registers a Ignacio Gómez-Palacio (Mexican); and request for the institution of arbitration Edwin Meese III (U.S.). proceedings. 36 ICSID 38040 December 20, 2005 January 10, 2006 The Tribunal is constituted. Its members The Tribunal is constituted. Its are: Piero Bernardini (Italian), President; members are: David A.R. Williams Yves Derains (French); and Arthur W. (New Zealand), President; Francisco Rovine (U.S.). Orrego Vicuña (Chilean); and Michael C. Pryles (Australian). February 6, 2006 The Tribunal holds a first session in March 24, 2006 Washington, D.C. The Tribunal holds its first session in Paris. February 23, 2006 The Tribunal issues a procedural order May 12, 2006 concerning the schedule for the filing The Claimants file a memorial of written submissions contained in the on the merits. minutes of the first session. June 12, 2006 The Respondent files a memorial (96) RSM Production Corporation v. on jurisdiction. Grenada (Case No. ARB/05/14) August 5, 2005 (98) Cargill, Incorporated v. United The Secretary-General registers Mexican States (Case No. ARB(AF)/05/2) a request for the institution of arbitration proceedings. August 30, 2005 The Secretary-General registers December 7, 2005 a request for the institution of The Tribunal is constituted. Its members arbitration proceedings. are: V.V. Veeder (British), President; Bernard Audit (French); and David June 21, 2006 Berry (U.S./Canadian). The Tribunal is constituted. Its members are: Michael C. Pryles (Australian), January 16, 2006 President; David D. Caron (U.S.); and The Tribunal holds its first session Donald M. McRae (Canadian). in London. (99) Rumeli Telekom A.S. & Telsim (97) Waguih Elie George Siag and Mobil Telekomunikasyon Hizmetleri Clorinda Vecci v. Arab Republic of Egypt A.S. v. Republic of Kazakhstan (Case No. ARB/05/15) (Case No. ARB/05/16) August 5, 2005 August 30, 2005 The Secretary-General registers a The Secretary-General registers a request for the institution of request for the institution of arbitration arbitration proceedings. proceedings. ANNUAL REPORT 2006 37 38040 December 9, 2005 March 16 – May 2, 2006 The Tribunal is constituted. Its members The Tribunal issues successive are: Bernard Hanotiau (Belgian), procedural orders concerning the filing President; Stewart Boyd (British); and of factual witness statements and the Marc Lalonde (Canadian). production of documents. January 30, 2006 June 30, 2006 The Tribunal holds its first session by The Claimant files a memorial telephone conference. on the merits. March 31, 2006 The Respondent files objections (101) Ioannis Kardossopoulos to jurisdiction. v. Georgia (Case No. ARB/05/18) April 26, 2006 October 3, 2005 The Tribunal issues a decision joining the The Secretary-General registers a objections to jurisdiction to the merits. request for the institution of arbitration proceedings. April 28, 2006 The Tribunal issues a procedural order February 27, 2006 concerning the production of documents. The Tribunal is constituted. Its members are: L. Yves Fortier (Canadian), May 17, 2006 President; Francisco Orrego Vicuña The Tribunal issues a further (Chilean); and Arthur Watts (British). procedural order concerning the production of documents. May 4, 2006 The Tribunal holds its first session in London. (100) Desert Line Projects LLC v. Republic of Yemen (Case No. ARB/05/17) (102) Helnan International Hotels September 30, 2005 A/S v. Arab Republic of Egypt The Secretary-General registers a (Case No. ARB/05/19) request for the institution of arbitration proceedings. October 5, 2005 The Secretary-General registers a January 6, 2006 request for the institution of The Tribunal is constituted. Its members arbitration proceedings. are: Pierre Tercier (Swiss), President; Ahmed S. El-Kosheri (Egyptian); and February 10, 2006 Jan Paulsson (French). The Tribunal is constituted. Its members are: Yves Derains (French), President; March 8, 2006 Rudolf Dolzer (German); and Michael The Tribunal holds its first session in Paris. J.A. Lee (British). 