የAዲስ Aበባ ንግድና የዘርፍ ማህበራት ምክር ቤት የግልግል ተቋም

The Addis Ababa Chamber of Commerce and Sectoral Associations

Arbitration Institute

የ}hhK¨< ¾ÓMÓM Å”w

The Revised Arbitration
Rules

November 25,2008
 The Addis Ababa Chamber Of Commerce and Sectoral
Association Arbitration Institute
Rules of Arbitration
Table of Contents

Page
Foreword ………………………………………………………………………. III
Organizational Structure ………………………………………………….. IV
- The Council ………………………………………………. IV
- The Secretariat……………………………………………. IV
I General Provisions:…………………………………………………. 1
Article 1: Power to Issue These Rules ……………………….. 1
Article 2: Nomenclature ………………………………………… 1
Article 3: Definitions………………………………………………. 1
Article 4: Submission for Arbitration ------------------------------------ 2
Article 5: Ad hoc Arbitration-------------------------------------------------- 2
II Initiation of Proceedings:-------------------------------------------------------- 2
Article 6: Request for Arbitration------------------------------ -------- ------ 2
Article 7: Statement of claim--------------------------------------------------- 2
Article 8: Statement of defense and of counterclaim------------------- 3
Article 9: Amendments to claim and counter claim---------------------- 4
III Composition of the Arbitral Tribunal----------------------------------------- 5
Article 10: Number of Arbitrators and Manner of their Appointment- 5
Article 11: Nationality of Arbitrators------------------------------------------ 5
Article 12: Confirmation of the Arbitrators ---------------------------------- 5
Article 13: Impartiality and Independence of Arbitrators ---------------- 6
Article 14: Challenge of Arbitrators ------------------------------------------ 6
Article 15: Removal and Replacement of Arbitrators -------------------- 7
Article 16: Conservatory and interim Measures--------------------------- 8
Arbitral Proceedings: ---------------------------------------------------------------------- 8
Article 17 General provisions ------------------------------------------------ 8
Article 18: Terms of Reference ------------------------------------------------ 9
Article 19: Place of Arbitration ------------------------------------------------ 10
Article 20: Language of Arbitration --------------------------------------- 10
Article 21: Establishing the Facts of the case --------------------------- 10
Article 22: Hearings ---------------------------------------------------------- 11
Article 23: Closing of the proceedings ------------------------------------- 11
IV Award:---------------------------------------------------------------------------------- 11
Article 24: Time limit for giving the award------------------------------------- 11
Article 25: Award -------------------------------------------------------------------- 12
Article 26: Form and Effect of the Award ------------------------------------- 12
Article 27: Applicable Law, and amicable compositor --------------------- 12
Article 28: Settlement or other grounds for termination------------------- 13
Article 29: Interpretation of the Award ---------------------------------------- 13
Article 30: Correction of the Award ------------------------------------------- 13
Article 31: Additional Award------------------------------------------------------- 14

I
V Costs of Arbitration

Article 32: Costs of Arbitration --------------------------------------------------14

Article 33: Decisions as to the costs of the Arbitration---------------------15
Article 34: Fee of Arbitrators------------------------------------------------------15
Article 35: Advance to cover costs of the Arbitration-----------------------16
Article 36: Transitory provision---------------------------------------------------16
Article 37: Final Provision --------------------------------------------------------16
Article 38: Effective Date----------------------------------------------------------16
Annex I --------------------------------------------------------------------------------17
Annex II--------------------------------------------------------------------------------18
Annex III-------------------------------------------------------------------------------19
Annex IV ------------------------------------------------------------------------------20

II
 FOREWORD

The Arbitration Institute of the Addis Ababa Chamber of Commerce & Sectoral
Associations' is a body for dealing with matters of commercial dispute resolution.
The Arbitration Institute is part of but independent from the chamber.

The Institute does not itself settle disputes rather it facilitates arbitration and other
alternative dispute resolution activities.

The following are main objectives of the Institute: -

ƒ Facilitate the settlement of disputes in accurate accord with the

rules of the Institute, which can be accessed from the chamber's
website: www.addischamber.com

ƒ Provide information and advisory services concerning arbitration

and other alternative disputes resolution mechanisms,

ƒ Provide the Institute's good office to ad-hoc arbitration activities,

and

ƒ Organize workshops, seminars and training concerning arbitration.

In this regard, especially to attain a smooth arbitration service from the Institute,
parties who wish to get the services of the Institute may frame the arbitration
clause as:

"Any disputes, controversies or claim arising out of or

relating to this contract, or the breach, termination or
invalidity or any subsequent amendment of this contract
thereof, shall be settled by arbitration in accordance with
the Arbitration rules of AACCSA Arbitration Institute as at
present in force."

