BIAC to be launched today
FE Report | Saturday, 9 April 2011
FE Report
The Bangladesh International Arbitration Centre (BIAC) will be launched today (Saturday). The Minister for Law and Parliamentary Affairs, Barrister Shafique Ahmed, will be the chief gust at a function, to be held at the Bangabandhu International Centre in the city, marking the inauguration of the BIAC. The International Chamber of Commerce, Bangladesh (ICC-B) has taken the lead role in setting up of the BIAC. The Dhaka Chamber of Commerce & Industry (DCCI) and the Metropolitan Chamber of Commerce & Industry (MCCI) are also in collaboration with ICC-B for establishment of the BIAC as a not-for profit organization. Minister of Commerce Mr. Mohammad Faruk Khan MP and Economic Affairs Adviser to the Prime Minister, Dr. Mashiur Rahman, will be present at the launching ceremony of the BIAC, as the spe cial guests. The representatives from the business community, legal profession, government, and other interested stakeholders are expected to attend the function. In an interview with The Financial Express, Chief Executive of the BIAC, Dr. Toufiq Ali, responded to different question, explaining the aims and objectives of the Centre. The interview runs as follows: Question(Q): Why do we need this Centre? Answer (A): As the economy expands, and becomes more complex, we are left with no option but to operate with written contracts. And, try as we may to avoid them, there will be breaches or infringements of contracts. What should we do in such cases? Should we go to court to settle the dispute? We know that courts in Bangladesh are already over-burdened with their existing cases. Moreover, going to courts requires time and money. In the meantime, the business suffers. However, if we want a resolution of the dispute, in accordance with our laws, we do have an option - the alternative dispute resolution (ADR) process. For the wheels of industry to move, we must have an effective mechanism for enforcement of agreements and dispute resolution. The centre is named the Bangladesh International Arbitration Centre. Although it will be the first of its kind in the country, if we look around the world, we see countries with arbitration centers which have a long history. And, these centers have been servicing their business sectors, including their respective Governments, efficiently. They provide arbitration facilities, the rules for arbitration, undertake research and analysis, and the essential services required for making the process successful. In selective cases, they have even undertaken mediation and conciliation. Within our own South-Asian region, there are flourishing centers in India, in Pakistan and in Sri Lanka. We are late in establishing our Centre, but I am hopeful of steady progress. As an innovator, we do expect to face teething problems, but we hope that, with the support of the stakeholders, the Centre will soon be functioning effectively. Q: Do the laws of Bangladesh allow arbitration? A: Arbitration is the most formalized system in the ADR regime. Our first law for arbitration dates back to 1940, when the Arbitration Act was passed. The provisions of that Act were incorporated in an improved legal framework known as the Arbitration Act of 2001. This is the legal framework for arbitration currently applicable in Bangladesh. Any law is as good as the people and the institutions that support it. The Arbitration Act is no exception. The Act contains useful provisions for ADR, and it is vital for the business community that it be implemented effectively. The establishment of the Bangladesh International Arbitration Centre should go a long way in meeting our needs. Q: How was this Centre established? Where is it located? A: Two most prominent trade bodies of Bangladesh -- the Dhaka Chamber of Commerce & Industry, and the Metropolitan Chamber of Commerce & Industry, Dhaka -- as well as the International Chamber of Commerce-Bangladesh (ICC-B), an international business organization, decided to establish BIAC as a not-for-profit institution. The ICC-B took the lead role, and paid up half of BIAC's capital fund. Thereafter, in 2004, BIAC was granted the operating license from the Government. BIAC is fortunate to be receiving financial support from the International Finance Corporation (IFC), the private sector arm of the World Bank popularly known by its acronym, the IFC. They also channelized the funds of UKAid and the European Union (EU) for BIAC. As per agreement between the IFC and BIAC, the IFC should continue to extend support to BIAC for seminars, workshops and agreed activities for three years. We hope these activities will create a deeper appreciation of arbitration within the country, and help streamline the process. We are deeply grateful to the foreign organizations for their support. Q: What facilities does BIAC offer its clients? We have already set up the