International Commercial Arbitration at Papua New Guinea
Sure! Here’s a detailed overview of International Commercial Arbitration in Papua New Guinea (PNG):
🔷 International Commercial Arbitration in Papua New Guinea (PNG)
1. Legal Framework
PNG’s arbitration law is primarily governed by the Arbitration Act 2000 (which replaced the earlier Arbitration Act 1957).
The Arbitration Act 2000 is based largely on the UNCITRAL Model Law on International Commercial Arbitration, which aligns PNG with international arbitration standards.
PNG is also a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards since 1986. This means foreign arbitral awards can be enforced in PNG courts, and PNG awards can be enforced abroad.
2. Scope of Arbitration
The Arbitration Act applies to both domestic and international commercial disputes.
Parties can choose arbitration as a dispute resolution method by agreement.
It covers all types of commercial disputes, including trade, construction, services, and natural resources (important for PNG given its mining and oil industries).
3. Arbitral Institutions
PNG does not have a strong, well-established domestic arbitration institution like ICC or ACICA.
Most international arbitrations involving PNG parties are administered by international arbitration institutions such as:
International Chamber of Commerce (ICC)
Singapore International Arbitration Centre (SIAC)
London Court of International Arbitration (LCIA)
Ad hoc arbitration under UNCITRAL rules is also common.
4. Enforcement of Arbitral Awards
The Arbitration Act 2000 enables enforcement of domestic and foreign arbitral awards.
PNG courts generally respect and enforce arbitration agreements and awards.
Enforcement is subject to exceptions consistent with the New York Convention, such as public policy or lack of proper notice.
5. Choice of Seat
The seat of arbitration can be agreed by the parties.
While PNG itself can be the seat, in practice, parties often choose international hubs like Singapore or Sydney due to better facilities and neutral locations.
6. Challenges and Considerations
Judicial expertise in arbitration is still developing, so parties sometimes prefer international seats.
Infrastructure and professional arbitration expertise within PNG remain limited.
The legal and business environment can be unpredictable, which sometimes influences parties to choose arbitration fora outside PNG.
🔷 Summary Table
| Aspect | Details |
|---|---|
| Governing Law | Arbitration Act 2000 (based on UNCITRAL Model Law) |
| New York Convention | PNG is a signatory since 1986 |
| Institutional Arbitration | No strong domestic institution; use ICC, SIAC, LCIA, or ad hoc |
| Enforcement of Awards | Courts generally enforce awards consistent with New York Convention |
| Common Arbitration Seats | PNG possible but Singapore, Sydney often preferred |
| Main Arbitration Industries | Natural resources, mining, construction, trade |
✅ Conclusion
Papua New Guinea’s arbitration framework is modern and internationally compatible via the Arbitration Act 2000 and its commitment to the New York Convention. While the legal basis is strong, practical and infrastructural limitations mean many PNG-related international commercial disputes are arbitrated outside PNG, in well-established regional arbitration hubs. Nonetheless, PNG remains a valid and recognized jurisdiction for arbitration.
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