VUA/OROMIA STATE UNIVERSITY

LLM IN SPECIALIZED BUSINESS LAW, A TERM PAPER FOR THE PARTIAL

FULFILLMENT OF THE COURSE COMMERCIAL DISPUTE SETTLEMENT

TITLE:
Comparative Analysis of UNICITRAL Arbitration Rule (2021
version) and ICC Arbitration Rule (2021 Version) with Ethiopian
Arbitration and Conciliation Proclamation No.1237/2021.

By: Ebsa Workineh Isayas

ID. No. PG/MBL/R/2022/0207

To be submitted to Yared B (Assistant Professor)

December, 2023, Batu

i
Table of Contents
Abstract .......................................................................................................................................... iv
INTRUDUCTION ...................................................................................................................... - 1 -
CHAPTER- ONE: ....................................................................................................................... - 2 -
Comparative Analysis of UNCITRAL (United Nation Commission on International Trade Law)
and ICC (International Chamber of Commerce) Arbitration Rules............................................ - 2 -
1.2 UNICITRAL & ICC ARBITARATION RULES: GENERAL OVERVIEW .................. - 2 -
1.3 UNICITRAL & ICC ARBITARATION RULES (2021 VERSION): COMPARATIVE
ANALYSIS OF SELECTED PROVISIONS, ........................................................................ - 4 -
1.3.1. Commencement of Proceedings .................................................................................... - 4 -
1.3.1.2. Notice of Arbitration Proceedings ................................................................................. - 5 -
1.3.1.3. Appointment and Confirmation of Arbitrators............................................................. - 5 -
1.3.1.4. Challenge of Arbitrator.................................................................................................... - 6 -
1.3.1.5. Jurisdiction of Arbitral Tribunal .................................................................................... - 6 -
1.3.1.6. Impartiality and Independence of Arbitrator ................................................................ - 7 -
1.3.1.7. Removal and Substitution of Arbitrator ........................................................................ - 7 -
1.4. Conduct of Arbitral Proceedings ...................................................................................... - 7 -
1.4.1. Determination of Language................................................................................................ - 7 -
1.4.2. Place of Arbitration ............................................................................................................. - 7 -
1.4.3. Determination of Rules of Procedure ............................................................................... - 8 -
1.4.4. Rule of Evidence ................................................................................................................. - 8 -
1.4.5. Decision Making.................................................................................................................. - 8 -
1.5. Arbitral Award ................................................................................................................. - 8 -
1.5.1. Form & Content of Award ................................................................................................. - 8 -
1.5.2 Effect of Arbitral Award ...................................................................................................... - 9 -
1.5.3. Applicable Law and Role of Equity.................................................................................. - 9 -
1.5.4. Formalities of making and effects of a valid award ........................................................ - 9 -
CHAPTER- TWO: .................................................................................................................... - 10 -
General Overview of Ethiopian Arbitration and Conciliation Working procedure Proclamation
No. 1237/2021........................................................................................................................... - 10 -
ii
 2.1. Comparative Analysis of Ethiopian Arbitration and Conciliation Working procedure
Proclamation No.1237/2021.................................................................................................. - 10 -
2.1.1 Commencement of Proceedings ....................................................................................... - 10 -
2.1.2. Notice of Arbitration ......................................................................................................... - 11 -
2.1.3. Appointment and confirmation of Arbitrators ............................................................... - 11 -
2.1.4. Challenge of Arbitrators. .................................................................................................. - 12 -
2.1.5. Jurisdiction of Arbitral Tribunal ...................................................................................... - 12 -
2.1.6. Impartiality and Independence of Arbitrator. ................................................................ - 12 -
2.1.7. Removal and Substitution of Arbitrator. ........................................................................ - 12 -
2.2. Conduct of Arbitral Proceeding. .................................................................................... - 12 -
2.2.1. Determination of Language.............................................................................................. - 12 -
2.2.2. Place of Arbitration ........................................................................................................... - 13 -
2.2.3. Determination of Rules of Procedure. ............................................................................ - 13 -
2.2.4. Rule of Evidence ............................................................................................................... - 13 -
2.3. Arbitral Award ............................................................................................................... - 13 -
2.3.1. Decision Making................................................................................................................ - 13 -
2.3.2. Form, Content and Effect of Arbitral Award ................................................................. - 13 -
2.3.3. Corrections, Interpretations and Additional Arbitral Award. ...................................... - 14 -
2.3.4. Cost of Proceeding. ........................................................................................................... - 14 -
2.3.5. Recognition and Execution of Arbitral Award .............................................................. - 14 -
2.3.6. Objection to enforcement of Arbitral Award ................................................................. - 15 -
CHAPTER- THREE: ............................................................................................................. - 15 -
CONCLUSION AND RECOMMENDATION .................................................................... - 15 -
3.1 CONCLUSION ............................................................................................................... - 15 -
3.2. Recommendations .......................................................................................................... - 16 -

