PHNOM PENH, Aug. 10 (Xinhua) -- Cambodia's first National Arbitration Center will be set up aimed at resolving business disputes and enhancing the confidence of private sectors doing business here, according to a press release from IFC on Monday.
IFC, a member of the World Bank Group, and Cambodia's Ministry of Commerce on Monday signed a Memorandum of Understanding (MOU) to implement a three-year project to set up a National Arbitration Center to resolve business disputes and bolster confidence in the commercial system.
The National Arbitration Center will be the first commercial arbitration body in Cambodia offering the business community an alternative commercial dispute resolution mechanism to the courts and enabling businesses to resolve their disputes quickly, inexpensively, fairly, and with certainty. It thus promises to enhance the private sector's comfort level with engaging in business transactions.
IFC will support the establishment and operation of the center for the first three years, in collaboration with the Asian Development Bank and other partners. The support will include advisory services to the Secretariat of the Inception and Selection Commission in selecting and training an initial group of arbitrators, establishing procedures, and supporting the center's initial operations.
"The government has worked hard to create the legal framework for alternative dispute resolution by passing the commercial arbitration legislation in 2006 and recently issuing a sub-decree on the operations of the National Arbitration Center," said Cham Prasidh, senior minister and minister of commerce, speaking at the signing ceremony. "We are committed to supporting its development, and I believe it will be an effective mechanism for resolving commercial disputes."
Trang Nguyen, head of IFC Advisory Services in the Mekong, said, "IFC is pleased to work with the Ministry of Commerce and the private sector on this important initiative. As the Cambodian economy grows and there are more commercial transactions, a streamlined dispute resolution mechanism gives the private sector more comfort to engage in business transactions."