The Singapore International Mediation Centre (SIMC) and ICSID are pleased to announce that they have entered into an Agreement on General Arrangements. The Agreement was signed on behalf of SIMC by George Lim, Chairman of SIMC, and on behalf of ICSID by Gonzalo Flores, Deputy Secretary-General of ICSID.
The Agreement provides for the use of SIMC’s facilities and services for mediation proceedings conducted under the auspices ICSID, as well as enhanced technical collaboration between the two centres.
The Agreement complements the use of mediation to settle investor-State disputes, particularly those involving Asian investors or States. By some estimates, the region will account for over half of the world’s GDP by 2040 and 40 per cent of global total consumption.
The Agreement was signed on March 26, 2021, during an online ceremony, which also included a panel discussion on the opportunities and challenges with respect to investor-State mediation.
Meg Kinnear, Secretary General of ICSID, said:
“This is the first cooperation agreement for ICSID with a centre that is exclusively focused on mediation and I am delighted that it is with an institution as respected as SIMC. Mediation is one of a number of dispute settlement mechanisms available to parties at ICSID. It may be used on its own, or in combination with other procedures, such as arbitration and fact-finding. Ultimately, the goal is ensuring that parties have a choice of dispute settlement options, depending on the circumstances of the dispute and the desired outcomes.”
George Lim SC, Chairman of SIMC, said:
“The Agreement encourages mediation as a viable option for investor-State disputes, especially where long-term contracts and bread-and-butter issues are concerned. These are high stakes matters where parties’ real interests may lie beyond mere monetary compensation. Further, mediation is deeply rooted in Asian traditions of relationship and face-giving. Parties who choose amicable settlement will enjoy the practical advantage of business continuity and new business opportunities in future. We look forward to working closely with ICSID to increase the use of mediation for investor-State disputes in the region.”
ICSID is an international facility available to States and foreign investors for the resolution of investment disputes. Established in 1966 by the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention), it is the only global institution dedicated to international investment dispute settlement. Through its specialized rules of procedure, world-class facilities, and expert legal and administrative support, ICSID provides unparalleled dispute resolution services to States and investors. Since the first case was registered with ICSID in 1972, the majority of all known international investment disputes have been administered by ICSID.
The Singapore International Mediation Centre (SIMC) is a not-for-profit organisation that offers professional dispute resolution services tailored to the evolving needs of businesses in Asia. We work across multiple jurisdictions covering both common and civil law traditions. Our panel of over 70 international independent mediators have extensive experience resolving cross-border disputes and are highly regarded for delivering successful outcomes in complex, high-stakes commercial disputes. Since November 1, 2017, SIMC has been appointed by the Minister for Law as one of the designated mediation service providers in Singapore under the Mediation Act.