38 ICSID 38040 April 14, 2006 May 11, 2006 The Tribunal holds its first The proceeding is suspended following session in Paris. a proposal for the disqualification of one of the arbitrators. May 17, 2006 The Tribunal issues a decision on May 17, 2006 provisional measures. Following the resignation of one of the arbitrators, which was consented to by May 31, 2006 the other members of the Tribunal, the The Respondent files a memorial Acting Secretary-General notifies the on jurisdiction. parties of a vacancy on the Tribunal and the proceeding is suspended pursuant to June 23, 2006 ICSID Arbitration Rule 10(2). The Tribunal issues a procedural order concerning the production of documents. (105) Biwater Gauff (Tanzania) Limited v. United Republic of Tanzania (103) Ioan Micula, Viorel Micula and (Case No. ARB/05/22) others v. Romania (Case No. ARB/05/20) November 2, 2005 October 13, 2005 The Secretary-General registers The Acting Secretary-General a request for the institution of registers a request for the institution arbitration proceedings. of arbitration proceedings. February 9, 2006 The Tribunal is constituted. Its members (104) African Holding Company of are: Bernard Hanotiau (Belgian), America, Inc. and Société Africaine President; Gary B. Born (U.S.); and de Construction au Congo S.A.R.L. v. Toby T. Landau (British). Democratic Republic of the Congo (Case No. ARB/05/21) March 23, 2006 The Tribunal holds its first October 27, 2005 session in Paris. The Secretary-General registers a request for institution of March 31, 2006 arbitration proceedings. The Tribunal issues a procedural order concerning the Claimant’s request for May 4, 2006 provisional measures. The Tribunal is constituted. Its members are: Ahmed S. El-Kosheri (Egyptian), May 24, 2006 President; Teresa Giovannini (Swiss); and The Tribunal issues a procedural order Otto L.O. de Witt Wijnen (Dutch). concerning the parties’ requests for production of documents. ANNUAL REPORT 2006 39 38040 (106) Ares International S.r.l. and (109) Química e Industrial del Borax MetalGeo S.r.l. v. Georgia Ltda. and others v. Republic of Bolivia (Case No. ARB/05/23) (Case No. ARB/06/2) November 9, 2005 February 6, 2006 The Secretary-General registers a The Acting Secretary-General request for the institution of registers a request for the institution of arbitration proceedings. arbitration proceedings. April 10, 2006 The Tribunal is constituted. Its members (110) The Rompetrol Group N.V. v. are: J. William Rowley (Canadian), Romania (Case No. ARB/06/3) President; John Beechey (British); and Emmanuel Gaillard (French). February 14, 2006 The Acting Secretary-General May 22, 2006 registers a request for the institution of The Tribunal holds its first session arbitration proceedings. in London. (111) Vestey Group Ltd v. Bolivarian (107) Hrvatska Elektroprivreda d.d. v. Republic of Venezuela (Case No. ARB/06/4) Republic of Slovenia (Case No. ARB/05/24) March 14, 2006 December 28, 2005 The Acting Secretary-General The Acting Secretary-General registers a request for the institution of registers a request for the institution arbitration proceedings. of arbitration proceedings. April 20, 2006 (112) Phoenix Action Ltd v. Czech The Tribunal is constituted. Its members Republic (Case No. ARB/06/5) are: David A.R. Williams (New Zealand), President; Charles N. Brower (U.S.); and March 23, 2006 Jan Paulsson (French). The Acting Secretary-General registers a request for the institution of arbitration proceedings. (108) Spyridon Roussalis v. Romania (Case No. ARB/06/1) (113) Rail World LLC and others v. January 10, 2006 Republic of Estonia (Case No. ARB/06/6) The Acting Secretary-General registers a request for the institution April 5, 2006 of arbitration proceedings. The Acting Secretary-General registers a request for the institution of arbitration proceedings. 