On 10 August 2012, the ICSID Secretariat issued a report to contracting states concerning the annulment mechanism in Article 52 of the ICSID Convention (see Background Paper on Annulment For the Administrative Council of ICSID). Following Fraport AG Frankfurt Airport Services Worldwide v The Philippines (ICSID Case No ARB/03/25) Decision of the Annulment (see Legal update, Arbitral award annulled for violation of claimant's right to be heard), the Philippines requested ICSID to produce a set of guidelines for the application of Article 52.

The report provides contracting states with an overview of the annulment procedure and confirms that annulment is a limited and exceptional recourse which provides safeguards against violation of the fundamental principles of law. The report also sets out empirical data on annulment proceedings to 30 June 2012.

This report has been added to our External arbitration resources page.

Source: International Center for Settlement of Investment Disputes (ICSID).