1. INTRODUCTION

1.1 Scope of Award

1.1.1 This Award determines the single jurisdictional question that was agreed to be addressed following the Tribunal’s Decision on 7 May 2012 (the “7 May 2012 Decision”)1 on Article VII.2 of the Agreement Between the Republic of Turkey and Turkmenistan Concerning the Reciprocal Promotion and Protection of Investments which entered into force on 13 March 1997 (referred to, indistinctively as “BIT”, “Turkey-Turkmenistan BIT”, or “Treaty”). It concerns the effect, in this case, of Claimant’s failure to comply with the requirement for recourse by it to the courts of Turkmenistan before instituting these arbitration proceedings.

1.2 Procedural Background

1.2.1 On 30 December 2009, Claimant, Kılıç İnşaat İthalat İhracat Sanayi ve Ticaret Anonim Şirketi (also referred to as “Kiliç”), a company with registered offices in Istanbul, Turkey, filed a Request for Arbitration (“Request”) before the International Centre for Settlement of Investment Disputes (“ICSID” or the “Centre”) alleging breaches by Respondent (referred to indistinctively as “Turkmenistan” or “Respondent”) of the BIT.

1.2.2 The Request was registered by the Secretary-General of ICSID (the “Secretary-General”) on 19 January 2010, in accordance with Article 36(3) of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (“ICSID Convention”).