ADR mechanisms to encourage investment growth
Wednesday, 24 March 2010
FE Report
Bangladesh Investment Climate Fund (BICF) has partnered with the Bangladesh International Arbitration Centre (BIAC) to help develop a center through which commercial disputes can be resolved.
This center is expected to help businesses and investors save on time and money by giving them the scope to deal with disputes outside the courtroom setting.
BIAC has been established by the three leading chambers, ICC Bangladesh, Dhaka Chamber of Commerce and Industry (DCCI) and the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka to promote alternative dispute resolution (ADR) in Bangladesh.
Given the delays and uncertainties in settlement of case through legal process, alternative dispute resolution systems can play an important role in reducing the cost of doing business. However, a structured, institutionalized mechanism must be in place in order to help such a system gain wide commercial acceptance.
"Investors or businesses can now turn to BIAC to resolve business disputes in a fair and efficient manner," said Mr. Mahbubur Rahman.
He thanked the IFC BICF for supporting this unique ADR Capacity Building Project to be implemented over e three year period.
Mr.Martelli mentioned that IFC is very hopeful that on completion of the three years project by BIAC , cost of doing business in Bangladesh will improve and there will definitely be positive impact of the project. IFC is very happy to work with the ICCB, DCCI and MCCI through BIAC by collaborating in implementation of such a vital project for the betterment of the business.
"The lack of alternate dispute mechanisms was an impediment to the investment climate," asserted James Crittle, Head of BICF.
Removing these impediments encourages investment and thus economic growth and job creation. More importantly the presence of a local centre makes ADR a cost effective option for settling disputes for local businesses.
The Bangladesh Investment Climate Fund is managed by IFC, in partnership with the United Kingdom's Department for International Development and the European Commission.
BICF will assist BIAC to provide capacity building to legal experts to help them develop skills in arbitration, mediation and conciliation necessary to execute cases through this mechanism. It is expected that these capacity building activities will help reduce the huge backlog of commercial cases and prevent the accumulation of further backlogs, thus reducing the cost of doing business, reducing legal uncertainties and minimizing the delays of the formal justice system.
BIAC will also create awareness among bankers, private sector representatives and other stakeholders, in order to promote the use of this efficient alternative to courtroom cases. BIAC will also provide a venue and facilities for international standard arbitration, mediation and conciliation.
The Project Agreement was signed by Mr. Paolo Martelli, South Asia Director of the International Finance Corporation (IFC) of World Bank Group and Mr.Mahbubur Rahman, Chairman of BIAC and President of ICC Bangladesh. MCCI President M. Anis Ud Dowla and DCCI President Abul Kasem Khan were also present during the signing ceremony.
Bangladesh Investment Climate Fund (BICF) has partnered with the Bangladesh International Arbitration Centre (BIAC) to help develop a center through which commercial disputes can be resolved.
This center is expected to help businesses and investors save on time and money by giving them the scope to deal with disputes outside the courtroom setting.
BIAC has been established by the three leading chambers, ICC Bangladesh, Dhaka Chamber of Commerce and Industry (DCCI) and the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka to promote alternative dispute resolution (ADR) in Bangladesh.
Given the delays and uncertainties in settlement of case through legal process, alternative dispute resolution systems can play an important role in reducing the cost of doing business. However, a structured, institutionalized mechanism must be in place in order to help such a system gain wide commercial acceptance.
"Investors or businesses can now turn to BIAC to resolve business disputes in a fair and efficient manner," said Mr. Mahbubur Rahman.
He thanked the IFC BICF for supporting this unique ADR Capacity Building Project to be implemented over e three year period.
Mr.Martelli mentioned that IFC is very hopeful that on completion of the three years project by BIAC , cost of doing business in Bangladesh will improve and there will definitely be positive impact of the project. IFC is very happy to work with the ICCB, DCCI and MCCI through BIAC by collaborating in implementation of such a vital project for the betterment of the business.
"The lack of alternate dispute mechanisms was an impediment to the investment climate," asserted James Crittle, Head of BICF.
Removing these impediments encourages investment and thus economic growth and job creation. More importantly the presence of a local centre makes ADR a cost effective option for settling disputes for local businesses.
The Bangladesh Investment Climate Fund is managed by IFC, in partnership with the United Kingdom's Department for International Development and the European Commission.
BICF will assist BIAC to provide capacity building to legal experts to help them develop skills in arbitration, mediation and conciliation necessary to execute cases through this mechanism. It is expected that these capacity building activities will help reduce the huge backlog of commercial cases and prevent the accumulation of further backlogs, thus reducing the cost of doing business, reducing legal uncertainties and minimizing the delays of the formal justice system.
BIAC will also create awareness among bankers, private sector representatives and other stakeholders, in order to promote the use of this efficient alternative to courtroom cases. BIAC will also provide a venue and facilities for international standard arbitration, mediation and conciliation.
The Project Agreement was signed by Mr. Paolo Martelli, South Asia Director of the International Finance Corporation (IFC) of World Bank Group and Mr.Mahbubur Rahman, Chairman of BIAC and President of ICC Bangladesh. MCCI President M. Anis Ud Dowla and DCCI President Abul Kasem Khan were also present during the signing ceremony.