Arbitration ICC

8/8/2019 Arbitration ICC

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Hemen RuparelHemen Ruparel 11

ICC Arbitration ProcessICC Arbitration Process


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Advantages of ArbitrationAdvantages of Arbitration

A final and enforceable decision can generally beA final and enforceable decision can generally beobtained only by recourse to the courts or byobtained only by recourse to the courts or byarbitration.arbitration.

Because arbitral awards are not subject to appeal, theyBecause arbitral awards are not subject to appeal, theyare much more likely to be final than the judgmentsare much more likely to be final than the judgmentsof courts of first instance.of courts of first instance.

Although arbitral awards may be subject to beingAlthough arbitral awards may be subject to being

challenged (usually in either the country where thechallenged (usually in either the country where thearbitral award is rendered or where enforcement isarbitral award is rendered or where enforcement issought), the grounds of challenge available againstsought), the grounds of challenge available againstarbitral awards are limited.arbitral awards are limited.


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Judicial systems do not allow the parties to aJudicial systems do not allow the parties to adispute to choose their own judges.dispute to choose their own judges.

In contrast, arbitration offers the parties theIn contrast, arbitration offers the parties theunique opportunity to designate persons ofunique opportunity to designate persons oftheir choice as arbitrators, provided they aretheir choice as arbitrators, provided they areindependent.independent.

This enables the parties to have their disputesThis enables the parties to have their disputesresolved by people who have specializedresolved by people who have specializedcompetence in the relevant field.competence in the relevant field.


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Arbitration is faster and less expensive thanArbitration is faster and less expensive thanlitigation in the courts.litigation in the courts.

Although a complex international dispute mayAlthough a complex international dispute may

sometimes take a great deal of time and money tosometimes take a great deal of time and money toresolve, even by arbitration, the limited scope forresolve, even by arbitration, the limited scope forchallenge against arbitral awards, as comparedchallenge against arbitral awards, as comparedwith court judgments, offers a clear advantage.with court judgments, offers a clear advantage.

Above all, it helps to ensure that the parties will notAbove all, it helps to ensure that the parties will notsubsequently be entangled in a prolonged andsubsequently be entangled in a prolonged andcostly series of appeals.costly series of appeals.


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Furthermore, arbitration offers the parties theFurthermore, arbitration offers the parties theflexibility to set up proceedings that can beflexibility to set up proceedings that can be

conducted as quickly and economically asconducted as quickly and economically asthe circumstances allow.the circumstances allow.

In this way, multiIn this way, multi--million dollar ICC arbitrationmillion dollar ICC arbitrationwas once completed in just over twowas once completed in just over two

months.months.


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Enforcement of AwardsEnforcement of Awards

Arbitral awards enjoy much greater internationalArbitral awards enjoy much greater internationalrecognition than judgments of national courts.recognition than judgments of national courts.

Over 134 countries have signed the 1958 U.N.Over 134 countries have signed the 1958 U.N.

Convention on the Recognition and Enforcement ofConvention on the Recognition and Enforcement ofForeign Arbitral Awards, known as the "New YorkForeign Arbitral Awards, known as the "New YorkConvention".Convention".

The Convention facilitates enforcement of awards inThe Convention facilitates enforcement of awards in

all contracting states. There are several otherall contracting states. There are several othermultilateral and bilateral arbitration conventions thatmultilateral and bilateral arbitration conventions thatmay also help enforcement.may also help enforcement.


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Possibility of ArbitrationPossibility of Arbitration

ICC arbitration is possible only if there is an agreementICC arbitration is possible only if there is an agreementbetween the parties providing for it.between the parties providing for it.

All parties wishing to have recourse to ICC arbitrationAll parties wishing to have recourse to ICC arbitration

include the following standard clause in theirinclude the following standard clause in theircontracts:contracts:"All disputes arising out of or in connection with the"All disputes arising out of or in connection with thepresent contract shall be finally settled under thepresent contract shall be finally settled under theRules of Arbitration of the International Chamber ofRules of Arbitration of the International Chamber ofCommerce by one or more arbitrators appointed inCommerce by one or more arbitrators appointed inaccordance with the said Rules."accordance with the said Rules."


