A N N UA L R E P O RT 2023 A BO UT IC S ID ICSID is an international facility available to States and foreign investors for the resolution of investment disputes. Established in 1966 by the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention), it is the only global institution dedicated to international investment dispute settlement. Through its specialized rules of procedure, world-class facilities, and expert legal and administrative support, ICSID provides unparalleled dispute resolution services to States and investors. Since the first case was registered with ICSID in 1972, the majority of all known international investment disputes have been administered by ICSID. 2023 ANNUAL REPORT 1 L E T T E R O F T RANS M I TTAL CONT ENTS September 7, 2023 1 About ICSID 2 Letter of Transmittal Mr. Ajay Banga Chair, Administrative Council 4 The Global Leader in International Investment Dispute Settlement International Centre for Settlement of Investment Disputes 5 Message from the Secretary-General 7 Message from the Chair Dear Mr. Banga, 8 Year in Review 10 ICSID Secretariat I am pleased to submit the Annual Report on the operation of the International Centre for Settlement of Investment Disputes for approval by the Administrative Council. 14 Membership This Annual Report covers the fiscal year from July 1, 2022 to June 30, 2023. 18 Panels of Arbitrators and of Conciliators 22 Caseload Trends The Report includes the audited financial statements of the Centre, presented pursuant to Administrative and Financial Regulation 21. 40 Outreach and Training 48 Fifty-Sixth Annual Meeting 50 Finance Yours sincerely, 66 List of Member States Meg Kinnear Secretary-General 2 ICSID 2023 ANNUAL REPORT 3 T H E G LOB A L L E AD E R I N MESSAGE FROM T HE IN T E R N AT I O N A L I NV ESTM E NT SECRETARY-GENERA L DI SP U T E S E T T LE M E NT EXPERTISE RULES ICSID started the 2023 fiscal year on a high note with the introduction of our amended rules. ICSID has administered more than 900 cases in its Encompassing rules for arbitration, mediation, Developed over the previous five-and-a-half years 58-year history, representing over 70% of all known conciliation, and fact-finding, ICSID provides the first and endorsed by over 85% of ICSID’s Member international investment cases. The Centre’s legal and longest-standing rules of procedure that are States—the new ICSID rules and regulations counsel have exceptional experience in international specifically designed for international investment reinforce ICSID’s role as the world’s leading investment law and procedure, while ICSID’s disputes. In 2022, ICSID completed a comprehensive institution devoted to international investment finance, information technology, and hearings modernization of its rules—putting them at the dispute settlement. teams ensure that all administrative aspects of a forefront of dispute settlement procedures. The case run smoothly. Centre also administers cases under other sets of A priority over the past year has been ensuring that procedural rules, such as those of the United Nations parties and tribunals are well equipped to put these Commission on International Trade Law (UNCITRAL). rules into practice. This has entailed numerous FACILITIES briefings to country officials, party representatives, ICSID has hearing centres in Washington, D.C., and arbitrators, as well as comprehensive guidance and Paris, France, as well as access to the World PARTNERSHIPS notes published on the ICSID website. Bank’s offices in more than 120 countries. ICSID ICSID works with individuals and organizations While ICSID has modernized its existing procedures has also entered into facilities cooperation around the world to build knowledge and capacity in for arbitration and conciliation, it has also agreements with 33 dispute settlement centres investor-State dispute settlement. As one of the five introduced entirely new rules for mediation. around the globe, allowing ICSID hearings to be organizations of the World Bank, ICSID collaborates Specifically designed for international investment held at their facilities. Dedicated professionals with its sister organizations—IBRD, IDA, IFC, and Meg Kinnear, ICSID Secretary-General. © World Bank disputes, the mediation rules are a useful addition manage all aspects of a hearing whether it is held MIGA—to achieve the joint mission of creating a to the ICSID dispute-resolution toolbox. We are in person, virtually, or in hybrid format. world free of poverty on a livable planet. pleased to have had our first request for mediation over the past fiscal year and look forward to administered by ICSID—by consent of the parties expanding this service in the coming years. or as required in an instrument of consent. Meanwhile, we have worked jointly with the It has also been an honor to welcome the Republic UNCITRAL Secretariat to draft a Code of Conduct of Angola as ICSID’s newest Member State. for Arbitrators in International Investment Disputes. Angola deposited its Instrument of Ratification of In April 2023, we completed work on the Code and the ICSID Convention on September 21, 2022, presented the draft to the UNCITRAL Commission becoming the 158th Contracting State to the for adoption at its 56th annual session in July ICSID Convention. 2023. The Code of Conduct is expected to apply to These milestones take place against the backdrop arbitration proceedings—including those of a substantial caseload. Forty-five cases were 4 ICSID 2023 ANNUAL REPORT 5 administered in FY2023 under the ICSID rules, as well as an additional twenty-two under the ‘Practice Notes’. As the name implies, the section offers concise guidance on tools and techniques MESSAGE FROM T HE CHA IR UNCITRAL and other non-ICSID rules. Our team at that practitioners can immediately apply to their the ICSID Secretariat has expanded over the past own practice. year to ensure that we continue to provide first-in- ICSID further expanded its network of partnerships class support to parties and tribunals as demand in FY2023 with cooperation agreements penned for our services increases. with the Stockholm Chamber of Commerce As clients know, our services include dedicated Arbitration Institute, the Quito Chamber of The world is facing intertwined crises—declining hearing facilities in Washington, D.C. and Paris, Commerce (Centro de Arbitraje y Mediación de la progress in the fight against poverty, an existential France. It has been a pleasure to welcome so many Cámara de Comercio de Quito), and the Lima climate crisis, a fledgling pandemic recovery, and clients and partners back to our offices this year Chamber of Commerce (Cámara de Comercio de deepening fragility and conflict. We are at a critical for in-person hearings and events. At the same Lima). These agreements offer practical moment in the arc of humanity and the planet. time, it is notable how often parties elect virtual or advantages to parties—through, for example, The World Bank is being asked to lead the way, to hybrid hearings, for which ICSID also offers shared access to hearing facilities—as well as double down on development and climate efforts, extensive services and technology. Remote benefits to the wider international arbitration and to deliver even more impact and results. We hearings offer considerable time and cost savings— community through joint events and other look to make a difference wherever possible. To me, particularly for shorter and smaller hearings—and I outreach activities. that difference is to create a world free from am pleased to see their sustained popularity. Finally, I am honored to have begun work with the poverty on a livable planet. A strong outreach, capacity building, and new President of the World Bank and Chair of the The scale of this challenge requires the private publications program continues at ICSID. A pillar in ICSID Administrative Council, Ajay Banga. sector to play a significant role alongside the World that program is the ICSID Review – Foreign President Banga brings an extraordinary wealth of Bank and other development institutions. The Investment Law Journal. The journal’s ability to knowledge in international development, finance, World Bank should have a central role by using its evolve—while maintaining world-class quality trade, investment, and climate change, from which resources, convening power, and knowledge to scholarship—has underpinned its enduring ICSID will benefit immensely. catalyze private capital more effectively. relevance and recognition. I am thankful to David Malpass for his work as Chair Ajay Banga, President, World Bank, ICSID is an important part of these efforts. It Chair, ICSID Administrative Council. © World Bank In August 2022, ICSID published a double issue of the Administrative Council, and grateful for his promotes foreign investment by providing an of the ICSID Review on the International Law support to ICSID during the rule amendment process. impartial and effective mechanism for resolving Commission’s Articles on the Responsibility of The accomplishments highlighted above—and disputes between foreign investors and the host States for Internationally Wrongful Acts We are dedicated to fostering investment detailed in more depth on the pages ahead—reflect States in which they invest. Thousands of investment (ARSIWA). Marking ARSIWA’s 20th anniversary, environments that are fair, transparent, and the strong support of our membership and clients, treaties, free trade agreements, and contracts rely on the issue provides a thorough and insightful take conducive to growth. ICSID’s role as a trusted and the dedication of our staff at the Secretariat. I ICSID’s dispute settlement procedures. With its on the influence of ARSIWA on the interpretation forum for resolving investment disputes is a vital thank you all for your continued support. updated procedures for arbitration and conciliation, of investment obligations from leading scholars part of achieving that goal. cases will proceed more efficiently and transparently. and practitioners. Its new rules for mediation offer parties a flexible Meg Kinnear Ajay Banga In addition to its reputation for top-tier academic mechanism to address investment-related grievances scholarship, the ICSID Review also offers insights Secretary-General, ICSID quickly. The sustained demand for arbitration in President, World Bank into the practical dimensions of international FY2023 and the first request for mediation under the Chair, ICSID Administrative Council dispute resolution. To that end, ICSID introduced a new rules demonstrate the continued value that new section to the ICSID Review in 2023—called international investors and States place in ICSID. 6 ICSID 2023 ANNUAL REPORT 7 Y EA R I N R E V I E W A LOOK BACK AT HIGHLIGHTS FROM THE 2023 FISCAL YEAR JULY 2022 JUNE 2023 The amended ICSID Regulations and Rules Ajay Banga begins a five-year come into effect, following five-and-a-half term as President of the World years of development with ICSID’s Bank. Pursuant to Article 5 of the membership and the public. ICSID Convention, the World Bank President is ex officio the Chair of the ICSID Administrative Council. SEPTEMBER 2022 MAY 2023 The Republic of Angola deposits its ICSID and Jus Mundi sign an MOU to Instrument of Ratification of the ICSID integrate ICSID publications into the Convention with the World Bank, Jus Mundi online database. ICSID becoming the 158th Contracting State ANGOLA resources will benefit from Jus to the ICSID Convention. Mundi’s AI-powered search technology, including links to ICSID awards, expert commentary, and other online resources. JANUARY 2023 APRIL 2023 ICSID and the Stockholm Chamber of Commerce ICSID and UNCITRAL complete Arbitration Institute sign an agreement to work on a Code of Conduct for strengthen their partnership to promote the use Arbitrators in International of arbitration, conciliation, mediation, and other Investment Disputes. dispute resolution tools to resolve international investment and commercial disputes. 