IV
The International Centre for Settlement
of Investment Disputes
General
15. The Convention establishes the International Centre for Settlement
of Investment Disputes as an autonomous international institution (Articles
18-24). The purpose of the Centre is "to provide facilities for conciliation
and arbitration of investment disputes * * *" (Article 1(2)). The
Centre will not itself engage in conciliation or arbitration activities.
This will be the task of Conciliation Commissions and Arbitral Tribunals
constituted in accordance with the provisions of the Convention.
16. As sponsor of the establishment of the institution the Bank will
provide the Centre with premises for its seat (Article 2) and, pursuant
to arrangements between the two institutions, with other administrative
facilities and services (Article 6(d)).
17. With respect to the financing of the Centre (Article 17), the Executive
Directors have decided that the Bank should be prepared to provide the
Centre with office accommodation free of charge as long as the Centre
has its seat at the Bank's headquarters and to underwrite, within
reasonable limits, the basic overhead expenditure of the Centre for a
period of years to be determined after the Centre is established.
18. Simplicity and economy consistent with the efficient discharge of
the functions of the Centre characterize its structure. The organs of
the Centre are the Administrative Council (Articles 4-8) and the Secretariat
(Article 9-11). The Administrative Council will be composed of one representative
of each Contracting State, serving without remuneration from the Centre.
Each member of the Council casts one vote and matters before the Council
are decided by a majority of the votes cast unless a different majority
is required by the Convention. The President of the Bank will serve ex
officio as the Council's Chairman but will have no vote. The
Secretariat will consist of a Secretary-General, one or more Deputy Secretaries-General
and staff. In the interest of flexibility the Convention provides for
the possibility of there being more than one Deputy Secretary-General,
but the Executive Directors do not now foresee a need for more than one
or two full time high officials of the Centre. Article 10, which requires
that the Secretary-General and any Deputy Secretary-General be elected
by the Administrative Council by a majority of two-thirds of its members,
on the nomination of the Chairman, limits their terms of office to a period
not exceeding six years and permits their re-election. The Executive Directors
believe that the initial election, which will take place shortly after
the Convention will have come into force, should be for a short term so
as not to deprive the States which ratify the Convention after its entry
into force of the possibility of participating in the selection of the
high officials of the Centre. Article 10 also limits the extent to which
these officials may engage in activities other than their official functions.
Functions of the Administrative Council
19. The principal functions of the Administrative Council are the election
of the Secretary-General and any Deputy Secretary-General, the adoption
of the budget of the Centre and the adoption of administrative and financial
regulations, rules governing the institution of proceedings and rules
of procedure for conciliation and arbitration proceedings. Action on all
these matters requires a majority of two-thirds of the members of the
Council.
Functions of the Secretary-General
20. The Convention requires the Secretary-General to perform a variety
of administrative functions as legal representative, registrar and principal
officer of the Centre (Articles 7(1), 11, 16(3), 25(4), 28, 36, 49(1),
50(1), 51(1), 52(1), 54(2), 59, 60(1), 63(b) and 65). In addition, the
Secretary-General is given the power to refuse registration of a request
for conciliation proceedings or arbitration proceedings, and thereby to
prevent the institution of such proceedings, if on the basis of the information
furnished by the applicant he finds that the dispute is manifestly outside
the jurisdiction of the Centre (Article 28(3) and 36(3)). The Secretary-General
is given this limited power to "screen" requests for conciliation
or arbitration proceedings with a view to avoiding the embarrassment to
a party (particularly a State) which might result from the institution
of proceedings against it in a dispute which it had not consented to submit
to the Centre, as well as the possibility that the machinery of the Centre
would be set in motion in cases which for other reasons were obviously
outside the jurisdiction of the Centre e.g., because either the applicant
or the other party was not eligible to be a party in proceedings under
the Convention.
The Panels
21. Article 3 requires the Centre to maintain a Panel of Conciliators
and a Panel of Arbitrators, while Articles 12-16 outline the manner and
terms of designation of Panel members. In particular, Article 14(1) seeks
to ensure that Panel members will possess a high degree of competence
and be capable of exercising independent judgment. In keeping with the
essentially flexible character of the proceedings, the Convention permits
the parties to appoint conciliators and arbitrators from outside the Panels
but requires (Articles 31(2) and 40(2)) that such appointees possess the
qualities stated in Article 14(1). The Chairman, when called upon to appoint
a conciliator or arbitrator pursuant to Article 30 or 38, is restricted
in his choice to Panel members.