iii
Abstract
On 2 April 2021, Ethiopia enacted a new arbitration law, known as the
Arbitration and Conciliation Working Procedure, Proclamation Number
1237/2021 (the "Proclamation"), to apply to commercial domestic arbitrations
and international arbitrations whose seat is in Ethiopia. 1 By doing so, the
country has managed to re-organize its arbitral law into a single
comprehensive law which were formerly scattered elsewhere under different
provisions of Civil Code, Civil Procedure Code and Chamber of Commerce and
Sectorial Association Establishment Proclamation. The need to amend the
Ethiopian arbitration law in line with international practices and principles
was among major reasons for the enactment of the proclamation. Therefore
now, the purpose of this work is to comparatively analyze the proclamation with
international arbitrations rules and laws, particularly that of UNCITRAL
Arbitration Rules (2021 version) and International Chamber of Commerce (ICC)
Arbitration Rules (2021 Version). The Proclamation has made significant
improvements to the Ethiopian arbitration laws regime. It has also benefited a
lot from international arbitration laws and principles, including UNCITRAL and
ICC. In this work, it is asserted that, the proclamation needs to be supplemented
with directive, detailing implementation guide line in accordance with
international best practices and principles related to arbitration.

1
Https://www.whitecase.com/insight-alert/ethiopia-modernizes-arbitration-framework accessed on December 28,
2023.
iv
INTRODUCTION
In many international commercial transactions, disputes are inevitable occurrence. Different
commercial and legal expectations, cultural approaches, political ramifications and geographic
situations are all sources for disagreement and dispute between contracting parties.2

Where these disputes arise and they cannot be resolved by negotiation, they will need to be
resolved in accordance with a legal process. This process should have the confidence of the
parties or at least be in a forum that is acceptable to the parties. In these circumstances, parties to
international commercial contracts frequently look to arbitration as a private, independent and
neutral system.3 Implemented properly, business or commercial arbitration can avoid the time,
expense, and uncertainty of court proceedings. Business arbitration is particularly useful when
parties want disputes resolved in a business setting – privately and efficiently by a decision-
maker with industry sector expertise.4

In this term paper, an attempt has been made to comparatively analyze the two well-known
international arbitrations rules: UNICITRAL Rule (2021) version and ICC Rule (Model law) and
see their practical influence on Ethiopian new Arbitration and conciliation procedure
Proclamation No.1237/2021.

In general, this term paper is sub- grouped under three topics: Chapter one discusses the rules of
international arbitration in general and brief analysis of UNITRAL and ICC arbitration rules, by
comparatively analyzing with Ethiopian Arbitration Proclamation. Under Chapter two, Ethiopian
arbitration and conciliation Proclamation is briefly discussed and compared both with ICC and
UNICITRAL rules, while Chapter three provides conclusion and suggests possible
recommendations.

2
Julian D. M. Lew , Loukas A. Mistelis , et al., Comparative International Commercial Arbitration, (Kluwer Law
International 2003) Chapter 1 Arbitration as a Dispute Settlement Mechanism , p. 1
3
Ibid.
4
Https://www.ccarbitrators.org/why-arbitrate/ accessed on August 23, 2023.
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CHAPTER- ONE: Comparative Analysis of UNCITRAL

and ICC Arbitration Rules.

