Other Alternative Dispute Resolution Mechanisms
In addition to the arbitration, conciliation and fact-finding procedures provided by the ICSID Convention and Rules, other dispute resolution mechanisms may be selected by disputing parties, such as mediation and/or early neutral evaluation. Although alternative dispute resolution (“ADR”) methods vary widely, they are generally non-binding and aim to assist parties in reaching an amicable settlement through voluntary agreement.
Depending on the nature of a dispute, ADR procedures have been found to foster the early exchange of information, clarify the issues at stake, and facilitate meaningful negotiation. Recognizing the potential value of mediation in this context, the International Bar Association adopted Rules for Investor-State Mediation in 2012. These rules provide guidelines for the mediation of investment-related disputes involving States.
Many treaties and other instruments permit parties to settle investment disputes through ADR, and the process may generally be commenced at any stage by agreement of the parties. An ADR procedure may even be undertaken concurrently with an ICSID arbitration. Any resulting amicable settlement could be incorporated into an award of the arbitral tribunal, pursuant to ICSID Arbitration Rule 43(2). ICSID supports efforts by parties to resolve investment disputes through alternate mechanisms and offers its staff and/or facilities for such processes.