Through Which The "convention On The Settlement Of Investment Disputes Between States And Nationals Of Other States" Approved, Done At Washington On March 18, 1965

Original Language Title: Por medio de la cual se aprueba el "Convenio sobre arreglo de diferencias relativas a inversiones entre Estados y Nacionales de otros Estados", hecho en Washington el 18 de marzo de 1965

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LAW 267
1996 (January 29)
Official Gazette No. 42704 of January 30, 1996
Through which the "Convention was adopted on the Settlement of Investment Disputes between States and Nationals of other States "made in Washington on March 18, 1965. Summary

Term Notes
CONGRESS OF COLOMBIA DECREES
:
having regard to the text of the "Convention on the Settlement of Investment Disputes between States and Nationals of other States", done at Washington on March 18, 1965. || | Convention on the Settlement of investment disputes between States and Nationals of other States.
Submitted to the Governments by the Executive Directors of the International Bank for Reconstruction and Development.
March 18, 1965. Table of Contents


Chapter Section ARTICLES
I Preamble. International Centre for Settlement
of Investment Disputes 1-2-4
1. Establishment and Organization 1-3
2. The Board 4-8
3. The Secretariat 9-11
4. The lists 12-16
5. Financing the Centre 17
6. Status, Immunities and Privileges 18-24
II. Jurisdiction of the Centre 25-27
III. The Conciliation 28-35
1. Request for Conciliation 28
2. Constitution of the Commission
Conciliation 29-31
3. Conciliation Procedure 32-35 V
. Arbitration 36-55
1. Request for Arbitration 36
2. Constitution of the Tribunal 37-40
3. Powers and Functions of the Tribunal 41-47
4. The Award
48-49 5. Interpretation, Revision and Annulment of
50-52 award
6. Recognition and Enforcement of Awards
V 53-55. Replacement and Disqualification of Conciliators
and Arbitrators 56-58
VI. Cost of Proceedings 59-61
VII.
Place of Procedure 62-63 VIII. Differences between Contracting States 64
XI.
X Amendments 65-66. Final provisions 67-75
clause concerning the signing
I.
"Convention on the Settlement of Investment Disputes
between States and Nationals of other States" Preamble

Contracting States,
Considering the need for international cooperation for economic development and role in this area played by international private investments;
Given the possibility that differences between Contracting States and Nationals of other Contracting States in connection with such investments sometimes arise;
Recognizing that while such disputes would usually international methods of settlement may be appropriate for your solution subject to national legal processes, in certain cases;
Attaching particular importance to the availability of facilities for international conciliation or arbitration to which Contracting States and Nationals of other Contracting States, if they wish, submit such disputes;
Desiring to establish such facilities under the auspices of the International Bank for Reconstruction and Development;

Recognizing that mutual consent of the parties to submit such disputes to conciliation or to arbitration through such facilities constitutes a binding agreement which requires in particular that due consideration be given to the recommendations of the conciliators and are met arbitral awards; and
Declaring that the mere ratification, acceptance or approval of this Agreement by the Contracting State shall not be deemed to constitute an obligation to submit any particular dispute to conciliation or arbitration, unless with the consent of that State,
have agreed as follows: CHAPTER I.

INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES SECTION I.


CREATION AND ORGANIZATION
ARTICLE 1o.
1. There is hereby established the International Centre for Settlement of Investment Disputes (hereinafter called the Centre) is created.
2. The Center will aim to facilitate the submission of investment disputes between Contracting States and Nationals of other Contracting Parties to a conciliation and arbitration in accordance with the provisions of this Convention States.
Article 2.
. The headquarters of the Centre will be the main office of the International Bank for Reconstruction and Development (hereinafter called the Bank). The seat may be moved to another place by decision of the Administrative Council adopted by a majority of two thirds of its members.

ARTICLE 3. The Centre shall have an Administrative Council and a Secretariat and shall maintain a list of conciliators and a list of arbitrators.
SECTION II.

