May 2009 - The Dispute Board Federation

The Dispute Board Federation
Geneva
Excellence in Dispute Resolution since 2001
Special Edition - May 2009
Issue: 42
Featured Events
Future combined
FIDIC -DBF
and
International Finance Corporation
related programmes
and events include:
Saigon
Intensive
DAB Training
12 & 13 May 2009
Sarajevo Special Edition
This Special Edition of our Newsletter is devoted to the recent successful
joint effort between the International Finance Corporation, which is part of
the World Bank Group and the Dispute Board Federation. In February this
year the IFC and DBF entered into a Memorandum of Understanding to
jointly promote the use of ADR in the construction sector in the Balkans
through both mediation and Dispute Boards. Additional goals included
bringing together leaders in the construction fields in Bosnia-Herzegovina
and Serbia and local engineers, lawyers, and government officials to learn
the benefits and cost savings of ADR and most importantly to liase with
local investors, employers, contractors and government procurement
officers in the development of programmes leading to accrediation,
certification and the creation of dispute boards on new construction of
roads, bridges, highways and other critical infrastructure projects in the
region. To this end the DBF and the IFC jointly conducted a programme in
the Practical Aspects of ADR in the Construction Sector which was attended
by 45 participants from Bosnia-Herzegovina, Serbia, and Montenegro. The
DBF has also been asked to develop programs for the region and act as the
appointing body for new projects. To this end the DBF is planning further
work in the region to effect these new goals and objectives.
Sarajevo
Intensive
DAB Training
9-10 June 2009
For a full listing of programmes
and
events, brochures
and more information
and/or to register please go to:
www.dbfederation.org
- Herbert Wilson
Executive Director
The DBF & IFC: Sarajevo April 2009
The use of ADR in the construction
sector, specifically the use of dispute
boards and mediation are the core of the
DBF's world-wide outreach. ADR is also
part of the World Bank Group mandate,
and is embedded in the day to day
operations of its group's institutions:
ICSID, MIGA, IFC and IBRD. Indeed the
World Bank's MDB form of the FIDIC
Contract along with IFC and IBRD credit agreements contain clauses, which refer to Dispute
Boards and also provide for the amicable resolution of disputes as well as promoting the use
of mediation in all investment related disputes.
To maximise their joint goals of ADR in the construction sector, the IFC and DBF felt that the
exploration of sectoral ADR interventions, such as use of ADR in the construction industry
Images from the Sarajevo Programme
Mira Vucetic Prsic and Igor Prsic, Lawyers
Vladmir Djelic, (L) Lawyer, Zoli Abravanel, (C) Judge
Commercial Court Belgrade, EurIng Faruk Dizdarevic (R), Civil
Engineer
would be a valuable exercise in the Balkan region.
Lada Busevac, ADR Project Leader for IFC said "The reason for
selecting the construction sector is because of the potential that
this sector offers to combine ADR with a better investment climate.
The construction industry is a driver of around 30 industries and
has a multiplier effect on economic growth. A 1% growth rate
recorded by the construction industry results in a 1.4%-1.6%
growth of the overall GDP, depending on the structure and
development level of the entire economy. Therefore, the
construction industry not only stimulates employment and
economic growth, but also contributes to general progress, and
has a stabilizing effect on the national economy".
All of this has led to the Dispute Board Federation (DBF), along with the International
Federation of Consulting Engineers (FIDIC) to partner with the IFC to develop a pilot
initiative in the Balkans and to test the implementation of ADR mechanisms in the sector
which will allow for the provision of ADR services to the construction industry at an
accelerated pace. Of added benefit in this pilot programme is the fact that the FIDIC
contracts in use worldwide for infrastructure construction and other development projects
already provide an effective form of dispute resolution which will be amplified by the joint
DBF/IFC iinitiative and interventions. These interventions are designed jointly and led by the
IFC AS regional offices, with the expert participation for training, certification, capacity
building, and public awareness being provided by the DBF.
EurIng Christopher Chilton one of the trainers at the
March/April programme in Sarajevo spoke about the
practical aspects of dispute resolution through the use of
mediation and dispute boards. There were 45 registered
participants in the programme and some of the comments
included "best programme I have ever attended,"
"Outstanding instruction", "Real world problem solving at
its best." The participants came from all sectors - lawyers,
judges, contractors, employers, and procurement officers all of which gained greater
knowledge and understanding of the mechanisms of dispute resolution, the idfferent
techniques available and "hands-on" practice with actual problems which arise during the
construction process. The success of this programme is leading both the DBF and the IFC
to develop further projects and programmes and there is an increasing interest to roll out
similar projects to other regions. At the moment IFC is implementing ADR projects in
Pakistan, Serbia, Bosnia-Herzegovina, Macedonia, Morocco, Montenegro, Ukraine, Albania,
Cambodia and Pacific Islands"
Predrag Subotic (L), Engineer,
Violeta Brdar (C), Nikola Matic (R), Engineer
Ratka Stjepovic (L), Consultant IFC,
Zoran Dimkic (R), Consultant Tahal
Munir Ramic (L), Euro Asfalt,
Franjo Milos (L), Housemilos
Igor
Matijevic
IFC, ADR
Regional
Manager for
Serbia
Samira Sauvage (L), IFC, ADR
Project Manager for Bosnia and Herzegovina, Lada Busevac (L),
IFC ADR Project Leader
Amir Fejzic (see interview below) of the Association of Consulting
Engineers of Bosnia & Herzegovina welcomed the participants and
spoke of the efforts in the region to introduce ADR to the
construction process. Indeed it was a Memorandum of
Understanding between IFC and ACE that brought both groups
together in the area of ADR support in the region. Additionally
Lada Busevac from the IFC extended her welcome and spoke of
the joint efforts of both the IFC and the DBF to jointly train
individuals in the Balkan region in the various aspects of dispute resolution that can be
successfully used in construction disputes.
