Dispute Settlement Mechanisms of the Asian Infrastructure Investment Bank

Abstract

Abstract:The Asian Infrastructure Investment Bank (AIIB) has been active for more than six years since the start of its operations in 2016. The AIIB has developed several dispute settlement mechanisms to deal with disputes in business (with borrowers, the hosting state and debtors), as well as disputes with its employees and third parties. On the one hand, the AIIB has learnt from the experience of other development banks concerning dispute settlement mechanisms. On the other hand, the dispute settlement mechanisms it has adopted have their distinctive characteristics and, about six years in development, they are considered still nascent. This article focuses on these dispute settlement mechanisms and compares them with those of other institutions, particularly the World Bank. The authors recommend that the AIIB should commit greater efforts in building the legal framework, improving the mechanisms, maintaining a balance between institutionalisation and flexibility, and cooperating with other international organisations.