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Process of ArbitrationProcess of Arbitration

Request for Arbitration and Respondent'sRequest for Arbitration and Respondent'sAnswerAnswer

Setting in motion of the arbitrationSetting in motion of the arbitration

Number of arbitratorsNumber of arbitrators Appointment of arbitratorsAppointment of arbitrators

Place of arbitrationPlace of arbitration

Fixing the advance on costsFixing the advance on costs

Terms of ReferenceTerms of Reference ProceedingsProceedings

Scrutiny and final AwardScrutiny and final Award


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Request for Arbitration &Request for Arbitration &Respondent's AnswerRespondent's Answer

The Request for Arbitration is registered on the day it reaches theThe Request for Arbitration is registered on the day it reaches theSecretariat of the International Court of Arbitration at ICC HeadquartersSecretariat of the International Court of Arbitration at ICC Headquarters(38 cours Albert 1er, 75008 Paris, France).(38 cours Albert 1er, 75008 Paris, France).

The Secretariat acknowledges receipt of the Request and indicates to theThe Secretariat acknowledges receipt of the Request and indicates to theClaimant the names and contact details of the counsel and otherClaimant the names and contact details of the counsel and othermembers of the team in charge of the file. The Request should includemembers of the team in charge of the file. The Request should includethe following elements:the following elements:

the name in full, description and address of each of the parties;the name in full, description and address of each of the parties; a description of the nature and circumstances of the dispute giving risea description of the nature and circumstances of the dispute giving rise

to the claims;to the claims; a statement of the relief sought, including, to the extent possible, ana statement of the relief sought, including, to the extent possible, an

indication of any amount (s) claimed;indication of any amount (s) claimed; the relevant agreements and, in particular, the arbitration agreement;the relevant agreements and, in particular, the arbitration agreement;

all relevant particulars concerning the constitution of the Arbitralall relevant particulars concerning the constitution of the ArbitralTribunal; andTribunal; and

any comments as to the place of arbitration, the applicable rules of lawany comments as to the place of arbitration, the applicable rules of lawand the language of the arbitration.and the language of the arbitration.

The Request must be accompanied by a payment of US$ 2500, as anThe Request must be accompanied by a payment of US$ 2500, as anadvance on administrative costs. This sum is not refundable but isadvance on administrative costs. This sum is not refundable but is

credited to any further cost advance payable by the Claimant.credited to any further cost advance payable by the Claimant.


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Setting in motion of theSetting in motion of the

arbitrationarbitrationThe arbitral process is supervised by the InternationalThe arbitral process is supervised by the InternationalCourt of Arbitration (while the dispute itself is decided byCourt of Arbitration (while the dispute itself is decided bythe Arbitral Tribunal).the Arbitral Tribunal).

Following the receipt of the Respondent's Answer to theFollowing the receipt of the Respondent's Answer to the

Request (or the expiration of the timeRequest (or the expiration of the time--limit for its receipt),limit for its receipt),the case is submitted, if necessary, to the Court, whichthe case is submitted, if necessary, to the Court, whichtakes such decisions as may be required to set thetakes such decisions as may be required to set thearbitration in motion.arbitration in motion.

The Court may be called upon to decide whether it isThe Court may be called upon to decide whether it issatisfied of thesatisfied of theprima facieprima facie existence of an agreement toexistence of an agreement toarbitrate between the parties. The Secretariat directlyarbitrate between the parties. The Secretariat directlynotifies the parties of the Court's decisions.notifies the parties of the Court's decisions.


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ArbitratorsArbitratorsNumberNumberThe parties are free to decide upon the number of arbitrators, either in theirThe parties are free to decide upon the number of arbitrators, either in their

arbitration agreement or later. Failing agreement between the parties, thearbitration agreement or later. Failing agreement between the parties, theCourt appoints a sole arbitrator save where it appears that the dispute isCourt appoints a sole arbitrator save where it appears that the dispute issuch as to warrant the appointment of three arbitrators. If the amount insuch as to warrant the appointment of three arbitrators. If the amount indispute is small and the parties have chosen three arbitrators, thedispute is small and the parties have chosen three arbitrators, theSecretariat draws the attention of the parties to the consequences of theirSecretariat draws the attention of the parties to the consequences of their

choice, including the tripling of arbitrators' fees and expenses and thechoice, including the tripling of arbitrators' fees and expenses and thelonger time generally required for cases with three rather than onelonger time generally required for cases with three rather than onearbitrator.arbitrator.

