Case Details

Koch Minerals Sàrl and Koch Nitrogen International Sàrl v. Bolivarian Republic of Venezuela (ICSID Case No. ARB/11/19)

Subject of Dispute:

Construction and operation of fertilizer plant
Economic Sector:

Other Industry
Instrument(s) Invoked:

BIT Venezuela, Republica Bolivariana de - Switzerland 1993
Applicable Rules:

ICSID Convention - Arbitration Rules

(a) Original Proceeding

Claimant(s)/Nationality(ies):

Koch Minerals Sàrl (Swiss), Koch Nitrogen International Sàrl (Swiss)
Respondent(s):

Bolivarian Republic of Venezuela (Venezuelan)
Date Registered:

July 19, 2011
Date of Constitution of Tribunal:

November 8, 2011

Composition of Tribunal

President:

V.V. VEEDER (British) - Appointed by the Parties
Arbitrators:

Marc LALONDE (Canadian) - Appointed by the Claimant(s)
Zachary DOUGLAS (Australian) - Appointed by the Respondent(s)

Initial Composition of Tribunal

President:

V.V. VEEDER (British)
Arbitrators:

Marc LALONDE (Canadian)
Florentino P. FELICIANO (Philippine)
Reconstituted:

February 1, 2016: Zachary DOUGLAS (Australian) appointed following the passing away of Florentino P. FELICIANO (Philippine)

Party Representatives

Claimant(s):

Volterra Fietta, London, U.K.
Respondent(s):

Procuraduría General de la República, Caracas, Venezuela
Language(s) of Proceeding:

English,Spanish
Status of Proceeding:

Concluded
Outcome of Proceeding:

October 30, 2017 - The Tribunal renders its award; attached to the award is a partial dissenting opinion by arbitrator Zachary Douglas.

(b) Rectification Proceeding

Applicant(s)/Requesting Party(ies):

Respondent(s)
Date Registered:

December 18, 2017 (Respondent(s))

Party Representatives

Claimant(s):

Volterra Fietta, London, U.K.
Cooley, New York, U.S.A
Respondent(s):

Procuraduría General de la República, Caracas, Venezuela
Shearman & Sterling, Washington, D.C., U.S.A. and Paris, France
The Law Office of Jose Pertierra, Washington, D.C., U.S.A.
Status of Proceeding:

Concluded
Outcome of Proceeding:

April 11, 2018 - The Tribunal issues a decision on the rectification of the award.

(c) Annulment Proceeding

Applicant(s)/Requesting Party(ies):

Respondent(s)
Date Registered:

August 17, 2018 (Respondent(s))
Date of Constitution of ad hoc Committee:

October 1, 2018

Composition of ad hoc Committee (Appointed by the Chairman of the Administrative Council)

President:

Dominique HASCHER (French)
Members:

Milton Estuardo ARGUETA PINTO (Guatemalan)
Inka HANEFELD (German)

Party Representatives

Claimant(s):

Volterra Fietta, London, U.K.
Respondent(s):

Procuraduría General de la República, Caracas, Venezuela
De Jesús & De Jesús, Caracas, Venezuela and Paris, France
Language(s) of Proceeding:

English,Spanish
Status of Proceeding:

Concluded
Outcome of Proceeding:

May 24, 2022 - The ad hoc Committee issues its decision on annulment.

No References Available.