40 ICSID 38040 (114) Togo Electricité v. Republic of Togo (117) Branimir Mensik v. Slovak Republic (Case No. ARB/06/7) (Case No. ARB/06/9) April 10, 2006 May 10, 2006 The Acting Secretary-General The Acting Secretary-General registers a request for the institution of registers a request for the institution of arbitration proceedings. arbitration proceedings. (115) Sistem Muhendislik Insaat Sanayi ve Ticaret A.S. v. Kyrgyz Republic (118) Chevron Block Twelve and Chevron (Case No. ARB(AF)/06/1) Blocks Thirteen and Fourteen v. People’s Republic of Bangladesh April 12, 2006 (Case No. ARB/06/10) The Acting Secretary-General registers a request for the institution of June 30, 2006 arbitration proceedings. The Acting Secretary-General registers a request for the institution of arbitration proceedings. (116) Libananco Holdings Co. Limited v. Republic of Turkey (Case No. ARB/06/8) April 19, 2006 The Acting Secretary-General registers a request for the institution of arbitration proceedings. ANNUAL REPORT 2006 41 38040 ANNEX 3 PANELS OF CONCILIATORS AND OF ARBITRATORS DESIGNATIONS BY CONTRACTING STATES IN FISCAL YEAR 2006 AZERBAIJAN EGYPT Panel of Arbitrators Panel of Arbitrators Designation effective September 30, 2005: Designations effective January 31, 2006: Ahmed Mohammed Jehani Ahmed Esmat Abdel Meguid, Mohamad Ibrahim Mostafa Abul-Enein, Nabil Elaraby and Mahmoud Samir El-Sharqawy CHILE Panel of Conciliators Designations effective September 1, 2005: FRANCE Gonzalo Biggs (re-appointment) and Panel of Conciliators Jorge Carey Designations effective March 22, 2006: Jean-Pierre Ancel, Pierre-Raoul Duval, Designation effective October 22, 2005: Pierre Mayer and Henri Toutée Carlos Eugenio Jorquiera Malschafsky Panel of Arbitrators Panel of Arbitrators Designations effective March 22, 2006: Designations effective September 1, 2005: Emmanuel Gaillard, Gilbert Guillaume Enrique Barros Bourie, Ximena Fuentes (re-appointment), Dominique Hascher and Torrijos, Jaime Irarrázabal Covarrubias Brigitte Stern (re-appointment) (re-appointment) and Andrés Jana Linetzky GUYANA COLOMBIA Panel of Arbitrators Panel of Conciliators Designations effective November 18, 2005: Designations effective February 17, 2006: Janis H. Brennan, Paul S. Reichler and Elizabeth Cadena Fernández, Nicolás Philippe Sands Lloreda, Néstor Humberto Martínez Neira and Ignacio Sanín Bernal LEBANON Panel of Arbitrators Panel of Arbitrators Designations effective February 17, 2006: Designation effective July 5, 2005: Enrique Gómez-Pinzón (re-appointment), Nayla Comair-Obeid Fernando Mantilla-Serrano, W. Michael Reisman and Eduardo Silva Romero 42 ICSID 38040 MALAWI Panel of Arbitrators Designation effective April 24, 2006: A. Peter Mutharika MONGOLIA Panel of Arbitrators Designation effective May 12, 2006: Michael D. Nolan NORWAY Panel of Concilators Designations effective October 18, 2005: Rolf Einar Fife, Ola Mestad, Rakel Surlien and Siri Teigum Panel of Arbitrators Designations effective October 18, 2005: Gunnar Aasland, Trond Dolva, Per Tresselt and Bjørn Ven SINGAPORE Panels of Conciliators and of Arbitrators Designations effective February 13, 2006: Joon Seng Goh, Joseph Grimberg, Michael Hwang and Lip Ping Thean SLOVAK REPUBLIC Panel of Arbitrators Designations effective August 31, 2005: Peter Tomka and Ján Varšo SWITZERLAND Panel of Arbitrators Designation effective July 28, 2005: Robert Briner (serving out the remainder of Dietrich Schindler’s term, i.e., through September 6, 2006) ANNUAL REPORT 2006 43 38040 ANNEX 4 ICSID DOCUMENTS AND PUBLICATIONS AVAILABLE FROM THE CENTRE FREE OF CHARGE UNLESS OTHERWISE INDICATED List of Contracting States and Other Signatories of the Convention, Doc. ICSID/3 (periodic updates) (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/10 (periodic updates) (English) ICSID Regulations and Rules, Doc. ICSID/4/Rev. 1 (May 1975) (contains the texts of the Centre’s Regulations and Rules in effect from January 1, 1968 to September 26, 1984) (English, French and Spanish) ICSID Basic Documents, Doc. ICSID/15 (January 1985) (contains the texts of the Centre’s Regulations and Rules in effect from September 26, 1984 to December 31, 2002 and the text of the ICSID Convention) (English, French and Spanish) ICSID Convention, Regulations and Rules, Doc. ICSID/15/Rev. 1 (January 2003) (contains the texts of the Centre’s Regulations and Rules in effect from January 1, 2003 to April 9, 2006 and the text of the ICSID Convention) (English, French and Spanish) ICSID Convention, Regulations and Rules, Doc. ICSID/15 (April 2006) (contains the texts of the Centre’s Regulations and Rules in effect from April 10, 2006 and the text of the ICSID Convention) (English, French and Spanish) ICSID Additional Facility for the Administration of