In addition, parties may wish to consider: a) arbitrator appointing authority, b)

number of arbitrators, c) place of arbitration and d) language of arbitration.

Such an agreement may be incorporated in a contract between the parties,

business organization article of association out of which the dispute has
arisen or by a separate agreement, which the parties enter into.

III
 ORGANIZATIONAL STRUCTURE

The Council

The Institute shall have a Council consisting of not more than 7 members who
shall be appointed for a period of 3 years by the Board of Directors of the
Chamber. Members of the Council shall be prominent personalities from among
members of the business community, professional groups and academicians of
higher educational institutions.

The Secretariat

The Institute shall have a Secretariat headed by the Director of the Institute and
shall have the relevant staff.

IV
 I. General Provisions
Article 1 Power to Issue These Rules

These Arbitration Rules are enacted by the Addis Ababa Chamber

of Commerce and Sectoral Association Board of Directors by virtue
of the power delegated to it by the Council pursuant to the
Chambers of Commerce and Sectoral Association Establishment
Proclamation no 341/2003 article 8(1) (e).

Article 2 Nomenclature

These Rules shall be cited as the "The Revised Arbitration Rules of

the Addis Ababa Chamber Commerce and Sectoral Associations”.

Article 3 Definitions

3.1. Unless the context requires otherwise, in this arbitration rules:-

3.1.1."Chamber" shall mean the Addis Ababa Chamber of

Commerce and Sectoral Associations, here-in-after
referred to as “AACCSA.”
3.1.2 "Institute" shall mean the AACCSAs’ Arbitration Institute.
3.1.3 "Arbitrator'' shall mean a professional appointed for the
purpose of resolving a dispute between two or more
parties.
3.1.4 "Provisional and Interim measure" shall mean a
provisional decision passed by the Arbitral Tribunal upon
the request of either party for the purpose of maintaining
the status quo between the parties until the final award is
issued.
3.1.5 "Arbitral Tribunal" shall mean a panel of arbitrators
consisting one or more arbitrators appointed for the
purpose of resolving the matter submitted for Arbitration.
3.1.6 "Rules" shall mean the AACCSA Arbitration Rules.
3.1.7 "Director" shall mean the Director of the AACSA
Arbitration Institute
3.1.8 "Term of Reference" shall mean document bearing the
particulars of the case to be arbitrated and the
procedural work plan of the Arbitral Tribunal.
3.1.9 ''Secretariat'' shall mean the staff of the Arbitration
Institute.

3.2. Unless otherwise expressly stated, reference to the masculine

gender shall also serve the feminine gender.

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Article 4 Submission for Arbitration

4.1 Where the parties to a contract have agreed in writing that disputes in
relation to that contract shall be settled by Arbitration in accordance with
the Arbitration Rules of AACCSA, such disputes shall be settled in
accordance with These Rules and amendments thereof.

4.2 The Rules applicable to the arbitration shall be those in force at the time
of the commencement of the arbitration, unless the parties have agreed
otherwise.

Article 5 Ad-hoc Arbitration

5.1 At the request of either party, the Institute may only make available or
arrange for such facilities and assistance for the conduct of arbitration
proceedings as may be required, including suitable accommodation for
sittings of the arbitral tribunal, secretarial assistance and other facilities
within the capability of the Institute without administering the arbitration.
5.2. Where the parties have designated the Institute as an appointing
authority only of arbitrators, the Institute shall charge fees for such
service in accordance with these Rules.

II. INITIATION OF PROCEEDINGS

Article 6 Request for Arbitration

6.1 Parties who wish to make use of the facilities provided by the Institute
should make a written request to it that the parties have entered into a
written arbitration agreement. In such written arbitration agreement, the
parties shall indicate to submit to arbitration all or certain disputes which
have arisen or which may arise between them in respect of a defined
legal relationship, whether contractual or not.

6.2 The request for arbitration shall be accompanied by an application for

arbitration, written defense, statement of counterclaim, documentary
evidence and other documents, the party/parties shall submit it/them in
as many copies as the number of the parties, one copy for each
arbitrator and another for the institute.

Article 7 Statement of claim

7.1 The claimant shall satisfy the following requirements when submitting his
applications for arbitration:

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 7.1.1 An application for arbitration in writing which shall specify:

a. The name and address of the claimant and those of

the respondent, including the telephone, fax, email or
other communication means, if any;
b. The arbitration agreement relied upon by the
claimant;
c. The facts of the case and the main points of dispute;
d. The claimant's claim and the facts and reasons on
which his claim is based.
e. The name and address of the arbitrator designated by
the claimant where more than one arbitrator is to be
appointed, and
f. Name and address of an attorney, if any, while
attaching at the same time power of attorney.
g. The application for arbitration or statement of claim
shall be signed and/or stamped by the claimant
and/or the attorney authorized by the claimant.

