First ICSID Award Against Moldova: Things To Note

In 2011 Moldova ratified the ICSID Convention,^[1] thus, opening the gateway to an important venue for investment protection. The first and so far the only ICSID case against Moldova was brought the same year and was crowned with an award in 2013.^[2] This article briefly discusses certain issues addressed in the award that foreign investors might be interested to note.

Facts

The dispute concerned an investment in the duty-free sector. Le Bridge, a Moldovan company owned by Mr. Arif, won a local governmental tender and was awarded an exclusive right for the creation of a network of duty-free stores in specific geographic areas. Le Bridge's competitor challenged in court the results of the tender and agreements signed by Le Bridge. This resulted in the loss of exclusivity and delays or prevention of opening of certain border stores. In ICSID arbitration commenced on the basis of the French-Moldovan Bilateral Investment Treaty (BIT), the investor argued that the