8 ICSID 2023 ANNUAL REPORT 9 ICSID S EC R E TAR I AT 76 The Secretariat plays an important role in maintaining and publishing data on ICSID cases and fostering awareness of international investment ICSID STAFF MEMBERS dispute settlement more broadly. REPRESENT SPEAK The ICSID Secretariat carries out the day-to-day operations of the Centre. Its composition and human resources, and information technology. A hearings team manages the planning and logistics 30 75% 25 NATIONALITIES OF THE SECRETARIAT ARE LANGUAGES principle functions are set out in the ICSID of ICSID sessions and hearings—whether held in WOMEN, ACROSS ALL LEVELS FLUENTLY Convention (Articles 9 to 11) and the Administrative person, remotely, or in a hybrid format. Finally, the AND ROLES and Financial Regulations. The ICSID Secretariat is front office deals with matters relating to led by the Secretary-General, who is assisted by two participation of ICSID Member States, maintains the Deputy Secretaries-General. ICSID Panels of Conciliators and of Arbitrators, and The ICSID Secretariat is highly diverse. Seventy-five manages ICSID’s external communications. percent of the Secretariat are women, across all In addition to these functions, the Secretariat plays levels and roles. ICSID’s 76 staff members an important role in maintaining and publishing data represent 30 nationalities and are fluent in more on ICSID cases and fostering awareness of than 25 languages. international investment dispute settlement more Most staff provide professional legal, administrative, broadly through events, courses, and technical and financial services for cases. A case management assistance. ICSID hosts an information-rich website, team is assigned to each case, led by an experienced including online databases on cases, membership, legal counsel and assisted by paralegals and legal and arbitrators, conciliators and committee assistants. A financial and administrative team members. Since 1986, ICSID has also published the oversees the financial aspects of cases, as well as world’s leading journal on international investment the ICSID budget. It also handles ICSID’s archives, law, the ICSID Review—Foreign Investment Law Journal. 10 ICSID 2023 ANNUAL REPORT 11 SECRETARIAT STAFF AS OF JUNE 30, 2023 SECRETARY-GENERAL Govert Coppens Meg Kinnear Mercedes Cordido-Freytes de Kurowski Members of the ICSID Secretariat. © World Bank Patricia Cruz Trabanino DEPUTY SECRETARY-GENERAL Gabriela González Giráldez Verónica Lavista Gonzalo Flores Vanina L. Bauza FINANCIAL AND GENERAL Ayong Lim Martina Polasek Ana Cecilia Chamorro ADMINISTRATION STAFF Sara Marzal Andrea Clavijo-Herrera Elisa Méndez Bräutigam TEAM LEADER/SR. PROGRAM MANAGER LEGAL STAFF Colleen Ferguson Marco Tulio Montañés-Rumayor Ivania Fernández Javier Castro TEAM LEADER/SENIOR LEGAL COUNSEL Leah W. Njoroge Ayling Kocchiu Oladimeji Ojo Aurélia Antonietti Shay Lakhter FINANCIAL OFFICER Yuichiro Omori Paul-Jean Le Cannu Pedro Magariño Manero Azeb Debebe Mengistu Marisa Planells-Valero Jara Mínguez Almeida Ekaterina Minina Patricia Rodríguez Martín Frauke Nitschke Phoebe Ngan FINANCIAL ANALYST Ella Rosenberg Natalí Sequeira Pierre Nosewicz Celeste Salinas Quero Dioma Seck Gueye Maria-Rosa B. Rinne Anna Toubiana Walter Meza-Cuadra SENIOR LEGAL COUNSEL Federico Salon Kajganich Anastasia Tsimberlidis Laura Bergamini LEGAL COUNSEL— INSTITUTIONAL HEARINGS AND EVENTS ORGANIZER Anton Tugushev Aïssatou Diop MATTERS Lamiss Al-Tashi Marisela Vázquez Marrero Geraldine Fischer Daniela Argüello Anneliese Fleckenstein HEARINGS AND EVENTS ASSISTANT Celeste Mowatt LEGAL ASSISTANT Benjamin Garel Alix Ahimon Rachel Evangelista Anna Holloway LEGAL ANALYST - INSTITUTIONAL Michelle Lemus Alex B. Kaplan Dante Herrera Guzmán MATTERS Catherine Kettlewell Sebastian Shepherd Carlos Molina EXTERNAL AFFAIRS OFFICER Alicia Martín Blanco Luisa Fernanda Torres SR. EXECUTIVE ASSISTANT TO Damon Vis-Dunbar PARALEGAL , ADMINISTRATIVE AND SECRETARY-GENERAL CLIENT SUPPORT STAFF INFORMATION TECHNOLOGY ANALYST LEGAL COUNSEL Cindy Ayento Francisco Abriani Ranjini Balasubramaniam PARALEGAL Izabela Monika Chabinska PROGRAM ASSISTANT Patricia V. Romero Jaidat Ali Djae Jonathan Chevry Sherri Akanni Paulina Alvarado Medina Ana Conover Anita Chen 12 ICSID 2023 ANNUAL REPORT 13 Ceremony to mark Angola’s signing of the ICSID Convention. © World Bank MEMB E R S H I P Membership has been expanding since ICSID’s By the end of FY2023, there were 165 signatories to All Contracting States are equally represented on establishment in 1966, the ICSID Convention, of which 158 are Contracting the ICSID Administrative Council. As ICSID’s States to the Convention. governing body, the Administrative Council adopts reflecting its global relevance Membership has been expanding since ICSID’s the Centre’s annual budget, elects the Secretary- establishment in 1966, reflecting its global relevance General and Deputy Secretaries-General, and as the only institution with a as the only institution with a primary mandate to approves the annual report. Contracting States also support the resolution of international investment have the right to propose and vote on amendments primary mandate to support disputes. The Republic of Angola is the newest to the ICSID Convention and Rules, as well as to Contracting State, having deposited its Instrument designate individuals to the ICSID Panels of the resolution of international of Ratification of the ICSID Convention with the Arbitrators and of Conciliators (see page 18 for World Bank on September 21, 2022. further information on the Panels). investment disputes. 14 ICSID 2023 ANNUAL REPORT 15 ICSID C O N T RACTI NG AND SI GNATORY STATES AS OF JUNE 30, 2023 Contracting States to the ICSID Convention This map was produced by the Cartography Unit of the World Bank. The boundaries, colors, denominations and any other information  shown on this map do not imply, on the part of the World Bank, any judgment on Signatory States to the ICSID Convention endorsement or acceptance of such boundaries. the legal status of any territory, or any  16 ICSID 2023 ANNUAL REPORT 17 PA N E LS OF A R B I TRATO R S AND O F CO N C I L I ATOR S The ICSID Panel of Arbitrators and Panel of Administrative Council may designate up to ten ANGOLA ICELAND Conciliators are important components of the persons to each Panel. The designees may be Panel of Arbitrators Panels of Arbitrators and of Conciliators ICSID dispute resolution system. When the Chair of nationals or non-nationals of the designating State Designations effective January 27, 2023 Redesignations effective November 10, 2022: the Administrative Council is called upon to appoint and are nominated for a renewable six-year term. Carlos Maria da Silva Feijó, Lino Diamvutu, Sofia Thordis Ingadottir, Finnur Magnússon, arbitrators, conciliators or ad hoc committee ICSID has been encouraging Member States to Maia do Vale, Itweva Nogueira Panels of Arbitrators and of Conciliators members under Articles 30, 38 or 52 of the ICSID make designations of open positions on the list, Designations effective November 10, 2022: Convention, these appointees are drawn from the with great success. During FY2023, 15 ICSID CANADA Anna Jóhannsdóttir, Róbert R. Spanó Panels. The Panels also provide a diverse and Contracting States made 63 designations to the Panel of Conciliators qualified pool of arbitrators and conciliators for ICSID Panels: Angola, Canada, Ecuador, Iceland, Designation effective September 27, 2022: ITALY parties to consider when making appointments Italy, Kenya, Moldova, Montenegro, Nigeria, North Sophie Nappert Panel of Arbitrators in ICSID cases. Macedonia, San Marino, Slovak Republic, Uganda, Redesignation effective January 18, 2023: Each Member State may designate up to four United Arab Emirates, and Uruguay. ECUADOR Luca G. Radicati di Brozolo persons to each of the Panel of Arbitrators and the By the end of FY2023, there were 723 individuals on Panel of Arbitrators Panel of Conciliators (Article 12 to 16 of the ICSID Panel of Arbitrators the ICSID Panels of Arbitrators and of Conciliators. Designation effective November 7, 2022: Convention). In addition, the Chair of the ICSID Designations effective January 18, 2023: A complete list of ICSID Panel nominees is available Edgar Neira Orellana C. Ferdinando Emanuele, Maria Chiara Malaguti, on the ICSID website. The names of designees to Attila Massimiliano Tanzi the ICSID Panels made in FY2023 follow. 18 ICSID 2023 ANNUAL REPORT 19 Panel of Conciliators Panel of Conciliators Panel of Conciliators Panel of Conciliators Redesignation effective January 18, 2023: Redesignation effective December 30, 2022: Designation effective June 9, 2023: Redesignations effective April 7, 2023: Anna De Luca Victor Burac Stojne Danilova Ivanoski Abdul Wahid Al Ulama, Abdullah Ibrahim Al Panel of Conciliators Panel of Conciliators Muhairi*, Ahmed M. Al Mutawa Designations effective January 18, 2023: Designation effective December 30, 2022: SAN MARINO Panel of Conciliators Andrea Bandini, Cecilia Carrara, Giacomo Rojas Octavian Cazac Panels of Arbitrators and of Conciliators Designation effective April 7, 2023: Elgueta Designations effective April 4, 2023: Shamlan Al Sawalehi MONTENEGRO Michele Potestà, Giovanni Zarra KENYA Panel of Arbitrators URUGUAY Panel of Arbitrators Designations effective July 29, 2022: SLOVAK REPUBLIC Panel of Arbitrators Designations effective September 19, 2022: Maja Kostić Mandić, Jorge E. Viñuales, Ema Vidak Panel of Arbitrators Designations effective February 8, 2023: Githu Muigai, John Ohaga, Kamau Karori, Arthur Gojković, Aleksandar Durišić Redesignation effective January 31, 2023 Carlos Brandes, Analía González Rivero Konye Igeria David A. Pawlak Panel of Conciliators Panel of Conciliators NIGERIA Panel of Conciliators Designations effective February 8, 2023: Designations effective September 19, 2022: Panel of Arbitrators Redesignations effective January 31, 2023 Carlos Mata Prata, Álvaro Hansen Amestoy Wanjiru Karanja, Grace Nzioka, Eunice Lumallas, Designation effective January 27, 2023: Stephen P. Anway, Constantinos Salonidis Panel of Conciliators Cavin M. Nyachoti Adedoyin O. Rhodes-Vivour Redesignations effective February 8, 2023: Panel of Arbitrators UGANDA Ricardo Olivera García, María Carolina Asuaga MOLDOVA Designation effective March 30, 2023: Panel of Arbitrators Taran Panels of Arbitrators and of Conciliators Yakubu Chonoko Maikyau* Designation effective March 1, 2023: * Pending acceptance Redesignation effective December 30, 2022: Chrispas Nyombi Panel of Conciliators Mihail Buruiană Designation effective March 30, 2023: UNITED ARAB EMIRATES Panels of Arbitrators and of Conciliators Taiwo Akinola Abidogun Designation effective December 30, 2022: Panel of Arbitrators Lilia Gribincea NORTH MACEDONIA Redesignations effective April 7, 2023: Hassan Arab, Abdulla Mohammed Al-Yousuf Panel of Arbitrators Panels of Arbitrators and of Conciliators Redesignation effective December 30, 2022: Designations effective June 9, 2023: Panel of Arbitrators Mark A. Meyer Fatmir Bytqi*, Nikola Lazarov*, Toni Deskoski Designation effective April 7, 2023: Hamad Ibrahim Alustath Panel of Arbitrators Panel of Arbitrators Designation effective December 30, 2022: Designation effective June 9, 2023: Matías Mori Arellano Damien Nyer 20 ICSID 2023 ANNUAL REPORT 21 45 ICSID CA S E LOA D TR E NDS ICSID is the premier institution for the resolution of • Thirty-three cases were administered under the NEW CASES international investment disputes, having new 2022 ICSID Convention and Additional administered over 70% of all known international Facility Rules investment cases. Strong demand for ICSID’s services continued in the 2023 fiscal year • ICSID administered a record number of cases REGISTERED under UNCITRAL and other