Dispute resolution through ad hoc and institutional arbitration

This paper considers the differences between institutional and 'ad hoc' arbitration methods, and the advantages and disadvantages of each. The purpose of this paper is not to determine what is the better option, ad hoc or institutional arbitration as this will be dependent upon the parties themselves, the nature of the contractual relationship and the dispute itself. The func- tioning of the ad hoc and institutional arbitration models determine the nature of the disputes which can be arbitrated by them. The success and efficiency of the systems in consonance to the objectives of arbitration rely heavily on the implementation and application of the prin- ciples of ad hoc and institutional arbitration

The foreing direct investment and arbitration in Albania

FDI into Albania has been rising steadily since the early 2000s. These investments are essentially in the oil, metal ore, infrastructure, construction and telephony sectors. Albania has applied a policy framework favorable to FDI, and has more recently introduced policies to support private sector development in general. In recent years, the government has enacted reforms to improve the overall business climate in the country by streamlining business procedures through e-government reforms and improved legislation in a variety of sectors. The government currently is drafting a new Law on Investment that will provide investment incentives and fast-track registration and licensing procedures for strategic foreign investors. The Albanian legal system does not discriminate against foreign investors

Investment arbitratin:The case of Albania

Albania has implemented a liberal foreign investment regime with the goal of increasing foreign direct investment. The Law on Foreign Investment allows 100 percent foreign ownership of companies and outlines specifi c protections for foreign investors. In addition, Albanian tax policy does not distinguish between domestic and foreign investments. The U.S. - Albania bilateral investment treaty entered into force in 1998 and ensures that U.S. investors receive most-favored-nation treatment. The government has taken measures to improve the overall business climate in the country by streamlining business procedures through e-government reforms and improved legislation in a variety of sectors. The Republic of Albania is a party to 43 bilateral agreements for mutual protection and encouragement of foreign investment. Currently, another six bilateral agreements are being negotiated. In addition, Albania is also a party to 38 bilateral agreements for economic, trade and technical cooperation and fi ve other agreements are being negotiated. Albania is also a party to the Convention on the Se# lement of Investment Disputes between States and Nationals of Other States. In every bilateral investment treaty there is a standard clause providing that, in the case of a dispute between the Republic of Albania and a potential investor, this dispute shall be submi# ed before the World Bank’s International Center for Se# lement of Investment Disputes. The Albanian Law on Foreign Investments provides for equal treatment of local and foreign investors in the Republic of Albania. Foreign investors in Albania can obtain the same assistance and use the same privileges and opportunities as granted by the law to local investors

Arbitration law and practice in Albania

Albania is situated in South-Eastern Europe, in the western part of the Balkan Peninsula. As of 19 December 2006, all bilateral trade agreements signed between Albania and countries in the region were transformed into a multilateral one, the Central European Free Trade Agreement, which includes eight countries: Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Moldova, Montenegro, and Serbia. The Albanian Law on Foreign Investments provides for equal treatment of local and foreign investors in the Republic of Albania. Foreign investors in Albania can obtain the same assistance and use the same privileges and opportunities as granted by the law to local investors. If a bilateral treaty, signed and ratified by the Republic of Albania, provides for more favorable investment terms and conditions for international investors, the citizens or legal entities of the respective contracting country will enjoy preferential investor treatment (most favored nation status)