1.2 UNICITRAL & ICC ARBITARATION RULES: GENERAL

OVERVIEW
The UNCITRAL Arbitration Rules provide a comprehensive set of procedural rules upon which
parties may agree for the conduct of arbitral proceedings arising out of their commercial
relationship and are widely used in ad hoc arbitrations as well as administered arbitrations. The
Rules cover all aspects of the arbitral process, providing a model arbitration clause, setting out
procedural rules regarding the appointment of arbitrators and the conduct of arbitral proceedings,
and establishing rules in relation to the form, effect and interpretation of the award. At present,
there exist four different versions of the Arbitration Rules: (i) the 1976 version; (ii) the 2010
revised version; and (iii) the 2013 version which incorporates the UNCITRAL Rules on
Transparency for Treaty-based Investor-State Arbitration and (iv) the 2021 version which
incorporates the UNCITRAL Expedited Arbitration Rules.

The UNCITRAL Arbitration Rules were initially adopted in 1976 and have been used for the
settlement of a broad range of disputes, including disputes between private commercial parties
where no arbitral institution is involved, investor-State disputes, State-to-State disputes and
commercial disputes administered by arbitral institutions. In 2006, the Commission decided that
the UNCITRAL Arbitration Rules should be revised in order to meet changes in arbitral practice
over the last thirty years. The revision aimed at enhancing the efficiency of arbitration under the
Rules without altering the original structure of the text, its spirit or drafting style.5

The UNCITRAL Arbitration Rules (as revised in 2010) have been effective since 15 August
2010. They include provisions dealing with, amongst others, multiple-party arbitration and
joinder, liability, and a procedure to object to experts appointed by the arbitral tribunal. A
number of innovative features contained in the Rules aim to enhance procedural efficiency,
including revised procedures for the replacement of an arbitrator, the requirement for

5
Https://uncitral.un.org/en/texts/arbitration/contractualtexts/arbitration Retrieved on 2023-12-24.
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reasonableness of costs, and a review mechanism regarding the costs of arbitration. They also
include more detailed provisions on interim measures.6

With the adoption of the UNCITRAL Rules on Transparency in Treaty-based Investor-State

Arbitration (the "Rules on Transparency") in 2013, a new article 1, paragraph 4 was added to the
text of the Arbitration Rules (as revised in 2010) to incorporate the Rules on Transparency for
arbitration initiated pursuant to an investment treaty concluded on or after 1 April 2014. The new
paragraph provides for utmost clarity in relation to the application of the Rules on Transparency
in investor-State arbitration initiated under the UNCITRAL Arbitration Rules. In all other
respects, the 2013 UNCITRAL Arbitration Rules remain unchanged from the 2010 revised
version.7With the adoption of the UNCITRAL Expedited Arbitration Rules in 2021, a new
article 1, paragraph 5 was added to the text of the Arbitration Rules to incorporate the Expedited
Rules as an appendix to the UNCITRAL Arbitration Rules. The phrase “where the parties so
agree” in that paragraph emphasizes the need for the parties’ express consent for the Expedited
Rules to apply to the arbitration. 8

The ICC Rules of Arbitration are used all around the world to resolve disputes. They define and
regulate the management of cases submitted to International Court of Arbitration. These rules
assure parties of a neutral framework for the resolution of cross-border disputes. The Arbitration
Rules are those of 2012, as amended in 2017 and 2021. They are effective as of 1st January 2021.
9
Some of the 2021 amendments reflect established practice of the Court while others aim at
increasing the flexibility, efficiency and transparency of ICC Arbitrations.

6
Ibid.
7
Ibid.
8
Ibid.
9
Https://www.iccindiaonline.org/arbitration/ICCRulesArbitration.html

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1.3 UNCITRAL (2017) & ICC ARBITARATION RULES (2021

VERSION): COMPARATIVE ANALYSIS OF SELECTED

PROVISIONS,
The innovative features of the UNCITRAL Rules are best highlighted by comparing them with
the ICC Rules. For the most part there is little to distinguish the two sets of rules. Both the ICC
Rules and the UNCITRAL Rules permit the arbitral tribunal to set up rules for their proceedings
and provide that in the absence of an agreement on choice of law, the tribunal shall select the law
it deems most appropriate. Furthermore, under both sets of rules the tribunal has final authority
on questions challenging the applicability of the rules to the question in dispute. Nevertheless,
there are several noteworthy differences.

