Decision on Jurisdiction, and Partial Dissenting Opinion Of
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INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES WASHINGTON, D.C. IN THE PROCEEDING BETWEEN WAGUIH ELIE GEORGE SIAG AND CLORINDA VECCHI (CLAIMANTS) and THE ARAB REPUBLIC OF EGYPT (RESPONDENT) (ICSID Case No. ARB/05/15) ________________________________________________ DECISION ON JURISDICTION ________________________________________________ Members of the Tribunal Prof Michael Pryles, Arbitrator Prof Francisco Orrego Vicuña, Arbitrator Mr David A R Williams QC, President Secretary of the Tribunal Ms Milanka Kostadinova Representing the Claimants: Representing the Respondent: Mr Reginald R Smith H E Counselor Milad Sidhom Boutros Mr R Doak Bishop President of the Egyptian State Mr Kenneth R Fleuriet Lawsuits Authority King & Spalding LLP and Prof Dr A Kamal Aboulmagd Mr Hazim A Rizkana Helmy, Hamza & Partners/Baker & McKenzie, Egypt 2 TABLE OF CONTENTS I. PROCEDURE................................................................................................................ 3 A. Registration of the Request for Arbitration ................................................... 3 B. Constitution of the Arbitral Tribunal and Commencement of the Proceeding ................................................................................................................... 4 C. Written and Oral Procedure............................................................................. 4 II. BACKGROUND FACTS ............................................................................................... 6 III. THE SUBMISSIONS OF THE PARTIES ON JURISDICTION.................................... 10 A. The Respondent’s Memorial on Jurisdiction............................................... 10 Mr Siag ............................................................................................................. 11 Ms Vecchi ......................................................................................................... 12 Existence of an “Investment” ............................................................................ 13 B. The Claimants’ Counter-Memorial on Jurisdiction...................................... 14 Mr Siag ............................................................................................................. 17 Ms Vecchi ......................................................................................................... 19 Existence of an “Investment” ............................................................................ 20 C. The Respondent’s Reply on Jurisdiction..................................................... 22 Mr Siag ............................................................................................................. 23 Ms Vecchi ......................................................................................................... 24 Existence of an “Investment” ............................................................................ 26 D. The Claimants’ Rejoinder on Jurisdiction.................................................... 27 Mr Siag ............................................................................................................. 27 Ms Vecchi ......................................................................................................... 29 Ratione Materiae Objections ............................................................................ 30 E. The Hearing on 8-9 August 2006................................................................... 31 The Respondent’s Arguments .......................................................................... 31 The Claimants’ Arguments ............................................................................... 33 F. Post-Hearing Submissions............................................................................ 36 The Respondent’s Post-Hearing Submission................................................... 36 The Claimants’ Post-Hearing Submission ........................................................ 37 IV. EXAMINATION OF THE PARTIES’ SUBMISSIONS.................................................. 38 A. Alleged Lack of Jurisdiction Ratione Personae .......................................... 39 Documents of Egyptian Nationality Prima Facie Evidence Only ...................... 41 Mr Waguih Elie George Siag – Background..................................................... 43 Egyptian Nationality Law .................................................................................. 44 Applicability of Article 10 of the Nationality Law – Voluntary/Involuntary Acquisition of Foreign Nationality – Acquisition Prior to Seeking Permission.. 44 Article 10(3) – The One-Year Period........................................................... 46 Ms Clorinda Vecchi – Background ................................................................... 49 Acquisition of Egyptian Nationality.............................................................. 49 Loss of Egyptian Nationality........................................................................ 50 Articles 6, 7 and 8 of the Nationality Law.................................................... 51 Article 8 and “Foreign Women” ................................................................... 52 Is the Application of Egypt’s Nationality Law Contrary to International Law?... 55 B. Alleged Lack of Jurisdiction Ratione Materiae............................................ 58 C. Estoppel .......................................................................................................... 60 D. Abuse of Rights .............................................................................................. 61 E. Costs................................................................................................................ 61 V. THE DECISION ........................................................................................................... 61 Partial Dissenting Opinion of Professor Francisco Orrego Vicuña ............................... 62 3 I. PROCEDURE A. Registration of the Request for Arbitration 1. On 26 May 2005, Mr Waguih Elie George Siag and Ms Clorinda Vecchi (“Mr Siag” and “Ms Vecchi,” collectively “the Claimants”) filed with the International Centre for Settlement of Investment Disputes (“ICSID” or “the Centre”) a Request for Arbitration (“the Request”) directed against the Arab Republic of Egypt (“Egypt” or “the Respondent”). The Request invoked the ICSID arbitration provision of Article 9 of the Agreement for the Promotion and Protection of Investments between the Republic of Italy and the Arab Republic of Egypt dated 2 March 1989 (the “BIT”). 2. The Centre, on 2 June 2005, in accordance with Rule 5 of the ICSID Rules of Procedure for the Institution of Conciliation and Arbitration Proceedings (the “ICSID Institution Rules”) acknowledged receipt of the request and on the same day transmitted a copy to Egypt and to the Egyptian Embassy in Washington, D.C. 3. Thereafter, Egypt by letter to ICSID dated 29 June 2005 objected to the registration of the Request on the grounds that the dispute was outside the jurisdiction of ICSID. The Claimants responded by letter of 8 July 2005 stating that the objections raised by Egypt were entirely without merit. ICSID received further correspondence on this issue from Egypt dated 1 August 2005 and from the Claimants dated 4 August 2005. 4. The Request was registered by the Centre on 5 August 2005, pursuant to Article 36(3) of the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States (“the ICSID Convention”) and on the same day the Acting Secretary-General, in accordance with ICSID Institution Rule 7, notified the parties of the registration and invited them to proceed to constitute an Arbitral Tribunal as soon as possible. 4 B. Constitution of the Arbitral Tribunal and Commencement of the Proceeding 5. Following the registration of the Request by the Centre, the parties agreed on a three-member Tribunal. The parties agreed that each would appoint an arbitrator and that the third arbitrator, who would be the president of the Tribunal, would be appointed by agreement of the two party appointed arbitrators. 6. The Claimants appointed Professor Michael Pryles, a national of Australia, Level 18, 333 Collins Street, Melbourne, Australia and the Respondent appointed Professor Francisco Orrego Vicuña, a national of Chile, Abenida El Golf 40, Piso 6, Santiago, Chile. 7. The two party appointed arbitrators appointed as President of the Tribunal, Mr David A R Williams QC, a national of New Zealand, Bankside Chambers, Level 22, 88 Shortland Street, Auckland, New Zealand. 8. All three arbitrators having accepted their appointments, the Centre by a letter of 10 January 2006 informed the parties of the constitution of the Tribunal, and that the proceeding was deemed to have commenced on that day, pursuant to Rule 6(1) of the ICSID’s Rules of Procedure for Arbitration Proceedings (“the ICSID Arbitration Rules”). The parties were further informed that Ms Milanka Kostadinova, Senior Counsel at ICSID, would serve as Secretary of the Tribunal. C. Written and Oral Procedure 9. In accordance with ICSID Arbitration Rule 13(1), after consulting with the parties and the Centre, the Tribunal scheduled a first session, in Paris for 24 March 2006. By letter of 16 March 2006, the Claimants advised that no agreement between the parties had been reached on the procedural matters identified in the provisional agenda for the first session, which had been sent to them by the Tribunal’s Secretary.