In addition to the arbitration, conciliation and fact-finding procedures provided by the ICSID Convention and Rules, disputing parties may select other alternative dispute resolution mechanisms, such as early neutral evaluation, facilitated negotiation and/or mediation. Although these other alternative dispute resolution methods vary widely, they are generally non-binding and aim to assist parties in reaching an amicable settlement through voluntary agreement.
Many treaties and other instruments permit parties to settle investment disputes through other alternative dispute resolution mechanisms. The process may generally be commenced at any stage by agreement of the parties. Depending on the nature of a dispute, other alternative dispute resolution procedures have been found to foster the early exchange of information, clarify the issues at stake, and facilitate dialogue between parties. Such procedures may be stand-alone or even be undertaken in parallel with an ICSID arbitration. Any resulting amicable settlement during an arbitration proceeding could be incorporated into an award of the arbitral tribunal, pursuant to ICSID Arbitration Rule 43(2). As such, it would be final and binding and could be recognized and enforced in any ICSID Member State.
ICSID supports efforts by parties to resolve investment disputes through alternate mechanisms and offers its facilities and administrative services, including expert support from its staff to assist the parties throughout the process. For a more detailed overview on investor-State mediation, please click here.