The Afghanistan Center for Commercial Dispute Resolution (ACDR) welcomed more than 120 participants at its Inauguration and ribbon-cutting ceremony held on Tuesday, June 30, 2015. ACDR, based in Kabul, is the first center of its kind in Afghanistan, which has started to provide domestic, and international mediation services, calculation services (and will provide arbitration services in the near future) for commercial disputes in Afghanistan.
ACDR is initiated by the Afghanistan Chamber of Commerce and Industries (ACCI), and funded by Harakat – Afghanistan Investment Climate Facility Organization (AICFO) and provided with technical assistance by the ADR (Alternative Dispute Resolution) Center, an Italian ADR provider. ACDR provides a rapid, professional and transparent alternative method of dispute resolution. The aim of the ACDR is to attract and maintain business and commercial enterprises in the country by providing dispute resolution that is fast, fair, cost-effective and reliable. To learn more about the ACDR, please visit www.acdr.af.
The inauguration ceremony was attended by Minster of Commerce and Industry, ACCI’s Board of Directors, ACDR’s Steering Committee Members and the CEO of Harakat– AICFO.
Mr. Khanjan Alokozay, Senior Vice-Chairman of ACCI, highlighted the importance of ACDR in resolving commercial disputes
H.E. Homayon Rasa, Minister of Commerce and Industries, declared full support for ACDR and even proposed to be on the Steering Committee of ACDR in case of need.
Mr. Nasim Akbar, CEO of Harakat, stressed the importance of ADR (Alternative Dispute Resolution) in Afghanistan and that ACDR’s staff should maintain impartiality while conducting their duties.
Harakat– AICFO has provided $1.8 million funding and technical assistance to establish the ACDR, from its systems and staffs to a brand new building. The objective here is to simplify the contract enforcement, shorten the length of dispute settlements through mediation mechanisms as much as possible and reduce the cost of dispute resolution from the current 25% of total claimed amount to an affordable level.
Disputes regularly arise between businesses, often resulting in lengthy, costly and time-consuming processes. Most of these disputes gradually become adversarial, which in most cases, damage business relationships between the disputing parties. Over the past 30 years, Alternative Dispute Resolution (ADR) has encouraged more cost-effective and collaborative resolutions to such problems, enabling businesses to preserve relationships.
According to the World Bank/IFC’s 2014 “Doing Business Report”, contract enforcement in Afghanistan involves 47 procedures and takes over 1642 days. An average of 25 percent of the claimed amount is spent on dispute settlement in the formal justice system. The realities of the existing contract enforcement clearly demonstrate inefficiencies in the court system. Lack of effective contract enforcement serves as a crucial disincentive for investment by domestic and international investors, adversely impacting job creation and revenue generation.
Mr. Siam Pasarly, Communication and Marketing Specialist
Tuesday, 30 June 2015