THE BOARD
ARTICLE 4.
1. The Administrative Council shall be composed of one representative of each of the Contracting States. An alternate may act as representative in case of absence from a meeting or inability to act.
2. Except in cases of designation, each governor and alternate governor of the Bank appointed by a Contracting State shall be ex officio its representative and its alternate state, respectively.

The 5th ITEM. The President of the Bank shall be ex officio Chairman of the Administrative Council (hereinafter called the Chairman) but shall have no vote. In case of absence or inability to act and during any vacancy in the office of President of the bank, the person who replaces him in the bank will act as Chairman of the Board.

ARTICLE 6o.
1. Without prejudice to the powers and functions vested in other provisions of this Convention, the Administrative Council shall:
a) adopt the administrative and financial regulations of the Centre;
B) To adopt rules of procedure to start conciliation and arbitration;
C) adopt the rules of procedure for conciliation and arbitration (hereinafter called Rules of Conciliation and Arbitration Rules);
D) approve arrangements with the bank on the use of its administrative services and facilities;
E) determine the conditions of performance of the functions of the Secretary General and the Deputy Secretaries General;
F) adopt the annual budget of income and expenditure of the Centre;
G) To approve the annual report of activities of the Centre.
For the approval of the provisions of subparagraphs a), b), c) and f) a majority of two thirds of the members of the Administrative Council.
2. The Administrative Council may appoint such committees as it deems necessary.
3. In addition, the Administrative Council shall exercise all powers and perform all the functions which it considers necessary to give effect to the provisions of this Convention.

ARTICLE 7.
1. The Administrative Council shall hold an annual meeting, and others that are agreed by the Council or called by the President or by the Secretary General at the request of the latter no less than five members of the Council.
2. Each member of the Administrative Council shall have one vote and, unless otherwise expressly provision of this Agreement, all matters before the Council shall be decided by a majority of votes cast.
3. A quorum at meetings of the Administrative Council when most of its members are present.
4. The Administrative Council may establish, by a majority of two thirds of its members, a procedure whereby the Chairman may seek a vote of the Council without convening a meeting thereof. this vote will only be considered valid if the majority of the members of the Council cast their votes within the period specified in that procedure.


Article 8. Members of the Administrative Council and the President serve without remuneration from the Centre.
SECTION III.

SECRETARIAT
Article 9. The Secretariat shall consist of a Secretary-General, one or more Deputy Secretaries-General and staff of the Centre.
ARTICLE 10.

1. The Secretary General and the Deputy Secretaries General shall be elected at the proposal of the President, by the Administrative Council by a majority of two thirds of its members for a term of service not exceeding six years and may be reappointed. After consulting the members of the Administrative Council, the President shall propose one or more candidates for each such office.
2. Charges Secretariat General and Deputy Secretary General shall be incompatible with the exercise of any political function. Neither the Secretary General nor any Deputy Secretary-General may hold any other employment or engage in other activity without the approval of the Administrative Council.
3. During the absence or disability of the Secretary General and during the vacancy of office, the Assistant Secretary General shall act as Secretary General. If there is more than one Deputy Secretary General, the Administrative Council shall determine in advance the order in which they shall act as Secretary General.

ARTICLE 11. The Secretary-General shall be the legal representative and the principal officer of the Centre and will be responsible for its administration, including the appointment of staff, in accordance with the provisions of this Convention and the rules adopted by the Administrative Council, will play the function of registrar and shall have the power to authenticate arbitral awards rendered pursuant to this Convention, and to certify copies thereof.
SECTION IV.

SCHEDULES
ARTICLE 12. The Panel of Conciliators and the Panel of Arbitrators shall be composed of the names of qualified persons, designated as hereinafter provided, and who are willing to serve thereon.
ARTICLE 13.