Conciliation, Arbitration and Fact-Finding Proceedings, Doc. ICSID/11 (June 1979) (contains the texts of the Additional Facility Rules in effect until December 31, 2002) (English, French and Spanish) 44 ICSID 38040 ICSID Additional Facility Rules, Doc. ICSID/11/Rev. 1 (January 2003) (contains the texts of the Additional Facility Rules in effect from January 1, 2003 to April 9, 2006) (English, French and Spanish) ICSID Additional Facility Rules, Doc. ICSID/11 (April 2006) (contains the texts of the Additional Facility Rules in effect from April 10, 2006) (English, French and Spanish) ICSID Model Clauses, Doc. ICSID/5/Rev. 1 (February 1, 1993) (English, French and Spanish) (Internet edition only) Bilateral Investment Treaties 1959–1996: Chronological Country Data and Bibliography, Doc. ICSID/17 (May 30, 1997) (English) (Internet edition only) News from ICSID (semi-annual) (English) ICSID Annual Report (1967—) (English, French and Spanish) ICSID Review—Foreign Investment Law Journal (semi-annual) (available on a subscription basis, at US$ 78 per year for those with a mailing address in an OECD country and US$ 39 for others, plus postal charges, from Journals Publishing Division, The Johns Hopkins University Press, 2715 North Charles Street, Baltimore, M.D. 21218-4363, U.S.A.; Tel.: 410–516–6987; Fax: 410–516–6968, Email: jrnlcirc@press.jhu.edu) Documents Concerning the Origin and Formulation of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (1967; 2001; 2006) (English, French and Spanish) (available from the Centre at US$ 250) Investment Laws of the World (ten loose-leaf volumes) and Investment Treaties (nine loose- leaf volumes) (available from Oceana Publications, a division of Oxford University Press, Customer Service Department, 2001 Evans Road, Cary, NC 27513, Tel.: 866–445–8685, Fax: 919–677–1303, Email: custserv.us@oup.com at US$ 1,990 for both sets, US$ 995 for the ten Investment Laws of the World volumes only and US$ 995 for the nine Investment Treaties volumes only) ANNUAL REPORT 2006 45 38040 Bilateral Investment Treaties by Rudolf Dolzer and Margrete Stevens (Martinus Nijhoff Publishers, 1995) (US$ 198) The ICSID Convention: A Commentary by Christoph H. Schreuer (Cambridge University Press, 2001) (US$ 300) 46 ICSID 38040 ANNEX 5 RESOLUTIONS ADOPTED BY THE ADMINISTRATIVE COUNCIL AT ITS THIRTY-NINTH ANNUAL MEETING HELD ON SEPTEMBER 24, 2005 AC(39)/RES/105—Approval of the Annual Report The Administrative Council RESOLVES To approve the 2005 Annual Report on the operation of the Centre. AC(39)/RES/106—Adoption of Budget for Fiscal Year 2006 The Administrative Council RESOLVES To adopt, for the period of July 1, 2005 to June 30, 2006, the budget set forth in paragraph 2 of ICSID Document No. 2. ANNUAL REPORT 2006 47 38040 ANNEX 6 FINANCIAL STATEMENTS EXPRESSED IN UNITED STATES DOLLARS STATEMENTS OF FINANCIAL POSITION June 30, 2006 June 30, 2005 CURRENT ASSETS Share in pooled cash and investments (Notes 2 and 3) $ 10,917,189 $ 9,342,810 Total assets $ 10,917,189 $ 9,342,810 CURRENT LIABILITIES AND NET ASSETS Liabilities: Advances from parties to arbitration proceedings (Note 2) $ 6,937,164 $ 7,763,693 Investment income due to parties to arbitration proceedings (Note 2) 768,626 538,466 Funds available for arbitration proceedings 7,705,790 8,302,159 Accrued expenses related to arbitration proceedings 3,211,399 1,040,651 Total liabilities 10,917,189 9,342,810 Net assets — — Total liabilities and net assets $ 10,917,189 $ 9,342,810 STATEMENTS OF ACTIVITIES For the year ended June 30, 2006 June 30, 2005 Support and revenue: Revenues from arbitration proceedings (Note 2) $ 14,476,531 $ 8,653,652 In-kind contributions (Notes 2 and 4) 2,136,222 2,826,702 Sales of publications (Note 4) 54,552 12,918 Total support and revenue 16,667,305 11,493,272 Expenses: Expenses related to arbitration proceedings (Note 2) 12,851,962 7,948,733 Services provided by the Bank as In-kind contributions (Notes 2 and 4) 2,136,222 2,826,702 Administrative expenses paid to the Bank (Note 4) 1,679,121 717,837 Total expenses 16,667,305 11,493,272 Change in net assets $ — $ — 48 ICSID 38040 FINANCIAL STATEMENTS STATEMENTS OF CASH FLOWS For the year ended June 30, 2006 June 30, 2005 Cash