7.1.2 When an application for arbitration is submitted to the

Institute, the relevant documentary evidence on which the
claimant's claim is based shall accompany the application
for arbitration.

7.1.3 The claimant shall pay in advance the fee specified under
Article 32(1) and Annex II of these rules.

7.2. When the Registrar of the Institute, after examination of the application
for arbitration or statement of claim, deems that the claimant has not
completed the formalities required for arbitration, it shall demand the
claimant to complete them, and when the secretariat deems that the
claimant has completed the formalities, it shall immediately send to the
respondent a notice of arbitration together with one copy each of the
claimant's application for arbitration and its attachment as well as the
arbitration rules, the list of arbitrators and the arbitration fee schedule
of the arbitration Institute, and shall simultaneously send to the
claimant one copy of each of the notice of arbitration, the arbitration
rules, the list of arbitrators and arbitration fee schedule.

Article 8 Statement of defense and of counterclaim

8.1 The respondent shall, within 45 days from the date of receipt of the notice
of arbitration, submit his written defense, appoint his arbitrator if more
than one arbitrator is to be designated, and attach relevant documentary
evidence to the secretariat.

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 8.2 The Institute shall determine the schedule for the nomination of arbitrators,
submission of defenses and documents within the 45 days, and may
extend the time limit if it deems that there are justified reasons.

8.3 When lodging a counterclaim, the respondent must state in his written
statement of counterclaim:

a. The name and address of the respondent and of the claimant,

including the telephone, fax, email or other communication
means, if any;
b. The arbitration agreement relied upon by the respondent;
c. The facts of the case and the main points of dispute;
d. The respondent's counterclaim and the facts and reasons on
which his counterclaim is based.
e. The name and address of the arbitrator designated by the
respondent where more than one arbitrator is to be appointed,
and
f. Name and address of an attorney, if any while attaching at the
same time power of attorney.
g. The statement of defense or counterclaim or application shall be
signed and/or stamped by the respondent and/or the attorney
authorized by the respondent.

8.4 When the respondent submits his counterclaim to the Institute, the
relevant documentary evidence on which the respondent's
counterclaim is based shall accompany the application for arbitration.

8.5 When lodging a counterclaim, the respondent shall pay the required fee
in advance according to the arbitration fee schedule of the Arbitration
Institute.

Article 9 Amendments to Claims and Counterclaims

9.1. The claimant may request to amend his claim and the respondent may
request to amend his counterclaim. Yet the arbitration tribunal may
refuse such an amendment if it considers that it is too late to raise the
request and the amendment may affect the arbitration proceedings.

9.2. The arbitration proceedings shall not be affected in case the respondent
fails to file his defense in writing or the claimant fails to submit his
written defense against the respondent's counterclaim.

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 III. Composition of Arbitral Tribunal
Article 10 Number of Arbitrators and manner of their Appointment

10.1 The parties are free to determine the number of arbitrators. Where the
parties have not agreed on the number of arbitrators, the arbitral
tribunal shall consist of three arbitrators, unless the Institute, taking
into account, inter alia, the complexity of the case, the amount in
dispute and other circumstances, decides that the dispute is to be
settled by a sole arbitrator.

10.2 Where the arbitral tribunal shall consist of more than one arbitrator,
each party shall nominate an arbitrator. Where a party fails to
nominate an arbitrator within 20 days of the receipt of a request for
the nomination of an arbitrator, the Institute shall make the
nomination.

10.3 Where there are multiple parties on either side and the dispute is to
be decided by more than one arbitrator, the multiple claimants,
jointly, and the multiple respondents, jointly shall nominate an equal
number of arbitrators. If either side fails to make such joint
nomination, the Institute shall make the nomination for that side. If
the circumstances so warrant the Institute may nominate the entire
arbitral tribunal, unless otherwise agreed by the parties.

10.4 Where the dispute is to be decided by sole arbitrator, the parties shall
nominate jointly the said arbitrator. If parties failed to nominate within
20 days from the receipt of the statement of claim by the respondent,
the Institute shall make the nomination, unless otherwise agreed by
the parties.

10.5 Where the dispute is to be decided by three or more arbitrators, the

even number of arbitrators shall nominate the presiding arbitrator
within 20 days of their appointment. If the Arbitrators failed, the
Institute shall nominate the presiding arbitrator.

Article 11 Nationality of Arbitrators

If the parties are of different nationalities, the Institute may appoint a

sole arbitrator or Chairman of the Arbitral Tribunal of a nationality other
than that of the parties, unless the parties have agreed differently.

