Phnom Penh, Cambodia, March 9, 2022—To help improve Cambodia's investment climate while supporting businesses to recover from the impacts of COVID-19 and continue job creation, IFC and the National Commercial Arbitration Center (NCAC) are promoting mediation to resolve business disputes and build investors' trust in commercial litigations.
Given the economic challenges of a global pandemic, like in many other markets, it has been difficult for Cambodian businesses—especially small and medium enterprises (SMEs)—to maintain operations. Against this backdrop, availability of flexible out-of-court dispute resolution alternatives such as commercial mediation will help boost entrepreneurship, free company funds otherwise tied up in disputes, and create a conducive environment for investors, SMEs, and entrepreneurs.
Recently, 16 new commercial mediators have been accredited by the internationally recognized mediation and alternative dispute resolution body – the Center for Effective Dispute Resolution (CEDR) after a training program and are ready to provide mediation services to businesses in dispute. A neutral and independent third person, the mediator uses a wide variety of techniques to guide the process of discussion, eventually helping the business parties to arrive at an agreed solution, saving them lengthy and costly court proceedings.
"Even though mediation is a long-standing tradition in the Cambodian society, structured commercial mediation is a relatively new concept for business community here. I believe a strengthened alternative dispute resolution mechanism along with capable mediators will encourage more businesses in the country to adopt commercial mediation, a way to help resolve their disputes in a fast, cost-effective, and efficient manner. An internationally recognized accreditation to the 16 trainees is a remarkable milestone," said Bun Youdy, President of the National Commercial Arbitration Centre.
These mediators participated in the first-ever commercial mediator training program in the country delivered by the London-based CEDR late last year as part of IFC and NCAC's joint efforts to strengthen Cambodia's insolvency framework and promote an effective commercial mediation mechanism. During the six-day course, participants from different industries—legal, arbitration, banking and finance, insurance, accounting, and others—were trained in specific skills and international best practices for mediation proceedings.
"At IFC, our experience shows that during crises, a robust commercial mediation mechanism is critical to promote faster commercial or debt-related dispute resolution. As the Cambodian economy recovers from the pandemic and continues to grow, efficient alternative dispute resolution options will give the private sector more confidence to engage in business transactions, encouraging investment and promoting economic growth in the country," said Asad Yaqub, IFC Resident Representative for Cambodia.
Records from the International Chamber of Commerce (ICC) indicate that an average mediation process lasts four months from the date the request for mediation is filed to the end of the proceeding. However, the actual meetings with the mediator last just one to two days.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org .
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About National Commercial Arbitration Center
The National Commercial Arbitration Center (NCAC) is a non-profit commercial dispute resolution institution based in Phnom Penh, Cambodia. The center was established in 2006 following the promulgation of the Law on Commercial Arbitration and was officially launched in 2013. The NCAC provides businesses with an alternative to the Cambodian court system for the resolution of commercial disputes. For detailed information/inquiry, please contact info@ncac.org.kh.
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