INTRODUCTORY NOTES


On September 27, 1978, the Administrative Council of the Centre authorized the Secretariat to administer at the request of the parties concerned certain proceedings between States and nationals of other States which fall outside the scope of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. They are (i) conciliation or arbitration proceedings for the settlement of investment disputes arising between parties one of which is not a Contracting State or a national of a Contracting State; (ii) conciliation or arbitration proceedings between parties at least one of which is a Contracting State or a national of a Contracting State for the settlement of disputes that do not directly arise out of an investment; and (iii) fact-finding proceedings.

The scope within which and the terms on which the Secretariat may administer these proceedings, which would of course not be governed by the provisions of the Convention, are set out in the attached Additional Facility Rules. They provide, among other things, that the Additional Facility will not be available for the settlement of ordinary commercial disputes. The text of most of the Articles of the Additional Facility Rules are followed by explanatory comments.

Four schedules are also attached:

A. The Administrative and Financial Rules (Additional Facility)

These Rules provide for non-refundable fees, expressed in Special Drawing Rights, of SDR 100 each for an application for approval under Article 4 of the Additional Facility Rules and for notice of commencement of proceedings. Fees of conciliators, arbitrators and members of fact-finding committees are, unless otherwise agreed between them and the parties, determined on a time basis at the rate of SDR 350 per day of meetings or other work performed in connection with the proceedings. These fees are subject to adjustment by the Secretary-General in the light of changes in price levels. The Secretariat's administrative charges consist of reimbursement of out-of-pocket expenses and a time charge for staff services. Advance payments in respect of estimated fees and administrative charges are required on a quarterly basis.

B. The Conciliation (Additional Facility) Rules

These Rules are an amalgam of certain provisions of the Convention suitable for inclusion in an instrument of a contractual nature and of appropriate portions of the ICSID Conciliation Rules. The reference table following the text of the Conciliation (Additional Facility) Rules shows the origin of their provisions.

C. The Arbitration (Additional Facility) Rules

The Arbitration (Additional Facility) Rules are based on the ICSID Arbitration Rules, and provisions of the Convention which lend themselves to inclusion in an instrument of a contractual nature, and include some provisions derived from the UNCITRAL Rules and the

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