Entered into force on1st January, 2021, UNCITRAL Rules(2021 version) define and regulate the
management of cases received by the International Court of Arbitration® from 1 January 2021
on. The Arbitration Rules are those of 2012, as amended in 2017 and 2021. They are effective as
of 1 January 2021. Some of the 2021 amendments reflect established practice of the Court while
others aim at increasing the flexibility, efficiency and transparency of ICC Arbitrations. 10

1.3.1. Commencement of Proceedings

Arbitral proceeding also known as arbitration provide flexible and effective method of dealing
with disputes resulting in an arbitral award, which resolves the given dispute with final and
binding effect.11 Either party may exercise the right to arbitrate by providing the other party with
written notice. The party or parties initiating recourse to arbitration called the claimant shall
communicate to the other party called the respondent a notice of arbitration.12 Arbitral
proceeding shall be deemed to commence on the date on which the notice of arbitration is
received by the respondent.13

10
ICC Arbitration Rule, 2021 English Version, Foreword.
11
Http://www.priac.net accessed on December 20, 2023.
12
UNICITRAL Arbitration Rule, 2021 Expedited version, Article 3(1).
13
UNICITRAL, Article 3(2)
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However, there is a slight difference in case of ICC Arbitration Rule regarding recipient of the
notification for the commencement of the arbitration. A party wishing to have to arbitration
under the rules shall submit its request for arbitration to the secretariat at any of the offices
specified in the internal rule.14 The date on which the request is received by the secretariat shall,
for all purpose, be deemed to be the date of the commencement of the arbitration.15

From the above discussions, we can infer that both UNICITRAL and ICC rules recognize the
commencement of arbitral proceeding at the time when the notification or request for arbitration
is received by respondent or secretariat.

1.3.1.2. Notice of Arbitration Proceedings

Notice for arbitration carries a significant importance in dispute resolution process between the
parties because the details in the notification include mandatory information regarding the
claims. Article 4(3) of ICC Rules and Article 3(3) of UNCITRAL lists mandatory information’s
which incorporated in the notification.

1.3.1.3. Appointment and Confirmation of Arbitrators.

The parties may agree on the number of arbitrators on the notification of arbitration. If the parties
have not previously agreed on the number of the arbitrators, and if within 30 days after receipt by
the respondent of the notice of arbitration by the parties have not agreed that there shall be only
one arbitrator , three arbitrators shall be appointed.(UNCITRAL Art7(1)). However if a party
failed to appoint a sole arbitrator or second arbitrator within provided time at request of a party
the appointing authority may appoint a sole arbitrator.(UNCITRAL Art 7(2)). If three arbitrators
are to be appointed each party shall appoint one arbitrator the two arbitrators thus appointed shall
choose the third arbitrator who will act as the presiding arbitrator of the arbitral tribunal

14
ICC (2017 version Article 4(1).
15
Ibid, Article 4(2).

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(UNCITRAL Art.9 (1)) The UNCITRAL arbitration rules, in contrast to ICC rules, lean towards
the appointment of three arbitrators as a rule, unless the parties have agreed otherwise.16

1.3.1.4. Challenge of Arbitrator

Any arbitrator may be challenged if there are circumstances that give rise to justifiable doubts as
to the arbitrator’s impartiality and independence. However, a party may challenge its own
appointed arbitrator only for reasons of which it becomes aware after the appointment has been
made. If a party intends to challenge an arbitrator, it shall send notice of its challenge within
fifteen days after the appointment of the challenged arbitrator has been notified to the
challenging party or within fifteen days after the circumstances of justifiable doubts become
known to the party. The challenge should then be notified to all the parties, to the arbitrator who
is challenged and to the other members of the tribunal, stating the reason for the challenge. After
an arbitrator has been challenged by one party, all parties may agree to challenge.

The arbitrator may also withdraw from the office after the challenge. Nonetheless, in neither
case would imply acceptance of the validity of the grounds for the challenge. If within fifteen
days from the date of the notice of challenge, all parties do not agree to the challenge or the
challenged arbitrator does not withdraw, the party making the challenge may elect to pursue it. In
that case, within 30 days from the date of the notice of challenge, it shall seek a decision on the
challenge by the appointing authority17.

