Spotlight On: Landmark ICSID ruling
August 24, 2015
A landmark ICSID ruling in the case of Muhammet Çap & Sehil Inşaat Endustri ve Ticaret Ltd. Sti. v. Turkmenistan has ordered the claimants in the proceedings to disclose the identity of their third-party funder along with details of the terms of the fundraising agreement itself.
The decision acts as a clear warning for claimants that the existence and terms of any funding arrangements may not remain confidential.
The ICSID proceedings concern a claim brought to the Turkey-Turkmenistan bilateral investment treaty by two Turkish construction companies against the Republic of Turkmenistan relating to the alleged destruction, impairment and unlawful expropriation of the claimants' construction projects in Turkmenistan.
In the future, claimants in ICSID proceedings who intend to benefit from third-party funding should be aware that the details of such arrangements may need to be disclosed to the other parties and the tribunal.