non-ICSID 68 (FY2023)—with 45 new cases registered and a procedural rules total of 329 cases administered during the year. • A notable 43 nationalities were represented Additional highlights in FY2023 include: amongst the appointments made to ICSID cases • ICSID appointed 45% of all female appointees in FY2023 • ICSID held the second highest number of hearings in a single fiscal year • Sixty-eight proceedings were concluded in FY2023 PROCEEDINGS CONCLUDED 329CASES ADMINISTERED 22 ICSID 2023 ANNUAL REPORT 23 CASES ADMINISTERED AND REGISTERED IN FY2023 ICSID administered 329 cases in FY2023, the third Notably, the new 2022 ICSID Convention and A total of 45 new ICSID cases were registered in largest number of cases administered in a single Additional Facility Rules and the new 2022 FY2023. The majority were arbitrations instituted fiscal year. This amounts to 35% of ICSID’s overall Mediation Rules entered into force in FY2023. under the ICSID Convention (40 cases), followed by caseload. ICSID has administered 933 cases under ICSID administered 33 cases under the 2022 ICSID arbitrations invoking the Additional Facility Rules the ICSID Convention and Additional Facility Rules Rules (29 cases under the ICSID Convention and (five cases). since the first case was registered in 1972. four under the Additional Facility Rules). ICSID ADMINISTERED CASES BY FISCAL YEAR CASES REGISTERED UNDER THE ICSID CONVENTION AND ADDITIONAL FACILITY IN FY2023 400 18 80 19 22 350 ICSID CONVENTION 17 21 70 ARBITRATION CASES 346 14 332 300 329 60 ICSID ADDITIONAL FACILITY 14 306 303 ARBITRATION CASES 10 9 250 279 50 12 258 40 243 247 40 200 209 30 150 20 100 10 5 50 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 In addition, ICSID administered a record number of (UNCITRAL). ICSID provided full administrative NON-ICSID CASES ADMINISTERED BY THE SECRETARIAT (INVESTOR-STATE UNCITRAL cases governed by non-ICSID rules in FY2023 (22 services in most of these cases; acted as ARBITRATIONS AND OTHER CASES) cases). The majority (16 cases) applied the appointing authority in two cases; and provided ICSID CASES ADMINISTERED BY THE SECRETARIAT arbitration rules of the United Nations hearing organization services in one. In addition, Commission on International Trade Law ICSID received three requests for appointments. 24 ICSID 2023 ANNUAL REPORT 25 BASIS OF CONSENT TO ICSID PROCEEDINGS STATE PARTIES TO ICSID PROCEEDINGS Arbitration and conciliation under the ICSID jurisdiction in a variety of investment laws, In FY2023 States from every geographic region of America (13% each). Western Europe accounted for Convention and Additional Facility Rules are contracts, and bilateral and multilateral treaties. the world appeared in ICSID proceedings. The 11% of new cases and the Middle East and North voluntary, and parties provide consent to ICSID largest share of ICSID cases registered in FY2023 Africa and the Sub-Saharan African regions involved States in Central America and the accounted for 9% each. A further 5% of newly Caribbean (22%), followed by States in Eastern registered cases involved States in South Asia, Europe and Central Asia (18%). New cases were East Asia, and the Pacific. BASIS OF CONSENT North Am ric n Fr Tr d A r m nt TO ESTABLISH JURISDICTION IN FY2023 evenly spread among North America and South ASEAN-Chin Inv stm nt A r m nt 2% 2% C n d -P ru Fr Tr d A r m nt M xico, Cost Ric , El S lv dor, Dominic n R public-Unit d St t s- 2% Gu t m l , Hondor s nd Nic r u FTA C ntr l Am ric Fr Tr d A r m nt 4% Inv stm nt L w of th Host-St t 6% DISTRIBUTION OF CASES REGISTERED IN FY2023 BY REGION Inv stm nt Contr ct b tw n th Inv stor nd th Host-St t 10% South & E st Asi & th P cific 5% U.S.-M xico-C n d A r m nt 12% Bil t r l Inv stm nt Tr t 37% Sub-S h r n Afric 9% 22% C ntr l Am ric & th C rrib n North Am ric n Fr Tr d A r m nt 12% En r Ch rt r Tr t 13% Middl E st & North Afric 9% The chart above identifies the instruments relied (two cases); the Canada-Peru Free Trade upon by the requesting parties in ICSID cases Agreement (one case); the North American Free W st rn Europ 11% registered in the past fiscal year. Trade Agreement (NAFTA) and the United States- 18% E st rn Europ & C ntr l Asi As in previous years, parties instituted proceedings Mexico-Canada Agreement (USMCA) (six cases, all most frequently on the basis of bilateral or of which relied on both the NAFTA and the multilateral treaties. In 19 cases parties asserted USMCA); and the Mexico, Costa Rica, El Salvador, ICSID jurisdiction on the basis of a bilateral Guatemala, Honduras and Nicaragua FTA, which North Am ric (C n d , M xico & U.S.) 13% 13% South Am ric investment treaty and brought seven cases on the was invoked for the first time in FY2023. basis of the Energy Charter Treaty. Parties also A further five cases were based on contracts instituted proceedings relying on the ASEAN-China between an investor and host-State, and three Investment Agreement (one case); the Dominican cases were brought under investment laws. Republic-Central America Free Trade Agreement 26 ICSID 2023 ANNUAL REPORT 27 DISTRIBUTION OF CASES REGISTERED IN FY2023 BY COUNTRY ECONOMIC SECTORS INVOLVED IN NEW CASES The economic sectors involved in ICSID proceedings construction and to the transportation sectors in FY2023 are also diverse. Historically, the accounted for 9% each; the information and extractive and energy sectors have accounted for communication sector, and the agriculture, fishing the largest share of cases, and this trend continued and forestry sector accounted for 7% each; the in FY2023. Twenty-seven percent of new cases water, sanitation and flood protection sector 1 C n d 1 Fr nc 2 Norw 2 Slov ni 1 Alb ni 1 Moldov 2 Bul ri 1 G or i 1 K r st n involved the oil, gas, and mining industries, and 15% accounted for 4%; and the services and trade, and were related to electric power and other energy the tourism sectors represented 2% each. A mix of sources. The finance sector was also prominent, other industries accounted for the remaining 7% of accounting for 11% of disputes. Cases related to the cases registered in FY2023. 1 Portu l 5 M xico 1 It l 1 Vi tn m 6 Hondur s 2 V n u l 1 Trinid d nd Tob o 1 P pu N w Guin DISTRIBUTION OF CASES REGISTERED IN FY2023 BY ECONOMIC SECTOR 1 Q t r 2 Cost Ric 1 P n m 1 B hr in Tourism 2% 1 Ni ri 2C 1 S udi Ar bi W t r, S nit tion & Flood Prot ction 4% 2% S rvic s & Tr d 1 Colombi m roon 3 P ru 1 D mocr tic R public of th Con o 1 Tunisi A ricultur , Fishin & For str 7% 27% Oil, G s & Minin Oth r Industr 7% North Am ric (C n d , M xico & U.S.) South Am ric E st rn Europ & C ntr l Asi Sub-S h r n Afric C ntr l Am ric & th C ribb n W st rn Europ Middl E st & North Afric South & E st Asi & th P cific Inform tion & Communic tion 7% 15% El ctric Pow r & Oth r En r Tr nsport tion 9% Construction 9% 11% Fin nc 28 ICSID 2023 ANNUAL REPORT 29 CONSTITUTION OF DIVERSITY OF APPOINTMENTS STATE OF NATIONALITY OF ARBITRATORS, CONCILIATORS AND AD HOC COMMITTEE MEMBERS APPOINTED IN FY2023 COMMISSIONS, TRIBUNALS Individuals of 43 nationalities were represented AND AD HOC COMMITTEES amongst the appointments made in the fiscal year. This represents the second most diverse nationality Unit d St t s of Am ric 19 A total of 173 appointments were made to ICSID Fr nc 15 spread in ICSID cases in a single year. Notably, 31% C n d 13 tribunals and ad hoc committees in FY2023. These of appointments involved nationals of low- or Unit d Kin dom 12 appointments were made to 45 tribunals in original Ar ntin middle-income economies. M xico 10 arbitrations, one tribunal in an interpretation, and Swit rl nd one tribunal in a revision proceeding. Appointments In total, 9% of appointments involved individuals Austr li 7 were also made to 10 ad hoc committees. In appointed for the first time to an ICSID case. G rm n Bul ri 5 addition, two appointments were made in Chil 4 Sp in reconstitutions of tribunals. Portu l Ar ntin / Sp in Seventy-seven percent of appointments were made B h m s 3 either by the parties or by the party-appointed Finl nd N th rl nds arbitrators, while the remaining 23% were made by STATE OF NATIONALITY OF APPOINTEE Colombi / Ecu dor ICSID based on agreement of the parties or the Ir l nd Unit d Kin dom / It l applicable default provisions. In total, ICSID acted as Ar ntin / Br il Ar ntin / Portu l 2 appointing authority 30 times in FY2023. M xico / G rm n Austri Swit rl nd / Br il GEOGRAPHIC DISTRIBUTION OF APPOINTMENTS BY ICSID AND THE PARTIES IN FY2023 Cost Ric B l ium N w Z l nd C n d / It l Sub-S h r n Afric 2% Colombi Ir l nd / G rm n E st rn Europ & C ntr l Asi 3% 2% Middl -E st & North Afric P kist n Sw d n Unit d Kin dom / Ni ri C ntr l Am ric & th C rrib n 3% Ar ntin / Unit d St t s of Am ric L tvi 41% W st rn Europ C n d / Unit d Kin dom E pt 1 South & E st Asi & th P cific 6% K n Gu t m l Kor , R p. of Fr nc / Sw d n Ir l nd / Unit d St t s of Am ric P ru South Am ric 17% Ir n, Isl mic R p. of / Unit d Kin dom Fr nc / P n m C n d / Ecu dor Sp in / Unit d Kin dom Kitts nd N vis / V n u l Fr nc / M uritius / Unit d Kin dom Gr c / Unit d St t s of Am ric C n d / Fr nc / L b non Con o, R p. / Fr nc B hr in / Fr nc / Sw d n North Am ric (C n d , M xico & U.S.) 26% NUMBER OF APPOINTMENTS 30 ICSID 2023 ANNUAL REPORT 31 Overall, women accounted for 22% of all appointed 5%. A further 24% of female appointments LOCATION AND LANGUAGE OF PROCEEDINGS appointments made to ICSID cases in FY2023. were made jointly by the parties and the remaining In the course of the fiscal year, 209 sessions or In FY2023, 192 cases were conducted in English ICSID appointed almost half of all female appointees 8% were made by co-arbitrators. hearings were held in the cases administered by ICSID. (58%), 28 in Spanish (9%) and 12 in French (4%). In (45%), respondents appointed 18%, and claimants In FY2023 the gradual return to in-person hearings addition, 97 proceedings were conducted and sessions continued. Sixty-six percent of simultaneously in two languages (29%), with the hearings and sessions combined remote and in- English-Spanish combination continuing to be the person features. This was achieved using ICSID’s most frequent (89 cases), followed by proceedings MEN AND WOMEN APPOINTED BY ICSID AND PARTIES conducted in English and French (eight cases). state-of-the-art audio and video-conferencing facilities and services. Thirteen percent of hearings and sessions were held in-person at the seat of the Centre in Washington D.C., and the rest were held at other venues agreed by the parties (London, 11%; Paris 6%; other venues, 4%). AWARDS RENDERED AND DECISIONS ISSUED During the fiscal year, 30 awards were rendered, and excerpts of the legal reasoning of the tribunal or ad 462 decisions and procedural orders were issued. hoc committee, as required by the ICSID Rules, or ICSID publishes these rulings on its website with the included bibliographic references on ICSID’s website parties’ permission. Where a party withheld to rulings made public by other sources. 22% permission to publish awards, ICSID published POST-AWARD REMEDIES Limited post-award remedies are available to the revision of the award. In addition, 11 annulment 78% parties in ICSID proceedings. In FY2023, ICSID applications were registered during the fiscal year, registered 19 applications and requests for post- the same number of annulment applications as award remedies under the ICSID Convention. These registered in FY2022. Five of these applications were included five requests for rectification of an award, brought by the respondent and six by the claimant one request for a supplementary decision to the in the underlying arbitration. award, one request for rectification and supplementary decision, and one application for the M n Wom n 32 ICSID 2023 ANNUAL REPORT 33 AWARDS RENDERED AND OUTCOMES IN ANNULMENT PROCEEDINGS CHALLENGES TO ARBITRATORS, EXPERTS AND COUNSEL UNDER THE ICSID CONVENTION, BY DECADE Parties to ICSID proceedings filed six proposals for In two cases administered by the Centre, tribunals disqualification of individual arbitrators during the decided disqualification proposals concerning a fiscal year. This is the lowest number of proposals party-appointed expert and in three cases tribunals filed in the past decade. Five of these proposals were decided disqualification proposals filed by one party declined, and one was upheld. concerning the other party’s counsel. CASES CONCLUDED IN FY2023 Sixty-eight ICSID proceedings concluded in Of the 47 original arbitration proceedings that 250 225 FY2023: 47 were original arbitrations and 21 were concluded in FY2023, 17 were settled or otherwise post-award proceedings. discontinued, and 30 were decided by the tribunal. 