Article 12 Confirmation of the Arbitrators

Every arbitrator nominated by the parties shall be deemed to be

appointed only upon confirmation by the Institute. The Institute may

5
 refuse the confirmation, while indicating the reasons to the parties, if it
considers that the arbitrator does not fulfill the requirement of Article 13
hereof.

Article 13 Impartiality and Independence of Arbitrators

13.1. An arbitrator must be impartial and independent.

13.2. Before appointment or confirmation, a nominated arbitrator

shall sign a statement of acceptance, declaration of
independence and undertakes to honour the Institute’s
arbitrators code of conduct in a form attached to these rule
as annex III and disclose in writing to the Secretariat any
facts or circumstances which might be of such a nature as to
call into question the arbitrator's independence in the eyes of
the parties. The Secretariat shall provide such information to
the parties in writing and fix a time limit for any comments
from them.

13.3. An arbitrator who becomes aware of any circumstances,

which may disqualify him, must immediately, inform in
writing, the parties and the other arbitrators thereof.

Article 14 Challenge of Arbitrators

14.1 Where a party wishes to challenge an arbitrator that party shall send
a written statement to the Director of the Institute stating the reasons
for the challenge.

14.2 Notification of a challenge must be made within 15 days as from the

date on which the arbitrator is appointed or the allegedly disqualifying
circumstance became known to the party. Failure by a party to notify
the Director of the Institute of a challenge within the stipulated period
of time will be considered a waiver of the right to initiate such a
challenge.

14.3 The Director of the Institute shall provide the parties and the
arbitrators the opportunity to comment on the challenge.

14.4 The Institute shall make the final decision on the challenge. If the
Institute finds an arbitrator disqualified, the institute shall challenge
the arbitrator.

14.5 A party may challenge the arbitrator appointed by him only for
reasons of which he becomes aware after the appointment has been
made.

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Article 15 Removal and Replacement of Arbitrators

15.1 Before removing an arbitrator, the Institute shall request the views of
the parties and the arbitrators.

15.2 An Arbitrator shall be replaced upon his death, upon the acceptance
by the Institute of Arbitrator's resignation, upon acceptance by the
Institute of a challenge or upon the request of all the parties.

15.3 An arbitrator shall also be replaced on the Institute's own initiative

when it decides that he is prevented de jure or de facto from fulfilling
his functions or that he is not fulfilling his functions, or that he is not
fulfilling functions in accordance with the Rules or within the
prescribed time limits.

15.4 Where an arbitrator nominated by a party dies, the party in question

shall nominate another arbitrator. Where an arbitrator nominated by
the Institute dies, the Institute shall appoint another arbitrator.

15.5 Where an arbitrator resigns or is removed, the Institute shall appoint

another arbitrator. If the arbitrator had been nominated by a party,
the Institute shall request the views of the nominating party. Where
the Arbitral Tribunal consists of three or more arbitrators, the Institute
may decide that the remaining arbitrators shall proceed with the
case. Prior to making such a decision, the views of the parties and
the arbitrators shall be requested.

15.6 When, on the basis of information that has come to its attention, the
Institute considers applying Article 15(2), it shall decide on the matter
after the arbitrator concerned, the parties and any other members of
the Arbitral Tribunal have had an opportunity to comment in writing
within a suitable period of time. Such comments shall be
communicated to the parties and to the arbitrators.

15.7 When an arbitrator is to be replaced, the Institute has discretion to

decide whether or not to follow the original nomination process. Once
reconstituted, and after having invited the parties to comment, the
Arbitral Tribunal shall determine if and to what extent prior
proceedings shall be repeated before the reconstituted Arbitral
Tribunal.

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 15.8 Subsequent to the closing of the proceedings, instead of replacing an
arbitrator who has died or been removed by the Institute pursuant to
sub-article 15. 3 and 15.4 of this Article, the Institute may decide,
when it considers it appropriate, that the remaining arbitrators shall
continue the arbitration. In making such determination, the Institute
shall take into account the views of the remaining arbitrators and of
the parties and such other matters that it considers appropriate in the
circumstances.

Article 16 Conservatory and Interim Measures

16.1 Unless the parties agreed otherwise as soon as the file has been
transferred to it, the Arbitral Tribunal may, at the request of a party,
order any interim or conservatory measures it deems appropriate.
The Arbitral Tribunal can make the granting of any such measure
subject to the provision of security by the requesting party.

16.2 The parties' application to courts of law for any such provisional
remedies before or after the transmission of the file to the Arbitral
Tribunal shall not be deemed to be a waiver of the arbitration
agreement nor should not affect the powers of the Arbitration
Tribunal.

IV. Arbitral proceedings

Article 17 General Provisions

17.1 Subject to these Rules, the arbitral tribunal may conduct the
arbitration in such manner as it considers appropriate, provided that
the parties are treated with equality and that at any stage of the
proceedings each party is given a full opportunity of presenting his
case.