facilities for effective and efficient arbitration. Our facilities currently include state-of-the-art arbitration rooms, three consultation rooms, and two exclusive chambers for the arbitrators. The latest equipment for video-conferencing, multimedia projection, audio aides with recording facilities, strict security vigilance, are installed. For use of our clients, we offer computer and internet facilities, printing, photocopying, scanning, etc. on site. The clients have the choice of using their own rules or adopting our Rules. We have provided almost all equipment that clients may need. Q: Who will benefit from the Centre? A: Our stakeholders are industry, business, government institutions, small & medium enterprises (SMEs), young innovators, private individuals - in short, anyone who has contracts. If there is a breach or violation of a contract, and if the two (or, more) parties want to settle the dispute amicably, they can opt for alternative dispute resolution, of which arbitration is the most formal. The legal profession will have a particular interest in this institution, as they will want their clients to benefit. Q: Why is arbitration not popular in Bangladesh? A: As in most other countries, arbitration will become more popular in Bangladesh. To make the system meaningful, you require institutions (such as, BIAC) and clients who are aware of the process and are prepared to subject their cases to alternative dispute resolution. BIAC will arrange workshops and seminars, and tailor their projection to the specific needs of target groups. Foreign investors who have business in Bangladesh will also be encouraged to use our facilities. In order to determine needs, we will conduct surveys. For instance, SMEs will need special attention to cater to their small-scale industries' disputes. Q: You have spoken of arbitration, but ADR (alternative dispute resolution) covers other areas as well. How will they be handled? A: Already, in Bangladesh, arbitration is being held. We also have mediation and conciliation, two other procedures that are also classified as ADR. Our Centre will begin with Arbitration, and soon offer other forms, including mediation and conciliation. Our purpose is to provide a broad range of ADR facilities from which the potential clients can choose; each form has its merits and demerits, and it is up to the clients (with the aid of their lawyers) to determine what is most appropriate for them. BIAC will assist in every possible manner.
The Bangladesh International Arbitration Centre (BIAC) will be launched today (Saturday). The Minister for Law and Parliamentary Affairs, Barrister Shafique Ahmed, will be the chief gust at a function, to be held at the Bangabandhu International Centre in the city, marking the inauguration of the BIAC. The International Chamber of Commerce, Bangladesh (ICC-B) has taken the lead role in setting up of the BIAC. The Dhaka Chamber of Commerce & Industry (DCCI) and the Metropolitan Chamber of Commerce & Industry (MCCI) are also in collaboration with ICC-B for establishment of the BIAC as a not-for profit organization. Minister of Commerce Mr. Mohammad Faruk Khan MP and Economic Affairs Adviser to the Prime Minister, Dr. Mashiur Rahman, will be present at the launching ceremony of the BIAC, as the spe cial guests. The representatives from the business community, legal profession, government, and other interested stakeholders are expected to attend the function. In an interview with The Financial Express, Chief Executive of the BIAC, Dr. Toufiq Ali, responded to different question, explaining the aims and objectives of the Centre. The interview runs as follows: Question(Q): Why do we need this Centre? Answer (A): As the economy expands, and becomes more complex, we are left with no option but to operate with written contracts. And, try as we may to avoid them, there will be breaches or infringements of contracts. What should we do in such cases? Should we go to court to settle the dispute? We know that courts in Bangladesh are already over-burdened with their existing cases. Moreover, going to courts requires time and money. In the meantime, the business suffers. However, if we want a resolution of the dispute, in accordance with our laws, we do have an option - the alternative dispute resolution (ADR) process. For the wheels of industry to move, we must have an effective mechanism for enforcement of agreements and dispute resolution. The centre is named the Bangladesh International Arbitration Centre. Although it will be the first of its kind in the country, if we look around the world, we see countries with arbitration centers which have a long history. And, these centers have been servicing their business sectors, including their respective Governments, efficiently. They provide arbitration facilities, the rules for arbitration, undertake research and analysis, and the essential services