200 150 96 ARBITRATION PROCEEDINGS UNDER THE ICSID CONVENTION AND 100 68 ADDITIONAL FACILITY—OUTCOMES IN FY2023 56 50 25 27 18 13 8 9 4 9 3 5 7 2 1 1 1 0 1971–1980 1981–1990 1991–2000 2001–2010 2011–2020 2021– Numb r of Conv ntion w rds r nd r d Numb r of d cisions r j ctin th pplic tion for nnulm nt Numb r of d cisions nnullin th w rd in p rt or in full Numb r of nnulm nt proc din s discontinu d 62% 38% Disput d cid d b Tribun l Disput s ttl d or proc din oth rwis discontinu d 34 ICSID 2023 ANNUAL REPORT 35 Among the disputes decided by the tribunal, 17 the parties’ settlement agreement, nine arbitrations In addition, 21 post-award proceedings were awards upheld the investors’ claims in part or in full, were discontinued at the request of both parties, concluded. This includes two rectification proceedings, seven awards rejected all the investors’ claims on five at the request of one party, two cases were one supplementary decision proceeding, one the merits, four awards declined jurisdiction and one discontinued for lack of payment of the required rectification and supplementary decision award decided that the claims were manifestly advances, and one case was discontinued for the proceeding, and two revision proceedings. In without legal merit. In addition, one award embodied parties’ failure to act. addition, 15 annulment proceedings were concluded in FY2023, 14 of which related to awards rendered in original arbitration proceedings and one to an award rendered in a resubmission. Ad hoc committees rejected the application for annulment in 10 of these proceedings and partially upheld it in one; three annulment proceedings were ARBITRATION PROCEEDINGS UNDER THE ICSID CONVENTION AND ADDITIONAL discontinued at the request of both parties, and FACILITY—TRIBUNAL RULINGS, SETTLEMENT AND DISCONTINUANCES one annulment proceeding was discontinued for lack of payment of the required advances. Comprehensive and up-to-date information about the procedural steps taken in each case, the Aw rd d cidin th t th cl ims composition of the tribunal, commission, or ad hoc Aw rd d clinin jurisdiction 9% 2% r m nif stl without l l m rit committee, the party appointing each arbitrator, counsel representing the parties, and the outcome Proc din discontinu d of proceedings can be found on the ICSID website at Aw rd dismissin ll cl ims 15% 19% t th r qu st of both p rti s https://icsid.worldbank.org/. Proc din discontinu d 11% t th r qu st of on p rt Proc din discontinu d for l ck of 4% p m nt of th r quir d dv nc s Proc din discontinu d Aw rd upholdin 2% for f ilur of p rti s to ct cl ims in p rt or in full 36% S ttl m nt r m nt mbodi d 2% in n w rd t p rti s’ r qu st 36 ICSID 2023 ANNUAL REPORT 37 SP OT L I G H T ICSID HEA RINGS IN FY2 0 2 3 ON IC S I D H E A RI NGS 209 HEARINGS AND A hearing is one of the most important phases in demonstrated that remote hearings are a viable an arbitral proceeding, and ICSID has continually option even in hearings that include many participants SESSIONS 66% 13% invested in its facilities to provide parties and and are conducted in multiple languages. tribunals with first-in-class spaces, technology, It is clear today that approaches to hearings have and services. evolved significantly since the pandemic. While Traditionally ICSID hearings were held in person— 2022 saw a strong uptick in in-person hearings, HELD REMOTELY HELD IN PERSON IN most often at the World Bank’s headquarters in parties are still selecting remote hearings in many Washington D.C. or its conference centre in Paris. instances. A significant share of hearings is also held OR HYBRID WASHINGTON, D.C. In 2019, ICSID opened its first dedicated hearing in a hybrid fashion—that is, with some participants centre in Washington, D.C., purposefully designed gathered in person, and others participating via for dispute settlement hearings. The centre videoconference. In short, parties and tribunals are comprises three large hearing rooms and six tailoring their hearing formats based on the unique breakout and deliberation rooms. characteristics of their case. The infrastructure and In recent years, tribunals and parties have also technology that ICSID provides—with the benefit of increasingly opted to hold sessions and hearings by World Bank’s information technology specialists— video conference. The COVID-19 pandemic ushered allows for an unprecedented level of flexibility in a swift transition to remote hearings across the and customization. full range of ICSID hearings. This period ICSID HEARING FACILITIES—BY THE NUMBERS 3 hearing rooms and 6 breakout rooms in ICSID’s Washington, D.C. hearing centre Sound-proof interpretation booths for up to 7 languages at a time 33 cooperation agreements with domestic and regional arbitration centres around the world—giving ICSID parties access to their facilities Over 120 World Bank country offices available for ICSID meetings or hearings 38 ICSID Hearing in the case of Freeport-McMoRan Inc. v. Republic of Peru (ICSID Case No. ARB/20/8). © ICSID 2023 ANNUAL REPORT 39 O U T R E AC H A ND TRAI NI NG Each year, ICSID delivers a comprehensive outreach settlement. FY2023 was no different. The ICSID and training program intended to build awareness Secretariat participated in numerous events and of the ICSID dispute-resolution system, highlight training courses around the world, while ICSID trends and initiatives related to ICSID cases and publications and online resources continued to operations, and contribute substantially to the serve as a key source of data and analysis on broader field of international investment dispute investor-State dispute settlement. Martina Polasek participates in the ArbCEE launch 40 ICSID event in Bratislava. © ArbCEE 2023 ANNUAL REPORT 41 GLOB A L O U T RE ACH CZECHIA ABU DHABI Martina Polasek overviewed the For the second edition of their joint conference, Over the course of FY2023, ICSID partnered with a wide range of national and 2022 ICSID Rules at the Ministry Abu Dhabi Global Market and ICSID gathered international institutions to build awareness and capacity in the field of international of Finance of Czechia’s 12th world experts on investment arbitration on May investment dispute settlement. Highlighted below are some examples. Investment Treaty Arbitration 10, 2023 to discuss investment protection and Conference on October 20, 2022. armed conflict. Paul-Jean Le Cannu, ICSID Team Leader and Senior Counsel, gave opening remarks. CANADA Meg Kinnear delivered a SOUTH KOREA keynote speech at the Meg Kinnear briefed participants ICC Canada Annual on the amended ICSID rules at Conference on October 21, the 2023 Seoul ADR Festival, 2022, in Toronto. held from October 30 – November 3, 2022. UNITED STATES On October 28, 2022, ICSID hosted a discussion on the interaction between the Vienna Convention on the Law of JAPAN Treaties and investor-State Meg Kinnear discussed the dispute settlement, moderated amended ICSID rules at by Meg Kinnear, ICSID the 2022 Tokyo Forum on Secretary-General. Dispute Resolution on December 16, 2022. UNITED STATES Martina Polasek, ICSID Deputy Secretary-General, addressed ARGENTINA the topic of innovation in Gonzalo Flores provided an PORTUGAL investor-State arbitration at overview of ICSID and discussed MEXICO Gonzalo Flores, ICSID Deputy Secretary-General, RWANDA the Fifth Annual Schiefelbein the amendments to the ICSID Meg Kinnear delivered a guest discussed the impact of third-party funding on Aïssatou Diop, ICSID Legal Counsel, joined an Global Dispute Resolution Rules at the Universidad del lecture on ICSID jurisdiction at the investment arbitration at the 24th Annual event to mark the 10th Anniversary of the Conference in Phoenix, Arizona, CEMA in Buenos Aires on Universidad de Las Américas in International Bar Association Arbitration Day, Kigali International Arbitration Center from on January 13, 2023. November 19, 2022. Mexico City on March 9, 2023. held from April 13 - 14, 2023. September 29-30, 2022. 42 ICSID 2023 ANNUAL REPORT 43 Meg Kinnear participates in Columbia Arbitration Day at Columbia Law School. © Columbia Law School YOUNG ICSID administered by ICSID in the 2022 calendar year (January-December). Young ICSID was established to encourage professional development among international The latest caseload trends for fiscal year 2023 are investment dispute resolution practitioners under contained in Issue 2023-2, published in August 2023, the age of 45. The network continued to expand in and reflected on pages 21-37 of this Annual Report. FY2023, as ICSID delivered an innovative program of events, trainings, and online resources. For the COLLECTIONS past several years, ICSID has profiled young ICSID publishes a multi-volume loose-leaf collection lawyers in the field of investment law and dispute of Investment Treaties containing the texts of settlement, seeking insights into their career investment treaties and protocols concluded by development, lessons learned on the job, and advice over 165 countries from 1959 until the present. The to other young professional. The Young ICSID Investment Treaties collection has been published profiles published in the past fiscal year included since 1986. special editions focused on interviews with State attorneys, as well as with lawyers with extensive ICSID’s multi-volume loose-leaf collection, arbitration practice in Africa. Also notable in Investment Laws of the World, features investment FY2023 was Young ICSID’s first advocacy skills legislation and contact information of national training. Led by Klaus Reichert SC and Donald E. investment agencies from over 140 countries. Vinson, the authors of “Arbitration: The Art & Investment Laws of the World has been published Science of Persuasion”, the training took the since 1973 and the legislation reproduced is science of persuasion and applied it to arbitration available in the official language(s) as provided to practice—with a focus on effective opening and ICSID by the respective governments. closing statements. ICSID STAFF PUBLICATIONS ICSID CASELOAD—STATISTICS Gonzalo Flores and Francisco Grob, El Arbitraje The ICSID Caseload–Statistics contains a profile CIADI según las Nuevas Reglas de 2022, CAM of the ICSID caseload since the first case was Santiago: 30 Años de Desarrollo Institucional del registered in 1972. Published in English, French Arbitraje y de la Mediación (CAM, 2022). and Spanish every six months, it is a valuable Meg Kinnear, ARSIWA, ISDS and the Process of THE ICSID REVIEW—FOREIGN and arbitration. Notably, the ICSID Review launched empirical reference about trends in international Developing an Investor-State Jurisprudence, ICSID a new section in FY2023 called Practice Notes, INVESTMENT LAW JOURNAL investment dispute settlement. Two issues were Reports, Vol. 20, Edited by Jorge Viñuales & Michael intended to provide legal practitioners with user- published in FY2023: The ICSID Review–Foreign Investment Law Journal is Waibel, Cambridge University Press (July 2022). friendly guidance on practical issues related to the premier peer-reviewed periodical devoted • The ICSID Caseload–Statistics (Issue 2022-2)– Meg Kinnear and Fong Han Tan, Is a Jurisprudence international arbitration. Also over the past fiscal exclusively to foreign investment law and covering trends in cases registered and Constante Emerging on the Umbrella Clause? A year, ICSID launched a series of blogs and video international investment dispute settlement. administered by ICSID in fiscal year 2022, Consideration of Recent Case Law, Festschrift for interviews related to ICSID Review content, as a Published three-times per year, each issue contains spanning July 1, 2021 and June 30, 2022. Emmanuel Gaillard (Forthcoming). means expand the journal’s online presence and lectures, case comments, notes, articles, and book reach new audiences. • The ICSID Caseload–Statistics (Issue 2023-1)– Meg Kinnear, Foreword to The Vienna Convention on the reviews on diverse topics related to investment law covering trends in cases registered and Law of Treaties in International Arbitration: History, 44 ICSID 2023 ANNUAL REPORT 45 Evolution and Future, Kiran Gore and Esmé Shirlow • ICSID Regulations and Rules, Doc. ICSID/4/Rev. • ICSID Convention, Regulations and Rules, Doc. • ICSID Fact-Finding Rules and Regulations, Doc. (Editors), Kluwer Law International (August 2022). 