The Kyrgyz Republic deposited its Instrument of Ratification of the ICSID Convention with the World Bank on April 21, 2022, thereby completing the process of joining the preeminent global institution for the resolution of international investment disputes.
The ICSID Convention establishes the institutional and legal framework for foreign investment dispute settlement. It was created to facilitate investment amongst countries by providing an independent, depoliticized forum for arbitration, conciliation, mediation, and fact-finding.
“Joining ICSID is an important element in our strategy to harness cross-border investment and trade for sustainable economic development,” said Akylbek Zhaparov, Chairman of the Cabinet of Ministers of the Kyrgyz Republic. “Today we send a clear signal of our commitment to a legal and regulatory framework for resolving disputes that meets the highest international standards.”
A recent example of the Kyrgyz Republic using legal frameworks and procedures to resolve international disputes is its agreement in a case involving the Kumtor mining project
Having deposited the instrument of ratification with the World Bank, the Convention will enter into force for the Kyrgyz Republic on May 21, 2022, in accordance with the Convention’s Article 68(2). The Kyrgyz Republic signed the Convention in 1995.
Once in force, the Kyrgyz Republic will become ICSID’s 157th Contracting State.
“ICSID membership builds and strengthens the international legal architecture that underpins the flow of international investments,” said Meg Kinnear, Secretary-General of ICSID. “I am delighted that the Kyrgyz Republic has taken this important step to further foster a business environment that is conducive to attracting, retaining, and expanding foreign investment. ICSID looks forward to supporting the Kyrgyz Republic as it continues to build its capacity in the field of international investment law and dispute settlement.”
As a Contracting State to the ICSID Convention, Kyrgyz Republic will participate in the governance of ICSID through representation on its chief governing body, the Administrative Council. Each ICSID Member State has one representative—and one vote—on the Administrative Council. Its responsibilities include passing rules of procedure for ICSID cases and electing the ICSID Secretary-General and Deputy Secretaries-General. ICSID Member States also have the right to name arbitrators and conciliators to the ICSID Panels.
ICSID’s Membership database includes a complete list of designations and notifications made by Member States to implement and apply the ICSID Convention, and designations made to the ICSID Panels of Arbitrators and of Conciliators.