New ICSID rules could come into force in July: Peru has until March to vote

The International Center for Settlement of Investment Disputes (ICSID) has submitted to a vote of the Administrative Council the amendments to its Rules, which require the approval of two thirds of its components.

Among the ICSID’s objectives is to modernize, simplify and streamline the rules using technologies to reduce the carbon footprint. In addition, new mediation and fact-finding regulations have also been developed.

“Since the beginning of this process, five years ago, ICSID has communicated that the new rules will promote, among others, the publication of more documents, the need to reveal the existence of a third-party funder or the use of accelerated arbitration,” the institution noted.

On November 12, the ICSID Secretariat published its sixth Working Paper on the proposed amendments to the center’s procedural rules applicable to the resolution of investment arbitrations.

The most significant changes announced are:

1. Greater transparency in the processing and outcome of proceedings (for example, through the publication of an increasing number of awards, decisions and resolutions).
2. Disclosure requirement by third party financing parties; the option of speeding up proceedings through the use of expedited arbitration rules.
3. Wider access to ICSID dispute resolution procedures. For example, by allowing Regional Economic Integration Organizations—such as the European Union—to use the Center’s Arbitration and Conciliation (Additional Mechanism) Rules.
4. The introduction of state-of-the-art Mediation Rules that are available to all investors and States on the basis of their consent.

At the end of 2016, ICSID began the consultation in a process that sought to establish itself as the most comprehensive and transparent in its history. Now, the Member States will cast their votes before March 21, 2022 and if they are approved, they will enter into force on July 1, 2022.