Arbitration as an alternative mechanism for resolving administrative contract disputes

Abstract

Arbitration is an exceptional legal mechanism and a departure from the general principle that grants jurisdiction to the administrative judiciary in resolving state disputes. Its importance is highlighted as a flexible tool that aligns with the requirements of modern administrative contracts, especially those of an investment or international nature. The value of arbitration lies in the speed of resolving disputes and ensuring the technical specialization of arbitrators, which provides a safe environment for contracting parties and achieves stability in legal positions away from the complexities of traditional litigation. However, resorting to it raises issues related to the extent of infringement on state sovereignty and the protection of public funds, which necessitates the existence of strict legislative controls that regulate the arbitration agreement in terms of form and substance. This study aims to shed light on the legal system of arbitration in administrative contracts and the extent of its compatibility between the privileges of public authority and the guarantees of the private investor.