PHNOM PENH, March 9 (Xinhua) -- Cambodia's National Commercial Arbitration Center (NCAC) and the International Finance Corporation (IFC) are promoting mediation to resolve business disputes and build investors' trust in commercial litigations, said a joint statement on Wednesday.
The effort is aimed at helping improve Cambodia's investment climate while supporting businesses to recover from the impacts of COVID-19 and continue job creation, the statement said.
Due to the economic challenges brought by a global pandemic, it has been difficult for Cambodian businesses, especially small and medium enterprises (SMEs), to maintain operations, it said.
"Against this backdrop, availability of flexible out-of-court dispute resolution alternatives such as commercial mediation will help boost entrepreneurship, free company funds otherwise tied up in disputes, and create a conducive environment for investors, SMEs, and entrepreneurs," the statement said.
It added that recently, 16 new commercial mediators have been accredited by the internationally-recognized mediation and alternative dispute resolution body -- the London-based Center for Effective Dispute Resolution (CEDR) after a training program and are ready to provide mediation services to businesses in dispute.
As a neutral and independent third person, the mediator uses a wide variety of techniques to guide the process of discussion, eventually helping the business parties to arrive at an agreed solution, saving them lengthy and costly court proceedings, it said.
"Even though mediation is a long-standing tradition in the Cambodian society, structured commercial mediation is a relatively new concept for the business community here," NCAC's president Bun Youdy said.
"I believe a strengthened alternative dispute resolution mechanism along with capable mediators will encourage more businesses in the country to adopt commercial mediation, a way to help resolve their disputes in a fast, cost-effective, and efficient manner," he said.
These mediators participated in the first-ever commercial mediator training program in the country delivered by the CEDR late last year as part of IFC and NCAC's joint efforts to strengthen Cambodia's insolvency framework and promote an effective commercial mediation mechanism, said Asad Yaqub, IFC resident representative for Cambodia.