AppointmentAppointment The parties are also free to select the arbitrator or arbitrators of their choice.The parties are also free to select the arbitrator or arbitrators of their choice.

The Court or the Secretary General confirm arbitrators nominated by theThe Court or the Secretary General confirm arbitrators nominated by theparties. The Court appoints arbitrators on behalf of defaulting parties and/orparties. The Court appoints arbitrators on behalf of defaulting parties and/or

appoints sole or third arbitrators. Arbitrators may also be nominated by coappoints sole or third arbitrators. Arbitrators may also be nominated by co--arbitrators or through other procedures for nomination.arbitrators or through other procedures for nomination. In all cases, the prospective arbitrators are asked to declare theirIn all cases, the prospective arbitrators are asked to declare their

independence. If arbitrators disclose facts or circumstances that might callindependence. If arbitrators disclose facts or circumstances that might callinto question their independence in the eyes of the parties, such facts andinto question their independence in the eyes of the parties, such facts andcircumstances are communicated to the parties for comments. Allcircumstances are communicated to the parties for comments. Allarbitrators not appointed by the Court must be confirmedarbitrators not appointed by the Court must be confirmed


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ArbitratorsArbitrators

Nationality of the arbitratorNationality of the arbitrator When the Court appoints a sole or a third arbitrator, the arbitratorWhen the Court appoints a sole or a third arbitrator, the arbitrator

comes from a "neutral" country. In other words, the sole or thirdcomes from a "neutral" country. In other words, the sole or thirdarbitrator should be a national of a country other than those of thearbitrator should be a national of a country other than those of theparties, unless none of the parties object.parties, unless none of the parties object.

However, when the Court appoints an arbitrator on behalf of a partyHowever, when the Court appoints an arbitrator on behalf of a partythat has failed to nominate one (appointment of a cothat has failed to nominate one (appointment of a co--arbitrator in aarbitrator in athreethree--member arbitral panel), a proposal is requested from themember arbitral panel), a proposal is requested from thenational committee, if any, in the country of which that party is anational committee, if any, in the country of which that party is anational.national.

ChallengeChallenge -- In those exceptional cases where a party challenges oneIn those exceptional cases where a party challenges oneor several arbitrators, for alleged lack of independence or for otheror several arbitrators, for alleged lack of independence or for otherreasons, the Court decides on the challenge. Its decisions are final.reasons, the Court decides on the challenge. Its decisions are final.


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Place of arbitrationPlace of arbitration

In the vast majority of ICC cases, the placeIn the vast majority of ICC cases, the placeof arbitration is agreed upon by theof arbitration is agreed upon by theparties.When this place has not beenparties.When this place has not beenagreed, it is fixed by the Court, normally inagreed, it is fixed by the Court, normally ina "neutral" country, that is, neither thea "neutral" country, that is, neither theClaimant's nor the Respondent's country.Claimant's nor the Respondent's country.


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Fixing the advance on costsFixing the advance on costs

As soon as practical, the Court fixes an advance on costs intended toAs soon as practical, the Court fixes an advance on costs intended tocover the estimated fees and expenses of the arbitrators, as well ascover the estimated fees and expenses of the arbitrators, as well asthe administrative expenses of ICC.the administrative expenses of ICC.

The estimate of the arbitrators' fees and the ICC's administrativeThe estimate of the arbitrators' fees and the ICC's administrativeexpenses is made by applying the scales appended to the Rules ofexpenses is made by applying the scales appended to the Rules of

arbitration. The scales are based on the amount in dispute in thearbitration. The scales are based on the amount in dispute in thearbitration.arbitration.The advance fixed may be modified subsequently depending onThe advance fixed may be modified subsequently depending on

developments in the arbitration. The scales are regressive: thedevelopments in the arbitration. The scales are regressive: thehigher the sum in dispute, the lower the percentage of the arbitrationhigher the sum in dispute, the lower the percentage of the arbitrationcosts due by the parties.costs due by the parties.

The fees of the arbitrator (s) are finally fixed by the Court at the end ofThe fees of the arbitrator (s) are finally fixed by the Court at the end ofthe arbitration proceedings, taking into account the diligence of thethe arbitration proceedings, taking into account the diligence of thearbitrator, the time spent, the rapidity of the proceedings and thearbitrator, the time spent, the rapidity of the proceedings and thecomplexity of the dispute.complexity of the dispute.