1 (January 1968) (contains the texts of the ICSID/15/Rev. 1 (January 2003) (contains the ICSID/19 (July 2022) (contains the texts of the Meg Kinnear, Foreword to Schreuer’s Commentary Centre’s Regulations and Rules in effect from texts of the Centre’s Regulations and Rules in ICSID Fact-Finding Rules and Regulations in effect on the ICSID Convention, Third Edition, Cambridge January 1, 1968 to September 25, 1984) effect from January 1, 2003 to April 9, 2006 from July 1, 2022) (English, French and Spanish) (English, French and Spanish) and the text of the ICSID Convention) (English, University Press (September 2022). • Memorandum on the Fees and Expenses of • ICSID Model Clauses, Doc. ICSID/5/Rev. 1 French and Spanish) ICSID Arbitrators (July 6, 2005) (English, French Meg Kinnear and Carlos Molina Esteban, Piero Bernardini’s Legacy in Investment Arbitration: The (February 1, 1993) (English, French and Spanish) • ICSID Convention, Regulations and Rules, Doc. and Spanish) (contains the text of the Philip Morris v. Uruguay Case, Brill (Forthcoming). (Internet edition only) ICSID/15/Rev.2 (April 2006) (contains the texts Memorandum of Fees and Expenses of ICSID • Contracting States and Measures Taken by of the Centre’s Regulations and Rules in effect Arbitrators in effect from July 6, 2005) Veronica Lavista, ‘Su desempeño académico’ in from April 10, 2006 and the text of the ICSID N. Gladys Sabia de Barberis (comp.), José María Them for the Purpose of the Convention, Doc. • Memorandum on the Fees and Expenses in ICSID/8 (periodic updates) (English) Convention) (English, French and Spanish) ICSID Proceedings (July 1, 2022) (English, French Ruda (CARI, 2022). • Members of the Panels of Arbitrators and • ICSID Convention, Regulations and Rules, Doc. and Spanish) (contains the text of the Veronica Lavista, ‘El Abuso de Derecho y la Doble ICSID/15/Rev.3 (July 2022) (contains the texts of Conciliators, Doc. ICSID/10 (periodic Memorandum of Fees and Expenses in ICSID Compensación’ (2022) XIII(2) Revista de arbitraje of the Centre’s Regulations and Rules in effect updates) (English) Proceedings in effect from July 1, 2022) comercial y de inversiones. from July 1, 2022 and the text of the ICSID • ICSID Additional Facility for the Administration • ICSID Schedule of Fees (July 1, 2022) (English, Frauke Nitschke and Alejandro Carballo Leyda, Convention) (English, French and Spanish) of Conciliation, Arbitration and Fact-Finding French and Spanish) (contains the text of the Investment dispute management: The importance • List of Pending and Concluding Cases, ICSID/16 Proceedings, Doc. ICSID/11 (June 1979) (contains ICSID Schedule of Fees in effect from July 1, of the domestic dimension, Columbia FDI (Internet edition only) the texts of the Additional Facility Rules in 2022) (Previously revised on: July 6, 2005; Perspective, No 345 (November 2022). effect from September 27, 1978 until December • Bilateral Investment Treaties 1959–1996: January 1, 2008; January 1, 2012; January 1, Pierre Nosewicz, Book Review of Cambridge 31, 2002) (English, French and Spanish) Chronological Country Data and Bibliography, 2013; July 1, 2017; January 1, 2019) Companion to International Arbitration, Revue • ICSID Additional Facility Rules, Doc. ICSID/11/ Doc. ICSID/17 (May 30, 1997) (English) (Internet • ICSID Annual Report (1967–2022) (English, Critique de Droit International Privé (June 2023.) edition only) Rev. 1 (January 2003) (contains the texts of French and Spanish) the Additional Facility Rules in effect from • ICSID Mediation Rules and Regulations, Doc. ICSID OFFICIAL DOCUMENTS January 1, 2003 to April 9, 2006) (English, ICSID/18 (July 2022) (contains the texts of the • ICSID Provisional Regulations and Rules, Doc. French and Spanish) ICSID Mediation Rules and Regulations in effect ICSID/1 (February 1967) (contains provisional • ICSID Additional Facility Rules, Doc. ICSID/11/ from July 1, 2022) (English, French and Spanish) texts of the Centre’s Regulations and Rules in Rev.2 (April 2006) (contains the texts of the effect from February 2, 1967 to December 31, Additional Facility Rules in effect from April 10, 1967, as set forth in Doc. AC/66/81 2006) (English, French and Spanish) (Provisional Administrative and Financial • ICSID Additional Facility Rules, Doc. ICSID/11/ Regulations of the Centre); Doc. AC/66/32 Rev.3 (July 2022) (contains the texts of the (Provisional Institution Rules of the Centre); Additional Facility Rules in effect from July 1, Doc. AC/66/43 (Provisional Arbitration Rules 2022) (English, French and Spanish) of the Centre); and Doc. AC/66/54 (the Provisional Conciliation Rules of the Centre • ICSID Basic Documents, Doc. ICSID/15 (January 1985) (contains the texts of the Centre’s Young ICSID hosts a • List of Contracting States and Other Regulations and Rules in effect from September course on advocacy at its Signatories of the Convention, Doc. ICSID/3 26, 1984 to December 31, 2002 and the text of the hearing centre in (periodic updates) (English, French and Spanish) Washington, D.C. © ICSID ICSID Convention) (English, French and Spanish) 46 ICSID 2023 ANNUAL REPORT 47 President Malpass at the 2022 Annual Meetings in Washington, D.C. FIFT Y- S I XT H A N NUAL M E E TI NG O F © World Bank T H E A DMI N I ST RATI V E CO U NCI L The ICSID Administrative Council is the governing but convenes and presides over its meetings. On body of ICSID. Its composition, functions and June 2, 2023, Mr. Ajay Banga became the ex officio decision-making procedure are provided for in the Chair of the ICSID Administrative Council after ICSID Convention (Articles 4 to 8). becoming President of the World Bank. He Pursuant to Article 4 of the ICSID Convention, the succeeded Mr. David R. Malpass, who had held the ICSID Administrative Council is composed of one position since April 9, 2019. representative of each Contracting State. In the On October 14, 2022, Mr. Malpass presided over absence of a contrary designation, the governor for the 56th Annual Meeting of the Administrative the World Bank appointed by that State serves ex Council, on the occasion of the Annual Meetings of officio as its representative on the Council. Each the Boards of Governors of the World Bank and the AC(56)/RES/144—APPROVAL AC(56)/RES/146—RE-ELECTION member has one vote on the Administrative International Monetary Fund. At its 56th Annual OF THE ANNUAL REPORT OF DEPUTY SECRETARY- Council. At the end of FY2023, 158 Contracting Meeting, the Administrative Council approved the States were represented on the ICSID Centre’s 2022 Annual Report and its The Administrative Council RESOLVES GENERAL Administrative Council. An up-to-date list of administrative budget for FY2023. The To approve the 2022 Annual Report on the The Administrative Council RESOLVES members of the Administrative Council is available Administrative Council also re-elected Mr. Gonzalo operation of the Centre. That Mr. Gonzalo Flores be re-elected to the on the ICSID website. Flores and Ms. Martina Polasek as ICSID’s Deputy post of Deputy Secretary-General for a second Secretaries-General. The Resolutions adopted at The President of the World Bank is the Chair of the AC(56)/RES/145—ADOPTION term of six years from the date of the adoption Administrative Council (Article 5). The Chair has no the Meeting are reproduced below. of this Resolution. OF BUDGET FOR FISCAL YEAR vote on matters before the Administrative Council 2023 The Administrative Council RESOLVES AC(56)/RES/147—RE-ELECTION OF DEPUTY SECRETARY- To adopt, for the period July 1, 2022 to June 30, 2023, the budget set forth in paragraph 2 of the GENERAL Report and Proposal of the Secretary General on the The Administrative Council RESOLVES Budget for Fiscal Year 2023, dated June 30, 2022. That Ms. Martina Polasek be re-elected to the post of Deputy Secretary-General for a second term of six years from the date of the adoption of this Resolution. 48 ICSID 2023 ANNUAL REPORT 49 FIN A N C E INDEPENDENT AUDITORS’ REP ORT AND FINA NCIA L STAT EMENTS ICSID’s administrative expenditures in FY2023 were Statement of Financial Position 52 covered by fee income and by the International Bank for Statement of Activities 53 Reconstruction and Development (IBRD) pursuant to the Memorandum of Administrative Arrangements concluded Statement of Cash Flows 54 between the IBRD and ICSID. It is therefore not necessary Notes to the Financial Statements 55 to assess any excess expenditures on Contracting States pursuant to Article 17 of the Convention. Independent Auditors’ Report 64 Expenditures relating to pending arbitration proceedings are borne by the parties in accordance with ICSID’s Administrative and Financial Regulations. The Financial Statements of the Centre for FY2023 are presented in the following pages. 50 ICSID 2023 ANNUAL REPORT 51 STATEMENT OF FINANCIAL POSITION STATEMENT OF ACTIVITIES June 30, 2023 and June 30, 2022 June 30, 2023 and June 30, 2022 All amounts expressed in U.S. dollars unless otherwise noted All amounts expressed in U.S. dollars unless otherwise noted 2023 2022 2023 2022 Assets: Support and revenues: Cash (Note 2) $824,452 $378,817 Revenues/Fees from arbitration/conciliation proceedings (Notes 2 and 6) $66,110,753 $54,733,930 Share of cash and investments in the Pool (Notes 2 and 3) 89,472,180 78,367,952 In-kind contributions (Notes 2 and 8) 354,716 336,863 Due from parties to arbitration/conciliation proceedings (Note 2) 694,632 182,364 Net investment income (Notes 2, 3 and 9) 3,552,178 294,318 Sales of publications 83,146 54,852 Total assets $90,991,264 $78,929,133 Total support and revenues $70,100,793 $55,419,963 Liabilities and net assets: Expenses: Liabilities: Expenses related to arbitration/conciliation proceedings (Notes 2 and 7) 49,873,222 39,103,576 Payable to International Bank for Reconstruction and Development (Note 2) $3,430,869 $3,701,695 Administrative expenses (Note 8) 16,742,676 15,175,931 Other liabilities 25,028 25,000 Net investment income applied to arbitration/conciliation proceedings 2,760,824 223,632 (Notes 2, 3 and 9) Deferred revenue (Note 2) 7,785,627 7,213,875 Total expenses $69,379,722 $54,503,139 Accrued expenses related to arbitration/conciliation proceedings (Note 2) 10,453,583 7,791,934 Change in net assets 724,071 916,824 Advances from parties to arbitration/conciliation proceedings (Note 2) 59,988,269 51,612,784 Net assets, beginning of the year 8,583,817 7,666,993 Total liabilities $81,683,376 $70,345,316 Net assets, end of the year $9,307,888 $8,583,817 Net assets, unrestricted (Note 4) 9,307,888 8,583,817 Total liabilities and net assets $90,991,264 $78,929,133 The notes to the financial statements are an integral part of these statements. The notes to the financial statements are an integral part of these statements. 