Development of Commercial Arbitration in Cambodia Mr BUN Youdy Arbitrator Member of the NCAC Executive Board Member of EuroCham Board Intercontinental Hotel 22 September 2015 EuroCham ID: 611708
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Slide1
1
National Commercial Arbitration Center
Development of Commercial Arbitration in Cambodia
Mr. BUN Youdy, ArbitratorMember of the NCAC Executive BoardMember of EuroCham Board
Intercontinental Hotel
22 September 2015
EuroCham
Breakfast TalkSlide2
2
National Commercial Arbitration Center
Presentation OutlineWhy choose commercial arbitration in Cambodia?
An overview of recent development of commercial arbitration in CambodiaSlide3
Why
choose
commercial arbitration in Cambodia?3Slide4
Why choose commercial arbitration in Cambodia?
What investors/companies look for before investing in a country
Ease of establishment of a businessMarket size and growth prospectsLabor cost and productivity
InfrastructurePolitical stabilityCorruptionTaxesAbility to repatriate earnings/profitClear, enforceable legal framework and rule of law
4
Figure 1 - What are the time, cost and numbers of procedures to resolve a commercial dispute through the courts?, Enforcing Contracts Methodology, World BankSlide5
Why choose commercial arbitration in Cambodia?
Ranking of enforcement of contracts in Cambodia
Impact on decision making by large and small investors (foreign and local)5
TOPICS
DB 2015 Rank
DB 2014 Rank
Change in Rank
Enforcing Contracts
178/189
178/189
No change
Doing Business Report (2015, World Bank)Slide6
Why choose commercial arbitration in Cambodia?
Current challenges if we don’t choose commercial arbitration in Cambodia
Difficulties with the courtsLimitation of technical or specialized knowledge of judiciary6Slide7
Why choose commercial arbitration in Cambodia?
How the NCAC provides a stronger alternative
Party autonomyCosts: predictable and reasonableArbitration rules based on international standardsProceedings may be conducted in a foreign language
Awards are scrutinizedNew York ConventionAwards issued by NCAC are enforceable in all NY Convention signatory countriesArbitrators Qualified, trained by international experts in arbitrationExperts in Cambodian law
Native Khmer language speakers able to quickly understand evidence and documents which will be primarily in Khmer7Slide8
An
overview of
recent development of commercial arbitration in Cambodia8Slide9
9
Recent development of commercial arbitration in Cambodia
History and Recent Development May 2006: Arbitration Law
Aug. 2009: Sub-Decree No. 124 on Organization and Functioning of NCACMar. 2010: Selection of arbitration candidatesDec. 2010: Amendment to art. 52 of Sub-Decree No. 1242010-2011: Selection of arbitrators through examinationJan. 2013: Official launch of NCACJuly 2014: Internal Rules and Arbitration Rules
April 2015: Code of EthicsSlide10
Recent development of commercial arbitration in Cambodia
Status of NCAC
NCAC is an independent organizationRoles and Functions of NCACPromote arbitration: promote the settlement of commercial disputes
through arbitration in CambodiaRules: create the necessary infrastructure and rules for the administration of arbitration cases in CambodiaStandards: ensure high quality standards of arbitration are maintained in Cambodia, including setting and ensuring the qualifications of arbitratorsTraining: provide education and training to arbitrators and aspiring arbitrators in Cambodia10Slide11
Fee schedule
Registration fee: flat rate of 250.00 USD
Administration fee: graduated, based on the sum in dispute Arbitrator appointment fee:
flat fee of 300.00 USD per arbitrator if the parties fail to appoint an arbitrator on their own Tribunal fee: graduated, based on the sum in disputeAny expenses incurred by the Tribunal and the NCAC: includes expenses such as costs of expert witnesses and cost of facilitiesRecent development of commercial arbitration in Cambodia
11Slide12
Fee schedule – Administration Fee (USD)
Recent development of commercial arbitration in Cambodia
12
Sum in
Disp
ute
A
rbi
tr
a
t
i
o
n
F
e
e
U
p
to
50,
0
00
=
7
50
From
50,
0
01
to
1
00,
0
00
=
7
50
+
0.7%
o
f
excess o
v
e
r
50,
0
00
From
1
00,
0
01
to
2
00,
0
00
=
1
,
100
+
0.65%
o
f
excess o
v
e
r
1
00,
0
00
From
2
00,
0
01
to
5
00,
0
00
=
1
,
750
+
0.6%
o
f
excess o
v
e
r
2
00,
0
00
From
5
00,
0
01
to
1
,
0
0
0.