1.3.1.5. Jurisdiction of Arbitral Tribunal

Under both UNCITRAL & ICC Arbitration Rules, parties to a dispute have the ability to select
the arbitral jurisdiction for resolving their disputes. If the parties do not agree on the arbitral
institution, the default jurisdiction is the International Court of Arbitration of the international
Commerce (ICC) in both cases.

16
Http://www.acerislaw.com retrieved on 12/25/23
17
Https://www.icsid.worldbank.org accessed on December, 20, 2023.
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1.3.1.6. Impartiality and Independence of Arbitrator

UNCITRAL Arbitration Rule (2021 version) and ICC (2017) both emphasize on the importance
of impartiality and independence of arbitral tribunals in their respective rules and guide lines.
(Article 11 UNCITRAL).

These principles are crucial for ensuring fair and unbiased decision- making in arbitration
proceedings.

1.3.1.7. Removal and Substitution of Arbitrator

Justiciable doubt as to the impartiality or independence of arbitrator, inability and failure to act
without undue delay can be the major grounds for removal of an arbitrator under both
UNCITRAL & ICC Arbitration Rules. It is then substituted by another arbitrator and the whole
procedures can be done by the agreement of the parties or by the tribunal itself.

1.4. Conduct of Arbitral Proceedings

1.4.1. Determination of Language

According to UNCITRAL Arbitration Rule (2021) Art. 19, the parties to arbitration agreement
are at freedom to choose the language to be used in arbitral proceedings. Whereas, the ICC
(2017) provides for the determination by the tribunal of the language(s) of the arbitration, in the
absence of an agreement by the parties, due regard being given to all relevant circumstances,
including the language of the contract. (Article 20).

1.4.2. Place of Arbitration

The place of arbitration is usually the place where the hearings take place, but it need not be.
According to both UNCITRAL and ICC Arbitration Rules, the place of arbitration shall be
determined by the arbitral tribunal having regard to the circumstances of the case, if the parties
have not previously agreed on the place of arbitration.

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1.4.3. Determination of Rules of Procedure

One advantage of arbitration is that the parties' ability to predetermine the law governing the
resolution of the dispute and this has gained growing recognition in recent years.

Both UNICITRAL and ICC rules provide a flexible approach to the determination of rules of
procedure, allowing parties to customize the arbitration to suit their specific needs and
circumstances.

Whether the parties agree on the procedures or leave the determination to the arbitral tribunal or
ICC, the ultimate goal is to ensure fair and efficient process for all parties involved.

1.4.4. Rule of Evidence

The tribunal has the authority to determine the rules of evidence that will apply to the
proceedings, under ICC and UNCITRAL Arbitration rules. The Parties are also free to agree on
the rules of evidence they want to apply.

Therefore, both the UNCITRAL and ICC Arbitration regime are the similar on the determination
of rules of evidence to be applied in arbitral proceedings.

1.4.5. Decision Making

UNCITRAL arbitration Rule (2021) does not provide a time limit within which arbitral decision
shall be rendered. While, ICC Arbitration Rule (2017) set 6 months as a threshold.

1.5. Arbitral Award

1.5.1. Form & Content of Award

Both ICC and UNICITRAL rules of Arbitration provided that An arbitral Award be: in written
form and signed by arbitrators, state the claim, material fact in dispute, ground of award , and
finally identity of the parties.

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1.5.2 Effect of Arbitral Award

Effect of Arbitral Award under Ethiopian Proclamation as well as ICC (2017) and UNCITRAL
(2021) is similar in that: it shall be binding and enforceable between the parties. It prevents the
institution of fresh suit on the same subject matter (Resjudicata).

1.5.3. Applicable Law and Role of Equity

Both ICC and UNICITRAL Rules of arbitration provide that the parties shall be free to agree
upon the rules of law to be applied by the arbitral tribunal to the merits of the dispute. In the
absence of any such agreement, the arbitral tribunal shall apply the rules of law which it
determines to be appropriate.