52 ICSID 2023 ANNUAL REPORT 53 STATEMENT OF CASH FLOWS NOTES TO THE FINANCIAL STATEMENTS June 30, 2023 and June 30, 2022 June 30, 2023 and June 30, 2022 All amounts expressed in U.S. dollars unless otherwise noted All amounts expressed in U.S. dollars unless otherwise noted 2023 2022 NOTE 1 – ORGANIZATION Cash flows from operating activities: The International Centre for Settlement of Investment Disputes (ICSID or the Centre) was established on Change in net assets $724,071 $916,824 October 14, 1966, by the Convention on the Settlement of Investment Disputes between States and Adjustments to reconcile change in net assets to net cash provided by (used in) Nationals of Other States (the ICSID Convention). ICSID is a member of the World Bank (WB), which also operating activities: includes the International Bank for Reconstruction and Development (IBRD), the International Finance Changes in: Corporation (IFC), the International Development Association (IDA) and the Multilateral Investment Due from parties to arbitration/conciliation proceedings (512,269) 204,415 Guarantee Agency (MIGA). Under the ICSID Convention, the Centre provides facilities for the conciliation Payable to International Bank for Reconstruction & Development (270,825) 854,186 and arbitration of investment disputes between Member States (countries which have ratified the ICSID Other liabilities - 28 Convention) and nationals of other Member States. Pursuant to Additional Rules adopted in 1978, ICSID Deferred revenue 571,752 (271,627) also administers certain types of proceedings between governments and foreign nationals that fall outside Accrued expenses related to arbitration/conciliation proceedinqs 2,661,649 (1,244,398) the scope of the ICSID Convention. These include conciliation and arbitration proceedings for the Advances from parties to arbitration/conciliation proceedings 8,375,485 (2,427,321) settlement of investment disputes where either the home or the host country of the investor concerned is Net cash provided by/(used in) operating activities 11,549,863 (1,967,893) not a Member State. ICSID also administers investor-State proceedings under other sets of rules, such as Cash flows from investing activities: the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). Finally, Share of cash and investment in the Pool (11,104,228) 1,917,326 the Centre also acts as appointing authority under various arbitral rules and international treaties. In Net cash (used in)/provided by investing activities (11,104,228) 1,917,326 order to process the cases, the Centre constitutes arbitral tribunals, conciliation commissions and ad hoc Net Increase/(Decrease) in cash 445,635 (50,567) committees, as necessary. On February 13, 1967, IBRD and the Centre entered into Administrative Cash at beginning of the year 378,817 429,384 Arrangements, which were effective as of the date of the establishment of the Centre. The Memorandum Cash at end of the year $824,452 $378,817 of Administrative Arrangements (the Memorandum) provides that, except to the extent that ICSID, pursuant to its Administrative and Financial Regulations (the Regulations), collects funds from the parties to proceedings to cover its administrative expenses, IBRD shall provide reasonable facilities and services to ICSID without charge, as described in Notes 2 and 8. Effective February 2012, pursuant to Operational Guidelines for the Funding of the Operations of the Centre entered into by IBRD and the Centre, if at the end of each fiscal year the Centre’s total expenditure less the IBRD’s in-kind contribution is less than the revenues collected by the Centre, then the accumulated surplus amount will be retained by the Centre and may be carried forward indefinitely. In the event the Centre’s total expenditure, less the IBRD’s in-kind contribution, is greater than the revenues collected by the Centre during the year, the excess expenditure will be charged against the balance of any accumulated surpluses retained by the Centre before the Centre requests supplementary funding from IBRD. The notes to the financial statements are an integral part of these statements. 54 ICSID 2023 ANNUAL REPORT 55 NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES On completion of proceedings, if there is an excess of advances and investment income over expenditures Basis of Accounting and Financial Statement Presentation: The financial statements have been for the proceedings, then the surplus is refunded to the parties in proportion to the amounts advanced by prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). them to the Centre. Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires Revenues/fees from arbitration/conciliation proceedings: The Centre’s direct expenses attributable to management to make estimates and assumptions that affect the reported amounts of assets, liabilities, proceedings are borne by the parties in accordance with the Centre’s Regulations. Pursuant to the revenues and expenses, together with the related disclosures as at the date of the financial statements. Regulations, the Centre has full administrative control and responsibility of these transactions to the Actual results could differ from those estimates. Significant items subject to such estimates and extent that advances from the parties are received (see Note 7). As such, in line with ASC 606 assumptions include the amount of accrued expenses and related revenues for ongoing cases at each year requirements, the Centre recognizes direct expenses, which include fees and expenses of arbitrators, end; the fair value of the share of cash and investments in the pool; and the useful lives of other assets. conciliators and committee members, as well as costs associated with meeting rooms and support services for conducting proceedings as revenue. Cash: Cash consists of cash held in a bank account. In addition, revenues from proceedings also include the following (see Note 6) Share of cash and investments in the Pool: Investments in the Pool (further described in Note 3) are reported at fair value through profit or loss. Resulting gains or losses are reported as an increase or a Registration fees: The Centre charges a non-refundable fee of $25,000 to parties requesting the reduction in Net investment income in the Statements of Activities. All income earned on advances from institution of arbitration/conciliation proceedings under the ICSID Convention and the ICSID Additional parties towards arbitration/conciliation costs is applied to the parties’ advance balances and are made Facility Rules; applying for annulment of an arbitral award rendered pursuant to the ICSID Convention; or available to be used for expenses when costs are incurred by ICSID in facilitating arbitration/conciliation requesting the institution of fact-finding proceedings under the ICSID Additional Facility Rules. The Centre proceedings. The Centre’s share of net investment income is included in the Net investment income on the charges a non-refundable fee of $10,000 to parties requesting a supplementary decision to, or the Statement of Activities with further disclosure in Note 9. rectification, interpretation or revision of, an arbitral award rendered pursuant to the ICSID Convention; requesting a supplementary decision to, or the correction or interpretation of an arbitral award rendered Due from parties to arbitration/conciliation proceedings: Direct expenses incurred by arbitrators, pursuant to the ICSID Additional Facility Rules; or requesting the resubmission of a dispute to a new conciliators and committee members in excess of advance payments made by the parties to ongoing tribunal after the annulment of an arbitral award rendered pursuant to the ICSID Convention. proceedings are recognized as due from parties and are payable in accordance with the Centre’s Regulations. Registration fees are recognized over the estimated time period in which ICSID fulfils its performance Payable to IBRD: These amounts represent the balance of outstanding expenses incurred in the normal obligation. course of business, which are paid by IBRD on behalf of ICSID. Administration fees: The Centre charges an annual administration fee of $42,000. For proceedings Accrued expenses related to arbitration/conciliation proceedings: Accrued expenses are recorded when registered on or after July 1, 2016, the fee is due on the registration of the request for arbitration, it is probable that the expense has been incurred and the amount can be reasonably estimated. conciliation or post award proceeding and annually thereafter. For proceedings registered before July 1, Management estimates the amount of unbilled expenses incurred by arbitrators, conciliators, committee 2016, the fee is due on the date of constitution of the Tribunal, Commission or Committee concerned and members and other service providers, and related revenues, for ongoing cases at each year end. The annually thereafter. The same annual fee is charged in proceedings administered by the Centre under rules nature of the cases handled by the Centre requires the use of external arbitrators, conciliators and other than the ICSID Convention and the ICSID Additional Facility Rules. committee members, who charge fees for their services based on time spent on the cases. The estimation The Centre collects administration fees from advance deposits from the parties to arbitration/conciliation process uses information received from those individuals about unbilled time spent and expenses incurred proceedings. Revenues are recognized on a straight-line basis, over the twelve-month period during which on the cases through the end of the fiscal year. In some instances, the determination of fees and expenses services are performed. The unearned revenue at year end is recorded as deferred revenue in the incurred in ongoing cases is based on estimated time spent by them in relation to the progress of the case Statements of Financial Position and recognized in the subsequent fiscal year. and the number of hearings and sessions held during the year. Actual results of case-related fees earned and expenses incurred but unbilled during the year may differ materially from management’s estimates. Case attendance fees: The Centre charges an hourly fee of $200 when the Secretary of the Tribunal, Commission or Committee attends meetings as well as reimbursement of the travel and subsistence Advances from parties to arbitration/conciliation proceedings: In accordance with its Regulations, the expenses of the Secretary when the meetings are held away from the seat of the Centre. This is recognized Centre periodically requests parties to proceedings to make advance payments to cover case as part of Revenues/fees from arbitration and conciliation in the Statement of Activities. administrative charges and the fees and expenses of tribunal, commission and committee members. Advance balances not used to cover costs of the proceeding during the period are recorded as liabilities. 56 ICSID 2023 ANNUAL REPORT 57 Value of services provided by IBRD and in-kind contributions: from parties is recorded as revenue and expense in the Statements of Activities, and it is applied to advances IBRD provides support services and facilities to the Centre including the following: from parties to arbitration/conciliation proceedings to be used for expenses related to such proceedings. 