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CONFIDENTIAL DAFFE/MAI(97) 1/REV2

V. DISPUTE SETTLEMENT

STATE-STATE PROCEDURES

A. GENERAL PROVISIONS

1. The rules and procedures set out in Articles A-C shall apply to the avoidance of conflicts and the

resolution of disputes between Contracting Parties regarding the interpretation or application of the

Agreement unless the disputing parties agree to apply other rules or procedures. However, the disputing

parties may not depart from any obligation regarding notification of the Parties Group and the right of

Parties to present views, under Article B. paragraphs l.a and 4.c, and Article C, paragraphs l.a, 4, and 6.e.

2. Contracting Parties and other participants in proceedings shall protect any confidential or

proprietary information which may be revealed in the course of proceedings under Articles B and C and

which is designated as such by the Party providing the information. Contracting Parties and other

participants in the proceedings may not reveal such information without written authorization from the

Party which provided it.

3. [EC or Contracting Party REIO text being developed for possible inclusion]

B. CONSULTATION, CONCILIATION AND MEDIATION

1. Consultations

a. One or more Contracting Parties may request any other Contracting Party to enter into

consultations regarding any dispute between them about the interpretation or application of

the Agreement. The request shall be submitted in writing and shall provide sufficient

information to understand the basis for the request, including identification of any actions at

issue. The requested Party shall enter into consultations within thirty days of receipt of the

request. The requesting Contracting Party shall provide the Parties Group with a copy of the

request for consultation, at the time it submits the request to the other Contracting Party.

b. A Contracting Party may not initiate arbitration against another Contracting Party under

Article C of this Agreement unless the former Contracting Party has requested consultation

and has afforded that other Contracting Party a consultation period of no less than 60 days

after the date of the receipt of the request.

CONFIDENTIAL DAE:FE/MAI(97)1/REV2

2.Multilateral Consultations

a. In the event that consultations under paragraph I of this Article have failed to resolve the

dispute within 60 days after the date of receipt of the request for those consultations, the

Contracting Parties in dispute may, by agreement. request the Parties Group to consider the

matter.

b. Such request shall be submitted in writing and shall give the reason for it, including

identification of any actions at issue, and shall indicate the legal basis for the complaint.

c. The Parties Group may make recommendations to the Contracting Parties in dispute. The

Parties Group shall conclude its deliberations within 60 days after the date of receipt of the

request

3.Mediation or Conciliation

If the Parties are unable to reach a mutually satisfactory resolution of a matter through

consultations, they may have recourse to good offices or to mediation or conciliation under such

rules and procedures as they may agree.

4.Confidentiality of Proceedings, Notification of Results

a. Proceedings involving consultations, mediation or conciliation shall be confidential.

b. No Contracting Party may, in any binding legal proceedings, invoke or rely upon any

statement made or position taken by another Contracting Party in consultations, conciliation

or mediation proceedings initiated under this Agreement, with the exception of factual

representations.

c. The Parties to consultations, mediation, or conciliation under this Agreement shall inform the

Parties Group of any mutually agreed solution.

C. ARBITRATION

1.Scope and Initiation of Proceedings

a. Any dispute between Contracting Parties as to whether one of them has acted in contravention

of this Agreement shall. at the request of any Contracting Party that is a party to the dispute

and has complied with the consultations requirements of Article B. be submitted to an arbitral

tribunal for decision. A request, identifying the matters in dispute, shall be delivered to the

other Party through diplomatic channels, unless that Contracting Party has designated another

channel for receipt of notification and so notified the Depositary, and a copy of the request

shall be delivered to the Parties Group.

CONFIDENTIAL DAFFElMAI(97) 1/REV2

b. A Contracting Party may not initiate proceedings under this Article for a dispute which its

investor has submitted, or consented to submit. to arbitration under Article D, unless the other

Contracting Party has failed to abide by and comply with the award rendered in that dispute

or those proceedings have terminated without resolution by an arbitral tribunal of the

investor's claim.

c. If a dispute arises between Contracting Parties as to whether one of them has acted in

contravention of a substantially similar obligation of that Contracting Party under this

Agreement and another agreement to which both are party, the complaining Contracting Party

may submit it for decision under the agreement of its choice. In doing so, it waives its right

to submit the matter for decision under the agreement not chosen.

