1 national commercial arbitration center development of commercial arbitration in cambodia mr. bun...

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National Commercial Arbitration Center

Development of Commercial Arbitration in Cambodia

Mr. BUN Youdy, ArbitratorMember of the NCAC Executive Board

Member of EuroCham Board

Intercontinental Hotel 22 September 2015EuroCham Breakfast Talk

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Presentation Outline1. Why choose commercial arbitration in Cambodia?2. An overview of recent development of commercial

arbitration in Cambodia

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Why choose commercial arbitration in Cambodia?


What investors/companies look for before investing in a country1. Ease of establishment of a business2. Market size and growth prospects3. Labor cost and productivity4. Infrastructure5. Political stability6. Corruption7. Taxes8. Ability to repatriate earnings/profit9. Clear, enforceable legal framework and rule of law

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Figure 1 - What are the time, cost and numbers of procedures to resolve a commercial dispute through the courts?, Enforcing Contracts Methodology, World Bank


Ranking of enforcement of contracts in Cambodia

Impact on decision making by large and small investors (foreign and local)

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TOPICS DB 2015 Rank DB 2014 Rank Change in Rank

Enforcing Contracts 178/189 178/189 No change

Doing Business Report (2015, World Bank)


Current challenges if we don’t choose commercial arbitration in Cambodia Difficulties with the courts Limitation of technical or specialized knowledge of judiciary

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How the NCAC provides a stronger alternative Party autonomy Costs: predictable and reasonable Arbitration rules based on international standards Proceedings may be conducted in a foreign language Awards are scrutinized New York Convention

Awards issued by NCAC are enforceable in all NY Convention signatory countries Arbitrators

Qualified, trained by international experts in arbitration Experts in Cambodian law Native Khmer language speakers able to quickly understand evidence and

documents which will be primarily in Khmer

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An overview of recent development of commercial arbitration in Cambodia

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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 NCAC Mar. 2010: Selection of arbitration candidates Dec. 2010: Amendment to art. 52 of Sub-Decree No. 124 2010-2011: Selection of arbitrators through examination Jan. 2013: Official launch of NCAC July 2014: Internal Rules and Arbitration Rules April 2015: Code of Ethics

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Status of NCAC NCAC is an independent organization

Roles and Functions of NCAC Promote arbitration: promote the settlement of commercial disputes

through arbitration in Cambodia Rules: create the necessary infrastructure and rules for the

administration of arbitration cases in Cambodia Standards: ensure high quality standards of arbitration are

maintained in Cambodia, including setting and ensuring the qualifications of arbitrators

Training: provide education and training to arbitrators and aspiring arbitrators in Cambodia

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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 dispute Any expenses incurred by the Tribunal and the NCAC: includes

expenses such as costs of expert witnesses and cost of facilities


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Fee schedule – Administration Fee (USD)


Sum in Dispute

Arbitration Fee

Up to

50,000

=

750

From

50,001

to

100,000

=

750

+

0.7%of excess over

50,000

From

100,001

to

200,000

=

1,100

+

0.65%of excess over

100,000

From

200,001

to

500,000

=

1,750

+

0.6%of excess over

200,000

From

500,001

to

1,000.000

=

3,550

+

0.4%of excess over

500,000

From

1,000,001

to

2,000,000

=

5,550

+

0.2%of excess over

1,000,000

From

2,000,001

to

5,000,000

=

7,550

+

0.12%of excess over

2,000,000

From

5,000,001

to

10,000,000

=

11,150

+

0.06%of excess over

5,000,000

From

10,000,001

to

50,000,000

=

14,150

+

0.03%of excess over

10,000,000

Over

50,000,000

=

26,150

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Fee schedule – Tribunal Fee (USD)


Sum in Dispute Tribunal Fee(per arbitrator)

Up to

50,000

=

1,000

From

50,001

to

100,000

=

1,000

+

1%of excess over

50,000

From

100,001

to

200,000

=

1,500

+

0.9%of excess over

100,000

From

200,001

to

500,000

=

2,400

+

0.7%of excess over

200,000

From

500,001

to

1,000,000

=

4,500

+

0.6%of excess over

500,000

From

1,000,001

to

2,000,000

=

7,500

+

0.5%of excess over

1,000,000

From

2,000,001

to

5,000,000

=

12,500

+

0.3%of excess over

2,000,000

From

5,000,001

to

10,000,000

=

21,500

+

0.25%of excess over

5,000,000

From

10,000,001

to

50,000,000

=

34,000

+

0.03%of excess over

10,000,000

Over

50,000,000

=

46,000

+

0.01%of excess over

50,000,000

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Sample of FeesDispute of 500,000 USD with one arbitrator appointed by parties

Dispute of 1,00,000 USD with three arbitrators appointed by parties


Registration 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 + expenses

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Arbitration clauseAny 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 LawThis contract is governed by the laws of ___________________*.* State the country or jurisdiction.

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Contact details of NCAC

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: [email protected]

Website: www.ncac.org.kh

mailto:[email protected]

http://www.ncac.org.kh/

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Thank you


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