INTRODUCTION

Arbitration is an alternative dispute settlement mechanism through which parties to a dispute

submit the dispute, by mutual agreement, to one or more arbitrators, who arbitrate it and
make a binding decision. In the arbitration process, parties submit a dispute to the decision of
a neutral person or persons appointed by mutual consent or in accordance with the provisions
of an arbitration law. As stated under section 3. 1 It is intrinsic that in choosing arbitration the
parties elect for a private dispute settlement procedure instead of going to court. The
arbitration is one of the major forms of alternative dispute resolution (ADR) practised in
many jurisdictions around the world. Since parties in a dispute voluntarily refer their dispute
to a third party, called an arbitrator or arbitral tribunal, for resolution of their dispute outside
the court realm. therefore, it acts as a consensual dispute resolution mechanism whereby
parties agree to settle their disputes without recourse to national courts. 2 As held in the case
of Plama v. Bulgaria3

There are generally two branches of arbitration: (i) domestic arbitration, and (ii) international
arbitration. Whereas domestic arbitration concerns dispute of domestic nature as stated under
section 3A.4 that is arbitration is deemed to be domestic in Tanzania where, The parties are
nationals or residents of Tanzania, The arbitration proceedings take place in Tanzania, The
subject matter of the contract, or its performance, is substantially in Tanzania, The merits of
the dispute are governed by Tanzanian law, and The procedure of arbitration is also
governed by Tanzanian law. The international arbitration deals with disputes of international
reach often arising from investment, business and commercial relations of international scale,
as stated under section 3.5 Where as at least one of the parties is an individual who is a
national of, or habitually resident in, any country other than Tanzania; ,A body corporate,
which is incorporated in any country other than Tanzania, An association or a body of
individuals whose central management and control is exercised in any country other than
Tanzania or The Government of a foreign country. It exists in three types which are
international investment arbitration, Second as international commercial arbitration; and third
as interstate arbitration.

1
Arbitration Act, No. 2 of 2020.
2
Greenwood, L., “The Rise, Fall and Rise of International Arbitration: A View from 2030” (2011)
3
Plama Consortium Limited v. Republic of Bulgaria, ICSID Case No. ARB/03/24 (Decision on Jurisdiction,
dated 8 February 2005)
4
Arbitration Act, No. 2 of 2020.
5
ibid
UNCITRAL Model law this was a framework developed by the united nation commission on
international trade law to modernise arbitration laws across different jurisdiction. On 21 June
1985 the United Nations Commission on International Trade Law (UNCITRAL) adopted a
Model Law on International Commercial Arbitration Before undertaking the Model Law
project, UNCITRAL had adopted a set of Rules for Arbitration (1976) and for Conciliation
(1980). There also existed the widely adopted Convention on the Recognition and
Enforcement of Foreign Arbitral Awards, New York, 1958 (the New York Convention). 6
Nonetheless, diversity of national laws on international commercial arbitration was believed
to constitute a serious impediment to the efficiency of the international arbitral process. So
The Model Law was proposed as a vehicle for harmonisation. The task of drafting the Model
Law was begun by the Working Group on International Contract Practices in February 1982.
By June 1985, the project had attracted considerable interest ,62 State members or observers
attended, as well as 18 international organisations. Including Algeria, Australia, Austria,
Brazil, Central African Republic, China, Cuba, Cyprus, Czechoslovakia, Egypt, France,
German Democratic Republic, and other. Whereby when the final text was complete, the
General Assembly of the United Nations recommended in Resolution 40/72 of 11 December
1985 "that all States give due consideration to the Model Law on International Commercial
Arbitration, in view of the desirability of uniformity of the law of arbitral procedures and the
specific needs of international commercial arbitration practice"7

Application of the UNCINTRAL model law

The Model Law has a wide, but nonetheless relatively specific coverage. Under Article 1.1, 8
the Law applies solely to "international commercial arbitration". It does not purport to apply
to domestic arbitration of any kind although a State might so extend it. Also as stated under
article 8, 9, 36 & 369 that the Law applies only when the nominated 'place of arbitration' is
the adopting State Article 1.310 lays down four tests for internationality

