Summary

I. INTRODUCTION AND SUMMARY

1. The Commonwealth of Australia (Australia or Respondent) submits this Statement of Costs (Costs Statement) in accordance with paragraph 6 of the Tribunal's Procedural Order No. 6 (Post-Hearing Matters) dated 23 September 2024 (P06). All capitalised terms used but not defined herein have the meaning ascribed in the Respondent's Statement on Preliminary Objections dated 22 January 2024 (SOPO) and Reply on Preliminary Objections dated 19 July 2024 (ROPO). All costs referenced herein are in Australian dollars (AUD).

2. As explained herein, the Respondent claims AUD $13,672,574.65 in costs incurred in relation to PCA Case No. 2023-40 (Proceeding), excluding interest. The Respondent incurred these costs in relation to the Proceeding (Claimed Costs) between 14 October 2020 (the date of the Claimant's Written Request for Consultations)2 and 31 December 2024 (the "cut-off' date selected by the Respondent to allow for calculation and confirmation of the Claimed Costs) (Costs Period). The Claimed Costs were reasonably incurred by the Respondent in the course of responding to this unprecedented claim of more than AUD $300 billion,3 particularly taking into account the Claimant's conduct in this Proceeding, which has materially increased the Respondent's costs.

3. As set out below, the Respondent's Claimed Costs (AUD $13,672,574.65) consist of:

a. The costs of the arbitration, in terms of the Respondent's share of the advances on costs paid to the PCA for the Tribunal's fees and expenses, and the PCA's administration of this Proceeding, in the total amount of AUD $769,390.55.

b. Legal and other costs incurred by the Respondent during the Costs Period, in the total amount of AUD $11,182,757.76, including professional fees and disbursements of: (i) the Solicitor-General of Australia (Solicitor-General); (ii) counsel; (iii) expert and fact witnesses engaged by the Respondent for purposes ofthe Proceeding; (iv) employees ofthe Commonwealth ofAustralia's Attorney-General's Department (AGD) which includes the Office of International Law (OIL) and the Australian Government Solicitor (AGS); and (v) other reasonable costs and disbursements.

These costs are fmiher detailed in the Witness Statement of Mr Jesse Clarke dated 5 February 2025 (Clarke Statement). This amount does not include the Respondent's legal and other costs associated with the Claimant's application for interim measures dated 4 August 2023 (IM Application) (see below paragraph 3.d).

c. Legal and other costs incurred by the Western Australian Government (WA Government) during the Costs Period, in the total amount of AUD $1,971,787.96, including professional fees and disbursements of the Western Australia State Solicitor's Office (WASSO). These costs, and the legal relationship between the WA Government and the Respondent in the context of this Proceeding, are further detailed in the Witness Statement of Ms Louise Seery dated 6 February 2025 (Seery Statement).4 This amount does not include the WA Government's legal and other costs associated with the IM Application (see below paragraph 3.d).

d. Pursuant to paragraph 6 of PO6, the Respondent and the WA Government have separated out their costs associated with the IM Application, which was decided by the Tribunal's Procedural Order No. 2 dated 17 November 2023 (Claimant's Interim Measures Application) (P02). These costs amount to AUD $518,028.93.

4. For the avoidance of doubt, the Respondent confirms that none of the Claimed Costs include or contain costs incurred in responding to the other three ISDS proceedings brought by Zeph Investments Pte Ltd (Zeph or Claimant) against the Respondent.

5. This Costs Statement is structured as follows: Section II briefly sets out the relevant legal framework and principles governing the allocation of costs in this Proceeding; Section III summarises the Claimed Costs, and demonstrates the reasonableness of the Claimed Costs, with further information provided in the Clarke and Seery Statements; Section IV sets out the Respondent's request for interest on the Claimed Costs; and Section V updates the Respondent's request for relief.

6. This Costs Statement is accompanied by the Clarke Statement, the Seery Statement, seven fact exhibits and one legal authority.

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