I. PROCEDURAL BACKGROUND

A. Initiation of the Arbitration

1. On 19 October 2007, the International Centre for Settlement of Investment Disputes (“ICSID” or the “Centre”) received a request for arbitration dated 16 October 2007 (the “Request”) from SGS Société Générale de Surveillance S.A. (“SGS” or “Claimant”) against the Republic of Paraguay (“Paraguay” or “Respondent”) (collectively, the “parties”). The Request was made under the Agreement on the Promotion and Reciprocal Protection of Investments between Switzerland and Paraguay signed 31 January 1992 and entered into force 28 September 1992 (the “BIT” or the “Treaty”), and the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (“ICSID Convention” or “Convention”).