Last month, the International Centre for Settlement of Investment Disputes (ICSID) released its latest proposed amendments to its rules and regulations for the resolution of international investment disputes. Working Paper #3: Proposals for Amendment of the ICSID Rules was published on 16 August 2019 and follows ICSID’s second compendium of state and public comments on proposed amendments released back in June 2019.
ICSID’s rule amendment project was formally launched in 2016. ICSID has described the proposed changes as the most far-reaching amendments in 50 years, and says they aim to:
- streamline and modernise its rules;
- reduce the time and costs of proceedings;
- utilise new technology to lower the environmental cost of cases; and
- ensure the balance between the interests of States and investors is maintained
In August 2018, ICSID released its first working paper on the proposed amendments and subsequently published its first compendium of state and public comments in January 2019 (on which see our earlier posts here and here.)
After extensive consultations with the States, and after reviewing comments from the public in respect of the first working paper, ICSID released its updated working paper on the proposed amendments in March 2019 (see our note here). This expanded on the proposals in the first working paper and contained a complete redraft of the ICSID rules.
The latest Working Paper #3: Proposals for Amendment of the ICSID Rules features the updated draft rules for arbitration, mediation, conciliation and fact-finding, as well as commentary on the rationale behind the proposed changes.
ICSID Member States will next meet in November 2019 to consult on the latest draft proposals. Over the last year, ICSID has held over 75 consultations, in-person and online, and received over one hundred written comments from States and the public. Amendments to the Rules require the approval of two-thirds of Member States, and a simple majority in the case of the Additional Facility Rules, Fact-Finding, and Mediation Rules.