Constitution of the Tribunal - Additional Facility Arbitration

3.3.5-Constitution-of-Tribunal-LP.pngThe Tribunal must be constituted as soon as possible after registration of a request for arbitration. It is constituted on the date the Secretary-General notifies the parties that all arbitrators have accepted their appointments (Article 13 of the Arbitration (Additional Facility) Rules).

The time for constituting the tribunal may vary depending on the time it takes the parties to determine the number of arbitrators and the method of their appointment and the time it takes to select and appoint the members of the Tribunal. The parties may agree to take as much time as they require to constitute a Tribunal. However, if a party asks ICSID to appoint an arbitrator, that appointment is completed on an average of six weeks from the request.

Effects of the Tribunal’s Constitution

Once a Tribunal is constituted:

  • The proceedings are deemed to have begun on the same date.
  • A member of the ICSID Secretariat (legal counsel) is designated to serve as Secretary of the Tribunal.
  • ICSID sends the request for arbitration and all correspondence between the parties to the members of the Tribunal (Article 37 of the Arbitration (Additional Facility) Rules).
  • The first session of the Tribunal must be held within 60 days from the date of constitution, unless the parties agree otherwise (Article 21(1) of the Arbitration (Additional Facility) Rules).  The Secretary of the Tribunal will contact the parties to enquire about their availability for the session.
  • A party may raise preliminary objections under Article 45(6) of the Arbitration (Additional Facility) Rules no later than 30 days after the constitution, unless the parties have agreed otherwise. 
  • The Secretary of the Tribunal will, after consultation with the President of the Tribunal, request the parties to make a first advance payment toward the costs of the proceeding (Administrative and Financial Regulation 14(3)). The amount of the first advance will vary depending on the number of arbitrators and the anticipated expenses during the first three to six months, in particular in connection with the first session of the Tribunal. The parties may expect a first advance in the order of US$100,000-150,000 per party.
  • An annual administrative charge (US$32,000 under the current Schedule of Fees) is divided equally between the parties and deducted from the parties' advances, on the anniversary of the date of constitution of the Tribunal.