Memorandum on the Fees and Expenses (2005)
(July 6, 2005)
Unless otherwise agreed pursuant to Article 60(2) of the ICSID Convention, members of Arbitral Tribunals constituted under the Convention are entitled to receive the fees, per diem subsistence allowances, travel and other expense reimbursements referred to in Administrative and Financial Regulation 14(1) of the Centre. The purpose of the present memorandum is to explain those entitlements and how they are calculated, claimed and paid.* In accordance with Administrative and Financial Regulation 14(1), the subsistence allowance and travel expense entitlements are based on norms established for the Executive Directors of the World Bank.
1. Administrative and Financial Regulation 14(1) provides arbitrators will receive:
i. a fee for each day of their participation in meetings of the Arbitral Tribunal concerned; and
ii. a fee for the equivalent of each 8-hour day of other work they perform in connection with the proceeding.
2. Days of participation in meetings include days of travel to and from the meetings. Fees for periods of other work below 8 hours may be claimed at the rate of one-eighth of the applicable fee per hour of work performed.
3. The amount of the fees referred to above is at present US$3,000 per meeting day or 8-hour day of other work. That amount has been determined for the fees in the expectation that Tribunals will not propose higher amounts to the parties.
II. Per Diem Subsistence Allowances
4. These allowances are paid in lieu of reimbursement of subsistence expenses when the arbitrators are away from their normal place of residence. Subject to paragraph 7 below, the allowances are considered to cover all personal expenses such as charges for lodging, meals, personal communications, valet, tips and gratuities and all other expenses that are not specifically reimbursable.
Standard and Special Rates
5. The standard allowance is currently US$115 per day. Subject to periodic review, special per diem allowances of US$135, US$170 and US$185 apply for certain high cost cities, as shown on the list attached as Attachment A.
Full Per Diem and Mixed Rate
6. For each night while traveling in connection with a proceeding, arbitrators may:
i. claim the full per diem determined for the city concerned and meet all expenses themselves, or
ii. choose a mixed rate whereby they would claim the actual hotel room charge (including tax and service charge, if any), and an allowance equivalent to 50% of the authorized per diem (rounded to the nearest dollar) to cover their other personal expenses (meals,tips, valet, personal communications, etc).
If the mixed rate is chosen, the hotel bill(s) must be submitted with the claim.
Per Diem for Day Trips etc.
7. For day-time trips and overnight trips by air, rail or other means of public transport, the per diem allowance is paid at one half the standard rate of US$115 rounded to the nearest dollar (US$58).
III. Travel Expenses
8. Reimbursable travel expenses comprise expenses for travel in connection with meetings of the Tribunal concerned.
9. The travel should in all cases be arranged from the place of residence to the place of the meeting and return by the most direct route.
Transport to and from Terminals
10. Arbitrators may claim reimbursement for the actual cost of porterage, taxis, airport or similar taxes, tips and other incidental expenses necessary for moving to and from a terminal. In such a case, the actual costs incurred should be itemized and if practicable supported by appropriate documentation when submitting the claim.
11. Alternatively, in lieu of requesting reimbursement of actual expenses, an arbitrator may claim a flat "in-out allowance" of US$54 to cover expenses necessary for moving to and from terminal.
Class of Transport
12. When traveling by air or by surface public transport, arbitrators are authorized to travel at one class above economy. Reimbursement will in each case be made on the basis of the actual transport expenses incurred. The passenger copy of the transport ticket should always be retained and submitted with the claim for reimbursement.
Transport Within Cities and Countries
13. The cost of hiring taxis for transport within cities will be reimbursed to arbitrators. Claim for reimbursement should, whenever practicable, be supported by receipts or similar documentary evidence.
14. In the absence of readily available suitable public transport, an automobile may be rented for travel within a country. Arbitrators will be reimbursed for the actual cost of the rental with appropriate reductions for any personal use. Receipts for the payment of rental charges should be retained to support the claim for reimbursement.
15. If travel is undertaken in a privately owned automobile, a "mileage allowance" will be paid at the rate of US$0.565 a mile (US$0.35 per km).
16. In connection with travel by rented or privately owned automobiles, arbitrators may, in addition to the above, claim reimbursement for the actual cost of tolls and parking fees.
17. Reimbursement may be claimed for excess baggage charges incurred as a result of transporting documents and papers that are required for the meeting concerned.
18. A rest stop is a break in an air journey requiring more than nine hours of flying time between the point of departure and certain destinations. A one night rest stop is authorized in each direction. (Authorized rest stops may be combined and taken on one leg of the journey.) Before a journey is undertaken, the Secretariat should be consulted on the number of rest stops that are authorized for the journey. Subsistence allowances may be claimed for authorized rest stops (or connecting stops) unless subsistence expenses are paid by an airline.
IV. Other Reimbursable Expenses
19. In addition to their fees, per diem allowances and travel expenses, arbitrators are under Administrative and Financial Regulation 14(1) entitled to receive reimbursement for any direct expenses reasonably incurred.
20. Such expenses may, for example, include expenses incurred for communications, typing and photocopying services required for the proceedings, as well as subsistence expenses incurred in connection with meetings at the place of residence. Claims for reimbursement of such expenses should wherever practicable be accompanied by receipts or other supporting documents.
V. Claims and Payment
21. Claims for fees, allowances and expenses should be submitted, together with all supporting documents, to the Secretariat using the Claim for Fees and Expenses form (click here to see a guide to completing the form).
22. After it approves a claim, the Secretariat forwards the claim for payment to the World Bank, which administers the accounts established for the proceedings. The World Bank then issues the payment to the arbitrator concerned. Payment is made by wire transfer to a designated bank account.
* The entitlements explained in this memorandum also apply to members of Conciliation Commissions and ad hoc Committees constituted under the ICSID Convention. Members of Conciliation Commissions, Arbitral Tribunals and Fact-finding Committees constituted under the ICSID Additional Facility Rules have the same entitlements, unless otherwise agreed pursuant to Article 6 of Schedule A of those Rules.
LIST OF CITIES UNDER SPECIAL PER DIEM RATES
|Amsterdam||Hague, The||New York|
|Berlin||Kinshasa||Port of Spain|
Cities in the $170 per diem category
|Annaba||Guatemala City||Port Moresby|
|Athens||Houston||Rio de Janeiro|
|Brisbane||Kota Kinabalu||Sao Paulo|
|Buenos Aires||Kuala Lumpur||Shanghai|
Cities in the $135 per diem category
|Agadir||Dar es Salaam||Nandi|