1.5.4. Formalities of making and effects of a valid award

As a rule, an award can be made by the tribunal itself. However, there is an instance where it is
made by agreement of the parties to the proceeding. In the latter case, the parties make effective
award by themselves, by their own agreement, and settle their issues by themselves, the subject
matter of which is already submitted and being entertained the tribunal. However, for their
settlement to be effective, their request to that effect must be affirmation from the tribunal. That
shows, the settlement by their agreement is dependent on authorization/permission of acceptance
of the tribunal. 18

18
Art 33 of ICC Arbitration Rule (2021 version) and art 36 par 1, 2 of UNCITRAL Arbitration Rule(expedited 2021
version).

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CHAPTER- TWO: General Overview of Ethiopian

Arbitration and Conciliation Working procedure’s

Proclamation, Proc. No. 1237/2021.

Ethiopia enacted a new arbitration law, known as the Arbitration and Conciliation Working
Procedure, Proclamation Number 1237/2021 (the "Proclamation"), to apply to commercial
domestic arbitrations and international arbitrations whose seat is in Ethiopia. By doing so, the
country has managed to re-organize its arbitral law into a single comprehensive law which were
formerly scattered elsewhere under different provisions of Civil Code, Civil Procedure Code and
Chamber of Commerce and Sectorial Association Establishment Proclamation. The need to
amend the Ethiopian arbitration law in line with international practices and principles was among
major reasons for the enactment of the proclamation.

2.1. Comparative Analysis of Ethiopian Arbitration and

Conciliation Working procedure Proclamation No.1237/2021.

The Ethiopian Arbitration and conciliation proclamation No.1237/2021 was a result of recent
development reform that the country has set to attain in the next ten year’s plan. The
proclamation included various provisions that are in line with international arbitration rules.

In the preceding sections an attempt has been made to briefly analyze some of the proclamation’s
provisions by comparing them both with ICC and UNCITRAL arbitration rules.

2.1.1 Commencement of Proceedings

Like both ICC and UNCITRAL Arbitration rules, under Ethiopian Arbitration law, the date the
defendant receives the plaintiff’s request that he has decided to refer the dispute to arbitration
shall be deemed to be the commencement date of the arbitral proceeding. 19

19
Federal Negarit Gazette of the Federal Democratic Republic of Ethiopia, 27th Year No. 21 ADDIS ABABA,
2nd April, 2021, Arbitration and Conciliation Working Procedure’s Proclamation No.1237/2021 Art. 31(1).
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2.1.2. Notice of Arbitration

The Proclamation only mentions the names of the parties, the dispute that give rise to the
arbitration and the arbitration clause for initiating such arbitration particulars to be included in
the notification.20 The list provided in Ethiopian Arbitration Rule is not exhaustive that it lacks
necessary points which should be vital for dispute resolution process such as relief sought, any
relevant agreement and in particular concerning number of arbitrator or language and place of
arbitration, a brief description of the claim and an indication of the amount involved. Thus,
Ethiopian Arbitration Rule needs to incorporate all the mandatory lists to notification for
arbitration to facilitate for smooth arbitration processes.

2.1.3. Appointment and confirmation of Arbitrators

The Ethiopian arbitration law stipulates that contracting parties may determine the numbers of
arbitrators by agreement provided that the number of judges shall be odd.21 When the contracting
parties fail to agree on the number of arbitrators, there shall be three arbitrators. The parties shall
agree on procedures of arbitrator’s appointment of arbitration by arbitral center or by third party,
but when the parties fail to agree according to such procedure, where the arbitral tribunal has one
arbitrator, both parties shall mutually agree on the appointment. In the case of three arbitrators,
each contracting party shall appoint one co-arbitrator and the appointed co-arbitrators shall
appoint the third arbitrator who serves as a presiding arbitrator.22 However, where one of the
contracting parties fail to appoint the arbitrators within 30 days from the date of receipt of the
notice by the other party, or where the two arbitrators fail to agree on the appointment of the
third arbitrator within 30 days from the date of their appointment or where the contracting party
fails to agree, in the case of sole arbitrator, the first instance court shall appoint such arbitrator
upon request of one of the parties.23

20
Ibid.
21
Ibid, Art.11 (1).
22
Ibid. Arts. 12(2) and 3(a))
23
Ibid Art. 12(3) (b)).

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2.1.4. Challenge of Arbitrators.