Igor Matijevic (L), IFC, and
Shezana Petrovic (CL),
Lawyer, and Shezana
Stojanovic (CR) Judge
Municipal Court Belgrade, and
Marina Klaric Zivkovic (R),
Judge District Court Belgrade
Dr Cyril Chern (L), Barrister,
Riny Bus (C), Head of
Development Cooperation at
the Netherlands Embassy
Sarajevo, Lada Busevac (R),
IFC
Marco Mantovanelli, the World Bank Sarajevo Country Manager for
Bosnia-Herzegovina also spoke at the reception following the first days
training programme and he noted the need for continued growth in both the
construction sector in the region as well as the need for meaningful ADR
solutions to assist in the development of the region. The joint efforts of
groups such as the DBF, FIDIC, and IFC are leading the way for the many
construction and development projects not just in Bosnia-Herzegovina but
also in Serbia, Montenegro, and Croatia. It is hoped that continued efforts
such as this will be of great benefit to the region.
Based upon the success of this initial piolit programme the DBF is continuing its efforts to
establish ADR, particularly mediation and the use of dispute boards in new regional projects
in the Balkans and is following up in June with a joint FIDIC DBF event on Intensive Dispute
Board Training which is scheduled for June 9 & 10, 2009. The DBF has also been asked to
assist in the selection and accrediation of Dispute Boards and Dispute Board Members in
both Bosnia-Herzegovina and Serbia over the next several years as part of an on-going
effort to develop both regions.
Sarajevo City View
Milos
Marisavljevic (L) IFC and Marco Mantovanelli (R), WB
Training Day 1 & 2
Interview with Amir Fejzic
Amir Fejzic B.Sc, is a traffic engineer with the IPSA
Institute LTD in Sarajevo, and is the Secretary General
of Association of Consulting Engineers of Bosnia and
Herzegovina. He also serves on the Organisation
Board of the Bosnia - Herzegovina Congress on
Roads. In addition to his involvement with the DBF he
actively supports ADR in the construction sector and
spoke to the participants in the Sarajevo Programme
about the need for ADR in the region. We asked him about what is
happening in the region:
Sarajevo at night
What is the biggest challenge that BiH engineers are
facing?
Bosnia and Herzegovina (BiH) plans to build roads with a main motorway in
Corridor Vc which will be key transport link connecting the western Balkans
with each other and, ultimately, western Europe. Roads play a crucial role in
supporting the transition process towards a better economy, as well as
connecting towns and cities, they connect countries and link regions,
supporting trade and tourism alike. This project is helping Bosnia and
Herzegovina create good road infrastructure that can help attract
investment.
One of the biggest challenges we face is to integrate with our neighbours.
Bosnia-Herzegovina is also the biggest exporter of energy in the region,
with reforms leading to the creation of Energy Community of South-East
Europe (ECSEE) - the first formal connection of the region with the EU,
helping achieve stable economic development. In energy, the focus will be
on the implementation of existing projects and continued policy dialogue on
re-establishing the central government's authority and facilitating the
country's regional integration along the lines of the Athens treaty. Emphasis
will also be given to the sector commercialisation and in particular bringing
private operations in the electricity generation and distribution activities, in
parallel with the promotion of renewable energy in accordance with best
international practices.
Zoran Djordjevic
Samira Sauvage (L) IFC, Jonathan
Varoqui (CL), DBF, Amir Fejzic (CR),
IPSA, Lada Busevac (R), IFC
You have been very supportive of ADR in the region, how
do you think this will benefit the Construction Sector?
The DBF Practical ADR Training Programme has provided participants with
a thorough grounding in both Mediation and Dispute Boards, as well as their
procedures and operations. ADR Training Programmes are helping, for
sure, the BH Construction sector to work more productively, and to release
"blocked" financial resources in BiH Economy. I mean, the BiH Construction
sector will save time; money due to attorney fees, court costs, and experts'
fees; increase control over the process and the outcome; preserve
relationships and increase satisfaction. The overall effect will be captured
trough the increase of BiH competitiveness.
What is IPSA and can you describe some of its projects?
IPSA Institute Sarajevo, Bosnia and Herzegovina is a private and
independent consulting company. Since its foundation in 1958, IPSA
Institute has successfully carried out more than 7300 studies and designs.
The range of consulting and engineering services comprises preliminary
design, final design, master planning, framework planning, tendering,
feasibility studies, rehabilitation measures, analyses of weak points,
estimation of costs, feasibility studies, traffic studies, technical assistance,
supervision of construction in transport, water supply, energy supply,
environment protection, buildings and structure and telecommunication.
What do you see as UKI BiH's role is dispute resolution?
One of main goals of UKI BiH (Association of Consulting Engineers of
Bosnia and Herzegovina) is realizing international cooperation of the
Association members in accordance with good business customs, as well
as establishing of positive relations with the bodies of state government and
legislator, and chambers and other local and international institutions caring
about bringing and implementation of the rules in consulting activity. Dispute
resolution could be observed as UKI's fourth goal: establishing by legislative
and other legal regulations professional standards and rules, in accordance
with the rules of the International Federation of Consulting Engineers
(FIDIC) and relative legislative, with the aim of improving the Members'
services quality.
Zlatko Cengic, Unioninvest
The Dispute Board Federation
Geneva