Purposes of the Model Law

Model law intended to end Disparities amongst national laws have given rise to distinct
difficulties. Such as the Mandatory rules of law in the country of arbitration have operated to
preclude parties from conducting arbitration according to their agreement, or understanding
6
Hoellering, M F 'The UNCITRAL Model Law on International Commercial Arbitration', (1986) 20
International Lawyer 327
7
ibid
8
UNCITRAL Model Law (1985)
9
ibid
10
ibid
as to what was appropriate to their case. In some legal systems, for example, the courts enjoy
a discretion as to whether or not the parties should be referred to arbitration, irrespective of
the party’s express consent. So The Model Law is intended to end this state of affairs so that
parties are undeterred by perceived qualitative differences in national laws and are confident
to arbitrate wherever the practical interests of their arbitration can best be served.
Furthermore, the Model Law can be viewed as a means of correcting the natural tendency of
national laws to have regard to domestic rather than international arbitral needs. It aims to
promote harmonisation of national laws, to satisfy the needs of arbitrating parties and arbitral
tribunals and to enhance international commercial arbitration.

Nature of the model law

The Model Law is of its nature a flexible device. It is not a Convention and carries no
obligation to enact legislation in its entirety in strict conformity with its terms. The Model
Law provides a set of provisions for the management of international commercial arbitration
which each country may choose to accept, subject to those modifications or additions which
its national legislature considers appropriate.it provides an excellent framework for
international arbitration, by satisfying all the principal requirements of arbitral parties and
tribunals.11 Also The Model Law has a broad application and comprehensively covers all
those circumstances which, practically speaking, constitute an international arbitration

The principles observed by the model law are as follows

i) The parties should be free to agree on how their arbitration should be conducted.
ii) That, in the absence of agreement, the arbitral tribunal should be able to fashion
the arbitration to suit the parties' needs.
iii) That the arbitration should be conducted in accordance with rules, enforceable in
courts.
iv) That the arbitration should be conducted fairly
v) That the arbitration should not be unduly affected by the municipal law of the
country in which it is held.
vi) That there should be uniform treatment of all awards, irrespective of their place of
origin.
vii) That there should be certainty as to the extent of court involvement.

11
Alternative Dispute Resolution in Tanzania : Law and Practice, Mkuki na Nyota Publishers, 2014. ProQuest
Ebook Central,
 viii) That national legislation should take account of the principal international
instruments, especially the New York Convention.

Role of UNCINTRAL law Model to the international arbitration

Judicial support and non-interference

The Model Law requires a court to refer the parties to arbitration, if the dispute is the subject
of a valid arbitration agreement, See Article 8(1). 12 It specifically prohibits a court from
intervening in matters governed by the Law except where express provision is made, The
Model Law has, in this respect, the considerable merit of certainty. Further, it permits foreign
parties readily to ascertain the possible occasions for court intervention. Moreover, although
it is to be hoped that adopting States will take the Law largely as defined, any State could
extend the scope of judicial review without breaching any international obligation

Arbitration Agreement
The Model Law recognizes the autonomy of parties to enter into arbitration agreements,
emphasizing the principle of party autonomy see article 1. 13 It provides that an arbitration
agreement must be in writing and defines what constitutes a written agreement. The Model
Law also outlines the binding nature of arbitration agreements, requiring courts to refer
parties to arbitration unless the agreement is found to be null and void, in operative, or
incapable of being performed. This provision underscores the importance of respecting the
parties' choice of arbitration as their preferred method of dispute resolution. By ensuring that
arbitration agreements are upheld and enforced, the Model Law promotes the stability and
predictability of the arbitration process, thereby enhancing its attractiveness as a mechanism
for resolving international commercial disputes

Composition and Jurisdiction of Arbitral Tribunals

The Model Law allows parties to agree on the number of arbitrators and the procedure for
their appointment as stated under article 19-27. 14 Whereby in the absence of such agreement,
it provides default rules for appointing arbitrators see article 12 15 It also addresses the
independence and impartiality of arbitrators, providing mechanisms for challenging
arbitrators who fail to meet these standards. Regarding the jurisdiction of arbitral tribunals,
the Model Law embodies the principle of competence-competence, which allows arbitral