flows from operating activities: Change in net assets $ — $ — Adjustments to reconcile change in net assets to net cash provided by operating activities (Decrease) increase in advances from parties to arbitration proceedings (826,529) 4,141,740 Increase in investment income due to parties to arbitration proceedings 230,160 140,839 Increase (decrease) in accrued expenses related to arbitration proceedings 2,170,748 (74,253) Net cash provided by operating activities 1,574,379 4,208,326 Cash flows from investing activities: Increase in share in pooled cash and investments (1,574,379) (9,342,810) Net cash used in investing activities (1,574,379) (9,342,810) Net decrease in cash and cash equivalents — (5,134,484) Cash and cash equivalents at beginning of fiscal year — 5,134,484 Cash and cash equivalents at end of fiscal year $ — $ — The accompanying notes are an integral part of these financial statements. ANNUAL REPORT 2006 49 38040 ANNEX 6 (CONTINUED) NOTES TO FINANCIAL STATEMENTS JUNE 30, 2006 AND 2005 NOTE 1 – ORGANIZATION The International Centre for Settlement of Investment Disputes (ICSID or the Centre) was established on October 14, 1966 to provide facilities for the conciliation and arbitration of investment disputes between States and nationals of other States. The Centre provides such facilities for cases brought under the ICSID Convention, the ICSID Additional Facility Rules, or where parties involved so request, under the Arbitration Rules of the United Nations Commission on International Trade Law. On February 13, 1967, the International Bank for Reconstruction and Development (the Bank) and the Centre entered into Administrative Arrangements which were effective as of the date of the establishment of the Centre. The Memorandum of Administrative Arrangements (the Memorandum) provides that, except to the extent that the Centre may charge the parties to proceedings, for fees and expenses of members of Conciliation Commissions, Arbitral Tribunals or ad hoc Committees, the Bank shall provide facilities and services to the Centre, as described in Notes 2 and 4. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting and Financial Statement Presentation: The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) and with International Financial Reporting Standards (IFRS). Such financial statements are presented in accordance with Statement of Financial Accounting Standard No. 117, “Financial Statements of Not-For-Profit-Organizations” (SFAS No. 117). SFAS No. 117 requires that net assets are classified in accordance with donor restrictions; however, there are no net assets as of June 30, 2006 and 2005. Use of Estimates: The preparation of financial statements in conformity with US GAAP and IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of the revenues and expenses during the reporting period. Actual results could differ from these estimates. Share in Pooled Cash and Investments: Amounts paid to the Centre, but not yet disbursed, are managed by the Bank, which maintains a single investment portfolio (the 50 ICSID 38040 Pool) for all of the trust funds administered by the Bank, the International Development Association, the International Finance Corporation, the Multilateral Investment Guarantee Agency (the “World Bank Group”), and the funds of the Centre. The Bank maintains the Pool assets separate and apart from the funds of the World Bank Group. Under the Pool’s investment strategy adopted in January 2005, a significant portion of the Pool is invested in liquid instruments such as money market deposits, U.S. Treasury securities and other high-grade bonds. The pooled investments are reported at fair value. The Bank maintains the investments on a pooled accounting basis. Share in Pooled Cash and Investments represents the Centre’s pro-rata share of the Pool’s fair value at the end of the reporting period. The fair value is based on market quotations, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. The corresponding proportionate realized and unrealized gains/ losses and interest income are accrued in the period in which they occur. Value of Services Provided by the Bank and In-kind Contributions: In accordance with Statement of Financial