INTRODUCTION

Art. 59 is the first of three Articles in Chapter VI of the Convention entitled “Cost of Proceedings”. Art. 59 deals with the charges for the use of the Centre's facilities. Art. 60 deals with the fees and expenses of conciliators and arbitrators. Art. 61 deals with the apportionment of costs between the parties.

The costs of proceedings consist of three elements:

• the charges for the use of the facilities and expenses of the Centre;

• the fees and expenses of the conciliators or arbitrators;

• expenses incurred by the parties in connection with the proceedings.

Of these three categories, the third, consisting mainly of the costs for legal representation, is typically by far the largest.

Other instruments governing international arbitration also contain detailed provisions on the costs of proceedings. ICSID proceedings usually involve lower costs than proceedings under alternative regimes. This is due, in part, to lower administrative costs (see para. 13 infra) and in part to the way the fees of conciliators and arbitrators are determined (see Art. 60, paras. 7–9).

The actual costs of a particular ICSID proceeding depend on several factors. Apart from the complexity of the case, they include the size of the commission or tribunal (see Art. 37, para. 14), the duration of the proceeding, the number and length of sessions of the commission or tribunal, the location of sessions and the need to employ interpreters, translators and clerical staff.