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Terms of ReferenceTerms of Reference

Once the Arbitral Tribunal has been constitutedOnce the Arbitral Tribunal has been constitutedand the advance requested at this stage hasand the advance requested at this stage hasbeen paid, the Secretariat transmits a copy ofbeen paid, the Secretariat transmits a copy of

the file to each member of the Arbitral Tribunal.the file to each member of the Arbitral Tribunal.From that time on, the parties are requested toFrom that time on, the parties are requested to

correspond directly with the Arbitral Tribunalcorrespond directly with the Arbitral Tribunal(while sending copies of their correspondence(while sending copies of their correspondence

and submissions to the Secretariat and to theand submissions to the Secretariat and to theother parties)other parties)


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Establishing the Terms ofEstablishing the Terms of

ReferenceReferenceBefore the actual merits of the case can be addressed, the ArbitralBefore the actual merits of the case can be addressed, the ArbitralTribunal must first draw up the Terms of Reference.Tribunal must first draw up the Terms of Reference.

The Terms of Reference should include the particulars listed in the ICCThe Terms of Reference should include the particulars listed in the ICCRules. Apart from the full names and description of the parties andRules. Apart from the full names and description of the parties andarbitrators, the place of arbitration and a summary of the parties'arbitrators, the place of arbitration and a summary of the parties'

respective claims, they contain particulars concerning the applicablerespective claims, they contain particulars concerning the applicableprocedural rules and any other provisions required to make theprocedural rules and any other provisions required to make theAward enforceable at law.Award enforceable at law.

They also contain, unless the Arbitral Tribunal considers itThey also contain, unless the Arbitral Tribunal considers itinappropriate, a list of issues to be determined. At this stage, theinappropriate, a list of issues to be determined. At this stage, the

Arbitral Tribunal establishes a provisional timetable to be followed inArbitral Tribunal establishes a provisional timetable to be followed inthe conduct of the arbitration.the conduct of the arbitration.

The Terms of Reference must be transmitted to the Court within 2The Terms of Reference must be transmitted to the Court within 2months of the file being transmitted to the Arbitral Tribunal. Shouldmonths of the file being transmitted to the Arbitral Tribunal. Shouldone of the parties refuse to take part in drawing up or to sign theone of the parties refuse to take part in drawing up or to sign theTerms of Reference, the latter are submitted to the Court forTerms of Reference, the latter are submitted to the Court forapproval, whereupon the arbitration may proceedapproval, whereupon the arbitration may proceed


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The purposes of the Terms ofThe purposes of the Terms of

ReferenceReferenceThe Terms of Reference offer various technical, psychologicalThe Terms of Reference offer various technical, psychologicaland legal benefits:and legal benefits:

they allow the claims and answers submitted by the partiesthey allow the claims and answers submitted by the partiesto be ordered and structuredto be ordered and structured

the document can also be used to record definitively anthe document can also be used to record definitively anagreement between the parties on such important mattersagreement between the parties on such important mattersas the law applicable to the merits, the language to be usedas the law applicable to the merits, the language to be usedin the arbitration or even certain points pertaining to thein the arbitration or even certain points pertaining to themerits of the disputemerits of the dispute

the establishment of the Terms of Reference is said tothe establishment of the Terms of Reference is said toencourage parties to reach a settlement by clarifying theencourage parties to reach a settlement by clarifying theissues;issues;

A significant proportion of ICC cases are in fact withdrawn atA significant proportion of ICC cases are in fact withdrawn atthis stage, following a settlement between the parties.this stage, following a settlement between the parties.


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ProceedingsProceedingsThe Terms of Reference become operative once they haveThe Terms of Reference become operative once they have

been signed by the parties and the arbitrators, or havebeen signed by the parties and the arbitrators, or havebeen approved by the Court where a party has failed tobeen approved by the Court where a party has failed tosign them.sign them.

The Arbitral Tribunal must then proceed to establish theThe Arbitral Tribunal must then proceed to establish the

facts of the case.When it is satisfied that the partiesfacts of the case.When it is satisfied that the partieshave had a reasonable opportunity to present theirhave had a reasonable opportunity to present theircases, the Arbitral Tribunal declares the proceedingscases, the Arbitral Tribunal declares the proceedingsclosed and proceeds to draft an Award, indicating to theclosed and proceeds to draft an Award, indicating to theSecretariat the approximate date by which the draftSecretariat the approximate date by which the draftaward will be submitted to the Court.award will be submitted to the Court.