Accounting Standard No. 116, “Accounting for Contributions Received and Contributions Made”, the value of services provided by the Bank is determined by the estimated fair value of these services and is recorded by the Centre as in-kind contributions and also as expenses of the Centre. The Bank provides support services and facilities to the Centre including the following: (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’s direct expenses attributable to arbitration proceedings are borne by the parties in accordance with the Centre’s Administrative and Financial Regulations (Regulations). These direct expenses include the fees and travel expenses of arbitrators and the costs associated with engaging meeting rooms and supporting services for conducting proceedings. In accordance with these Regulations, the ICSID Secretary-General calls on the parties to make advance deposits with the Centre from time to time to defray these anticipated expenses. Accordingly, the Centre recognizes revenues from these exchange transactions during the period of and to the extent expenses are incurred related to arbitration proceedings. The Centre also recognizes revenue for the nonrefundable fees when collected from the parties to the arbitration proceedings. ANNUAL REPORT 2006 51 38040 ANNEX 6 (CONTINUED) NOTES TO FINANCIAL STATEMENTS Investment of Undisbursed Advances from Parties and Refund of Surplus to the Parties: The investment income accrues to the parties and can be used for expenses related to arbitration proceedings. After the completion of an arbitration proceeding, if it is determined that there is an excess of advances and investment income over expenditures for the proceedings, the surplus shall be refunded to the parties in proportion to the amounts advanced by each party to the Centre. Accounting and Reporting Developments — International Accounting Standards Board (IASB) Improvements Project: In December 2003, as a part of its improvements project, the IASB issued fifteen revised standards to eliminate redundancies and conflicts between existing standards. These revised standards are to be applied for annual periods beginning on or after January 1, 2005. The revision did not have a material impact on the Centre’s financial reporting. Other IASB Amendments: In December 2003, the IASB released revised IAS 32, Financial Instruments: Disclosure and Presentation and IAS 39, Financial Instruments: Recognition and Measurement. These standards replace IAS 32 (revised 2000), and supersede IAS 39 (revised 2000), and had to be applied for annual periods beginning on or after January 1, 2005. The amendments did not have a material impact on the Centre’s financial statements. In addition to IAS 39 (Revised), further amendments were subsequently made to IAS 39, relating to (i) Transition and Initial Recognition of Financial Assets and Financial Liabilities, (ii) Cash Flow Hedge Accounting of Forecast Intragroup Transactions, (iii) Fair Value Hedge Accounting for a Portfolio Hedge of Interest rate Risk and (iv) the Fair Value Option. The Centre is still evaluating the Fair Value Option amendment which is applicable for annual periods beginning on or after January 1, 2006, with specific transition rules for existing IFRS preparers. The IASB issued IFRS 7, Financial Instrument: Disclosures, on 18 August 2005, with complementary Amendments to IAS 1, Presentation of Financial Statements – Capital Disclosures. The Centre is currently evaluating the impact of this new standard which is applicable for annual periods beginning on or after January 1, 2007. 