12
UNCITRAL Model Law (1985)
13
ibid
14
ibid
15
ibid
tribunals to rule on their own jurisdiction. It also addresses issues of separability, ensuring
that an arbitration clause within a contract is treated as an independent agreement that can
survive the termination of the contract. These provisions are crucial for maintaining the
integrity and impartiality of the arbitration process. That is allowing arbitral tribunals to rule
on their own jurisdiction and ensuring the independence and impartiality of arbitrators, as it
enhances the fairness and effectiveness of the arbitration process.

Conduct of Arbitral Proceedings

The Model Law provides a flexible framework for the conduct of arbitral proceedings,
allowing parties to agree on the procedural rules. As stated under article 28 16 It provides first,
that the dispute shall be determined according to the rules of law chosen by the parties and, In
the absence of such agreement, the arbitral tribunal has the authority to conduct the
proceedings as it considers appropriate, ensuring fairness and equal treatment of the parties.
Key provisions include the equal treatment of parties, the right to a fair hearing, and the
opportunity for parties to present their case. The Model Law also addresses issues related to
interim measures, evidence, and hearings, providing a balanced approach to procedural
matters. The flexibility provided by the Model Law allows arbitral tribunals to tailor the
proceedings to the specific needs of the parties and the nature of the dispute. Similarly, the
parties may agree to resolution ex aequo et bono, i.e., according to principles of equity or
fairness to be applied by the arbitrator independently of any applicable law. Also Articles 29-
3317 deal with other pertinent topics, including decision-making by a panel of arbitrators,
settlement, form and content of awards, termination of proceedings, the correction and
interpretation of awards and the making of additional awards.

Recognition and Enforcement of Arbitral Awards

One of the Model Law’s significant contributions is its provisions on the recognition and
enforcement of arbitral awards. It aligns with the New York Convention(article IV) on the
Recognition and Enforcement of Foreign Arbitral Awards, facilitating the enforcement of
awards across jurisdictions, As stated under the article 3518which provides that awards under
the Model Law are considered binding and enforceable, irrespective of the country in which
they are made.The Model Law provides limited grounds for refusing recognition or
enforcement, ensuring that arbitral awards are generally respected and upheld stated under

16
UNCITRAL Model Law (1985)
17
ibid
18
ibid
article 34.19 These provisions are essential for ensuring the finality and enforceability of
arbitral awards. By aligning with the New York Convention and providing limited grounds
for refusing recognition or enforcement, the Model Law promotes the reliability and
predictability of the arbitration process, thereby enhancing its attractiveness as a mechanism
for resolving international commercial disputes. These provisions collectively aim to create a
consistent and predictable legal environment for international commercial arbitration,
reducing the uncertainties and disparities that can arise from differing national laws

Relevance of UNCINTLRAL model of law to Tanzania arbitration

Influence on Tanzania arbitration act

The Tanzania arbitration act 2020 reflects the model law provision on the key aspects of
arbitration such as formation of arbitration agreement the appointment of arbitrators the
power of arbitral tribunal and the enforcement of award. Whereby the enactment of the
Arbitration Act, shows now the Tanzanian arbitration legal regime is modelled on modern
international arbitration law.20 According to its long title, the Arbitration Act strives ‘to
provide for conduct relating to domestic arbitration, international arbitration and enforcement
of foreign arbitral awards as stated under section 4(a)(ii)21 . One of the objects underlying the
general principles of the 2020 Arbitration Act is ‘to promote consistency between domestic
and international arbitration. Whereby Act domesticates and mirrors various international
State obligations and practices on arbitration imposed by Mainland Tanzania is a party, with
a more vigorous framework of regulating the arbitral tribunal, and providing immunity to
arbitrators and their employees or agents.as stated under section 31. 22 As well as establishing
the Tanzania Arbitration Centre (TAC), reflected under section 77. 23 The Act strives to
provide a dispute settlement mechanism in relation to both domestic agreements and those
arising from international investment or commercial treaties or agreements.in relevance to the
model law.