required for making the process successful. In selective cases, they have even undertaken mediation and conciliation. Within our own South-Asian region, there are flourishing centers in India, in Pakistan and in Sri Lanka. We are late in establishing our Centre, but I am hopeful of steady progress. As an innovator, we do expect to face teething problems, but we hope that, with the support of the stakeholders, the Centre will soon be functioning effectively. Q: Do the laws of Bangladesh allow arbitration? A: Arbitration is the most formalized system in the ADR regime. Our first law for arbitration dates back to 1940, when the Arbitration Act was passed. The provisions of that Act were incorporated in an improved legal framework known as the Arbitration Act of 2001. This is the legal framework for arbitration currently applicable in Bangladesh. Any law is as good as the people and the institutions that support it. The Arbitration Act is no exception. The Act contains useful provisions for ADR, and it is vital for the business community that it be implemented effectively. The establishment of the Bangladesh International Arbitration Centre should go a long way in meeting our needs. Q: How was this Centre established? Where is it located? A: Two most prominent trade bodies of Bangladesh -- the Dhaka Chamber of Commerce & Industry, and the Metropolitan Chamber of Commerce & Industry, Dhaka -- as well as the International Chamber of Commerce-Bangladesh (ICC-B), an international business organization, decided to establish BIAC as a not-for-profit institution. The ICC-B took the lead role, and paid up half of BIAC's capital fund. Thereafter, in 2004, BIAC was granted the operating license from the Government. BIAC is fortunate to be receiving financial support from the International Finance Corporation (IFC), the private sector arm of the World Bank popularly known by its acronym, the IFC. They also channelized the funds of UKAid and the European Union (EU) for BIAC. As per agreement between the IFC and BIAC, the IFC should continue to extend support to BIAC for seminars, workshops and agreed activities for three years. We hope these activities will create a deeper appreciation of arbitration within the country, and help streamline the process. We are deeply grateful to the foreign organizations for their support. Q: What facilities does BIAC offer its clients? We have already set up the facilities for effective and efficient arbitration. Our facilities currently include state-of-the-art arbitration rooms, three consultation rooms, and two exclusive chambers for the arbitrators. The latest equipment for video-conferencing, multimedia projection, audio aides with recording facilities, strict security vigilance, are installed. For use of our clients, we offer computer and internet facilities, printing, photocopying, scanning, etc. on site. The clients have the choice of using their own rules or adopting our Rules. We have provided almost all equipment that clients may need. Q: Who will benefit from the Centre? A: Our stakeholders are industry, business, government institutions, small & medium enterprises (SMEs), young innovators, private individuals - in short, anyone who has contracts. If there is a breach or violation of a contract, and if the two (or, more) parties want to settle the dispute amicably, they can opt for alternative dispute resolution, of which arbitration is the most formal. The legal profession will have a particular interest in this institution, as they will want their clients to benefit. Q: Why is arbitration not popular in Bangladesh? A: As in most other countries, arbitration will become more popular in Bangladesh. To make the system meaningful, you require institutions (such as, BIAC) and clients who are aware of the process and are prepared to subject their cases to alternative dispute resolution. BIAC will arrange workshops and seminars, and tailor their projection to the specific needs of target groups. Foreign investors who have business in Bangladesh will also be encouraged to use our facilities. In order to determine needs, we will conduct surveys. For instance, SMEs will need special attention to cater to their small-scale industries' disputes. Q: You have spoken of arbitration, but ADR (alternative dispute resolution) covers other areas as well. How will they be handled? A: Already, in Bangladesh, arbitration is being held. We also have mediation and conciliation, two other procedures that are also classified as ADR. Our Centre will begin with Arbitration, and soon offer other forms, including mediation and conciliation. Our purpose is to provide a broad range of ADR facilities from which the potential clients can choose; each form has its merits and demerits, and it is up to the clients (with the aid of their lawyers) to determine what is most appropriate for them. BIAC will assist in every possible manner.