17.2 If either party so requests at any stage of the proceedings, the

arbitral tribunal shall, if it finds it necessary, hold hearings for the
presentation of evidence by witnesses, including expert witness, or
for oral argument. In the absence of such a request, the arbitral
tribunal shall decide whether to hold such hearings or whether the
proceedings shall be conducted on the basis of documents and other
materials.

17.3 All documents or information supplied to the arbitral tribunal by one

party shall at the same time be communicated by that party to the
other party.

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 17.4 The Secretariat shall transmit the file to the Arbitral Tribunal as soon
as it has been constituted, provided the advance on costs requested
by the Secretariat at this stage has been paid.

Article 18 Terms of Reference

18.1 As soon as it has received the file from the Secretariat, the Arbitral
Tribunal shall draw up, on the bases of documents or in the presence
of the parties and in light of their most recent submissions, a
document defining its terms of reference which includes the following.
a) the full names, descriptions and addresses of the parties
b) a summary of the parties' respective claims and of the
relief sought by each party, with an indication to the
extent possible of the amounts claimed and/or
counterclaimed;
c) unless the Arbitral Tribunal considers it inappropriate, a list
of issues to be determined;
d) the full names, descriptions, and addresses of the of the
arbitrators;
e) the place of the arbitration; and

f) the particulars of the applicable procedural rules and, if

such is the case , reference to the power conferred upon
the Arbitral Tribunal to act as amiable compositeur or to
decide ex aequo et bono
18.2 The terms of reference shall be signed by the parties and the Arbitral
Tribunal. Within one month from the date on which the file has been
transmitted to it, the Arbitral Tribunal shall transmit to the Institute the
Terms of Reference signed by it and the parties. The Institute may
extend this time limit upon the request of the Arbitral Tribunal or on
its own initiative if it considers appropriate to do so.

18.3 If any of the parties refuses to take part in the drawing up of the
Terms of Reference or to sign the same, they shall be submitted to
the Institute for approval. When the Terms of Reference are signed
by the parties or approved by the Institute, the Arbitration shall
proceed.

9
Article 19 Place of Arbitration

19.1 Unless the parties have agreed upon the place where the arbitration
is to be held, such place shall be determined by the arbitral tribunal,
having regard to the circumstances of the arbitration.

19.2 The arbitral tribunal may determine the locale of the arbitration within
the place agreed upon by the parties. It may hear witness and hold
meetings for consultation among its members at any place it deems
appropriate, having regard to the circumstances of the arbitration.

19.3 The arbitral tribunal may meet at any place it deems appropriate for
the inspection of goods, other property or documents. The parties
shall be given sufficient notice to enable them to be present at such
inspection.

19.4 The award shall be made at the place of arbitration.

Article 20 Language of Arbitration

In the absence of an agreement by the parties, the Arbitral Tribunal shall

determine the language or languages of the arbitration, due regard being
given to all relevant circumstances, including the language of the contract.

Article 21 Establishing the Facts of the Case

21.1 The Arbitral Tribunal shall proceed within as short a time as possible
to establish the facts of the case by all appropriate means.

21.2 After studying the written submissions of the parties and all
documents relied upon, the Arbitral Tribunal shall hear the parties
together in person if any of them so requests or, failing such a
request, it may of its own motion decide to hear them.

21.3 The Arbitral Tribunal may decide to hear witnesses, experts

appointed by the parties or any other person, in the presence of the
parties, or in their absence provided they have been duly summoned.

21.4 The Arbitral Tribunal, after having consulted the parties, may appoint
one or more experts, define their terms of reference and receive their
reports. At the request of a party, the Tribunal shall give the parties
the opportunity to ask questions.

21.5 At any time during the proceedings, the Arbitral Tribunal may
summon any party to provide additional evidence.

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 21.6 The Arbitral Tribunal may decide the case solely on the documents
submitted by the parties unless any of the parties requests a hearing.

21.7 The Arbitral Tribunal may take measures for protecting trade secrets
and confidential information.

Article 22 Hearings

22.1 When a hearing is to be held, the Arbitral Tribunal, giving reasonable

notice, shall summon the parties to appear before it on the day, time
and place fixed by it.

22.2 If any of the parties, although duly summoned, fails to appear without
valid excuse, the Arbitral Tribunal shall have the power to proceed
with the hearing.

22.3 The Arbitral Tribunal shall be in full charge of the hearings, at which
all the parties shall be entitled to be present. Save with the approval
of the Arbitral Tribunal and the parties, persons not involved in the
proceedings shall not be admitted.

22.4 The parties may appear in person or through duly authorized

representatives. In addition, advisers may assist them.

