Mr. Hassan Awdi, Enterprise Business Consultants, Inc. and Alfa El Corporation v. Romania, ICSID Case No. ARB/10/13, Decision on the Admissibility of the Respondent's Third Objection to Jurisdiction and Admissibility of Claimant's Claims (July 26, 2013)

1. The present decision deals with a Motion for a Summary Decision on the Admissibility of Respondent's Jurisdictional Objection filed by Claimants Hassan Awdi (U.S.A.), Enterprise Business Consultants, Inc. (U.S.A.), and Alfa El Corporation (U.S.A.) on May 1, 2013 (the "Motion"). In order to place the Motion in the context of the Parties' dispute, it is convenient to summarize briefly the factual background of such dispute.

2. The Claimants' investment in Romania mainly consists of a press distribution company called Rodipet S.A. ("Rodipet," now "Network Press Concept"), which was stateowned before being privatized, and a historic property located in downtown Bucharest called Casa Bucur, which the Claimants transformed into a luxury boutique hotel and restaurant.1

3. In December 2003, the Authority for Privatization and Management of State Ownership ("AVAS") of Romania sold, by way of a Privatization Contract, 100 percent of Rodipet's share capital to the Romanian company Magnar System Com srl ("Magnar"). The transfer became effective on July 31, 2004. In February 2004, Mr. Awdi and members of his family acquired Magnar and, on April 25, 2007, Magnar's shares were transferred to the Romanian company Street Corner srl. The latter is wholly owned by Enterprise Business Consultants, Inc. ("EBI") which, in turn, is wholly owned by Mr. Awdi.2

4. Under the Privatization Contract, Romania undertook to enact a law granting of a 49-year concession (with an option to extend) to Rodipet over land on which Rodipet's points of sale are located. This obligation was fulfilled when Ordinance 45/2004 of January 29, 2004 was issued and Law 442/2004 of October 28, 2004 was passed.3 Magnar undertook to invest 3.75 million Euros in Rodipet, to be paid in five yearly instalments. This obligation also was fulfilled.

5. The dispute between the parties arose when Law 442/2004, after being successfully challenged, was declared unconstitutional by the Romanian Constitutional Court on July 7 and 15, 2008.4 Subsequently, A VAS claimed that Magnar's fourth instalment payment under the Privatization Contract was not made validly. Thus, on June 30, 2009, AVAS registered a security pledge, that guaranteed Magnar's fulfilment of its commitments under the Privatization Contract, on a block of Rodipet shares. This gave AV AS control over 51 % of Rodipet. On July 16, 2009, Romanian authorities announced the appointment of a provisional administrator for Rodipet.5