1. Each Contracting State may designate four people for each list who may be or may not nationals of that State.
2. The Chairman may designate ten persons to each list, making sure that the persons so designated to a different nationality.
ARTICLE 14.

1. Persons designated to serve on the lists shall be of high moral character and recognized competence in the field of law, commerce, industry or finance, and inspire full confidence in his impartiality of judgment. Competition in the field of law will be particularly relevant to people on the Panel of Arbitrators.
2. In making the appointment of persons to be included in the lists, the president must also bear in mind the importance of such lists in representation of the principal legal systems of the world and the most important branches of economic activity.
ARTICLE 15.

1. The appointment of the members of the lists will be made for periods of six years, renewable.
2. In case of death or resignation of a member of any of the lists, the authority which appointed shall be entitled to appoint another person to replace him in his functions for the remainder of the period for which it was named.
3. The components of the lists continue in office until their successors have been appointed.
ARTICLE 16.

1. A person may serve on both lists.
2. When a person shall have been designated to serve a list of more than one Contracting State or one or more Contracting States and the president, it is understood that it was by the authority which first designated him; but if one such authority is the State's national, the term designated by that State.
3. All designations shall be notified to the Secretary General and shall take effect on the date on which the notification was received. SECTION V.


FINANCE CENTER
ARTICLE 17. If the expenditure of the Centre can not be met out of charges for the use of their services, or other income, the difference will be borne by Contracting States members of the Bank in proportion to their respective capital subscriptions bank, and by Contracting States not members of the bank in accordance with the rules adopted by the Administrative Council.
SECTION VI.
STATUS AND PRIVILEGES
IMMUNITIES
ARTICLE 18. The Centre shall have full juridical international personality. The legal capacity of the Centre includes, inter alia, to:
a) contract;
B) to acquire movable and immovable property and dispose of them;
C) to institute legal proceedings.


ARTICLE 19. In order for the Centre to fulfill its functions, it shall enjoy in the territories of each Contracting State the immunities and privileges set forth in this Section.

ARTICLE 20. The Centre, its property and assets shall enjoy immunity from legal process, except action that renounces it.

ARTICLE 21. The president, members of the Administrative Council, persons acting as conciliators or arbitrators or members of a committee appointed in accordance with paragraph 3 of Article 52, and the officers and employees of the Secretariat :
a) shall be immune from legal process with respect to acts performed by them in the exercise of their functions, except when the Centre waives this immunity;
B) When they are not nationals of the State where they perform their functions, enjoy the same immunities from immigration, registration of foreigners and obligations of military service or similar services, and likewise enjoy the same facilities in respect a regime change and equal treatment in respect of traveling facilities which Contracting States to the representatives, officials and employees of comparable rank of other Contracting States.

ARTICLE 22. The provisions of Article 21 to persons appearing in proceedings under this Convention as parties, agents, counsel, advocates, witnesses or experts, except those contained in paragraph b) shall apply thereof shall apply only in connection with their travel to and from the place where the proceedings are and their stay therein.
ARTICLE 23.

1. Center files, wherever they are located, shall be inviolable.
2. With regard to its official communications, the Centre shall in each Contracting State treatment no less favorable than that accorded to other international organizations.
ARTICLE 24.

1. The Centre, its assets, property and income, and its operations and transactions authorized by this Agreement shall be exempt from all taxation and customs duties. The Centre shall also be exempt from liability for the collection or payment of any taxes or duties.
2. Not subject to tax amounts paid by the Centre to the Chairman or members of the Administrative Council because of diets, nor the salaries, allowances and other emoluments paid by the Centre to officials or employees of the Secretariat, unless the power of the State to tax its own nationals.
3. Not be taxable amounts received in respect of fees or expenses for persons acting as conciliators or arbitrators or members of a Committee appointed pursuant to paragraph 3 of Article 52, in proceedings under this Convention in respect of services rendered in such proceedings, if the sole jurisdictional basis for such tax is the location of the center, where the procedures or the place of payment of fees or allowances are paid.
CHAPTER II.

