I. PROCEDURAL HISTORY

1. On February 10, 2012, the Tribunal in the original arbitration proceeding presided by Dr. Stanimir A. Alexandrov (Bulgarian), appointed by the Chairman of the Administrative Council of the International Centre for Settlement of Investment Disputes, and also comprising Mr. Donald Francis Donovan (U.S.A.), appointed by SGS, and Dr. Pablo García Mexía (Spanish), appointed by the Republic of Paraguay, rendered an Award partially upholding SGS’s claims and awarding it US$39,025,950.86, plus simple interest as compensation. The Tribunal concluded that Paraguay had breached its obligation, under Article 11 of the 1992 Agreement on the Promotion and Reciprocal Protection of Investments between Switzerland and Paraguay, to guarantee the observance of the commitments it had entered into with respect to SGS’s investment.

2. The Tribunal also found that it did not need to resolve SGS’s claims that (i) Paraguay’s failure to fulfill its alleged extra-contractual promises of payment constituted an additional breach of Article 11 of the BIT; and that (ii) Paraguay had breached Articles 4(1) and 4(2) of the BIT, by taking undue and discriminatory measures and by denying fair and equitable treatment. According to the Tribunal, such claims ultimately derived from the same set of facts and contractual commitments that gave rise to the Tribunal’s conclusion that Respondent had breached Article 11 of the BIT, and because in any event a further finding in favor of SGS would not affect the quantum of damages.