1. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 International Arbitration of Energy, Infrastructure, and Investment Disputes in Asia Pacific – Regional Update with Specific Focus on Hong Kong, China, Singapore and ASEAN Kim M. Rooney International Arbitrator and Barrister Gilt Chambers Hong Kong 19 August 2011 Page 1

2. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 International Arbitration of Energy, Infrastructure and Investment Disputes in Asia Pacific Why Do Parties Choose International Arbitration? Statistics I. Introduction Page 2

3. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 China  Recent developments  Issues re foreign arbitration in China Hong Kong  Recent developments Singapore  Recent developments ASEAN and Regional  Multilateral Invest Treaties and Free Trade Agreements  Investment treaty arbitration trends in Asia I. Introduction (cont’d) Page 3

4. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Commercial and trade arbitration  Institutional arbitration  Ad hoc arbitration Commonly used arbitration rules  ICC  UNCITRAL  Other Investment treaty claims  Bilateral Investment Treaties  Multilateral Investment Treaties o e.g. ASEAN Page 4 II. Why International Arbitration?

5. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Page 5 II Why International Arbitration? (cont’d) Most important - 1958 New York Convention on Recognition and Enforcement of Foreign Arbitral Awards re: o Agreements to arbitrate o Recognition and enforcement of awards 146 States have acceded to the New York Convention

6. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Neutrality Confidentiality of Arbitration Choice of Arbitration rules Choice of Place of Arbitration Choice of Arbitrators o Range of Arbitrators Available in Asia and Australia Page 6 II. Why International Arbitration (cont’d)

7. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 III. Statistics - Representative Arbitral Institutions LocationInstitution199419951996199719981999200020012002200320042005200620072008 200 9 2010Source USAAAA187180226320387453510649672646614580586621703836888 www.siac.o rg.sg ChinaBACN/A 44966689110291796197924641863 www.bjac.o rg.cn ChinaCIETAC829902778723645609543731*684*709*850*979*981*1,1181,230 1,4 82/ 560 1,352 www.hkiac.org Hong Kong HKIAC150184197218240257298307320287**280281394448602 429 / 309 291/ 175 www.hkiac.org IntlICC384427433452466529541566*593*580*561*521*593*599663817793 www.siac.o rg.sg Washing- ton, DC ICSIDN/A331011101214193127 2337212526 icsid.world bank.org JapanJCAA47813141210179142111 151217N/A www.hkiac.org S. KoreaKCAB331836515940 654738465347594778198 # www.hkiac.org LondonLCIA39*49*37*52*70*56*81*71*88*104*87*118*130137213272237 www.siac.o rg.sg Singapore SIAC2237254367 5864 78 74/ 45 88/ 65 86/ 70 71114140 www.siac.o rg.sg Stockholm 74707582122135 130120169123100141170 176/ 85 215 / 96 197/ 91 www.hkiac.org & www.sccins titute.com * The statistics include domestic as well as international arbitrations ** As a result of Severe Acute Respiratory Syndrome, the caseload for 2003 was down compared to 2002. #up to 1 November N/A Not available Page 7

8. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 IV. Statistics - General Page 8 STATISTICS FROM THE ALB SURVEY OF IN-HOUSE LAWYERS AND GENERAL COUNSEL ON ARBITRATION ● Preferred arbitral seats o Hong Kong is the preferred arbitral seat (40%) o Singapore is the second-favoured arbitral seat (18%) and o Mainland China is the third-favoured (9%) ● Factors in determining preferred seats of arbitration o Having choice of law o Enforceability of arbitral awards o The convenience and efficiency of arbitral institutions o The availability of experienced arbitrators

9. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Page 9 V. China – Recent Developments Mediation Rules for Construction Industry Review of China International Economic and Trade Arbitration Commission (CIETAC) Rules Review of Arbitration Law Supreme Peoples’ Court Circular re Hong Kong o Relationship of China with Hong Kong o Enforcement of Hong Kong Awards – December 2009  Ad hoc  ICC  Other foreign awards Outbound investment o Free Trade Agreement with ASEAN Issues re foreign arbitration o Lack of Legal Basis to conduct Arbitrations under foreign arbitration rules in China

10. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Page 10 V. China – Recent Developments (cont’d) Countries CIETAC parties come from Parties involved in CIETAC cases come from over 70 countries and regions CIETAC awards have been recognized and enforced in over 30 foreign jurisdictions With regard to CIETAC’s foreign-related cases, the US is the second most represented jurisdiction after Hong Kong SAR (Source: CIETAC)

11. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Page 11 V. China – Recent Developments (cont’d) ACTIVE PARTICIPATION ON THE GLOBAL SCENE CIETAC has been increasing its presence on the global arbitration scene CIETAC recently expanded the number of international arbitrators on its panel

12. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Page 12 VI. Hong Kong – Recent Developments Establishment of Hong Kong office of ICC Secretariat in 2008 HKIAC Administered Arbitration Rules – 2009 PRC Supreme Peoples’ Court Notice – recognition and enforcement of Hong Kong awards  Ad Hoc, ICC and other foreign awards Arbitration Ordinance o Unitary System  Based on UNICITRAL Model Law  1 June 2011 – effective date Influx of Law Firms/Int’l Arbitration Practitioners into Hong Kong o e.g. Australian, Chinese, French, German, Swedish, UK, US

13. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Page 13 VI. Hong Kong – Recent Developments (cont’d) Country breakdown of HKIAC cases Arbitration cases involving Mainland China account for 30% of cases More than 35% of cases involved non-Hong Kong parties from 39 jurisdictions (Source: HKIAC)

14. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Page 14 VI. Hong Kong – Recent Developments (cont’d) Industry breakdown of HKIAC cases More than 50% of arbitration cases involved commercial disputes 20% involved shipping disputes 28% involved construction disputes (Source: HKIAC)

15. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Maxwell Chambers Opened in January 2010 ‘Integrated dispute resolution complex’ Hosts ‘international arbitral institutions’ (e.g. WIPO, the SIAC, ICDR, SCMA) and best-of-class facilities Established through seed money from the Singapore Government Ownership will transfer to the private sector in the future Page 15 VII. Singapore

16. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Industry breakdown of cases (2009) 24% of arbitration cases were from the shipping and maritime sector 12.5% from the construction and engineering sector 33% from the trade and commercial sector 19% from the corporate insurance sector (Source: SIAC) Page 16 VII. Singapore (cont’d)

17. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Page 17 VIII. ASEAN and Asian Region – Recent Developments ASEAN Investment Treaty Regime  1987 ASEAN Agreement for Promotion and Protection of Investments (15 December 1987) (“ 1987 ASEAN Treaty ”) as Amended  Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand  Myanmar (1997), Vietnam (July 1995), Cambodia (1999), Laos (1997) 2009 ASEAN Comprehensive Investment Treaty (February 2009)  Consolidates and revises 1987 ASEAN Treaty and 1998 Framework  Agreement on the ASEAN Investment Area  To come into effect

18. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Page 18 The international arbitration provisions in the ASEAN Treaties provide potentially important means of achieving resolution of certain disputes involving “investments”:  Outside the jurisdiction of the member State Courts  Each in a neutral, independent, international and experienced forum  Claims are not dependent on contract  Enforcement may be outside jurisdiction of State Courts Australian parties may structure their investments to get the benefit of these provisions VIII. ASEAN and Asian Region – Recent Developments (cont’d)

19. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Page 19 Free Trade Agreements Investment treaties typically provide a host of substantive investment protections including:  Protection against unlawful (or uncompensated) expropriation  Requiring that foreign investments be given no less favourable treatment than that required by international law:  Requiring fair and equitable treatment of investors and their investments:  Providing for “full protection and security”  Umbrella Clauses (or Obligations Clauses)  National Treatment/Non-Discrimination  Most-Favored-Nation Treatment (“MFN Treatment”)  Repatriation of Investments and Returns VIII. ASEAN and Asian Region – Recent Developments (cont’d)

20. ICC: Arbitration and Western AustraliaPerth, Western Australia / 19 August 2011 Page 20 IX. Discussion Thank you Discussion