2. Formation of the Tribunal

a. Within 30 days after receipt of a request for arbitration, the Parties to the dispute shall appoint

by agreement three members of the tribunal and designate one of them as Chairman. Except

for compelling reasons, the members shall be persons proposed by the Secretary General

ICSID. At the option of either party or, where there is more than one Party on the same side

of the dispute, either side, two additional members may be appointed, one by each party or

side.

b. If the necessary appointments have not been made within the periods specified in

subparagraph a, above, either Party or side to the dispute may, in the absence of any other

agreement, invite the Secretary General of the Centre for the Settlement of Investment

Disputes to make the necessary appointments. The Secretary-General shall do so, to the

extent feasible, in consultations with the Parties to the dispute and within thirty days after

receipt of the request.

c. Parties and the Secretary-General should consider appointment to the tribunal of members of

the roster maintained pursuant to subparagraph f, below. If arbitration of a dispute is

considered by either Contracting Party to the dispute or the Secretary-General to require

special expertise on the tribunal, rather than solely through expert advice under the rules

governing the arbitration. the appointment of individuals possessing expertise not found on

the roster should be considered.

d. Members of a particular arbitral tribunal shall be independent and impartial.

e. Any vacancies which may arise in a tribunal shall be filled by the procedure by which the

original appointment had been made.

f. The Parties Group shall maintain a roster of highly qualified individuals willing and able to

serve on arbitral tribunals under this Agreement. Each Contracting Party may nominate up to

four persons who shall be included as members of the roster. Nominations are valid for five

year terms. At the end of a term, the Contracting Party which nominated a member may

renew the nomination or nominate a new member of the roster. A member shall withdraw

from the roster if no longer willing or able to serve and the Contracting Party which

nominated that member may nominate another member for a full term.

CONFIDENTIAL DAFFE/MAI(97)1/REV2

3.Consolidation

a. Contracting Parties in dispute with the same Contracting Party over the same matter should

act together as far as practicable for purposes of dispute settlement under this Article. Where

more than one Contracting Party requests the submission to an arbitral tribunal of a dispute

with the same Contracting Party relating to the same question, a single arbitral tribunal should

be established to consider such disputes whenever feasible.

b. To the extent feasible, if more than one arbitral tribunal is formed, the same persons shall be

appointed as members of both and the timetables of the proceedings shall be harmonized.

4.Third Parties

Any Contracting Party wishing to do so shall be given an opportunity to present its views orally or in writing to the arbitral tribunal on the issues of a legal nature in dispute. Such a Contracting Party shall be given access to the documents of the proceedings, other than confidential or proprietary information designated under Article A, paragraph 2. The tribunal shall establish the deadlines for such submissions in light of the schedule of the proceedings and shall notify such deadlines, at least thirty days in advance thereof, to the Parties Group.

5.Scientific and Technical Expertise

a. On request of a disputing Contracting Party or, unless the disputing Contracting Parties

disapprove, on its own initiative, the tribunal may request a written report of a scientific or

technical review board on any factual issue concerning environmental, health, safety or other

scientific or technical matters raised by a disputing Contracting Party in a proceeding, subject

to such terms and conditions as such Parties may agree.

b. The board shall be selected by the tribunal from among highly qualified, independent experts

in the scientific or technical matters, after consultations with the disputing Parties and the

scientific or technical bodies identified by those Parties.

c. The disputing Contracting Parties shall be provided:

i. advance notice of, and an opportunity to provide comments to the tribunal on, the

proposed factual issues to be referred to the board; and

ii. a copy of the board's report and an opportunity to provide comments on the report to the

tribunal.

d. The tribunal shall take the board's report and any comments by the disputing Contracting

Parties on the report into account in the preparation of its award.