The steps and grounds on which an arbitrator is challenged is similar under UNCITRAL rule
article 11 up to 13 and Ethiopian arbitration law Proclamation number 1237/2021 Article 14 and
15.Therefore, even if the reason for challenge of arbitration is similar in all UNCITRAL, ICC
and Ethiopian arbitration law, the procedure in which the challenge is submitted and a party or
organ which approve the challenge is different under ICC to that of UNCITRAL and Ethiopian
arbitration law.

2.1.5. Jurisdiction of Arbitral Tribunal

In similar fashion, under Ethiopian law, it is determined by the parties agreement and extends to
specific matters agreed upon.(Arts.11, 13, &14 of proc. No.1237/2021).

2.1.6. Impartiality and Independence of Arbitrator.

These principles are crucial for ensuring fair and unbiased decision- making in arbitration
proceedings. Ethiopia has also adopted these principles under Art. 13 of Proc.1237/2021 dealing
with rights & obligations of arbitrator.

2.1.7. Removal and Substitution of Arbitrator.

Justiciable doubt as to the impartiality or independence of arbitrator, inability and failure to act
without undue delay can be the major grounds for removal of an in Ethiopia. It is then substituted
by another arbitrator and the whole procedures can be done by the agreement of the parties or by
the tribunal itself.

2.2. Conduct of Arbitral Proceeding.

2.2.1. Determination of Language

Ethiopian Arbitration proclamation has also followed the footsteps of both ICC Arbitration Rule
and UNCITRAL Arbitration Rule and provides that languages of the proceeding would be
determined by agreement of the parties or the tribunal.

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2.2.2. Place of Arbitration

According to the proclamation, if the parties have not previously agreed on the place of
arbitration, the place of arbitration shall be determined by the arbitral tribunal having regard to
the circumstances of the case.24

2.2.3. Determination of Rules of Procedure.

Both UNICITRAL and ICC arbitration rules, as well as Ethiopian arbitration and conciliation
working procedure proclamation25, provide a flexible approach to the determination of rules of
procedure, allowing parties to customize the arbitration to suit their specific needs and
circumstances. Whether the parties agree on the procedures or leave the determination to the
arbitral tribunal or ICC, the ultimate goal is to ensure fair and efficient process for all parties
involved.

2.2.4. Rule of Evidence

Under Ethiopian Arbitration and conciliation proclamation, tribunal has the authority to
determine the rules of evidence that will apply to the proceedings. The Parties are also free to
agree on the rules of evidence they want to apply.

2.3. Arbitral Award

2.3.1. Decision Making

Similar to UNCITRAL rule, the Ethiopian Arbitration and conciliation Proclamation has not
provided the time limit for arbitral decision making.

2.3.2. Form, Content and Effect of Arbitral Award

Ethiopian Arbitration and conciliation working procedure proclamation and both international
rules of Arbitration(ICC and UNCITRAL) has provided that An arbitral Award be: in Written

24
Supra note 21, Art.30
25
Supra Note 21, Art.29.
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form and signed by arbitrators, and clearly state the claim, material fact in dispute, ground of
award , identity of the parties.

Effect of Arbitral Award under Ethiopian Proclamation as well as ICC and UNCITRAL rule is
similar in that: it shall be binding and enforceable between the parties and Prevents the
institution of fresh suit on the same subject matter (Resjudicata).

2.3.3. Corrections, Interpretations and Additional Arbitral Award.

In Ethiopia, the parties may agree on corrections, interpretations and additional Arbitral Award.
If the parties fail to agree: any party may within 30 days from receipt of the award: request the
tribunal (a) for correction of clerical errors, numerical errors, unintended and inadvertent
omission of words by notifying the other party; (b) to give an interpretation on specific issue or
part of the award by notifying the other party; (c) for additional award on the part of the award
that has been omitted by notifying the other party. 26

2.3.4. Cost of Proceeding.

According to the Proclamation, unless the contracting parties agree otherwise, the modes of
payment of costs necessary for the arbitration and service fees of arbitrators may be determined
27
by the tribunal.

