Reproduced from www.worldbank.org/icsid with permission of ICSID.
Case Report (free download)
Case Report by Izak C. Rosenfeld, Editor Ignacio Torterola
TANESCO brought an application in writing for the annulment of an award for, among other things, US$148.4M ordered against it, arising out of a dispute between the Standard Charted Bank (Hong Kong) Limited ('SCB HK'), as Claimant, and TANESCO, as Respondent. The dispute was based on a Power Purchase Agreement ('PPA') between TANESCO and Independent Power Tanzania Limited ('IPTL'), whereby IPTL had assigned its rights to the SCB HK in this matter. SCB HK was seeking a declaration and order for unpaid sums under the PPA. TANESCO brought an application in writing for the annulment of the award of the ICSID tribunal on three grounds as set forth in Article 52(1) of the ICSID Convention, specifically claiming that (i) the tribunal manifestly exceeded its powers, (ii) there has been a serious departure from a fundamental rule of procedure, and (iii) the award failed to state the reasons on which it was based. TANESCO's application was centrally based on the principal that the ICSID tribunal's decision on jurisdiction and liability could not be reconsidered under the ICSID Convention. TANESCO also requested, under Article 52(5) of the ICSID Convention and Rule 54(2) of the ICSID Rules of Procedure for Arbitration Proceedings, a stay of the enforcement of the award until the annulment application was decided. Ultimately, the ad hoc Committee did not find the arguments in favour of annulment to be convincing, and therefore dismissed the annulment application.
Will a tribunal be permitted to reconsider its decision as a result of evidence being withheld; what is the basis for a tribunal's reconsideration of a 'decision' versus an 'award'; to what extent may a tribunal supplement its own reasoning when reconsidering a decision; how severely flawed must a tribunal's award be, for an ad hoccommittee to order an annulment.
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