CONFIDENTIAL DAFFE/MAI(97) 1/REV2

6. Proceedings and Awards

a. The tribunal shall decide disputes in accordance with this Agreement, interpreted and applied

in accordance with the applicable rules of international law.

b. The tribunal may, at the request of a Party, recommend provisional measures which either

Party should take to avoid serious prejudice to the other pending its final award.

c. The tribunal, in its award, shall set out its findings of law and fact, together with the reasons

therefore, and may, at the request of a Party, award the following forms of relief:

i. a declaration that an action of a Party is in contravention of its obligations under this Agreement;

ii. a recommendation that a Party bring its actions into conformity with its obligations under

the Agreement;

iii. pecuniary compensation for any loss or damage to the requesting Party's investor or its

investment; and

iv. any other form of relief to which the Party against whom the award is made consents, including restitution in kind to an investor.

d. The tribunal shall draft its award consistently with the requirement of confidentiality set out

in Article A, paragraph 2. It shall issue its award in provisional form to the Parties to the

dispute on a confidential basis, as a general rule within 180 days after the date of formation of

the tribunal. The parties to the dispute may, within 30 days thereafter, submit written comment upon any portion of it. The tribunal shall consider such submissions, may solicit additional written comments of the parties, and shall issue its final award within 15 days after closure of the comment period.

e. The tribunal shall promptly transmit a copy of its final award to the Parties Group, which shall make it publicly available.

f. Tribunal awards shall be final and binding between the parties to the dispute, subject to paragraph 7 below.

g. Each party shall pay the cost of its representation in the proceedings. The costs of the tribunal

shall be paid for equally by the Parties unless the tribunal directs that they be shared

differently. Fees and expenses payable to tribunal members will be subject to schedules

established by the Parties Group and in force at the time of the constitution of the tribunal.

CONFIDkNTIAL DAFi:E/MAI(97)1/REV2

7.Nullification

a. Either party to the dispute may request the annulment of an award, in whole or in part, on one

or more of the following grounds, that:

i. the Tribunal was not properly constituted;

ii. the Tribunal has manifestly exceeded its powers;

iii. there was corruption on the part of a member of the Tribunal or on the part of a person providing decisive expertise or evidence;

iv. there has been a serious departure from a fundamental rule of procedure; or

v. the award has failed to state the reasons on which it is based.

b. The request shall be submitted for decision by a tribunal which shall be constituted and

operate under the rules applicable to a dispute submitted under paragraph I of this article .

c. Such a request must be submitted within 120 days after the date on which the award was

rendered or after the discovery of the facts relevant to nullification on the grounds of

corruption, whichever is later and, in any event, within five years after the date on which the

award was rendered.

d. The tribunal may nullify the award in whole or in part. If the award is nullified, the fact of

nullification shall be communicated to the Parties Group. In such a case, the dispute may be

submitted for decision tO a new tribunal constituted under this Article or to any other

available forum, notwithstanding the Contracting Parties waiver under paragraph l.c. of this

article.

8.Default Rules

The PCA Optional Rules for Arbitrating Disputes between Two States shall apply to supplement

provisions of these Articles. The Parties Group may adopt supplemental provisions to ensure the smooth

functioning of these rules, in particular to clarify the inter-relationship between these rules and the PCA

Optional Rules.

CONFIDENTIAL DAFFEIMAI(97)1/REV2

9. Response to Non-compliance⁽²⁾

a. If a Contracting Party fails within a reasonable period of time to comply with its obligations

as determined in the award, such Contracting Party shall, at the request of any Contracting

Party in whose favour the award was rendered, enter into consultations with a view to

reaching a mutually acceptable solution. If no satisfactory solution has been agreed within

thirty days after the date of the request for consultations. any Contracting Party in whose

favour the award was rendered, shall notify the other Contracting Party and the Parties Group

if it intends to [take measures in response][suspend the application to the other Contracting

Party of obligations under this agreement].

