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Arbitration Clause in an International Contract for Public Procurement in Zimbabwe

The Procurement Regulatory Authority of Zimbabwe (‘PRAZ’) is the regulatory authority in Zimbabwe for both domestic public procurement and international public procurement. For public procurement contracts which are typically entered into with international service providers in Zimbabwe, PRAZ has encouraged procuring entities in Zimbabwe to consider international commercial arbitration, due to its practical advantages.

There appear to be at least four (4) general or model arbitration clauses in international contracts for public procurement in Zimbabwe. For instance, where the parties choose the UNCITRAL Arbitration Rules, the following is generally adopted:

“Any dispute, controversy or claim arising out of or relating to this Contract, or breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the UNCITRAL Arbitration Rules as at present in force.”

Where the parties choose the Rules of the International Chamber of Commerce (ICC) the arbitration clause in an international contract of public procurement in Zimbabwe would typically read as follows:

“All disputes arising in connection with this Contract shall be finally settled under the Rules of Conciliation and Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules.”

Where parties to an international public procurement contract in Zimbabwe opt out of the UNCITRAL Arbitration Rules, or the ICC Arbitration Rules, PRAZ has recommended the London Court of International Arbitration (LCIA), and the following clause:

“Any dispute arising out of or in connection with this Contract, including any question regarding its existence, validity or termination shall be referred to and finally resolved by arbitration under the Rules of the London Court of International Arbitration, which rules are deemed to be incorporated by reference to this clauses.”

Where the parties opt out of the UCC Arbitration Rules, the UNCITRAL Arbitration Rules, the LCIA Arbitration Rules, PRAZ has finally recommended that parties should consider resolving their dispute under the auspices of the Arbitration Institute of Stockholm Chamber of Commerce (‘SCC’) with a typical clause worded as follows:

“Any dispute, controversy or claim arising out of or in connection with this Contract, or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the Rules of the Arbitration Institute of the Stockholm Chamber of Commerce.”