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unjust seizure of two Turkish utility companies - Cukurova Elektrik
Anonim Sirketi (“CEAS”) and Kepez Elektrik Turk Anonim Sirketi
(“Kepez”) - of which Libananco is a shareholder. Libananco claimed
that the Republic of Turkey had breached the Energy Charter Treaty.
However, the arbitral tribunal decided it had no jurisdiction over the case
since Libananco had not proved that it owned CEAS and Kepez before
the date of seizure, which means Libananco could not be presumed a
foreign investor as of that date.
The Settlement of Disputes
Investment disputes may be settled through either conciliation or
arbitration. Conciliation proceedings are conducted in accordance with
the Conciliation Rules, which comprise of 34 articles. The Conciliation
Rules regulate issues such as the establishment and working of the
commission (including representation of the parties, the appointment,
displacement and disqualification of conciliators), procedural languages,
the submission of the parties’ arguments, hearings, closure of the
proceeding and preparation and communication of the report to the
parties.
Arbitration proceedings are conducted in accordance with the
ArbitrationRuleswhich comprise of 56 articles.Much like theConciliation
Rules, the Arbitration Rules regulate issues such as the constitution
of the arbitral tribunal, representation of the parties, the appointment/
displacement of arbitrators, written and oral procedures, the examination
of witnesses and experts, provisional measures, rendering of the award,
and annulment and stay of enforcement of the award.
The Rapport between Turkey and the Convention
The Convention was ratified by Turkey on 27.05.1988 by Act No.
3460, which is published in the Official Gazette dated 02.06.1988 and
numbered 19830, and with Resolution No. 88/13325 of the Council of
Ministers dated 07.10.1988, which is published in the Official Gazette
dated 06.12.1988 and numbered 20011.
According to ICSID’s official website, the Republic of Turkey is
or has been party, as respondents, to eight disputes (both pending and