b. The effect of any such [responsive measures][suspension] must be proportionate to the effect

of the other Party's non-compliance.⁽³⁾ Such measures may not include suspension of the

application of Article[s _ (General Treatment) and] _ (Expropriation) [and should not include

denial of other protections to established investment].

c. At the request of any Party to the award upon conclusion of the thirty day period for

consultation, the Parties Group shall consider the matter. [Until twenty days after the receipt

by the Parties Group Secretariat of the request, responsive measures shall not be taken.] The

Parties Group may:

i. make recommendations, by consensus minus the disputing Contracting Parties;

ii. suspend the non-complying Party's right to participate in decisions of the Parties Group, by consensus minus the non-complying Contracting Party; and

iii. [by consensus minus the Contracting Party which had intended to take responsive measures, decide that some or all of the responsive measures shall not be taken. The Contracting Party shall comply with that decision.]

d. Any dispute concerning the alleged failure of a Contracting Party to comply with its obligations as determined in an award or the lawfulness of any responsive measures shall, at the request of any Contracting Party that is party to the dispute, be submitted for decision to the arbitral tribunal which rendered the award or, if the original tribunal is unavailable, to a single member or three member arbitral tribunal designated by the Secretary-General. The request shall be submitted in the same fashion, and the proceedings carried out in accordance with the same rules as are applicable to a request made under paragraph l.a of this Article, with such modifications as the tribunal deems appropriate, and the final award shall be issued no later than 60 days after the date of the request, in case of the original tribunal, or after the date of its formation, in the case of a new tribunal. [No responsive measures may be taken from the time of submission of a dispute unless authorized by the tribunal as an interim

measure or found lawful.]

CONFIDENTIAL DAFFE/MAI(97) 1/REV2

INVESTOR-STATE PROCEDURES

D. DISPUTES BETWEEN AN INVESTOR AND A CONTRACTING PARTY

1. Scope and Standing

a. This article applies to disputes between a Contracting Party and an investor of another

Contracting Party concerning an alleged breach of an obligation of the former under this

Agreement which causes loss or damage to the investor or its investment.

b. An investor of another Contracting Party may also submit to arbitration under this article any

investment dispute concerning any obligation which the Contracting Party has entered into

with regard to a specific investment of the investor through:

i. An investment authorization granted by its competent authorities specifically to the

investor or investment,

ii. a written agreement granting rights with respect to [categories of subject matters]

on which the investor has relied in establishing acquiring, or significantly expanding an

investment.

2. Means of Settlement

Such a dispute should, if possible' be settled by negotiation or consultation. If it is not so settled, the investor may choose to submit it for resolution:

a. to any competent courts or administrative tribunals of the Contracting Party to the dispute;

b. in accordance with any dispute settlement procedure agreed upon prior to the dispute arising;

c.. by arbitration in accordance with this Article under:

i. the Convention on the Settlement of Investment Disputes between States and Nationals

of other States (the "ICSID Convention"), if the ICSID Convention is available;

ii. the Additional Facility Rules of the Centre for Settlement of Investment Disputes

("ICSID Additional Facility"), if the ICSID Additional Facility is available;

iii. the Arbitration Rules of the United Nations Commission on International Trade Law

("UNCITRAL"); or

iv. the Rules of Arbitration of the International Chamber of Commerce ("ICC").

CONFIDENTIAL DAFFEJMAI(97)1/REV2

3. Contracting Party Consent

a. Subject only to paragraph 3.b, each Contracting Party hereby gives its unconditional consent

to the submission of a dispute to international arbitration in accordance with the provisions of

this Article.

b. A Contracting Party may, by notifying the Depositary upon deposit of its instrument of

ratification or accession, provide that its consent given under paragraph 3.a only applies on

the condition that the investor and the investment waive in writing the right to initiate any

other dispute settlement procedure with respect to the same dispute and withdraw from any

such procedure in progress before its conclusion. A Contracting Party may, at any time,

reduce the scope of that limitation by notifying the Depositary.

