7. Dispute resolution

The guidelines adopted by the IBRD and the IDA stipulate (art. 2.43) that "the clauses and conditions of the contract must indicate the applicable law and the competent body for the settlement of disputes", and recommend international commercial arbitration for works contracts.

Under the auspices of the IBRD, the ICSID (International Centre for Settlement of Investment Disputes) was set up (Washington Convention of March 18, 1965) to provide conciliation and arbitration facilities for investment disputes between host countries (or the public entities representing them) and foreign investors.

The 2005 FIDIC General Terms and Conditions have opted for the Rules of Conciliation and Arbitration of the International Chamber of Commerce (ICC) (see table...