The award is rendered within 6 months from the signatureThe award is rendered within 6 months from the signatureor approval of the Terms of Reference, a timeor approval of the Terms of Reference, a time--limit whichlimit whichthe Court may extend.the Court may extend.


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Rules governing the proceedingsRules governing the proceedings

The parties and arbitrators are free to fix the rules ofThe parties and arbitrators are free to fix the rules ofprocedure to be applied in the arbitration, subject toprocedure to be applied in the arbitration, subject toany mandatory provisions that may be applicable.any mandatory provisions that may be applicable.

The parties may determine, for instance, whether andThe parties may determine, for instance, whether andto what extent discovery or crossto what extent discovery or cross--examination willexamination willbe allowed.be allowed.

The Arbitral Tribunal proceeds within as short a timeThe Arbitral Tribunal proceeds within as short a timeas possible to establish the facts of the case by allas possible to establish the facts of the case by all

appropriate means. The parties have the right to beappropriate means. The parties have the right to beheard; the tribunal may also decide to hearheard; the tribunal may also decide to hearwitnesses and experts, and may summon any partywitnesses and experts, and may summon any partyto provide additional evidence.to provide additional evidence.


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Scrutiny and final AwardScrutiny and final Award

Submission of the draft Award and scrutinySubmission of the draft Award and scrutiny After the closing of the proceedings, the Arbitral TribunalAfter the closing of the proceedings, the Arbitral Tribunal

draws up a draft Award which is submitted to the Court'sdraws up a draft Award which is submitted to the Court'sscrutiny. The Court may lay down modifications as toscrutiny. The Court may lay down modifications as to

form and, without affecting the Arbitral Tribunal's libertyform and, without affecting the Arbitral Tribunal's libertyof decision, may draw its attention to points ofof decision, may draw its attention to points ofsubstance. In scrutinizing draft awards, the Courtsubstance. In scrutinizing draft awards, the Courtconsiders, to the extent practicable, the requirements ofconsiders, to the extent practicable, the requirements ofmandatory law at the place of arbitration.mandatory law at the place of arbitration.

Notification of the AwardNotification of the Award Once approved by the Court, the Award is signed by theOnce approved by the Court, the Award is signed by the

arbitrators. It is deemed to be made at the place of thearbitrators. It is deemed to be made at the place of thearbitration on the date it indicates. It is then notified toarbitration on the date it indicates. It is then notified tothe parties by the Secretariat.the parties by the Secretariat.


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TimeTime--limits and duration of thelimits and duration of thearbitrationarbitration

In most cases it would be unrealistic to expect that the final Award canIn most cases it would be unrealistic to expect that the final Award canbe made in less than 1 year, although complex ICC arbitrationbe made in less than 1 year, although complex ICC arbitrationproceedings have been conducted in as little as 2 and a halfproceedings have been conducted in as little as 2 and a halfmonths. Adherence to timemonths. Adherence to time--limits is monitored closely by the Courtlimits is monitored closely by the Courtand its Secretariat.and its Secretariat.

Once the Arbitral Tribunal has been constituted and the financial andOnce the Arbitral Tribunal has been constituted and the financial andother conditions have been met, two important timeother conditions have been met, two important time--limits govern thelimits govern theactual proceedingsactual proceedings -- the 2 months already referred to forthe 2 months already referred to fortransmitting the Terms of Reference to the Court, followed by 6transmitting the Terms of Reference to the Court, followed by 6months for rendering the final Award. The Court can extend thesemonths for rendering the final Award. The Court can extend thesetimetime--limits if circumstances so require.limits if circumstances so require.

The Court follows each case by means of progress reports that areThe Court follows each case by means of progress reports that are

submitted to it periodically by the Secretariat.submitted to it periodically by the Secretariat.In addition, the ICC system of arbitrator remuneration is designed toIn addition, the ICC system of arbitrator remuneration is designed to

encourage the efficient conduct of the arbitration as the arbitratorsencourage the efficient conduct of the arbitration as the arbitratorsare not paid on an hourly or daily basis.are not paid on an hourly or daily basis.


