Investment treaty disputes in the construction sector
Cross-border activity in the construction sector has seen exponential growth over the past decade, with an increasing number of complex construction projects being awarded, particularly in developing economies. The increased use of public-private partnership (PPP) investment vehicles and joint ventures with state-owned entities has given rise to further investment-related disputes caused by states' postponement, frustration or cancellation of different construction projects. The United Nations Conference on Trade and Development (UNCTAD) reports 106 United Nations Commission on International Trade Law (UNCITRAL) and International Centre for Settlement of Investment Disputes (ICSID) investment cases, 43 of which are pending. Furthermore, 15 percent of all cases registered and administered by ICSID in 2019 were construction-related disputes.
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