(a) Original Proceeding

Date	Development
July 19, 2011	The Secretary-General registers a request for the institution of arbitration proceedings.
September 27, 2011	Following appointment by the Claimant, Mr. Marc Lalonde (Canadian) accepts his appointment as arbitrator.
October 17, 2011	Following appointment by the Respondent, Florentino P. Feliciano (Philippine) accepts his appointment as arbitrator.
November 4, 2011	Following appointment by the parties, V. V. Veeder (British) accepts his appointment as presiding arbitrator.
November 8, 2011	The Tribunal is constituted in accordance with Article 37(2)(b) of the ICSID Convention. Its members are: V. V. Veeder (British), President, appointed by agreement of the parties; Marc Lalonde (Canadian), appointed by the Claimants; and Florentino P. Feliciano (Philippine), appointed by the Respondent.
December 21, 2011	The Tribunal holds a first session by telephone conference.
January 2, 2012	The Tribunal issues a procedural order concerning the procedural calendar.
February 16, 2012	The Tribunal issues Procedural Order No. 2 suspending the proceedings for a two-month period.
April 2, 2012	The proceedings resume in accordance with Procedural Order No. 2.
June 4, 2012	The Claimants file a full memorial.
July 3, 2012	The Tribunal issues Procedural Order No. 3 concerning the procedural calendar and other preliminary issues.
November 22, 2012	The Tribunal issues Procedural Order No. 4 concerning the procedural calendar.
December 18, 2012	The Tribunal issues Procedural Order No. 5 concerning the procedural calendar.
February 28, 2013	The Respondents file a counter-memorial on the merits and a memorial on jurisdiction.
May 29, 2013	The Tribunal issues Procedural Order No. 6 concerning procedural matters.
September 2, 2013	The Claimants file a reply on the merits and a counter-memorial on jurisdiction.
December 24, 2013	The Respondent files a proposal for disqualification of arbitrator Florentino P. Feliciano.
December 26, 2013	The Claimants file observations on the proposal for disqualification.
January 8, 2014	The Respondent files further observations on the proposal for disqualification.
January 15, 2014	The Claimants file a response to the Respondent’s further observations of January 8, 2014.
February 1, 2014	The arbitrator furnishes explanations regarding the proposal for disqualification in accordance with ICSID Arbitration Rule 9(3).
February 6, 2014	Each party files observations on Florentino P. Feliciano's explanations of February 1, 2014.
February 24, 2014	The proposal for disqualification of arbitrator Florentino P. Feliciano is declined by the Chairman of the Administrative Council. The proceeding resumes pursuant to ICSID Arbitration Rule 9(6).
February 26, 2014	The Tribunal issues Procedural Order No. 7 concerning the procedural calendar.
March 3, 2014	The Respondent files a rejoinder on the merits and a reply on jurisdiction.
March 14, 2014	The Claimants file a rejoinder on jurisdiction.
March 24, 2014	The Tribunal holds a pre-hearing organizational meeting with the parties by telephone conference.
March 27, 2014	The Tribunal issues a procedural order concerning the admissibility of new evidence and procedural matters.
March 29, 2014	The Respondent files a proposal for disqualification of the three members of the Tribunal. The proceeding is suspended in accordance with ICSID Arbitration Rule 9(6).
April 1, 2014	The Claimants file observations on the proposal for disqualification.
April 8, 2014	The arbitrators furnish explanations regarding the proposal for disqualification in accordance with ICSID Arbitration Rule 9(3).
April 15, 2014	The Claimants file further observations on the proposal for disqualification.
April 16, 2014	The Respondent files further observations on the proposal for disqualification.
April 30, 2014	The proposal for the disqualification of the three members of the Tribunal is declined by the Chairman of the Administrative Council. The proceeding resumes pursuant to ICSID Arbitration Rule 9(6).
May 19, 2014	The Tribunal holds a hearing on procedural matters in Paris.
August 4, 2014	The Tribunal issues Procedural Order No. 9 concerning procedural matters.
August 25, 2014	The Tribunal holds a pre-hearing organizational meeting with the parties by telephone conference.
September 5, 2014	The Tribunal issues Procedural Order No. 10 concerning procedural matters.
September 8, 2014 - September 12, 2014	The Tribunal holds a hearing on jurisdiction and the merits (fact witnesses) in Paris.
November 23, 2014 - November 26, 2014	The Tribunal holds a hearing on the merits (expert witness) and quantum in London.
January 30, 2015	Each party files a post-hearing brief.
February 13, 2015	Each party files a statement of costs.
December 16, 2015	Following the passing away of arbitrator Florentino P. Feliciano (Philippine), the Secretary-General notifies the parties of the vacancy on the Tribunal and the proceeding is suspended pursuant to ICSID Arbitration Rule 10(2).
February 1, 2016	Following the passing away of arbitrator Florentino P. Feliciano, Zachary Douglas (Australian) accepts his appointment as arbitrator, appointed by the Respondent in accordance with ICSID Arbitration Rule 11(1). The Tribunal is reconstituted. Its members are: V. V. Veeder (British), President, appointed by agreement of the parties; Marc Lalonde (Canadian), appointed by the Claimants; and Zachary Douglas (Australian), appointed by the Respondent in accordance with ICSID Arbitration Rule 11(1).
June 8, 2016	The Tribunal issues Procedural Order No. 11 concerning procedural matters.
June 9, 2016 - June 10, 2016	The Tribunal holds a hearing on jurisdiction, the merits and quantum in London.
July 8, 2016	Each party files a statement of costs.
July 12, 2016	The Claimants file a revised statement of costs.
August 31, 2017	The Tribunal declares the proceeding closed in accordance with ICSID Arbitration Rule 38(1).
October 30, 2017	The Tribunal renders its award; attached to the award is a partial dissenting opinion by arbitrator Zachary Douglas.

