ARRANGEMENT OF SECTIONS
1. Short title
3. Representation on Administrative Council of Centre
4. Designation of persons to serve on panels
5. Payment of share of expenditure of Centre
6. Privileges and immunities
7. Enforcement of arbitral awards
8. Competent authority to recognize and enforce arbitral awards
9. Procedural rules
10. Minister authorized to enter into agreements for submission of disputes
11. Submission to jurisdiction of Centre
Schedule - Convention on the Settlement of Investment Disputes between States and Nationals of other States
Act 65, 1970.
An Act to enable effect to be given in Botswana to the International Convention on the Settlement of Investment Disputes between States and Nationals of other States signed on behalf of Botswana on the fifteenth day of January, 1970, and for purposes connected therewith.
[Date of Commencement: 14th December, 1970]
This Act may be cited as the Settlement of Investment Disputes (Convention) Act.
In this Act-
"Centre" means the International Centre for Settlement of Investment Disputes established by the Convention;
"Convention" means the Convention on the Settlement of Investment Disputes between States and Nationals of other States which was signed on behalf of Botswana on 15th January, 1970, and which is set out in the Schedule to this Act.
The President is authorized to designate, from time to time, a representative and an alternate representative of Botswana on the Administrative Council of the Centre.
The President is authorized to designate persons to serve on the panel of conciliators and on the panel of arbitrators of the Centre.
The Government is authorized to pay out of the Consolidated Fund the share of the expenditure of the Centre that may be assessed to Botswana in pursuance of Article 17 of the Convention.
Articles 18-24 inclusive of the Convention shall have full force and effect in Botswana.
Awards rendered in pursuance of the Convention shall be recognized as binding and the pecuniary obligations imposed by such awards shall be enforced as if such awards were judgments of the High Court that have become final by appeal or the expiration of time for appeal.
The Registrar of the High Court is designated, in accordance with Article 54(2) of the Convention, as competent to recognize arbitral awards rendered in pursuance of the Convention and to enforce the pecuniary obligations imposed by such awards.
The Minister may make procedural rules, which shall be published in the Gazette, relating to the recognition and enforcement of awards for the purposes of sections 7 and 8.
The Minister is authorized to enter into agreements with nationals of any other state, which is a party to the Convention, providing for the submission to the jurisdiction of the Centre, for settlement by conciliation or arbitration, of any existing or future legal dispute between Botswana and any such national arising directly out of an investment.
Any national of any other state which is a party to the Convention may submit to the Centre, for settlement by conciliation or arbitration in pursuance of the Convention, any legal dispute with Botswana arising directly out of an investment by such foreign national in Botswana, provided that such foreign national has within one year after the commencement of this Act or within one year after the making of the investment, whichever is the later, filed with the Minister a consent in writing to the like submission to the Centre by Botswana of any such legal dispute.
CONVENTION ON THE SETTLEMENT OF INVESTMENT DISPUTES BETWEEN STATES AND NATIONALS OF OTHER STATES
The Contracting States,
Considering the need for international co-operation for economic development, and the role of private international investment therein;
Bearing in mind the possibility that from time to time disputes may arise in connection with such investment between Contracting States and nationals of other Contracting States;
Recognizing that while such disputes would usually be subject to national legal processes, international methods of settlement may be appropriate in certain cases;
Attaching particular importance to the availability of facilities for international conciliation or arbitration to which Contracting States and nationals of other Contracting States may submit such disputes if they so desire;
Desiring to establish such facilities under the auspices of the International Bank for Reconstruction and Development;
Recognizing that mutual consent by the parties to submit such disputes to conciliation or to arbitration through such facilities constitutes a binding agreement which requires in particular that due consideration be given to any recommendation of conciliators, and that any arbitral award be complied with; and
Declaring that no Contracting State shall by the mere fact of its ratification, acceptance or approval of this Convention and without its consent be deemed to be under any obligation to submit any particular dispute to conciliation or arbitration,
Have agreed as follows:
INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENTS DISPUTES
Establishment and Organization
(1) There is hereby established the International Centre for Settlement of Investment Disputes (hereinafter called "the Centre").
(2) The purpose of the Centre shall be to provide facilities for conciliation and arbitration of investment disputes between Contracting States and nationals of other Contracting States in accordance with the provisions of this Convention.
The seat of the Centre shall be at the principal office of the International Bank for Reconstruction and Development (hereinafter called "the Bank"). The seat may be moved to another place by decision of the Administrative Council adopted by a majority of two-thirds of its members.
The Centre shall have an Administrative Council and a Secretariat and shall maintain a Panel of Conciliators and a Panel of Arbitrators.
The Administrative Council
(1) The Administrative Council shall be composed of one representative of each Contracting State. An Alternate may act as representative in case of his principal's absence from a meeting or inability to act.
(2) In the absence of a contrary designation, each Governor and alternate Governor of the Bank appointed by a Contracting State shall be ex officio its representative and its alternate respectively.
The President of the Bank shall be ex officio Chairman of the Administrative Council (hereinafter called "the Chairman") but shall have no vote. During his absence or inability to act and during any vacancy in the office of President of the Bank, the person for the time being acting as President shall act as Chairman of the Administrative Council.
(1) Without prejudice to the powers and functions vested in it by other provisions of this Convention, the Administrative Council shall-
(a) adopt the administrative and financial regulations of the Centre;
(b) adopt the rules of procedure for the institution of conciliation and arbitration proceedings;
(c) adopt the rules of procedure for conciliation and arbitration proceedings (hereinafter called "the Conciliation" Rules and "the Arbitration Rules");
(d) approve arrangements with the Bank for the use of the Bank's administrative facilities and services;
(e) determine the conditions of service of the Secretary-General and of any Deputy Secretary-General;
(f) adopt the annual budget of revenues and expenditures of the Centre;
(g) approve the annual report on the operation of the Centre.
The decisions referred to in subparagraphs (a), (b), (c) and (f) above shall be adopted by a majority of two-thirds of the members of the Administrative Council.
(2) The Administrative Council may appoint such committees as it considers necessary.
(3) The Administrative Council shall also exercise such other powers and perform such other functions as it shall determine to be necessary for the implementation of the provisions of this Convention.
(1) The Administrative Council shall hold an annual meeting and such other meetings as may be determined by the Council, or convened by the Chairman, or convened by the Secretary-General at the request of not less than five members of the Council.
(2) Each member of the Administrative Council shall have one vote and, except as otherwise herein provided, all matters before the Council shall be decided by a majority of the votes cast.
(3) A quorum for any meeting of the Administrative Council shall be a majority of its members.
(4) The Administrative Council may establish, by a majority of two-thirds of its members, a procedure whereby the Chairman may seek a vote of the Council without convening a meeting of the Council. The vote shall be considered valid only if the majority of the members of the Council cast their votes within the time limit fixed by the said procedure.
Members of the Administrative Council and the Chairman shall serve without remuneration from the Centre.
The Secretariat shall consist of a Secretary-General, one or more Deputy Secretaries-General and staff.
(1) The Secretary-General and any Deputy Secretary-General shall be elected by the Administrative Council by a majority of two-thirds of its members upon the nomination of the Chairman for a term of service not exceeding six years and shall be eligible for re-election. After consulting the members of the Administrative Council, the Chairman shall propose one or more candidates for each such office.
(2) The offices of Secretary-General and Deputy Secretary-General shall be incompatible with the exercise of any political function.
This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article.
Please click here to login