JURISDICTION CENTER ARTICLE 25.


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ARTICLE 26.


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ARTICLE 27.


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CHAPTER III. RECONCILIATION

SECTION I.


REQUEST FOR RECONCILIATION
ARTICLE 28.

1. Any Contracting State or national of a Contracting State wishing to institute a conciliation procedure address a request to that effect in writing to the Secretary General who shall send a copy thereof to the other party request.
2. The request shall contain information concerning the issues in dispute, the identity of the parties and their consent to conciliation in accordance with the rules of procedure to start conciliation and arbitration.
3. The Secretary-General shall register the request unless, of information contained in the request, that the dispute is manifestly outside the jurisdiction of the Centre. It shall immediately notify the parties of the registration of the application, or refusal. Effective Notes


SECTION II.
CONSTITUTION OF THE COMMITTEE ON RECONCILIATION

ARTICLE 29.

1. Once registered the application under Article 28 will proceed as soon as possible to the Constitution of the Conciliation Commission (hereinafter called the Commission).

2. a) The Commission shall consist of a sole conciliator or any uneven number of conciliators appointed as the parties shall agree;
B) If the parties can not agree upon the number of conciliators and the method of their appointment, the Commission shall consist of three conciliators appointed by each party and the third, who will chair the Commission, by mutual agreement. Effective Notes


Article 30. If the Commission cometh not constituted within 90 days after the date of mailing of the notice of registration, made by the Secretary General pursuant to paragraph (3) of Article 28, or within any other period as the parties agree, the President, at the request of either party and, if possible, after consulting both parties, appoint the conciliator or conciliators not yet appointed. Effective Notes

ARTICLE 31.

1. The conciliator appointed may not belong to the list of conciliators, except that the name of the President under Article 30.
2. Conciliators appointed from outside the Panel of Conciliators shall possess the qualities stated in paragraph 1 of Article 14. Effective Notes


SECTION III. CONCILIATION


ARTICLE 32.

1. The Commission shall decide on its own jurisdiction.
2. Any objection by a party that the difference falls outside the limits of the jurisdiction of the Centre, or for other reasons, the Commission is not competent to hear it, will be considered by the Commission which shall determine whether to deal with it as a preliminary question or with the substance of the matter. Effective Notes


ARTICLE 33. Any conciliation proceeding shall be conducted in accordance with the provisions of this Section and, unless otherwise agreed by the parties, in accordance with the Conciliation Rules in effect on the date on which the parties consented to conciliation. Any procedural matter not covered by this Section or the Conciliation Rules or any rules agreed by the parties, shall be settled by the Commission. Effective Notes

ARTICLE 34.

1. The Commission should clarify the issues in dispute by the parties and endeavor to bring about agreement between them upon mutually acceptable terms. To this end, the Commission may at any stage of the proceedings and as often as appropriate, propose compromise formulas parts. The parties shall cooperate in good faith with the Commission in order to enable it to fulfill its purposes and will provide its recommendations, the maximum consideration.
2. If the parties reach an agreement, the Commission will make a record and scoring to be removed from the disputed points. If at any stage of the proceedings the Commission considers that there is no chance of reaching an agreement between the parties, it shall close the proceedings and shall draw up a report noting that the dispute was submitted to conciliation without compromise achieved. If a party fails to appear or not participate in the procedure, the Commission shall so in the minutes, stating also close the proceedings. Effective Notes


ARTICLE 35. Unless the parties agree otherwise, any party may invoke any other procedure, either arbitration or court or before any other authority, considerations, statements, admission of facts or offers of compromise, made by the other party in the conciliation proceedings, or the report or any recommendations made by the Commission. Effective Notes


CHAPTER IV.

SECTION I. ARBITRATION REQUEST FOR ARBITRATION

ARTICLE 36.


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