that the unusual delay of the case, the weight of ICSID jurisprudence, and the opinions of qualified jurists indicated that the Committee should terminate the stay of enforcement of the arbitral award or stipulate that Petroecuador post a bond, through a bank guarantee issued by a reputable international bank.
The stay of enforcement of the arbitral award of February 20, 2004 will remain in effect for the duration of these Annulment Proceedings on condition that Petroecuador post an unconditional and irrevocable bond for the total amount of the award plus the corresponding interest. This bond will be delivered to the Committee, represented by its President, in the form of a guarantee from a solvent and reputable international bank, and will be collectable in its entirety by Repsol in the event that Petroecuador’s application is completely rejected. If the request is only partially accepted, Repsol may collect the guarantee for that portion of the award not annulled by the Committee, without prejudice to the possible continuation of the stay allowed by Rule 54(3) or by a new arbitral tribunal under Rule 55(3).
a) The last sentence of Article 52(3) of the ICSID Convention, which establishes that:
The Committee shall have the authority to annul the award or any part thereof on any of the grounds set forth in paragraph (1).
b) The first sentence of Article 52(5) of the Convention, which establishes that:
(i) The Committee may, if it considers that the circumstances so require, stay enforcement of the award pending its decision.
c) The first sentence of Article 54(3), of the Arbitration Rules, which establishes that:
If a stay of enforcement has been granted pursuant to paragraph (1) or continued pursuant to paragraph (2), the Tribunal or Committee may at any time modify or terminate the stay at the request of either party. (Emphasis added).
a) Deny PetroEcuador’s request for reconsideration, of December 30, 2005 and confirm all the terms and conditions of Procedural Order No. 1 of December 22, 2005;
b) Continue the stay of enforcement of the arbitral award of February 20, 2004, subject to PetroEcuador’s posting of an unconditional and irrevocable bond under the terms and conditions indicated in Procedural Order No. 1; and
c) Confirm the date and place for the first hearing of the Committee and the parties for January 31, 2006 in Quito, Ecuador.
With regard to the above-mentioned considerations the Committee noted that:
a) The stay of enforcement of the arbitral award of February 20, 2004 has continued until February 1, 2006 on condition that Petroecuador post an unconditional and irrevocable bond under the terms and conditions indicated in Procedural Order No. 1; and
b) Petroecuador did not post the bond requested within the period established by the Committee.