Martinez, Alexis --- "Cost of Proceedings" [2019] ELECD 3023; in Fouret, Julien; Gerbay, Remy; Alvarez, M. Gloria (eds), "The ICSID Convention, Regulations and Rules" (Edward Elgar Publishing, 2019) 777

Book Title: The ICSID Convention, Regulations and Rules

Editor(s): Fouret, Julien; Gerbay, Rémy; Alvarez, M. Gloria

Publisher: Edward Elgar Publishing

Section: Chapter 6

Section Title: Cost of Proceedings

Author(s): Martinez, Alexis

Number of pages: 54

Extract:

6
COST OF PROCEEDINGS
Alexis Martinez




1. INTRODUCTORY REMARKS ON CHAPTER VI: COSTS OF THE PROCEEDINGS

It was uncontroversial from the beginning that the parties to dispute resolution pro- 6.01
ceedings would be charged for the use of the facilities of the International Centre for
Settlement of Investment Disputes (the `Centre' or ICSID). It was also clear that mem-
bers of the conciliation commissions or arbitral tribunals would charge fees to resolve
these disputes, in addition to the fees and other expenses payable to the parties' advisers.

The apportionment of these costs is dealt with at Articles 59, 60, and 61 of the Conven- 6.02
tion on the Settlement of Investment Disputes between States and Nationals of Other
States of 18 March 1965 (the `Convention').1 Together, these provisions form Chapter
VI of the Convention, and, like the Convention as a whole, are based on the Report of
the Executive Directors of the International Bank for Reconstruction and Develop-
ment (the `Bank').2

Of all the approaches to costs allocation that were available to the drafters, two are 6.03
pre-eminent in international arbitration practice. The first is the so-called `Pay Your
Own Way' (PYOW) approach to costs. Under this method, the parties to arbitration
proceedings share the costs of the tribunal and any charge for the use of ICSID facili-
ties, but are responsible for the costs of their own legal representation. The other is the
so-called `Costs Follow the Event' (CFTE) approach to ...