A Legal Analysis of the Dispute Resolution Mechanism in State-Owned Asset Productivization Contracts”

Abstract

Abstract

The dispute resolution mechanism arising from contracts for the productivization of state-owned assets is one of the most critical, yet least explored, legal dimensions of the Supreme Council of Heads of Powers’ resolution and its implementing regulation. Given the contractual nature of most productivization methods, including sale, lease, partnership, and set-off, the existence of a transparent, independent, and legally principled mechanism for settling disputes plays a fundamental role in ensuring legal security and fostering the confidence of contracting parties, particularly private-sector investors. This research, focusing on the legal analysis of the mechanism envisaged within the implementing regulation, examines its compliance with principles such as freedom of will, the impartiality of the adjudicating body, the right to fair trial, and contractual balance. Findings indicate that centralizing dispute resolution within administrative or quasi-administrative bodies affiliated with the state, while restricting access to independent courts or arbitration, may weaken the private party’s contractual position and exacerbate legal imbalances. Consequently, the efficacy of the productivization policy depends on adopting independent, specialized, and impartial mechanisms for dispute resolution.