Article 23 Closing of the Proceedings

23.1 When it is satisfied that the parties have had a reasonable opportunity
to present their cases, the Arbitral Tribunal shall declare the
proceedings closed. Thereafter, no further submissions or arguments
may be made, or evidence produced, unless requested or authorized
by the Arbitral Tribunal.

23.2 When the Arbitral Tribunal has declared the proceedings closed, it
shall indicate to the Secretariat an approximate date by which the
draft Award will be submitted to the Institute for approval. The Arbitral
Tribunal shall communicate any postponement of that date to the
Secretariat.

Article 24 Time limit for Giving the Award

24.1 The Arbitral tribunal shall give its final award not latter than six
months as of the date of its constitution.
24.2 The Institute can extend this time limit upon a reasonable request by
the tribunal or on its own motion if it finds it necessary to do so.

11
 V. The Award
Article 25 Award

25.1 When there are three arbitrators, any order or other decision of the
arbitral tribunal shall be made by a majority of the arbitrators.

25.2 In the case of questions of procedures, when there is no majority or

when the arbitral tribunal so authorizes, the presiding arbitrator may
decide on his own move, subject to revision, if any, by the arbitral
tribunal.

Article 26 Form and Effect of the Award

26.1 In addition to making a final award, the arbitral tribunal shall be

entitled to make interim, interlocutory, or partial awards.

26.2 The award shall be made in writing and shall be final and binding to
the parties, unless the parties agree otherwise before
commencement of the Arbitration.

26.3 The arbitral tribunal shall state the reasons upon which the award is
based unless the parties have agreed that no reasons are to be
given.

26.4 The arbitrators shall sign an award and it shall contain the date on
which and the place where the award was made. Where there are
three arbitrators and one of them fails to sign, the award shall state
the reason for the absence of the signature.

26.5 The award may be made public only with the consent of both parties.

26.6 The Arbitral Tribunal shall communicate the award signed by the
arbitrators to the Secretariat in one copy for the Institute and in as
many copies as the number of the parties. Upon approval by the
Institute, the Secretariat shall communicate the same to the parties.

Article 27 Applicable Law and Amiable compositeur

27.1 In international arbitration, the arbitral tribunal shall apply the law
designated by the parties as applicable to the substance of the
dispute. Failing such designation by the parties, the arbitral tribunal
shall apply the rules of law, which it determines to be appropriate.

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 27.2 The arbitral tribunal shall decide as amiable compositeur or ex
aequo et bono only if the parties have expressly authorized the
arbitral tribunal to do so.

27.3 In all cases, the arbitral tribunal shall decide in accordance with the
terms of the contract and shall take into account the usages of the
trade applicable to the transaction.

Article 28 Settlement or other grounds for termination

28.1 If, before the award is made, the parties agree on a settlement of the
dispute, the arbitral tribunal shall either issue an order for the
termination of the arbitral proceedings or, if requested by both parties
and accepted by the tribunal, record the settlement in the form of an
arbitral award on agreed terms. The arbitral tribunal is not obliged to
give reasons for such an award.

28.2 If, before the award is made, the continuation of the arbitral
proceedings becomes unnecessary or impossible for any reason not
mentioned in sub-article 1 of this article, the arbitral tribunal shall
inform the parties of its intention to issue an order for the termination
of the proceedings. The arbitral tribunal shall have the power to issue
such an order unless a party raises justifiable grounds for objection.

28.3 The arbitral tribunal to the parties shall communicate copies of the
order for termination of the arbitral proceedings or of the arbitral
award on agreed terms, signed by the arbitrators. Where an arbitral
award on agreed terms is made, the provisions of this rule stated
under sub-article 2 and 4, 5 and 6 of article 26 shall apply.

Article 29 Interpretation of the Award

29.1 Within thirty days after the receipt of the award, either party, with
notice to the other party, may request that the arbitral tribunal give an
interpretation of the award.

29.2 The interpretation shall be given in writing within forty-five days after
the receipt of the request. The interpretation shall form part of the
award and sub-articles 2-6 of article 26, shall apply.

Article 30 Correction of the Award

30.1 Within thirty days after the receipt of the award, either party, with
notice to the other party, may request the arbitral tribunal to correct in
the award any errors in computation, any clerical or typographical
errors, or any errors of similar nature. The arbitral tribunal may within

13
 thirty days after the communication of the award make such
corrections on its own initiative.

30.2 Such corrections shall be in writing, and sub-articles, 2-6 of article 26

shall apply.

Article 31 Additional Award

31.1 Within thirty days after the receipt of the award, either party, with
notice to the other party, may request the arbitral tribunal to make an
additional award as to claims presented in the arbitral proceedings
but omitted from the award.

