ICSID Jurisdiction on Disputes Arising Out of Construction Contracts
26 Pages Posted: 30 Dec 2013
Date Written: May 20, 2013
This paper addresses the jurisdiction of the International Centre for the Settlement of Investment Disputes (“ICSID”), created by the Convention on Settlement of Investment Disputes between States and Nationals of Other States (“ICSID Convention"), on disputes arising out of construction contracts. The paper argues that the complexity of disputes arising of construction contracts and the difficulty to meet strict jurisdictional requirements does not mean that they are deprived from ICSID jurisdiction. Depending on the circumstances of each case, ICSID jurisdiction could be both admissible and necessary. This paper will focus on the analysis of two requirements for ICSID jurisdiction. First, whether construction contracts can be considered within the notion of "investment" required by both BITs and the ICSID Convention. And second, whether State actions involving breach of such contracts can raise violations of State’s obligations assumed under the BIT. This paper argues that, under certain circumstances, foreign investors can prove both requirements in the case of disputes arising out of construction contracts, and so ICSID jurisdiction will be admissible.
Keywords: ICSID, ICSID Convention, construction contracts, international arbitration, dispute resolution, investments
JEL Classification: K33
Suggested Citation: Suggested Citation