52 ICSID 38040 New FASB Pronouncements: In May 2005, the Financial Accounting Standard Board (FASB) issued SFAS No. 154, Accounting Changes and Error Corrections. This statement is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005 and may have an impact on the Centre’s financial reporting. As this standard requires that, in the absence of specific transitional provisions applying to a change in accounting policy (including adoption of a new standard), any such change should be applied retroactively, it will affect ICSID’s application and presentation of future accounting changes in its financial reporting in future fiscal years. NOTE 3 – FINANCIAL RISK MANAGEMENT The Pool is actively managed and invested in accordance with the investment strategy established for all trust funds administered by the World Bank Group. The objectives of the investment strategy are foremost to maintain adequate liquidity to meet foreseeable cash flow needs and preserve capital and then to maximize investment returns. The Centre is exposed to market, credit, and liquidity risks. The risk management policies employed to manage these risks are discussed below: Market risk – The risk that the value of a financial instrument will fluctuate as a result of changes in market prices or changes in interest rates. The Pool is actively managed so that the probability of incurring negative returns over a three-year cycle is no more than 1%. The asset allocation of the Pool is managed so as to optimize the Pool’s total returns within the specified risk tolerance. Credit risk – The risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Bank invests the pooled assets in liquid instruments such as money market deposits, government and agency obligations. The Bank is limited to investments with minimum credit ratings as follows: n Money market deposits: issued or guaranteed by financial institutions whose senior debt securities are rated at least A-. n Government and agency obligations: issued or unconditionally guaranteed by government agencies rated at least AA- if denominated in a currency other than the home currency of the issuer, otherwise no rating is required. Obligations issued by an agency or instrumentality of a government, a multilateral organization or any other official entity require a minimum credit rating of AA-. ANNUAL REPORT 2006 53 38040 ANNEX 6 (CONTINUED) NOTES TO FINANCIAL STATEMENTS Liquidity risk – The risk that an entity will encounter difficulty in raising liquid funds to meet its commitments. ICSID regulations require parties to disputes to make advance deposits with the Centre to meet anticipated expenses of arbitration proceedings. The Bank maintains a significant portion of the Pool in short-term money market deposits to meet disbursement requirements of trust funds. NOTE 4 - SERVICES PROVIDED BY THE BANK AS IN-KIND CONTRIBUTIONS Nonrefundable fees and fees related to the sales of publications earned by the Centre are remitted to the Bank as partial reimbursements for the services provided by the Bank. A summary of the value of these services and revenues is provided below: For the year ended, June 30, 2006 June 30, 2005 Staff services (including benefits) $ 2,030,577 $ 2,113,429 Administrative services and facilities: Contractual services 730,680 381,277 Administrative services 194,266 211,059 Communications and information technology 252,738 259,403 Office accommodations 499,791 437,404 Travel 107,291 141,967 Total recorded value of services provided by the Bank 3,815,343 3,544,539 Less: Non refundable fees 1,624,569 704,919 Sale of publications 54,552 12,918 Total administrative expenses assigned to the Bank 1,679,121 717,837 In-kind contributions $ 2,136,222 $ 2,826,702 54 ICSID 38040 Deloitte Deloitte & Touche LLP Suite 500 555 12th Street, N.W. Washington, DC 20004-1207 USA Tel: +1 202 879 5600 Fax: +1 202 879 5309 www.deloitte.com INDEPENDENT AUDITORSʼ REPORT To: International Centre for Settlement of Investment Disputes We have audited the accompanying statements of financial position of the International Centre for Settlement of Investment Disputes (the Centre) as of June 30, 2006 and 2005, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the management of the Centre. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Centre is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Centreʼs internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of the International Centre for Settlement of Investment Disputes as of June 30, 2006 and 2005, and the change in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America and with International Financial Reporting Standards. August 7, 2006 Member of Deloitte Touche Tohmatsu ANNUAL REPORT 2006 55 38040 38040 38040 ICSID 1818 H Street, NW Washington, DC 20433 USA Telephone: (202) 458 1534 Facsimile: (202) 522 2615