(b) Rectification Proceeding

Date	Development
December 18, 2017	The Secretary-General registers a request for rectification of the award filed by the Bolivarian Republic of Venezuela.
January 8, 2018	Koch Minerals Sàrl and Koch Nitrogen International Sàrl file observations on the Bolivarian Republic of Venezuela’s request of December 18, 2017.
January 22, 2018	The Bolivarian Republic of Venezuela files a response to Koch Minerals Sàrl and Koch Nitrogen International Sàrl’s observations of January 8, 2018.
February 5, 2018	Koch Minerals Sàrl and Koch Nitrogen International Sàrl file observations on the Bolivarian Republic of Venezuela’s response of January 22, 2018.
April 11, 2018	The Tribunal issues a decision on the rectification of the award.

(c) Annulment Proceeding

Date	Development
August 17, 2018	The Acting Secretary-General registers an application for annulment of the award filed by the Bolivarian Republic of Venezuela and notifies the parties of the provisional stay of enforcement of the award.
October 1, 2018	The ad hoc Committee is constituted in accordance with Article 52(3) of the ICSID Convention. Its members are: Dominique Hascher (French), President; Milton Estuardo Argueta Pinto (Guatemalan), and Inka Hanefeld (German); all members appointed by the Chairman of the Administrative Council.
October 15, 2018	The Bolivarian Republic of Venezuela files a request to continue the stay of enforcement of the award.
October 25, 2018	Koch Minerals Sàrl and Koch Nitrogen International Sàrl file observations on the Bolivarian Republic of Venezuela’s request to continue the stay of enforcement of the award.
April 1, 2019	The ad hoc Committee issues Procedural Order No. 1 concerning the termination of the stay of enforcement of the award.
April 17, 2019	The Secretary-General moves that the ad hoc Committee stay the proceeding pursuant to ICSID Administrative and Financial Regulation 14(3)(d) and (e).
April 18, 2019	The proceeding is stayed for non-payment of the required advances pursuant to ICSID Administrative and Financial Regulation 14(3)(d) and (e).
October 14, 2019	The proceeding is resumed following payment of the required advances.
October 28, 2019	The Bolivarian Republic of Venezuela files a request for the suspension of the proceeding.
November 11, 2019	Koch Minerals Sàrl and Koch Nitrogen International Sàrl file observations on the Bolivarian Republic of Venezuela’s request of October 28, 2019.
November 21, 2019	The ad hoc Committee decides on the Bolivarian Republic of Venezuela’s request of October 28, 2019.
March 24, 2020	The Bolivarian Republic of Venezuela files a request for the suspension of the proceeding.
April 6, 2020	Koch Minerals Sàrl and Koch Nitrogen International Sàrl file observations on the Bolivarian Republic of Venezuela’s request of March 24, 2020.
April 10, 2020	The ad hoc Committee holds a first session by correspondence among the Members of the Committee.
April 14, 2020	The ad hoc Committee issues Procedural Order No. 2 concerning procedural matters.
April 14, 2020	The ad hoc Committee decides on the Bolivarian Republic of Venezuela’s request of March 24, 2020.
July 7, 2020	The ad hoc Committee issues Procedural Order No. 3 concerning procedural matters.
November 20, 2020	The Bolivarian Republic of Venezuela files a memorial on annulment.
April 5, 2021	Koch Minerals Sàrl and Koch Nitrogen International Sàrl file a counter-memorial on annulment.
May 18, 2021	The ad hoc Committee holds a pre-hearing organizational meeting with the parties by video conference.
May 21, 2021	The ad hoc Committee issues Procedural Order No. 4 concerning the organization of the hearing.
June 17, 2021 - June 18, 2021	The ad hoc Committee holds a hearing on annulment by video conference.
August 11, 2021	Each party files a statement of costs.
August 23, 2021	Each party files observations on the other party’s statement of costs.
October 5, 2021	The Secretary-General moves that the Committee stay the proceeding pursuant to ICSID Administrative and Financial Regulation 14(3)(d) and (e).
October 6, 2021	The proceeding is stayed for non-payment of the required advances pursuant to ICSID Administrative and Financial Regulation 14(3)(d) and (e).
March 28, 2022	The proceeding is resumed following payment of the required advances.
April 18, 2022	The ad hoc Committee declares the proceeding closed in accordance with ICSID Arbitration Rules 53 and 38(1).
May 24, 2022	The ad hoc Committee issues its decision on annulment.