International Organizations

Choose the Correct Answer

Correct Answer : Option b

Explanation
Statement 1 is correct: ICSID provides international facilities for conciliation and arbitration of investment disputes between private investors and foreign countries.

Statement 2 is not correct: It does not act as a credit rating agency for World Bank borrowers.

Statement 3 is correct: ICSID awards are enforceable in all member states (even without the need for domestic court recognition if conflicting parties accept the award). Contracting States are obliged to enforce the pecuniary obligations set out in each ICSID award as though it were a final judgment of a court in that State.
Although an ICSID award is not subject to any judicial challenge, it must be brought to a national court for recognition and enforcement if a losing party refuses to abide by its obligation to comply with the terms of the award.