Constitution of the Commission - Additional Facility Conciliation

3.4.5-Constitution-of-the-Commission-LP.pngThe Commission must be constituted as soon as possible after registration of a request for conciliation. It is constituted on the date the Secretary-General notifies the parties that all conciliators have accepted their appointments (Article 13 of the Conciliation (Additional Facility) Rules).

The average time to constitute the Commission is approximately three months from the date of registration. The period may vary depending on the time it takes the parties to determine the number of conciliators and the method of their appointment and to select and appoint the members of the Commission.

Effects of the Commission’s Constitution

Once a Commission is constituted:

  • The proceedings are deemed to have begun.
  • A member of the ICSID Secretariat (legal counsel) is designated to serve as Secretary of the Commission.
  • ICSID sends the request for conciliation and all correspondence between ICSID and the parties to the members of the Commission (Article 32 of the Conciliation (Additional Facility) Rules).
  • The first session of the Commission must be held within 60 days from the date of constitution, unless the parties agree otherwise (Article 20(1) of the Conciliation (Additional Facility) Rules).
     The Secretary of the Commission will contact the parties to enquire about their availability for the session.
  • The Secretary of the Commission will, after consultation with the President of the Commission, request the parties to make a first advance payment to cover the costs of the proceeding (Administrative and Financial Regulation 14(3)). The amount of the first advance will vary depending on the number of conciliators and the anticipated expenses during the first three to six months, in particular in connection with the first session of the Commission. The parties may expect a first advance in the order of US$100,000-150,000 per party.
  • An administrative charge (US$32,000 under the current Schedule of Fees) is divided equally between the parties and deducted from the parties’ advances on an annual basis, on the anniversary of the date of constitution of the Commission.