0
0
0
=
3
,
550
+
0.4%
o
f
excess o
v
e
r
5
00,
0
00
From
1
,
000
,0
01
to
2
,
0
0
0
,0
00
=
5
,
550
+
0.2%
o
f
excess o
v
e
r
1
,
000
,0
00
From
2
,
000
,0
01
to
5
,
0
0
0
,0
00
=
7
,
550
+
0.12%
o
f
excess o
v
e
r
2
,
000
,0
00
From
5
,
000
,0
01
to
1
0
,
0
0
0
,0
00
=
11,
1
50
+
0.06%
o
f
excess o
v
e
r
5
,
000
,0
00
From
10,
0
00
,0
01
to
5
0
,
0
0
0
,0
00
=
14,
1
50
+
0.03%
o
f
excess o
v
e
r
1
0
,0
00
,0
00
Over
50,
0
00
,0
00
=
26,
1
50
Slide13
Fee schedule – Tribunal Fee (USD)
Recent development of commercial arbitration in Cambodia
13
Sum in
Dis
pute
T
r
ib
u
n
al
Fee
(p
e
r
arbi
t
r
a
t
or)
U
p
to
5
0
,0
00
=
1
,
0
0
0
From
5
0
,0
01
to
1
00,
0
00
=
1
,
0
0
0
+
1%
of
e
xc
e
s
s over
5
0
,
0
00
From
1
0
0
,
0
01
to
2
00,
0
00
=
1
,
5
0
0
+
0
.
9%
of
e
xc
e
s
s over
1
0
0
,
0
0
0
From
2
0
0
,
0
01
to
5
00,
0
00
=
2
,
4
0
0
+
0
.
7%
of
e
xc
e
s
s over
2
0
0
,
0
0
0
From
5
0
0
,
0
01
to
1
,
000
,0
00
=
4
,
5
0
0
+
0
.
6%
of
e
xc
e
s
s over
5
0
0
,
0
0
0
From
1
,
0
0
0
,0
01
to
2
,
000
,0
00
=
7
,
5
0
0
+
0
.
5%
of
e
xc
e
s
s over
1
,
0
0
0
,
0
0
0
From
2
,
0
0
0
,0
01
to
5
,
000
,0
00
=
12,5
0
0
+
0
.
3%
of
e
xc
e
s
s over
2
,
0
0
0
,
0
0
0
From
5
,
0
0
0
,0
01
to
10,
0
00
,0
00
=
21,5
0
0
+
0.
2
5
%
of
e
xc
e
s
s over
5
,
0
0
0
,
0
0
0
From
1
0
,
0
0
0
,0
01
to
50,
0
00
,0
00
=
34,0
0
0
+
0.
0
3
%
of
e
xc
e
s
s over
10,0
0
0
,
0
0
0
O
v
er
5
0
,
0
0
0
,0
00
=
46,0
0
0
+
0.
0
1
%
of
e
xc
e
s
s over
50,0
0
0
,
0
0
0Slide14
Sample of Fees
Dispute of 500,000 USD with one arbitrator appointed by parties
Dispute of 1,00,000 USD with three arbitrators appointed by parties
Recent development of commercial arbitration in Cambodia14Registration fee
250
Administration fee (1,750
+ (300,000 x 0.6%))
3,550
Tribunal fee (2,400 + (300,000 x 0.7%))
4,500
Expenses
(as incurred)
Total
8,300 + expenses
Registration
fee
250
Administration fee (3,550 + (500,000 x 0.4%))
5,550
Tribunal fee
(4,500 + (500,000 x 0.6%)) x 3
22,500
Expenses
(as incurred)
Total
28,300 + expensesSlide15
Recent development of commercial arbitration in Cambodia
Arbitration clause
15Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity, performance or termination, shall be referred to and finally resolved by arbitration in the Kingdom of Cambodia in accordance with the Arbitration Rules of the National Commercial Arbitration Center (
NCAC Rules) being in force at the time of commencement of arbitration and by reference in this clause the NCAC Rules are deemed to be incorporated as part of this contract.The Tribunal shall consist of ________________* arbitrator(s).*State an odd number.
The language of the arbitration shall be __________________.
□Applicable Law
This contract is governed by the laws of ___________________*.
* State the country or jurisdiction. Slide16
Contact details of NCAC
16
Address
: Building 65-67-67, Street 136 Sangkat Phsar Kandal I, Khan Daun Penh, Phnom Penh, Kingdom of Cambodia
Tel: +855 (0)12 44 00 22
E-mail: info@ncac.org.kh
Website
:
www.ncac.org.khSlide17
Thank you
National Commercial Arbitration Center
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