This ICSID arbitration cost calculator estimates the total cost of an ICSID arbitration, from the registration of a Request for Arbitration until a Final Award is rendered.
The ICSID Schedule of Fees sets forth the cost of ICSID administrative costs and the fees of arbitrators. Under the ICSID Schedule of Fees effective since 1 July 2017, a fee for lodging ICSID requests of USD 25,000 must be paid at registration, as well as an administrative charge of USD 42,000 per year of ICSID proceedings. In addition to being reimbursed for direct expenses, ICSID arbitrators are paid USD 3,000 per day of meetings or work performed in connection with the proceedings.
While ICSID administrative costs and the fees of arbitrators are expensive, the largest costs in an ICSID arbitration tend to be party costs: especially the cost of legal fees and expert fees, but also witness, management and other external costs. The ICSID cost calculator below is based on statistics concerning the average cost and duration of ICSID arbitration. All assumptions used in this cost calculator are indicated below.
**The following assumptions are used for this ICSID arbitration cost calculator:
- Average ICSID Arbitral Tribunal Costs and the duration of ICSID arbitration is based on a 2016 study of ICSID awards.
- Calculations are based on the ICSID Schedule of Fees effective as of 1 July 2017.
- An administrative charge of USD 42,000 is levied by the Centre upon the registration of a request for arbitration, and annually thereafter. It is assumed that the average duration of an ICSID arbitration will be 3.25 years.
- Average legal fees range from USD 150 per hour (low) to USD 800 per hour (high). Leading investment arbitration law firms such as Aceris Law that charge competitive legal fees will lower this head of costs, which is typically the largest single cost element.
- The average ICSID arbitration requires between 3,000 and 5,000 hours of legal work, depending on the complexity of the dispute, tactics of adverse counsel and the procedure devised by the Arbitral Tribunal. In case of doubt, enter 3,000 hours for the average amount of legal work per arbitration.
- In low-complexity cases (fewer than 2,000 hours of legal work) and where there are small amounts in dispute (less than USD 2,000,000), it is assumed that no experts are required. It would be highly unusual, however, for an expert not to be required for an ICSID arbitration, or to make a claim of less than USD 2,000,000 due to the high costs of ICSID arbitration.
- Expert fees are estimated on the basis of the external legal fees to expert fee ratio shown in the CIArb Costs of International Arbitration Survey (2011).
- Anticipated witness, management and other external costs are based on the ratio between legal fees and such costs in the CIArb Costs of International Arbitration Survey (2011).
- VAT and taxes are excluded, which may or may not be applicable.
- Each party is assumed to split ICSID Administrative Charges, Arbitral Tribunal Costs and expenses equally.
- The successful party may be reimbursed all or a portion of its legal costs by the losing party in the final arbitration award, a possibility which is not factored into this model.