Cost of Proceedings
2.5-Cost-of-Proceedings-LP.pngThe costs in cases governed by the ICSID rules consist of:
(i) The parties’ expenses, including the cost of legal representation;
(ii) The advances paid to ICSID to cover the fees and expenses of arbitrators, conciliators or Committee members, and the Centre’s expenses and administrative charges; and
(iii) The lodging fee paid by the party instituting proceedings.

Parties’ Legal Fees and Expenses

Parties are responsible for the fees and expenses of legal representation and experts appearing in the proceeding.  Depending on the complexity of the case as well as the number of pleadings and oral hearings, these costs could be substantial. A Tribunal or ad hoc Committee has discretion to order that these be reimbursed.

Advance Payments to ICSID

The funds requested from the parties in ICSID cases to cover the costs of the proceedings are not based on the amount in dispute, but rather reflect the actual fees and reasonable expenses of a Tribunal, Conciliation Commission or ad hoc Committee, as well as the services and expenses of ICSID.

The Centre periodically requests parties to the proceeding to make advance payments to cover the costs of the proceeding (Administrative and Financial Regulation 14(3)). The advance payments are estimated in consultation with the President of the Tribunal, Commission or ad hoc Committee, taking into account the costs to be incurred usually in periods of three to six months. The first advance payment is requested shortly after the constitution of the Tribunal and is usually in the order of US$100,000 – US$150,000 per party.

The total cost of the proceeding paid from the parties’ advances depends on the complexity of the case, its length as well as the number of pleadings and oral hearings.

Fees and Expenses of Tribunal, Commission or ad hoc Committee Members 

Typically, the major part of the advances covers the fees and expenses of Tribunal, Commission or ad hoc Committee members. Each member is entitled to receive:
  • a fee of US$3,000 per day of meetings or other work performed in connection with the proceedings (corresponding to US$375 per hour); and
  • the reimbursement of any expenses reasonably incurred in connection with travel and otherwise, including a per diem.
The expense entitlements are explained in the Memorandum on the Fees and Expenses of ICSID Arbitrators. The fee entitlement is contained in the Schedule of Fees.
The fees and expenses may not exceed the amounts in the Memorandum and Schedule of Fees. A request for a higher amount, due to special circumstances, must be made through the Secretary-General and must be approved by each disputing party in advance of the case (see Article 60 of the ICSID Convention and Administrative and Financial Regulation 14 (1)).
ICSID’s Expenses and Administrative Charges
The Centre does not charge the parties for its services by the hour but charges an annual fee, currently US$32,000 (see the Schedule of Fees). The fee covers time spent by all members of the dedicated case team, including the assistance of the Secretary at hearings and the financial management of the case account. This fee is usually divided equally between the parties. It applies to all ICSID cases and non-ICSID cases administered by ICSID.
Additional services by other service providers, e.g., costs of interpretation, court reporting, catering, video-conferences and courier, are paid from the parties’ advances.
The use of ICSID’s hearing facilities at any World Bank premises is included in the administrive charge. Room rentals for hearings held outside of the facilities of the World Bank are paid from the parties’ advances.
For the fee in non-ICSID cases in which the parties and the Tribunal have selected limited assistance by the Secretariat, please contact ICSID.
Administration of the Case Account
As soon as a Tribunal, Commission or ad hoc Committee is constituted, the Secretariat establishes an interest-bearing escrow account for the case. The Centre deposits advance payments from the parties in that account, processes claims for payment and invoices, and keeps the Tribunal, Commission or ad hoc Committee informed of the balance. All payments from the account are reviewed by and go through the Centre (Administrative and Financial Regulation 14 (2)).
The Secretariat requests fee claims from arbitrators on a quarterly basis to ensure an accurate statement of the finances. Detailed interim financial statements are provided with every request for advances and may be provided to the parties or the Tribunal, Commission or ad hoc Committee upon request at any time. ICSID sends a financial statement to the parties at the end of the proceeding, which includes a breakdown of the fees and expenses of each arbitrator, conciliator or Committee member.
Apportionment of Advances
Generally in arbitration, each party pays one half of the advances, although the Tribunal may order a different apportionment at any stage of the proceeding (Arbitration Rule 28, Article 58 of the Arbitration (Additional Facility) Rules). The allocation of costs during the proceeding is without prejudice to the final decision on costs to be made by the Tribunal in the award (Article 61(2) of the Convention, Article 58 of the Arbitration (Additional Facility) Rules).
In an annulment proceeding (a post-award remedy under the ICSID Convention), the party applying for annulment is solely responsible for making the advance payment requested by the Centre (see Administrative and Financial Regulation 14(3)(e)), without prejudice to the ad hoc Committee’s final decision on costs.
In conciliation cases, the costs of the proceeding are borne equally by the parties and each party bears its own legal fees and expenses (Article 61(2) of the Convention, Article 40 of the Conciliation (Additional Facility) Rules).
Lodging Fee
A non-refundable fee of US$25,000 is payable to the Centre by a party:
  • requesting the institution of conciliation, arbitration or fact-finding proceedings under the ICSID Convention or the Additional Facility; or
  • applying for annulment of an award rendered under the Convention.
A non-refundable fee of US$10,000 is payable to the Centre by a party:
  • requesting a supplementary decision to or rectification of an award under the Convention;
  • requesting the interpretation or revision of an award under the Convention;
  • requesting the resubmission of a dispute to a new Tribunal after the annulment of an award under the Convention; or
  • requesting the supplementary decision to, or the correction or interpretation of, an award under the Additional Facility Rules (Administrative and Financial Regulation 16, Schedule of Fees).

The lodging fee must be paid with the submission of the relevant request and, for post-award remedies, within the prescribed time limit set out in the ICSID Convention or Additional Facility Rules.