1. The services of staff members and consultants; and IBRD, on behalf of the WB, has an established and documented process to determine fair values. Fair value is based upon quoted market prices for the same or similar instruments, where available. Financial 2. Other administrative services and facilities, such as travel, communications, office accommodations, instruments for which quoted market prices are not readily available are valued based on discounted cash furniture, equipment, supplies and printing. flow models. These models primarily use market-based or independently-sourced market parameters The Centre recognizes expenses, as incurred, for the value of services provided by IBRD, which is such as yield curves, interest rates, volatilities, foreign exchange rates and credit curves, and may determined by the estimated fair value of such services. Cost approximates fair value for these services. incorporate unobservable inputs. Selection of these inputs involves judgment. Services by IBRD for which the Centre provides no compensation are similarly recognized, measured, and The Pool’s financial instruments are categorized based on the priority of the inputs to the valuation are recorded as in-kind contribution revenue in the Statements of Activities. technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical Relevant accounting and reporting developments: assets or liabilities (Level 1), the next highest priority to observable market-based inputs or inputs that are Financial Accounting Standards Board (FASB): corroborated by market data (Level 2), and the lowest priority to unobservable inputs that are not corroborated by market data (Level 3). When the inputs used to measure fair value fall within different There are no accounting and reporting developments relevant to the Centre currently under consideration. levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement of the instrument in its entirety. IBRD NOTE 3 – SHARE OF CASH AND INVESTMENTS IN THE POOL AND FAIR VALUE categorizes overnight time deposits and certain government obligations as Level 1 and the other money MEASUREMENT market instruments, government and agency obligations as Level 2. Amounts paid to the Centre, but not yet disbursed, are managed by IBRD, which maintains an investment portfolio (the Pool) for all the trust funds administered by the WB. IBRD, on behalf of the WB, maintains the Pool’s assets separate and apart from the funds of the WB. The Pool is a trading portfolio and is reported at fair value, with realized and unrealized gains/losses Hierarchy level June 30, 2023 June 30, 2022 included in net investment income. It is divided into sub-portfolios to which allocations are made based on Level 1 $37,568,177 $16,385,401 fund specific investment horizons, risk tolerances, and/or other eligibility requirements for trust funds with common characteristics as determined by IBRD. Generally, the Pool includes cash and financial Level 2 45,769,863 59,611,761 instruments such as government and agency obligations, time deposits, money market securities, and Total $83,338,040 $75,997,162 asset-backed securities. Additionally, the Pool includes equity securities, derivative contracts such as Cash & receivables/payables 6,134,140 2,370,790 currency forward contracts, currency swaps, interest rate swaps, and contracts to purchase or sell mortgage-backed securities to-be-announced (TBAs). Payables and receivables associated with the Fund Balance of ICSID’s TFs $89,472,180 $78,367,952 investment activities are also included in the Pool. The Pool may also include securities pledged as collateral under repurchase agreements, receivables from resale agreements, and derivatives for which it has accepted collateral. The Centre’s funds are invested in a sub-portfolio of the Pool, which invests primarily in cash and money As of June 30, 2023, and June 30, 2022, ICSID’s share of cash and investments in the Pool does not include market instruments, such as overnight time deposits, time term deposits, certificate of deposits, and any financial instruments measured at fair value on a non-recurring basis. commercial paper with terms of three months or less recorded at par value which approximates fair value. All other financial assets and financial liabilities are carried at cost. Their carrying values are considered to The sub-portfolio also includes government and agency obligations as well as derivatives. be a reasonable estimate of fair value because these instruments tend to be very short-term in nature and The share in pooled cash and investments represents the Centre’s share of the Pool’s fair value at the end none are considered to be impaired. of each reporting period. Net investment income consists of the Centre’s allocated share of interest income earned by the Pool, realized gains/losses from sales of securities, and unrealized gains/losses allocated based on ICSID’s share in the Pool. As explained in Note 2, net investment income on advances 58 ICSID 2023 ANNUAL REPORT 59 NOTE 4 – NET ASSETS, UNRESTRICTED ICSID defines the concentration of credit risk as the extent to which the pooled investments are held by an Net assets, unrestricted represents accumulated surplus in the amount of $9,307,888 (2022: $8,583,817). individual counterparty. The concentration of credit risk with respect to the Pool of investments is The amount may be carried forward indefinitely. mitigated because IBRD has investment policies that limit the amount of credit exposure to any individual issuer. NOTE 5 – RISKS ARISING FROM FINANCIAL INSTRUMENTS Other receivables and amounts due from parties to arbitration/conciliation proceedings result from the The Centre’s financial assets consist of its share of cash and investments in the Pool, cash and due from ordinary course of business. The amounts are neither past due nor impaired. parties to arbitration/conciliation proceedings. The Centre holds the cash in a depository bank account. Liquidity risk – The risk that an entity will encounter difficulty in raising liquid funds to meet its The Pool is actively managed and invested in accordance with the investment strategy established by commitments. ICSID Regulations require parties to arbitration/conciliation proceedings to make advance IBRD for all trust funds administered by the WB. The objectives of the investment strategy are foremost to deposits with the Centre to meet anticipated expenses of such proceedings. The Centre’s share of cash maintain adequate liquidity to meet foreseeable cash flow needs and preserve capital and then to and investments in the Pool are substantially invested in highly liquid money market instruments and maximize investment returns. liabilities carried generally have no stated maturity. The Centre is exposed to credit and liquidity risks. There has been no significant change during the fiscal NOTE 6 – REVENUES/FEES FROM ARBITRATION/CONCILIATION PROCEEDINGS year to the types of financial risks faced by the Centre or its general approach to the management of those risks. The exposure and the risk management policies employed to manage these risks are discussed below: Revenues/fees from arbitration/conciliation proceedings comprise: 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. Of the Centre’s financial assets, cash held in the depository bank 2023 2022 account which is subject to U.S. Federal Deposit Insurance Corporation (FDIC) insurance limits of $250,000 Drawdown of advances from parties* $49,873,222 $39,103,576 is not subject to credit risk to the extent that it is covered by insurance. Therefore, the Centre’s maximum credit exposure as at June 30, 2023 is equivalent to the gross value of the remaining assets amounting to Administrative fees earned 13,538,264 13,132,637 $90,741,264 (2022: $78,679,133). The Centre does not hold credit enhancements or collateral to mitigate Case lodging and other fees 2,699,267 2,497,717 credit risk, and believes the pool is adequately managed. Total $66,110,753 $54,733,930 IBRD invests the Centre’s share of pooled investments primarily in money market securities. The Centre’s share of the cash and investments in the Pool is not traded in any market. However, the assets within the Pool are traded in the market and are reported at fair value. IBRD’s policy is to only invest in money market *The Centre recognizes revenue to the extent expenses related to arbitration/conciliation proceedings are instruments issued or guaranteed by financial institutions whose senior debt securities are rated at least incurred. The details of such expenses are provided in Note 7. A- in the U.S. markets or equivalent. The movement in advances from parties and drawdown of advances during the period is summarized below: The following table presents investment holdings in terms of the counterparty credit risk exposure categories as of June 30, 2023, and June 30, 2022. 2023 2022 Opening balance $51,612,784 $54,040,106 Add: Advances received 55,487,884 36,452,622 Counterparty credit ratings June 30, 2023 June 30, 2022 Less: Drawdown of advances (49,873,222) (39,103,576) AA- or greater 50% 67% Add: Investment income applied 2,760,824 223,632 A- or greater 100% 100% Closing Balance of Advances Received $59,988,269 $51,612,784 60 ICSID 2023 ANNUAL REPORT 61 NOTE 7 – EXPENSES RELATED TO ARBITRATION/CONCILIATION PROCEEDINGS NOTE 9 – NET INVESTMENT INCOME Direct expenses related to arbitration/conciliation proceedings are paid out of advances from parties to the proceedings to the extent that there are funds available and to the extent that due from parties are 2023 2022 recognized in the balance sheet. These expenses comprise: Net Investment Income from Share of Investment in the Pool $3,552,178 $294,318 2023 2022 Less: Net Investment Income applied Arbitrators’ fees and expenses $40,815,315 $32,067,191 to advances from parties to Arbitration/conciliation meeting costs 8,661,230 6,888,686 arbitration/conciliation proceedings (2,760,824) (223,632) Travel expenses 386,313 137,752 Net Investment Income on ICSID’s Share Other costs 10,364 9,947 in the Pool $791,354 $70,686 Total $49,859,422 $39,103,576 NOTE 8 – IN-KIND CONTRIBUTIONS NOTE 10 – AUTHORIZATION OF FINANCIAL STATEMENTS As described in Note 1, the Memorandum provides that, except to the extent that the Centre may collect ICSID’s management has evaluated subsequent events through August 23, 2023, the date the financial funds from the parties to proceedings to cover its administrative expenses, IBRD will provide facilities and statements were approved and authorized for issue. services to the Centre. Therefore, in-kind contributions represent the value of services provided by IBRD, less amounts reimbursed by ICSID to IBRD using proceeds from non-refundable fees and the sale of publications. A summary is provided below: 2023 2022 Staff services (including benefits) $13,656,462 $12,352,377 Contractual services 198,426 236,970 Administrative services 278,299 159,170 Communication and information technology 1,299,513 1,110,150 Office accommodation 1,205,472 1,219,279 Travel 104,504 97,985 Total administrative services and facilities 16,742,676 15,175,931 Total recorded value of services and facilities 16,742,676 15,175,931 Less: Proceeds from fees, investment 17,112,031 15,755,892 income and sale of publications Increase in net assets (724,071) (916,824) In-kind contributions $354,716 $336,863 62 ICSID 2023 ANNUAL REPORT 63                 resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,  intentional omissions, misrepresentations, or the override of internal control. Misstatements are  considered material if there is a substantial likelihood that, individually or in the aggregate, they would  influence the judgment made by a reasonable user based on the financial statements.  INDEPENDENT AUDITOR’S REPORT  In performing an audit in accordance with GAAS, we:  Chairman of the Administrative Council and Secretary General of the International Centre for Settlement   Exercise professional judgment and maintain professional skepticism throughout the audit.  of Investment Disputes   Identify and assess the risks of material misstatement of the financial statements, whether due to  Opinion  fraud or error, and design and perform audit procedures responsive to those risks. Such procedures  include examining, on a test basis, evidence regarding the amounts and disclosures in the financial  We have audited the accompanying financial statements of International Centre for Settlement of  statements.  