The application of kompetenz –kompetenz doctrine

The doctrine of Kompetenz-Kompetenz relates to the competence or jurisdiction of the
arbitral tribunal to determine arbitral proceedings before it. The practice of most international
arbitral tribunals indicates that before a tribunal commences hearing an arbitration case, it

19
ibid
20
FB Attorneys, “Arbitration Bill Tabled in Parliament,” Legal Update, 30 January 2020.
21
Arbitration Act 2020
22
ibid
23
ibid
must be seized with jurisdiction to determine it. well stated under Article 16. 24 See also the
case of WESTINGHOUSE INTERNATIONAL PROJECTS COMPANY V. NATIONAL
POWER CORPORATION,25 This has been codified in Tanzania arbitration law ensuring that
the tribunal has the authority to determines matters related to its jurisdiction that is once
arbitrators have been duly constituted they will constitute an Arbitral Tribunal. Before it
assumes its duties, functions and powers vested in it, the Arbitral Tribunal must have
jurisdiction so to act. Accordingly, the jurisdiction of an arbitral tribunal may be defined as
the extent to which or the limits within which such tribunal may exercise its powers, and
what powers. The jurisdiction of an Arbitral Tribunal is conferred upon it by its appointment
on the basis of the Arbitration Agreement by the parties as stated in the case of MVITA
CONSTRUCTION CO. V TANZANIA HARBOURS AUTHORITY 26 that is the arbitral
tribunal has jurisdiction to determine or rule whether or not it has exceeded its scope of
authority and If a party wishes to raise an objection to the effect that the arbitral tribunal has
no substantive jurisdiction, he must raise such objection within reasonable time.

Enforcement of awards
An arbitral award simply means the final decision of the arbitrator or umpire in arbitral
proceedings. It is in the nature of a judgment in a court of law, but it is usually in numbered
paragraphs according to the issues considered and decided. As stated, the Arbitration Act was
enacted in 1931 during British colonial rule. Then there were only two international
instruments on arbitration that were in place the 1923 Geneva Protocol on Arbitration and the
1927 Geneva Convention on the Execution of Foreign Awards. So, the Arbitration Act
predates some of the modern principal international arbitration instruments and one among
them is the 1985 UNCITRAL Model Law on International Arbitration. As such, the
Arbitration Act “formally” incorporates the international arbitration instruments, which are
thus made part of the schedules to the Act. Whereby enforcement of foreign arbitration award
have been incorporated in Tanzania law making it easier for parties to enforce arbitral award
as reflected in The law and practice relating to arbitration in Tanzania requires that an
arbitral award must, resolve all issues; not contain extraneous issues which go beyond the
jurisdiction of the arbitral tribunal or matters which were not referred to it, must be final and
unconditional, must be certain and capable of performance by the parties; and be capable of

24
UNCITRAL Model Law (1985)
25
ICC Case No. 6401, reported in 7 Mealey’s International Arbitration Report, Issue No. 1, 1992. Section B, at
pp. 17–18.
26
Court of Appeal of Tanzania at Dar es Salaam, Civil Appeal No. 94 of 2001 (Unreported).
enforcement by the parties. As stated under the case of TANZANIA ELECTRIC SUPPLY
CO. LTD. V DOWANS HOLDINGS SA (COSTA RICA) & DOWANS TANZANIA
LIMITED (TANZANIA)27 that the Failure to meet any one of the foregoing criteria would
amount to misconduct on the part of the arbitrator or umpire. That could be grounds for
challenging the arbitral award. The award must be duly signed by the arbitrator(s) or umpire
and the parties should be duly informed. Unless the parties had agreed otherwise, in Tanzania
an arbitral award is final and binding upon the parties.