4. Time periods and notification

An investor may submit a dispute for resolution pursuant to paragraph 2.c of this Article after

sixty days following the date on which notice of intent to do so was received by the Contracting Party in

dispute, but no later than five years from the date the investor first acquired or should have acquired

knowledge of the events which gave rise to the dispute. Notice of intent, a copy of which shall be

delivered to the Parties Group, shall specify:

a. the name and address of the disputing investor;

b. the name and address, if any. of the investment;

c. the provisions of this Agreement alleged to have been breached and any other relevant provisions;

d. the issues and the factual basis for the claim; and

e. the relief sought, including the approximate amount of any damages claimed.

5. Written Agreement of the Parties

The consent given by a Contracting Party in subparagraph 3.a. together with either the written

submission of the dispute to resolution by the investor pursuant to subparagraph 2.c or the investor's

advance written consent to such submission, shall constitute the written consent and the written agreement

of the parties to the dispute to its submission for settlement for the purposes of Chapter II of the ICSID

Convention, the ICSID Additional Facility Rules, Article I of the UNCITRAL Arbitration Rules, the

Rules of Arbitration of the ICC, and Article II of the United Nations Convention on the Recognition and

Enforcement of Foreign Arbitral Awards (the "New York Convention"). Neither party may withdraw its

consent unilaterally, except as provided in paragraph 9.e of this Article.

6. [EC or Contracting Party REIO text being developed, for possible inclusion]

CONFIDENTIAL DAFE:EIMAI(97) 1/REV2

7. Appointments to Arbitral Tribunals

a. Unless the parties to the dispute otherwise agree. the tribunal shall comprise three arbitrators,

one appointed by each of the disputing parties and the third, who shall be the presiding

arbitrator, appointed by agreement of the disputing parties.

b. If a tribunal has not been constituted within 90 days after the date that a claim is submitted to

arbitration, the arbitrator or arbitrators not yet appointed shall, on the request of either

disputing party, be appointed by the appointing authority. For arbitration under paragraph 2,

subparagraphs c.i, c.ii and c.iii, and paragraph 9, the appointing authority shall be the

Secretary-General of ICSID. For arbitration under paragraph 2, subparagraph c.iv, the

appointing authority shall be the International Court of Arbitration of the ICC.

c. The parties to a dispute submitted to arbitration under this article and the appointing authority

should consider the appointment of:

i. members of the roster maintained by the Contracting Parties pursuant to Article C,

paragraph 2.f; and

ii. individuals possessing expertise not found on the roster, if arbitration of a dispute

requires special expertise on the Tribunal, rather than solely through expert advice under

the rules governing the arbitration.

d. The appointing authority shall, as far as possible, carry out its function in consultation with

the parties to the dispute.

e. In order to facilitate the appointment of arbitrators of the parties' nationality on three member

ICSID tribunals under Article 39 of the ICSID Convention and Article 7 of Schedule C of the

ICSID Additional Facility Rules, and without prejudice to each party's right independently to

select an individual for appointment as arbitrator or to object to an arbitrator on grounds other

than nationality:

i. the disputing Contracting Party agrees to the appointment of each individual member of a

tribunal under paragraph 2.c.i or ii of this Article; and

ii. a disputing investor may initiate or continue a proceeding under paragraph 2.c.i or ii only

on condition that the investor agrees in writing to the appointment of each individual

member of the tribunal.

8. Standing of the Investment

An enterprise constituted or organised under the law of a Contracting Party but which, from the

time of the events giving rise to the dispute until its submission for resolution under paragraph 2.c, was an

investment of an investor of another Contracting Party, shall, for purposes of disputes concerning that

investment, be considered "an investor of another Contracting Party" under this article and "a national of

another Contracting State" for purposes of Article 25(2)(b) of the ICSID Convention regarding a dispute

not submitted for resolution by the investor which owns or controls it.