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Arbitrators' feesArbitrators' fees

The arbitrators' fees are managed by the Court and fixed on the basisThe arbitrators' fees are managed by the Court and fixed on the basisof the relevant scale, taking into consideration the diligence of theof the relevant scale, taking into consideration the diligence of thearbitrators, the time spent, the rapidity of the proceedings and thearbitrators, the time spent, the rapidity of the proceedings and thecomplexity of the dispute. Based on the amount in dispute, the scalecomplexity of the dispute. Based on the amount in dispute, the scaleprovides a minimum and a maximum for 1 arbitrator.provides a minimum and a maximum for 1 arbitrator.

The fees are multiplied by the number of arbitrators up to a maximumThe fees are multiplied by the number of arbitrators up to a maximumwhich shall normally not exceed 3 times the fees of 1 arbitrator. Inwhich shall normally not exceed 3 times the fees of 1 arbitrator. Incase of necessity due to exceptional circumstances, the Court maycase of necessity due to exceptional circumstances, the Court mayfix the fees of the arbitrators at a figure higher or lower than thatfix the fees of the arbitrators at a figure higher or lower than thatwhich would result from the application of the relevant scale.which would result from the application of the relevant scale.

Where the sum in dispute is not stated, the Court fixes the arbitrators'Where the sum in dispute is not stated, the Court fixes the arbitrators'fees at its discretion.fees at its discretion.

Arbitrators' expensesArbitrators' expenses The arbitrators' expenses are also managed by the Court andThe arbitrators' expenses are also managed by the Court and

include such expenses as for travel, accommodation, meals,include such expenses as for travel, accommodation, meals,couriers and facilities for hearings.couriers and facilities for hearings.


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Administrative expensesAdministrative expensesThe "administrative expenses", also referred to as "administrative costs",The "administrative expenses", also referred to as "administrative costs",

represent the fee charged by the ICC Court for the administration of anrepresent the fee charged by the ICC Court for the administration of anarbitration case.arbitration case.

The amount of US$ 2500, the payment of which accompanies the Request,The amount of US$ 2500, the payment of which accompanies the Request,is an advance on administrative expenses. Since this first advance is notis an advance on administrative expenses. Since this first advance is notrefundable, it is often called the registration fee, or filing fee. The Courtrefundable, it is often called the registration fee, or filing fee. The Courtfixes the administrative expenses on the basis of the scales set out or,fixes the administrative expenses on the basis of the scales set out or,where the sum in dispute is not stated, at its discretion.where the sum in dispute is not stated, at its discretion.

In exceptional circumstances, the Court may fix the administrative expensesIn exceptional circumstances, the Court may fix the administrative expensesat a lower or higher figure than that which would result from theat a lower or higher figure than that which would result from theapplication of the scale provided the expenses shall normally not exceedapplication of the scale provided the expenses shall normally not exceedthe maximum amount of the scale (US$the maximum amount of the scale (US$ 8888 800).800).

Fees and expenses for expert (s)Fees and expenses for expert (s) In those cases where an expertise is ordered by the Arbitral Tribunal, theIn those cases where an expertise is ordered by the Arbitral Tribunal, the

latter fixes the fees and expenses of the expert (s) and is responsible forlatter fixes the fees and expenses of the expert (s) and is responsible forthe management and payment of such fees and expenses by the parties.the management and payment of such fees and expenses by the parties.The costs of an expertise are not covered by the advance on costsThe costs of an expertise are not covered by the advance on costsrequired by ICC, although the Secretariat may administer the accounts asrequired by ICC, although the Secretariat may administer the accounts asa service to the Arbitral Tribunal.a service to the Arbitral Tribunal.


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Advance CostsAdvance CostsAdvance on administrative expenses (filing fee)Advance on administrative expenses (filing fee) A first advance on administrative expenses of US$ 2500 is payableA first advance on administrative expenses of US$ 2500 is payable

by the Claimant with the Request for Arbitration.by the Claimant with the Request for Arbitration.Provisional advanceProvisional advance After a review of the Request, the Secretary General normallyAfter a review of the Request, the Secretary General normally

requires the Claimant to pay a provisional advance in an amountrequires the Claimant to pay a provisional advance in an amount

