Managing Case Finances
ICSID encourages Tribunals, Commissions and ad hoc Committees to create a budget at the beginning of a case to ensure fund availability and optimal use of advances. As soon as a Tribunal, Commission or ad hoc Committee is constituted, ICSID establishes a case-specific income bearing account. 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.
ICSID periodically asks parties to proceedings 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 likely costs in the next three to six months.
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.
Arbitrators, conciliators and Committee members are required to submit claims for fees and expenses on a quarterly basis and to enquire from the Secretariat, in particular before incurring substantial fees or major expenses, whether sufficient funds are available to meet such costs. ICSID is not liable for arbitrators’ unpaid fees and expenses if there are insufficient funds on the case account (Administrative and Financial Regulation 14(3)(b)).