CONFIDENTIAL DAFFE/MAI(97) 1/REV2

9. Consolidation of Multiple Proceedings

a. In the event that two or more disputes submitted to arbitration with a Contracting Party under

paragraph 2.c have a question of law or fact in common, the Contracting Party may submit to

a separate arbitral tribunal, established under this paragraph, a request for the consolidated

consideration of all or part of them. The request shall stipulate:

i. the names and addresses of the parties to the proceedings sought to be consolidated,

ii. the scope of the consolidation sought, and

iii. the grounds for the request.

The Contracting Party shall deliver the request to each investor party to the proceedings

sought to be consolidated and a copy of the request to the Parties Group.

b. The request for consolidated consideration shall be submitted to arbitration under the rules

chosen by agreement of the investor parties from the list contained in paragraph 2.c. The

investor parties shall act as one side for the purpose of the formation of the tribunal.

c. If the investor parties have not agreed upon a means of arbitration and the nomination of an

arbitrator within 30 days after the date of receipt of the request for consolidated consideration

by the last investor to receive it:

i. the request shall be submitted to arbitration in accordance with this article under the

available arbitration system listed in paragraph 2.c. of this article to which the greatest

number of investor parties had submitted claims or, if there is an even distribution, under

the UNCITRAL rules, and

ii.the appointing authority shall appoint the entire arbitral tribunal, in accordance with

paragraph 7.

d. The arbitral tribunal shall assume jurisdiction over all or part of the disputes and the other

arbitral proceedings shall be stayed or adjourned, as appropriate if, after considering the views

of the parties, it decides that to do so would best serve the interest of fair and efficient

resolution of the disputes and that the disputes fall within the scope of this paragraph.

e. An investor may withdraw the dispute from arbitration under this paragraph 9 and such

dispute may not be resubmitted to arbitration under paragraph 2.c. If it does so no later than

15 days after receipt of notice of consolidation, its earlier submission of the dispute to that

arbitration shall be without prejudice to the investor's recourse to dispute settlement other

than under paragraph 2.c.

f. At the request of the Contracting Party, the arbitral tribunal established under this paragraph

may decide, on the same basis and with the same effect as under paragraph Ad, whether to

assume jurisdiction over all or part of a dispute falling with the scope of paragraph 9.a which

is submitted to arbitration after the initiation of consolidation proceedings.

CONFIDENTIAL DAFFEfMAI(97) 1/REV2

10.Preliminary Objections

a. Any objection by the Contracting Party to the jurisdiction of the tribunal or to the

admissibility of the application shall be raised no later than in the statement of defense.

b. Upon receipt of such an objection, the tribunal may suspend the proceedings on the merits.

c. After hearing the parties, the tribunal should give its decision, by which it shall either uphold

the objection or reject it, within 60 days after the date on which the objection was made.

11.Indemnification

A Contracting Party shall not assert as a defence, counter-claim, right of set-off or for any other

reason, that indemnification or other compensation for all or part of the alleged damages has been received

or will be received pursuant to an indemnity, guarantee or insurance contract.

12. Third Party Rights

The arbitral tribunal shall notify the Parties Group of its formation. Taking into account the

views of the parties, it may give to any Contracting Party requesting it an opportunity to submit written

views on the legal issues in dispute, provided that the proceedings are not unduly delayed thereby. Any

Contracting Party requesting it within thirty days after receipt by the Parties Group of the notification of

the tribunal's formation shall be given an opportunity to present its views on issues in dispute in which it

has a legal interest.

13.Scientific and Technical Expertise

a. On request of a disputing party or, unless the disputing parties disapprove, on its own

initiative, the tribunal may request a written report of a scientific or technical review board on

any factual issue concerning environmental, health, safety or other scientific or technical

matters raised by a disputing party in a proceeding, subject to such terms and conditions as

such parties may agree.

b. The board shall be selected by the tribunal from among highly qualified, independent experts

in the scientific or technical matters, after consultations with the disputing parties and the

scientific or technical bodies identified by those parties.

c. The disputing parties shall be provided:

i. advance notice of, and an opportunity to provide comments to the tribunal on, the

proposed factual issues to be referred to the board; and

ii. a copy of the board's report and an opportunity to provide comments on the report to the

tribunal.

d. The tribunal shall take the board's report and any comments by the disputing parties on the

report into account in the preparation of its award.

