Phnom Penh, September 18, 2023 – THE NATIONAL COMMERCIAL ARBITRATION CENTRE OF THE KINGDOM OF CAMBODIA (NCAC) is honored to inform the NCAC’s members and the public that:
The NCAC, with the support from the International Financial Corporation (IFC), organized a “Launch Event on Commercial Mediation Services” at the Sofitel Phnom Penh Phokeethra hotel on September 18, 2023.
There were 120 participants from NCAC’s members, business, and legal communities and other relevant governmental authorities, who participated in the launch event. NCAC is now able to offer mediation services to help businesses reach a resolution to their commercial dispute in a cost and time-effective manner.
Mr. SAN Kiri, President of NCAC, said that:
“NCAC was born out of the desire to enhance the use of alternative dispute resolution (ADR) in Cambodia and to handle the increasing number of international and domestic commercial disputes, which is correlated with the unprecedented economy growth in Cambodia. Foreign investments play an important role in contributing to economic growth as well as the tremendous increase of cross-border commercial deals. What the business communities need is the ability to resolve any dispute arising out of those transactions effectively through a neutral dispute resolution mechanism.
A mechanism which can offer parties the autonomy to choose how the dispute should be resolved; the liberty to select the right persons equipped with the necessary technical know-how to decide on the case; and the ability to adopt a procedure that works best in settling their disputes based on the commercial nature of the deals. The ability to resolve disputes in confidence and to enforce the decision globally is also equally important to the business communities. Using arbitration is the way forward to addressing this business demand.
The NCAC is mindful that not all commercial disputes need to resort to binding decisions. It has been considered that mediation is another dispute settlement method which can offer a means of amicably settling disputes arising in the context of commercial relations.
Mediation is a consensual, flexible, confidential, efficient, and affordable out-of-court dispute resolution process in which an impartial third party called a “mediator” helps two or more disputing parties better understand their issues and interests and reach a settlement agreement. The mediator does not have the authority to impose a settlement.
The launching of NCAC mediation service will offer another alternative to help businesses resolve their dispute in a cost and time effective manner.
NCAC will continue striving to build its reputation as the preferred venue for commercial dispute resolution, arbitration, and mediation, offering excellent, efficient, and expeditious case administration.”
“The launch of the commercial mediation services is a result of a multi-year partnership between IFC and NCAC, aiming to promote efficient, alternative dispute resolution mechanisms and out-of-court workouts in Cambodia to resolve commercial and debt-related disputes. As Cambodian businesses navigate a multitude of challenges amid overlapping crises globally, efficient alternative dispute resolution options will give the private sector more confidence to engage in business transactions, generating income and creating jobs. This will help encourage investments while promoting economic growth in the country,” said Ms. Paramita Dasgupta, IFC Manager for Creating Markets Advisory Services, East Asia and the Pacific.
NCAC is an independent and not-for-profit institution established by the 2006 Law on Commercial Arbitration. Being the only arbitration centre in Cambodia, NCAC’s mission is to offer an impartial and effective alternative dispute resolution. There are currently more than 70 (seventy) arbitrators of diverse nationalities on the NCAC panels. Since its official commencement of operation in 2013, NCAC has received and administered 38 (thirty-eight) cases with a total sum in dispute of about USD 100 (one hundred) million.
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