Promotion of investment and international trade

International commercial relation has increased in Tanzania due to government effort to
promote investment policy and the expansion of the private sector whenever there are any
commercial legal relationship disputes becomes almost unavoidable and with rapid
globalisation difference in interpretation of contracts and other legal agreement are bound to
multiply even assuming that all parties to all international agreement are acting in good faith.
But the complexity of commercial community in business has led to a need of assured system
of resolving disputes as soon the part enters their relationship. That led to the incorporation of
the model law in Tanzania since because the law focuses on fairness, efficiency and certainty
in arbitration as reflected under chapter IV 28 . this has promoted a more favourable
investment for international trade and investment in the country. See also the case of
BIWATER GAUFF (TANZANIA) LTD. V UNITED REPUBLIC OF TANZANIA29

Providing a framework for arbitration proceeding

The model law outlines the procedures for initiating arbitration appointing arbitrators, stated
under article 10,30 conducting hearing and making of awards as stated under article 19. 31 Also
the issue of setting aside the arbitral award and enforcing as stated under Article 13. 32 these
procedures are relevance to the Tanzania law in arbitration whereby The parties shall be
treated with equality and each party shall be given a full opportunity of presenting his case. 33
The arbitral tribunal may conduct the arbitration in such manner as it considers appropriate,
provided that the parties are treated with equality and that at any stage of the proceedings
each party is given a full opportunity of presenting his case.in relation to article 1834.
27
High Court of Tanzania at Dar es Salaam, Misc. Civil Application No. 8 of 2011 (Unreported)
28
UNCITRAL Model Law (1985)
29
ICSID Case No. ARB/05/22.
30
UNCITRAL Model Law (1985)
31
ibid
32
ibid
33
Regulation 6 (1) and (2) GN No. 146/2021. 2019].
34
Article 18 of the UNCITRAL Model Law of 1985
Conclusion

The model law on arbitration has proved to be of importance since because Arbitration has
various advantages not only to the parties but also even to the court system, since because it
enables to divert cases from the court and reduce case backlogs and provide other and
efficient ways of providing access to justice. As its Speedier resolution however, there can be
exceptions due to multiple parties, arbitrators, lawyers and litigation strategy. And Less
costly; however, there can be exceptions due to multiple parties, lawyers, arbitrators and
litigation strategy. Also Exclusionary rules of evidence don’t apply everything can come into
evidence so long as relevant and non-cumulative.

REFERENCES
BOOKS

Hoellering, M F 'The UNCITRAL Model Law on International Commercial Arbitration',

(1986) 20 International Lawyer 327
Herrmann, Gerold (1985) 'The UNCITRAL Model Law - Its Background, Salient Features
and Purposes' 1 Arbitration International.

Alternative Dispute Resolution in Tanzania : Law and Practice, Mkuki na Nyota Publishers,
2014. ProQuest Ebook Central

Greenwood, L., (2011) “The Rise, Fall and Rise of International Arbitration: A View from
2030

CASES
PLAMA CONSORTIUM LIMITED V. REPUBLIC OF BULGARIA, ICSID CASE NO.
ARB/03/24 (DECISION ON JURISDICTION, DATED 8 FEBRUARY 2005)

TANZANIA ELECTRIC SUPPLY CO. LTD. V DOWANS HOLDINGS SA (COSTA

RICA) & DOWANS TANZANIA LIMITED (TANZANIA) HIGH COURT OF TANZANIA
AT DAR ES SALAAM, MISC. CIVIL APPLICATION NO. 8 OF 2011 (UNREPORTED)

MVITA CONSTRUCTION CO. V TANZANIA HARBOURS AUTHORITY COURT OF

APPEAL OF TANZANIA AT DAR ES SALAAM, CIVIL APPEAL NO. 94 OF 2001
(UNREPORTED).

WESTINGHOUSE INTERNATIONAL PROJECTS COMPANY V. NATIONAL POWER

CORPORATION, ICC CASE NO. 6401,

STATUES

The Arbitration Act, No. 02 0f 2020.

The Arbitration (Rules of Procedures) Regulations, G.N No. 146 published on 29/1/2021

INTERNATIONAL LAWS

UNCITRAL Model Law (1985)

Geneva Protocol on Arbitration 1923

Geneva Convention on the Execution of Foreign Awards 1927