CONFIDENTIAL DAFFE/MAI(97)1/REV2

14. Applicable law

a. Issues in dispute under paragraph l.a. of this article shall be decided in accordance with this

Agreement, interpreted and applied in accordance with the applicable rules of international

law.

b. Issues in dispute under paragraph l.b. of this article shall be decided in accordance with such

rules of law as may be agreed by the parties to the dispute. In the absence of such agreement,

such issues shall be decided in accordance with the law of the Contracting Party to the dispute

(including its rules on the conflict of laws), the law governing the authorization or agreement

and such rules of international law as may be applicable.

15. Interim measures of relief

a. An arbitral tribunal established under this Article may recommend an interim measure of

protection to preserve the rights of a disputing party or to ensure that the Tribunal's

jurisdiction is made fully effective.

b. The seeking of interim relief not involving the payment of damages, from judicial or

administrative tribunals, by a party to a dispute submitted to arbitration under this article, for

the preservation of its rights and interests pending resolution of the dispute, is not deemed a

submission of the dispute for resolution for purposes of a Contracting Party's limitation of

consent under paragraph 3.b, and is permissible in arbitration under any of the provisions of

paragraph 2.c.

16. Final awards

a. The arbitral tribunal, in its award shall set out its findings of law and fact, together with the

reasons therefor and may, at the request of a party, provide the following forms of relief:

i. a declaration that the Contracting Party has failed to comply with its obligations under

the this Agreement;

ii. pecuniary compensation, which shall include interest from the time the loss or damage

was incurred until time of payment;

iii. restitution in kind in appropriate cases, provided that the Contracting Party may pay

pecuniary compensation in lieu thereof where restitution is not practicable; and

iv. with the Agreement of the parties to the dispute, any other form of relief.

b. In appropriate cases where the loss or damage was incurred by an investment which remains a

going concern, the tribunal may direct that the compensation or restitution be made to the

investment.

c. An arbitration award shall be final and binding between the patties to the dispute and shall be

carried out without delay by the party against whom it is issued, subject to its post-award

rights under the arbitral systems utilised.

CONFIDENTIAL DAFFE/MAI(97) 1/REV2

d. The award shall be drafted consistently with the requirements of paragraph 17 and shall be a

publicly available document. A copy of the award shall be delivered to the Parties Group by

the Secretary-General of ICSID, for an award under the ICSID Convention or the Rules of the

ICSID Additional Facility; by the Secretary-General of the ICC International Court of

Arbitration, for an award under its rules; and by the tribunal, for an award under the

UNCITRAL rules.

17.Confidential and Proprietary Information

Parties and other participants in proceedings shall protect any confidential or proprietary

information which may be revealed in the course of the proceedings and which is designated as such by

the party providing the information. They shall not reveal such information without written authorization

from the party which provided it.

18. Place of Arbitration and Enforceability

Any arbitration under this article shall be held in a state that is party to the New York

Convention. Claims submitted to arbitration under this article shall be considered to arise out of a

commercial relationship or transaction for purposes of Article I of that Convention. Each Contracting

Party shall provide for the enforcement of the pecuniary obligations imposed by an award rendered

pursuant to this Article D.

19. Tribunal member fees

Fees and expenses payable to a member of an arbitral tribunal established under these Articles

will be subject to schedules established by the Parties Group and in force at the time of the constitution of

the tribunal.

20. Supplemental Provisions

The Parties Group may adopt supplemental provisions to ensure the smooth functioning of these

rules, in particular to clarify the inter-relationship between these rules and the rules of arbitration available

under paragraph 2.c of this article D.

1. Note: It is understood that for a number of delegations further work is needed on dispute settlement. In

particular, different options remain in the field of multilateral consultations and scope of dispute

settlement. The present text has been prepared by the Chairman of the Expert Group on Dispute

Settlement on the basis of the discussions in the group. It needs to be discussed by the Negotiating

Group.