The centre will coordinate and facilitate dispute resolution in the energy and resources sector, which currently has about $160 billion worth of projects in the construction or committed stage.
Delays in resolving disputes can add to costs and force payments to be outstanding for long periods, leaving executives and staff distracted from focusing on key projects. It is also difficult to plan when there is uncertainty.
The new centre has developed a set of arbitration principles that will be applied by approved arbitrators, drawn from a variety of fields, to produce efficient fast-track arbitration outcomes.
The principles require that a date for a hearing be set at an early stage of the process. In addition, they limit hearing time so as to require the parties to focus on what is important.
The procedure is designed to remove all steps that are time consuming and expensive while adding very little to a robust assessment of the merits of the case, according to the centre’s website.
The centre also provides a new model for expert determination called Collaborative Expert Resolution, which involves an independent expert being appointed for each party to undertake an independent informal assessment of the merits of the case.
The experts then meet and reach consensus, through a collaborative process, as to the resolution of the dispute based on its merits.
The assessment may be undertaken on a binding or non-binding basis.
The importance of such a centre is highlighted by the fact that minerals and petroleum products accounted for 90% ($119 billion) of WA’s merchandise exports in 2013-14, with the state hosting 513 mineral projects, including 1050 operating mine sites, in that period and producing more than 50 mineral and petroleum products in commercial quantities.
The centre will cover all aspects and stages of resource and energy projects such as exploration (including prospecting and exploration licences and permits); infrastructure supporting energy and resources projects; state agreements; project feasibility matters involving ventures, investors and financiers; financing and product liability for products used in energy; and resources projects.
WA Energy Minister Mike Nahan says it is critical that projects are not delayed or halted by costly and time-consuming disputes in order to keep the state’s economy strong.
“While it is not always possible to avoid disputes, we can work to resolve them efficiently and the Perth Centre for Energy and Resources Arbitration will play an important role,” he said.
“Arbitration has many advantages over litigation as a means for settling disputes in the energy and resources sector.
“It is encouraging to see the arbitration centre capitalise on Perth’s substantial industry expertise to deliver an innovative dispute resolution service.
“I wish the centre well in its endeavour to establish Perth as a global centre for energy and resources dispute resolution.”