Investment Disputes (the “Centre”), which comprise the statements of financial position as of June 30,  2023 and 2022, and the related statements of activities and cash flows for the years then ended, and the   Obtain an understanding of internal control relevant to the audit in order to design audit procedures  related notes to the financial statements (collectively referred to as the “financial statements”).  that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the  effectiveness of the Centre’s internal control. Accordingly, no such opinion is expressed.  In our opinion, the accompanying financial statements present fairly, in all material respects, the  financial position of the Centre as of June 30, 2023 and 2022, and the results of its operations and its   Evaluate the appropriateness of accounting policies used and the reasonableness of significant  cash flows for the years then ended in accordance with accounting principles generally accepted in the  accounting estimates made by management, as well as evaluate the overall presentation of the  United States of America.  financial statements.  Basis for Opinion   Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,  that raise substantial doubt about the Centre’s ability to continue as a going concern for a  We conducted our audits in accordance with auditing standards generally accepted in the United States  reasonable period of time.  of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s  Responsibilities for the Audit of the Financial Statements section of our report. We are required to be  We are required to communicate with those charged with governance regarding, among other matters,  independent of the Company and to meet our other ethical responsibilities, in accordance with the  the planned scope and timing of the audit, significant audit findings, and certain internal control‐related  relevant ethical requirements relating to our audits. We believe that the audit evidence we have  matters that we identified during the audit.  obtained is sufficient and appropriate to provide a basis for our audit opinion.  Responsibilities of Management for the Financial Statements    Management is responsible for the preparation and fair presentation of the financial statements in  accordance with accounting principles generally accepted in the United States of America, and for the  August 23, 2023  design, implementation, and maintenance of internal control relevant to the preparation and fair  presentation of financial statements that are free from material misstatement, whether due to fraud or  error.  In preparing the financial statements, management is required to evaluate whether there are conditions  or events, considered in the aggregate, that raise substantial doubt about the Centre’s ability to  continue as a going concern for one year after the date that the financial statements are available to be  issued.  Auditor’s Responsibilities for the Audit of the Financial Statements  Our objectives are to obtain reasonable assurance about whether the financial statements as a whole  are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report  that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute  assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always  detect a material misstatement when it exists. The risk of not detecting a material misstatement  ‐ 2 ‐  64 ICSID 2023 ANNUAL REPORT 65 LIST OF MEMBER STAT ES AS OF JUNE 30, 2023 The 165 States listed below signed the Convention deposited their instruments of ratification are in on the Settlement of Investment Disputes between bold, with the dates of deposit and the entry into States and Nationals of Other States on the dates force of the Convention for each of them. indicated. The names of the 158 States that have 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 Angola July 14, 2022 Sep. 21, 2022 Oct. 21, 2022 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, The 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 66 ICSID 2023 ANNUAL REPORT 67 DEPOSIT OF ENTRY INTO FORCE DEPOSIT OF ENTRY INTO FORCE STATE SIGNATURE STATE SIGNATURE RATIFICATION OF CONVENTION RATIFICATION OF CONVENTION Benin Sep. 10, 1965 Sep. 6, 1966 Oct. 14, 1966 Egypt, Arab Rep. of Feb. 11, 1972 May 3, 1972 June 2, 1972 Bosnia and Herzegovina Apr. 25, 1997 May 14, 1997 June 13, 1997 El Salvador June 9, 1982 Mar. 6, 1984 Apr. 5, 1984 Botswana Jan. 15, 1970 Jan. 15, 1970 Feb. 14, 1970 Estonia June 23, 1992 June 23, 1992 July 23, 1992 Brunei Darussalam Sep. 16, 2002 Sep. 16, 2002 Oct. 16, 2002 Eswatini Nov. 3, 1970 June 14, 1971 July 14, 1971 Bulgaria Mar. 21, 2000 Apr. 13, 2001 May 13, 2001 Ethiopia Sep. 21, 1965 Burkina Faso Sep. 16, 1965 Aug. 29, 1966 Oct. 14, 1966 Fiji July 1, 1977 Aug. 11, 1977 Sep. 10, 1977 Burundi Feb. 17, 1967 Nov. 5, 1969 Dec. 5, 1969 Finland July 14, 1967 Jan. 9, 1969 Feb. 8, 1969 Cabo Verde Dec. 20, 2010 Dec. 27, 2010 Jan. 26, 2011 France Dec. 22, 1965 Aug. 21, 1967 Sep. 20, 1967 Cambodia Nov. 5, 1993 Dec. 20, 2004 Jan. 19, 2005 Gabon Sep. 21, 1965 Apr. 4, 1966 Oct. 14, 1966 Cameroon Sep. 23, 1965 Jan. 3, 1967 Feb. 2, 1967 Gambia, The Oct. 1, 1974 Dec. 27, 1974 Jan. 26, 1975 Canada Dec. 15, 2006 Nov. 1, 2013 Dec. 1, 2013 Georgia Aug. 7, 1992 Aug. 7, 1992 Sep. 6, 1992 Central African Republic Aug. 26, 1965 Feb. 23, 1966 Oct. 14, 1966 Germany Jan. 27, 1966 Apr. 18, 1969 May 18, 1969 Chad May 12, 1966 Aug. 29, 1966 Oct. 14, 1966 Ghana Nov. 26, 1965 July 13, 1966 Oct. 14, 1966 Chile Jan. 25, 1991 Sep. 24, 1991 Oct. 24, 1991 Greece Mar. 16, 1966 Apr. 21, 1969 May 21, 1969 China Feb. 9, 1990 Jan. 7, 1993 Feb. 6, 1993 Grenada May 24, 1991 May 24, 1991 June 23, 1991 Colombia May 18, 1993 July 15, 1997 Aug. 14, 1997 Guatemala Nov. 9, 1995 Jan. 21, 2003 Feb. 20, 2003 Comoros Sep. 26, 1978 Nov. 7, 1978 Dec. 7, 1978 Guinea Aug. 27, 1968 Nov. 4, 1968 Dec. 4, 1968 Congo, Democratic Rep. of Oct. 29, 1968 Apr. 29, 1970 May 29, 1970 Guinea-Bissau Sep. 4, 1991 Congo, Rep. of Dec. 27, 1965 June 23, 1966 Oct. 14, 1966 Guyana July 3, 1969 July 11, 1969 Aug. 10, 1969 Costa Rica Sep. 29, 1981 Apr. 27, 1993 May 27, 1993 Haiti Jan. 30, 1985 Oct. 27, 2009 Nov. 26, 2009 Côte d’Ivoire June 30, 1965 Feb. 16, 1966 Oct. 14, 1966 Honduras May 28, 1986 Feb. 14, 1989 Mar. 16, 1989 Croatia June 16, 1997 Sep. 22, 1998 Oct. 22, 1998 Hungary Oct. 1, 1986 Feb. 4, 1987 Mar. 6, 1987 Cyprus Mar. 9, 1966 Nov. 25, 1966 Dec. 25, 1966 Iceland July 25, 1966 July 25, 1966 Oct. 14, 1966 Czechia Mar. 23, 1993 Mar. 23, 1993 Apr. 22, 1993 Indonesia Feb. 16, 1968 Sep. 28, 1968 Oct. 28, 1968 Denmark Oct. 11, 1965 Apr. 24, 1968 May 24, 1968 Iraq Nov. 17, 2015 Nov. 17, 2015 Dec. 17, 2015 Djibouti Apr. 12, 2019 June 9, 2020 July 9, 2020 Ireland Aug. 30, 1966 Apr. 7, 1981 May 7, 1981 Dominican Republic Mar. 20, 2000 Israel June 16, 1980 June 22, 1983 July 22, 1983 Ecuador June 21, 2021 Aug. 4, 2021 Sep. 3 2021 Italy Nov. 18, 1965 Mar. 29, 1971 Apr. 28, 1971 68 ICSID 2023 ANNUAL REPORT 69 DEPOSIT OF ENTRY INTO FORCE DEPOSIT OF ENTRY INTO FORCE STATE SIGNATURE STATE SIGNATURE RATIFICATION OF CONVENTION RATIFICATION OF CONVENTION Jamaica June 23, 1965 Sep. 9, 1966 Oct. 14, 1966 Morocco Oct. 11, 1965 May 11, 1967 June 10, 1967 Japan Sep. 23, 1965 Aug. 17, 1967 Sep. 16, 1967 Mozambique Apr. 4, 1995 June 7, 1995 July 7, 1995 Jordan July 14, 1972 Oct. 30, 1972 Nov. 29, 1972 Namibia Oct. 26, 1998 Kazakhstan July 23, 1992 Sep. 21, 2000 Oct. 21, 2000 Nauru April 12, 2016 April 12, 2016 May 12, 2016 Kenya May 24, 1966 Jan. 3, 1967 Feb. 2, 1967 Nepal Sep. 28, 1965 Jan. 7, 1969 Feb. 6, 1969 Korea, Rep. of Apr. 18, 1966 Feb. 21, 1967 Mar. 23, 1967 Netherlands May 25, 1966 Sep. 14, 1966 Oct. 14, 1966 Kosovo, Rep. of June 29, 2009 June 29, 2009 July 29, 2009 New Zealand Sep. 2, 1970 Apr. 2, 1980 May 2, 1980 Kuwait Feb. 9, 1978 Feb. 2, 1979 Mar. 4, 1979 Nicaragua Feb. 4, 1994 Mar. 20, 1995 Apr. 19, 1995 Kyrgyz Republic June 9, 1995 Apr. 21, 2022 May 21, 2022 Niger Aug. 23, 1965 Nov. 14, 1966 Dec. 14, 1966 Latvia Aug. 8, 1997 Aug. 8, 1997 Sep. 7, 1997 Nigeria July 13, 1965 Aug. 23, 1965 Oct. 14, 1966 Lebanon Mar. 26, 2003 Mar. 26, 2003 Apr. 25, 2003 North Macedonia Sep. 16, 1998 Oct. 27, 1998 Nov. 26, 1998 Lesotho Sep. 19, 1968 July 8, 1969 Aug. 7, 1969 Norway June 24, 1966 Aug. 16, 1967 Sep. 15, 1967 Liberia Sep. 3, 1965 June 16, 1970 July 16, 1970 Oman May 5, 1995 July 24, 1995 Aug. 23, 1995 Lithuania July 6, 1992 July 6, 1992 Aug. 5, 1992 Pakistan July 6, 1965 Sep. 15, 1966 Oct. 15, 1966 Luxembourg Sep. 28, 1965 July 30, 1970 Aug. 29, 1970 Panama Nov. 22, 1995 Apr. 8, 1996 May 8, 1996 Madagascar June 1, 1966 Sep. 6, 1966 Oct. 14, 1966 Papua New Guinea Oct. 20, 1978 Oct. 20, 1978 Nov. 19, 1978 Malawi June 9, 1966 Aug. 23, 1966 Oct. 14, 1966 Paraguay July 27, 1981 Jan. 7, 1983 Feb. 6, 1983 Malaysia Oct. 22, 1965 Aug. 8, 1966 Oct. 14, 1966 Peru Sep. 4, 1991 Aug. 9, 1993 Sep. 8, 1993 Mali Apr. 9, 1976 Jan. 3, 1978 Feb. 2, 1978 Philippines Sep. 26, 1978 Nov. 17, 1978 Dec. 17, 1978 Malta Apr. 24, 2002 Nov. 3, 2003 Dec. 3, 2003 Portugal Aug. 4, 1983 July 2, 1984 Aug. 1, 1984 Mauritania July 30, 1965 Jan. 11, 1966 Oct. 14, 1966 Qatar Sep. 30, 2010 Dec. 21, 2010 Jan. 20, 2011 Mauritius June 2, 1969 June 2, 1969 July 2, 1969 Romania Sep. 6, 1974 Sep. 12, 1975 Oct. 12, 1975 Mexico Jan. 11, 2018 July 27, 2018 Aug. 26, 2018 Russian Federation June 16, 1992 Micronesia, June 24, 1993 June 24, 1993 July 24, 1993 Rwanda Apr. 21, 1978 Oct. 15, 1979 Nov. 14, 1979 Federated States of Samoa Feb. 3, 1978 Apr. 25, 1978 May 25, 1978 Moldova Aug. 12, 1992 May 5, 2011 June 4, 2011 San Marino Apr. 11, 2014 Apr. 18, 2015 May 18, 2015 Mongolia June 14, 1991 June 14, 1991 July 14, 1991 Sao Tome and Principe Oct. 1, 1999 May 20, 2013 June 19, 2013 Montenegro July 19, 2012 April 10, 2013 May 10, 2013 Saudi Arabia Sep. 28, 1979 May 8, 1980 June 7, 1980 70 ICSID 2023 ANNUAL REPORT 71 DEPOSIT OF ENTRY INTO FORCE DEPOSIT OF ENTRY INTO FORCE STATE SIGNATURE STATE SIGNATURE RATIFICATION OF CONVENTION RATIFICATION OF CONVENTION Senegal Sep. 26, 1966 Apr. 21, 1967 May 21, 1967 Turkmenistan Sep. 26, 1992 Sep. 26, 1992 Oct. 26, 1992 Serbia May 9, 2007 May 9, 2007 June 8, 2007 Uganda June 7, 1966 June 7, 1966 Oct. 14, 1966 Seychelles Feb. 16, 1978 Mar. 20, 1978 Apr. 19, 1978 Ukraine Apr. 3, 1998 June 7, 2000 July 7, 2000 Sierra Leone Sep. 27, 1965 Aug. 2, 1966 Oct. 14, 1966 United Arab Emirates Dec. 23, 1981 Dec. 23, 1981 Jan. 22, 1982 Singapore Feb. 2, 1968 Oct. 14, 1968 Nov. 13, 1968 United Kingdom of Great May 26, 1965 Dec. 19, 1966 Jan. 18, 1967 Britain and Northern Ireland Slovak Republic Sep. 27, 1993 May 27, 1994 June 26, 1994 United States of America Aug. 27, 1965 June 10, 1966 Oct. 14, 1966 Slovenia Mar. 7, 1994 Mar. 7, 1994 Apr. 6, 1994 Uruguay May 28, 1992 Aug. 9, 2000 Sep. 8, 2000 Solomon Islands Nov. 12, 1979 Sep. 8, 1981 Oct. 8, 1981 Uzbekistan Mar. 17, 1994 July 26, 1995 Aug. 25, 1995 Somalia Sep. 27, 1965 Feb. 29, 1968 Mar. 30, 1968 Yemen, Republic of Oct. 28, 1997 Oct. 21, 2004 Nov. 20, 2004 South Sudan Apr. 18, 2012 Apr. 18, 2012 May 18, 2012 Zambia June 17, 1970 June 17, 1970 July 17, 1970 Spain Mar. 21, 1994 Aug. 18, 1994 Sept. 17, 1994 Zimbabwe Mar. 25, 1991 May 20, 1994 June 19, 1994 Sri Lanka Aug. 30, 1967 Oct. 12, 1967 Nov. 11, 1967 St. Kitts & 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 Aug. 7, 2001 Dec. 16, 2002 Jan. 15, 2003 Grenadines Sudan Mar. 15, 1967 Apr. 9, 1973 May 9, 1973 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 Türkiye June 24, 1987 Mar. 3, 1989 Apr. 2, 1989 72 ICSID 2023 ANNUAL REPORT 73 1818 H Street, NW Washington, D.C. 20433 USA Telephone: +1 (202) 458 1534 Facsimile: +1 (202) 522 2615 Email: ICSIDsecretariat@worldbank.org Website: icsid.worldbank.org