2.3.5. Recognition and Execution of Arbitral Award

An arbitral award rendered in Ethiopia or in a foreign country shall be deemed to be binding

and shall be executed pursuant to Civil Procedure Code by applying to a court that is empowered
to execute the award had the case been heard by a court.

26
Supra Note 21, Art.47.
27
Supra Note 21, Art.46.

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2.3.6. Objection to enforcement of Arbitral Award

An objection to the enforcement of arbitral award may only be made, where an application made
to the court previously to have the award set aside has not been dismissed.

An objection to enforcement of arbitral award may only be made on the following grounds:

a) The person who objects to the enforcement was under legal capacity pursuant to the law
applicable to him or if the arbitration agreement is null and void under applicable law
chosen by the parties or, in the absence of such agreement, under Ethiopian law.

b) The applicant shows that he has not been given proper notice about the appointment of
the arbitrator or the arbitral proceedings or has not been able to present his case;

c) The arbitrators did not grant the award by maintaining their impartiality and
independence or have delivered the award by receiving bribe.

CHAPTER- THREE: CONCLUSION AND

RECOMMENDATION

3.1 CONCLUSION

The enactment of Arbitration and conciliation working procedure proclamation No 1237/2021 is

a significant step forward in overcoming the systemic malaise of delays, high costs and
ineffective resolution of disputes, which had plagued the ordinary court litigation in Ethiopia. It
is also a great move forward to attract foreign investors by creating a reliable efficient and
confidential dispute resolution mechanism.

In this brief term paper, the Ethiopian Arbitration and conciliation working procedure’s
proclamation has been comparatively analyzed with respect to UNICITRAL and ICC arbitration
rules (latest versions). Accordingly, the writer has identified the following findings:

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  The Ethiopian Arbitration and conciliation working procedure’s proclamation
No.1237/2021 more or less resembles the UNCITRAL Arbitration Rules than ICC
Arbitration Rules,

 Similar to International Arbitration rules, the proclamation recognizes the principles of

party autonomy, which allows the parties to a dispute to choose applicable law, the
language of the proceedings, and the procedural rules for the arbitration.

 However, Ethiopian law also imposes certain limitations on party autonomy, such as the
requirement that a dispute must be capable of settlement by arbitration in order for an
arbitration clause to be enforceable.

 The new law has reduced the role of the courts in commercial arbitration unlike its
predecessors which allow huge involvement of National courts.

 Furthermore, in line with international arbitration rules, the non-arbitral cases are also
listed in an exhaustive manner, leaving no ambiguity for parties that wish to include
arbitration clauses in their contracts. And the proclamation now grants permission to
public and private firms to establish an institutional arbitration tribunal.

3.2. Recommendations
• Ethiopia should establish more additional arbitration tribunal for the proper
implementation of the proclamation.

• Because, the mere existence of law will not suffice, and we need more and more
arbitration tribunals in addition to Addis Ababa Chamber of commerce.

• Moreover, the writer recommend that the council of ministers should issue a regulation
as much as possible in order to fill some of the issues left an answered by the
proclamation, for instance, by providing guideline while choosing language by
arbitrators.

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References

 Books:
 Julian D. M. Lew , Loukas A. Mistelis , et al., Comparative International
Commercial Arbitration, (Kluwer Law International 2003) Chapter 1 Arbitration as a
Dispute Settlement Mechanism,

 Legislations:
 Federal Negarit Gazette of the Federal Democratic Republic of Ethiopia, 27th Year
No. 21 ADDIS ABABA, 2nd April, 2021, Arbitration and Conciliation Working
Procedure’s Proclamation No.1237/2021,
 UNCITRAL Arbitration and mediation Rule(2017 version),

 ICC Arbitration Rule (2021 Version).

 Online Materials:
 Https://www.whitecase.com/insight-alert/ethiopia-modernizes-arbitration-framework

 1
Https://www.ccarbitrators.org/why-arbitrate/

 Https://uncitral.un.org/en/texts/arbitration/contractualtexts/arbitration,

 Https://www.iccindiaonline.org/arbitration/ICCRulesArbitration.html

 Http://www.priac.net

 1
Https://www.icsid.worldbank.org

 Http://www.acerislaw.com

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