31.2 If the arbitral tribunal considers the request for an additional award to
be justified and considers that the omission can be rectified without
any further hearings or evidence; it shall complete its award within
sixty days after the receipt of the request.

31.3 When any additional award is made, sub-articles 2-6 of article 26

shall apply.

VI. Costs of Arbitration

Article 32 Costs of Arbitration

32.1 Upon filing the Request, the Claimant shall pay a non refundable
Registration Fee of 500 ETB to cover the costs of arbitration until the
Terms of Reference have been drawn up.
32.2 As soon as practicable, the Institute shall fix the advance on costs in
an amount likely to cover the fees and expenses of the arbitrators
and the Institute's administrative costs for the claims and
counterclaims which have been referred to it by the parties. This
amount may be subject to readjustment at any time during the
arbitration. Where, apart from the claims, counterclaims are
submitted, the Institute may fix separate advances on costs for the
claims and the counterclaims.
32.3 The advance on costs fixed by the Institute shall be payable in equal
shares by the claimant and the Respondent. Any provisional advance
paid on the basis of Article 32(1) will be considered as a partial
payment thereof. However, any party shall be free to pay the whole
of the advance on costs in respect of the principal claim or the
counterclaim should the other party fail to pay its share. When the
Institute has set separate advances on costs in accordance with Sub-

14
 Article (2) of article 32, each of the parties shall pay the advance on
costs corresponding to its claims.
32.4 When a request for an advance on costs has not been complied with,
and after consultation with the Arbitral Tribunal, the Director may
direct the Arbitral Tribunal to suspend its work and set a time limit,
which must be not less than 15 days, on the expiry of which the
relevant claims, or counterclaims, shall be considered as withdrawn.
Should the party in question wish to object to this measure it must
take a request within the aforementioned period for the matter to be
decided by the Institute. Such party shall not be prevented on the
ground of such withdrawal from reintroducing the same claims or
counterclaims at a later date in another proceeding.
32.5 If one of the parties claims a right to a set-off with regard to either
claims or counterclaims, such set-off shall be taken into account in
determining the advance to cover the costs of arbitration in the same
way as a separate claim insofar as it may require the Arbitral Tribunal
to consider additional matters.

Article 33 Decisions as to the Costs of the Arbitration

33.1 The costs of the arbitration shall include the fees and expenses of the
arbitrators and the Institute's administrative expenses fixed by the
Institute, in accordance with the scale in force at the time of the
commencement of the arbitral proceedings, as well as the fees and
expenses of any experts appointed by the Arbitral Tribunal and the
reasonable legal and other costs incurred by the parties for the
arbitration.
33.2 The Institute may fix the fees of the arbitrators at a figure higher or
lower than that which would result from the application of the relevant
scale should this be deemed necessary due to the exceptional
circumstances of the case. The Arbitral Tribunal may take decisions
on costs other than those fixed by the Institute at any time during the
proceedings.
33.3 The Arbitral tribunal shall in the final Award fix the costs of the
arbitration and decide which of the parties shall bear them or in what
proportion they shall bear them.

Article 34 Fees of Arbitrators

The Arbitration Institute shall fix its fees in accordance with the scale
hereinafter set out as Annex I. Where the sum is not set out the fees shall
be fixed by taking into consideration such factors as the complexity of the
case, the diligence of the Arbitrators, the nature of the dispute, length of
hearings, and eminence and standing of the Arbitrators themselves.

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Article 35 Advance to cover costs of the arbitration
35.1 The Institute shall prepare an estimate of the costs of Arbitration and
request each party to deposit an equal amount as an advance for
those costs. The amount shall be determined in accordance with
schedule provided under Annex II.

35.2 During the course of the arbitral proceedings the Institute may
request supplementary deposits from the parties as it is found
important and appropriate.

35.3 If the required deposits are not paid in full within thirty days after the
receipt of the request, the Institute shall so inform the parties in order
that one or another of them may make the required payment. If such
payment is not made, the arbitral tribunal, after consultation with the
Institute, may order the suspension or termination of the arbitral
proceedings.
35.4 The Institute may apply the deposits towards disbursements for the
costs of the Arbitration.

35.5 After the award has been made, the Institute shall render an
accounting to the parties of the deposits received and return any
unexpended balance to the parties.

Article 36 Transitory provision

Unless otherwise agreed, this rule shall be applicable for all pending
cases of the Institute.

Article 37 Final Provision

The Institute shall have arbitrators Code of Conduct to address ethical and
professional matters and shall be binding on all arbitrators registered in
the Institute roaster, nominated by the party or the institute and/or
appointed to adjudicate cases.

