Implementation of the ICSID decision
In Turkey has been started implementation process of the decision taken by Arbitral Tribunal of the International Centre for Settlement of Investment Disputes (ICSID) with regard to cases «Kiliç Inşaat Ithalat Ihracat Sanayi ve Ticaret Anonim Şirketi» and «Içkale Inşaat Limited Şirketi» as well as UNCITRAL arbitration proceedings «Erhas Diş Ticaret Ltd. Şti, et al» vs Turkmenistan."
It should be noted that at the UNCITRAL arbitration proceedings along with «Erhas Diş Ticaret Ltd. şti, et al» were attended by 11 Turkish companies and 11 individuals. «Kiliç Inşaat Ithalat Ihracat Sanayi ve Ticaret Anonim Şirketi», «Içkale Inşaat Limited Şirketi» and «Erhas Diş Ticaret Ltd. şti, et al »are Turkish companies.
Decisions adopted by international arbitrations indicate quite clearly, firstly, inadequate organization of its activities by Turkish companies in Turkmenistan on the basis of the signed contracts and, secondly, they have no adequate experience in the implementation of the assumed contractual obligations.
According to international law the decision of ICSID is legally-binding for its parties and not subject to appeal, except in cases provided for by the Convention on the Settlement of Investment Disputes between States and Nationals of other States of 1965 (the Washington Convention). Each party must comply and perform actions to meet the requirements of arbitration. Under the Convention, each State party recognizes the decision of the arbitration rendered in accordance with the Convention as binding, and ensures the implementation of financial obligations imposed by the decision, within their territory in the same way as if it were a final decision of a judicial authority of that State.
Party interested in the execution of the decision, shall submit to the appropriate judicial authority of the State party a copy of the arbitration decision, certified by the Secretary General. Enforcement of arbitration shall be in accordance with the law on the execution of judgments in force.
The peculiarity of the Washington Convention is that it imposes on Member States to consider the ICSID arbitration decisions as legally binding by recognizing them as made by the courts of that State.