Tehran Regional Arbitration Centre (TRAC) is an independent international organization under the auspice of the Asian-African Legal Consultative Organization (AALCO). TRAC has been established pursuant to the Agreement signed on 3 May 1997, between the Islamic Republic of Iran and ALLCO. The Agreement came into force in July 2004, after receiving ratification from the Iranian legislative bodies. TRAC effectively commenced its activities a year later, in July 2005, and published its Rules of Arbitration on that date.
TRAC’s first director was Dr. Moshkan Mashkour who was appointed at TRAC for a period of five years (2005-2010), followed by Dr. Parviz Ansari Moein (2010-2014). Appointed in 2014, the current director of TRAC is Dr. Oveis Rezvanian.
In the accomplishment of its duties, TRAC enjoys the necessary privileges and immunities provided for an international organization. While TRAC’s main duty is to organize arbitration, it is also active in:
- The promotion of international commercial arbitration in the region;
- The coordination of the activities of, and assistance to,existing arbitration institutions in the region;
- Assistance to ad-hoc arbitration, specially in cases applying the UNCITRAL Rules; and
- Assistance to the enforcement of arbitral awards.
TRAC Rules of Arbitration are essentially based on the UNCITRAL Rules of Arbitration. The Rules recognize the largest possible freedom of the parties in order to determine the number of arbitrators, appoint the arbitrator of their choice and define the procedure for their appointment. The parties would also be free to select the place of arbitration, the procedural rules and the substantive law that may be applied by the arbitrators. The Interventions of TRAC are limited to the minimum and only to the extent necessary to assist the arbitration to proceed.
To enhance the quality of proceedings that will be conducted under the Rules of Arbitration and to offer higher independence and impartiality in the implementation of the Rules, the constitution of an Arbitration Board has been implemented in TRAC’s Internal Regulations (the “Internal Regulations”).
Considering its central position in the South West Asia and the Persian Gulf, TRAC is a favorable organization for international arbitration. Since its establishment, TRAC offers a range of institutional support as a neutral,independent and international organization for the conduct of domestic and international arbitration proceedings. TRAC’s arbitration clause has continued to be inserted in various types of international contracts such as oil and gas services, banking, export credits, telecommunications, construction and industrial plants.