Article 38 Effective Date

These Rules shall enter into force as of 25 November2008

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 Annex I

Arbitrators Fee Schedule of AACCSA Arbitration Institute

Amount in Dispute (Birr) Minimum (Birr) Maximum (Birr)

Up to 50,000 10,000 15,000

From 50,001-100,000 10,000+10% of the amount above 50,000 15,000+25% of the amount above 50,000

From 100,001-500,000 15,000+5%of the amount above 100,000 27,500+12.5% of the amount above 1000,000

From 500,001 -1,000,000 35,000 + 4% of the amount above 500,000 77,500 + 10% of the amount above 500,000

From 1,000,001 - 2,000,000 55,000 + 3% of the amount above 1,000,000 127,500 + 7.5% of the amount above 1,000,000

From 2,000,001 -5,000,000 85,000 + 1% of the amount above 2,000,000 202,500 + 2.5% of the amount above 2,000,000

From 5,000,001 -10,000,000 115,000 +0.5% of the amount above 5,000,000 277,500 +1.5% of the amount above 5,000,000

From 10,000,001- 50,000,000 140,000 +0.3% of the amount above 10,000,000 352,500 +0.75% of the amount above 10,000,000

from 50,000,001 -80,000,000 260,000 +0.25% of the amount above 50,000,000 652,500 +0.6% of the amount above 50,000,000

From 80,000,001 -100,000,000 335,000 +0.2% of the amount above 80,000,000 832,500 +0.5% of the amount above 80,000,000

Above 100,000,000 375,000 + 0.1% of the amount above 100,000,000 932,500 + 0.25% of the amount above 100,000,000

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 Annex II

Administrative service Fee Schedule of AACCSA

Arbitration Institute

Sum In dispute in ETB Administrative expenses

up to 50,000 2,500

From 50,001 to 100,000 2500 + 3.50% of amount over 50,000

From 100,001 to 500,000 4250+1.70% of amount over 100,000

From 500,001 to 1,000,000 11,050+1.15% of amount over 500,000

From 1,000,001 to 2,000,000 16,800+0.60% of amount over 1,000,000

From 2,000,001 to 5,000,000 22,800+0.20% of amount over 2,000,000

From 5,000,001 to 10,000,000 28,800+0.10% of amount over 5,000,000

From 10,000,001 to 50,000,000 33,800+0.06% of amount over 10,000,000

From 50,000,001 to 80,000,000 57,800+0.06% of amount over 50,000,000

From 80,000 001 to 100,000,000 75,800

Over 100,000,000 75,800

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 Annex III
Miscellaneous fees
1. Filing or Registration fee - 500.00 ETB.

2. Arbitrator/Adjudicator/Mediator/Conciliator appointment fee - 1000.00 ETB

3. Ad-Hoc Arbitration/Adjudication/Mediation Service fee - 4000.00 ETB per

three months.

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 Annex IV

Acceptance:

I, the undersigned, hereby declare and confirm that I accept to serve as an

arbitrator under the Addis Ababa Chamber of Commerce & Sectoral
Associations (AACCSA) Arbitration Institute Rules of Arbitration in the instant
case. In so doing, I confirm that I have familiarized myself with the requirements of
the Institute's Arbitration Rules and am able and available to serve as an arbitrator
in accordance with the requirements of those Rules and accept to be remunerated
in accordance therewith.
Independence:

To the best of my knowledge, there is no reason why I should not serve the Arbitral
Tribunal Constituted by the Arbitration Institute of the Addis Ababa Chamber of
Commerce & Sectoral Association with respect to a dispute between----------------
--------------------------------------------------------and ------------------------------------------
---------------------------------------.

¾ I am independent of each of the parties and intend to remain so; to the best of
my knowledge, there are no facts or circumstances, past or present, which need
be disclosed because they might be of such nature as to call into question my
independence in the eyes of any of the parties.

¾ I shall keep confidential all information coming to my knowledge as a result of

my participation in this proceeding as well as the contents of any award made
by the Tribunal.

¾ I shall judge fairly as between the parties, according to the applicable law, and
shall not accept any instruction or compensation with regard to the proceeding
from any source except as provided in the Institute's Arbitration Rules and in
the Rules of Procedures made pursuant thereto.
Or
I am independent of each of the parties and intend to remain so; however, in
consideration of Article 10 Sub-Articles 2 & 3 of the AACCSA Arbitration
Institute's Rules of Arbitration, I wish to call your attention to the following facts
or circumstances which I hereinafter disclose because they might be of such a
nature as to call into question my independence in the eyes of any of the parties
(use separate sheet, if necessary).
Non-Acceptance:
I, the undersigned, hereby declare that I decline to serve as an arbitrator in the
subject case. (If you wish to state the reasons for checking this box, please do so).
Name: ------------------------------Signature----------------- Date----------------

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