intended to cover the costs of the arbitration until the Terms ofintended to cover the costs of the arbitration until the Terms ofReference have been drawn up. This advance shall normally notReference have been drawn up. This advance shall normally notexceed the amount obtained by adding togetherexceed the amount obtained by adding together(1)(1) the administrative expenses resulting from the scale,the administrative expenses resulting from the scale,(2)(2) the minimum on the scale of arbitrators' fees, andthe minimum on the scale of arbitrators' fees, and(3)(3) the expected reimbursable expenses of the Arbitral Tribunalthe expected reimbursable expenses of the Arbitral Tribunal

incurred with respect to the drawing of the Terms of Referenceincurred with respect to the drawing of the Terms of ReferenceThese calculations are made on the basis of the Claimant's claimThese calculations are made on the basis of the Claimant's claim

only. Current practice indicates that the provisional advance isonly. Current practice indicates that the provisional advance isusually in the range of 25% to 35% of the advance as calculatedusually in the range of 25% to 35% of the advance as calculatedfor the entire arbitration.for the entire arbitration.


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COSTS OF ARBITRATIONCOSTS OF ARBITRATIONADMINISTRATIVEEXPENSES

Sum in dispute (in US Dollars) Administrative expenses(*)up to 50 000 $ 2 500from 50 001 to 100 000 3.50%from 100 001 to 500 000 1.70%

from 500 001 to 1 000 000 1.15%from 1 000 001 to 2 000 000 0.70%from 2 000 001 to 5 000 000 0.30%from 5 000 001 to 10 000 000 0.20%from 10 000 001 to 50 000 000 0.07%from 50 000 001 to 80 000 000 0.06%

over 80 000 000 $ 88 800(*) For illustrative purposes only, the table on the following page indicates theresulting administrative expenses in US$ when the proper calculations have

been made.


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COSTS OF ARBITRATIONCOSTS OF ARBITRATIONB.

ARB

ITRATOR'S FEE

SSum in dispute (in US Dollars) Fees(**) minimum maximumup to 50 000 $ 2 500 17.00%from 50 001 to 100 000 2.00% 11.00%from 100 001 to 500 000 1.00% 5.50%from 500 001 to 1 000 000 0.75% 3.50%

from 1 000 001 to 2 000 000 0.50% 2.75%from 2 000 001 to 5 000 000 0.25% 1.12%from 5 000 001 to 10 000 000 0.10% 0.616%from 10 000 001 to 50 000 000 0.05% 0.193%from 50 000 001 to 80 000 000 0.03% 0.136%

from 80 000 001 to 100 000 000 0.02% 0.112%over 100 000 000 0.01% 0.056%(**) For illustrative purposes only, the table on the following pageindicates the resulting range of fees when the proper calculations havebeen made.


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SUM IN DISPUTE(in US $)

B. ARBITRATOR'S FEES(in US $)

Minimum Maximum

up to 50 000 2500

17.00% of amount in

dispute

from 50 001 to100 000

2500 + 2.00% of amt.over 50 000

8500 + 11.00% of amt.over 50 000

from 100 001 to500 000

3500 + 1.00% of amt.over 100 000

14 000 + 5.50% of amt.over 100 000

from 500 001 to1 000 000

7500+ 0.75% of amt.over 500 000

36 000 + 3.50% of amt.over 500 000

COSTS OF ARBITRATIONCOSTS OF ARBITRATION


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from 1 000 001 to2 000 000

11 250 + 0.50% of amt.over 1 000 000

53 500 + 2.75% of amt.over 1 000 000

from 2 000 001 to5 000 000

16 250 + 0.25% of amt.over 2 000 000

81 000 + 1.12% of amt.over 2 000 000

from 5 000 001 to10 000 000

23 750 + 0.10% of amt.over 5 000 000

114 600 + 0.616% of amt.over 5 000 000

from 10 000 001 to50 000 000

28 750 + 0.05% of amt.over 10 000 000

145 400 + 0.193% of amt.over 10 000 000

from 50 000 001 to

80 000 000

48 750 + 0.03% of amt.

over 50 000 000

222 600 + 0.136% of amt.

over 50 000 000



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from 80 000 001 to100 000 000

57 750 + 0.02% of amt.over 80 000 000

263 400+ 0.112% of amt.over 80 000 000

over 100 000 000 61 750 + 0.01% of amt.over 100 000 000 285 800 + 0.056% of amt.over 100 000 000

Documents

Arbitration ICC