Abstract
The article endeavors to introduce the constitutional and statutory framework for arbitration in Romania, whilst discussing the dilemmatic legislative provisions allowing for public entities to become parties in an arbitration dispute. It includes a discussion of the concept of administrative contracts in Romania and a chronological analysis of the evolution of public-private arbitration under administrative contracts. Some of the landmark Romanian public-private arbitrations under international investment treaties have held the public agenda in recent years and they shape the public debate on arbitration as fit for purpose when it comes to public contracts.
Highlights
Public-private arbitration is of great importance and great practical relevance in Romania and one of the main reasons behind it lies in the great number of public works contracts concluded in our country, many of which contain an arbitration clause
Some of the creators of Romania’s modern administrative legal system, have outspokenly positioned themselves against arbitration as an effective means to resolve disputes whilst protecting the public interest (Iorgovan, 2004), and this has set the trend for public-private arbitration in our country for many years
Government Decision no. 1/2018 brought a significant change in the regime applicable to the dispute resolution mechanisms of the public works contracts concluded in Romania in the sense that it imposed the Court of International Commercial Arbitration attached to the Chamber of Commerce and Industry of Romania as the venue for future disputes, as well as the rules of procedure enacted by this arbitral institution as the applicable ones
Summary
Public-private arbitration is of great importance and great practical relevance in Romania and one of the main reasons behind it lies in the great number of public works contracts concluded in our country, many of which contain an arbitration clause. Most of the time, such contracts took the shape of an internationally used standard contractual model, like the FIDIC model, which includes arbitration as the dispute resolution mechanism This was a solution often found acceptable by both the financing institutions as well as the foreign investors. In this paper we will first make a general presentation of the constitutional and statutory framework for arbitration, whilst discussing the dilemmatic legislative provisions allowing for public entities to become parties in an arbitration dispute We will look at arbitration as governance and list some conclusive remarks (section 5)
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