Cost of Proceedings

The 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 charges the parties an annual fee for its services. This fee, which is currently US$42,000 (see the Schedule of Fees), 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 administrative 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.