Indian dam projects in IIOJK: World Bank agrees to start dispute resolution processes

ISLAMABAD: While accepting the “urgings” of Pakistan and India, the World Bank (WB) has formally agreed to initiate two separate processes to sort out dispute on two projects in Illegally Occupied Indian Jammu and Kashmir, i.e., 330MW, Kishenganga and 850MW Ratle Hydroelectric plants.

Since, 2016, World Bank had “paused” progress on the dispute despite Pakistan’s requests and high level interactions with the Bank and also with high ranking U.S government officials.

Michel Lino has been appointed as ‘Neutral Expert’ and Prof Sean Murphy has been appointed as Chairman of the Court of Arbitration. They will carry out their duties in their individual capacity as subject matter experts and independently of any other appointments they may currently hold.

Well informed sources told Business Recorder that Ministry of Water Resources, Pakistan Commissioner for Indus Water and other stakeholders including Attorney General Office, etc., were on line to push the World Bank for appointment of Court of Arbitration (CoA) on Kishenganga hydroelectric project. Last month, Prime Minister Shehbaz Sharif was given a briefing on all dispute projects with India wherein strategy for World Bank also came under discussion.

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The Bank was reportedly supporting the Indian point of view but with the efforts of Pakistani Institutions it has now agreed to also accommodate the demand of Pakistan, i.e., with the constitution of Court of Arbitration. On October 17, 2022, World Bank, in a statement said “in line with its responsibilities under the Indus Waters Treaty, the World Bank has made the appointments that it was mandated to make in the two separate processes requested by India and Pakistan in relation to the Kishenganga and Ratle hydroelectric power plants”.

The two countries disagree over whether the technical design features of these two hydroelectric plants contravene the Treaty. Pakistan asked the World Bank to facilitate the establishment of a Court of Arbitration to consider its concerns about the designs of the two hydroelectric power projects, while India asked for the appointment of a Neutral Expert to consider similar concerns over the two projects.

The World Bank continues to share the concerns of the parties that carrying out the two processes concurrently poses practical and legal challenges. The World Bank is confident that the highly qualified experts appointed as Neutral Expert and as members of the Court of Arbitration will engage in fair and careful consideration of their jurisdictional mandate, as they are empowered to do by the Treaty.

On September 1, 2022, Ministry of Water Resources shared details of issues with India with respect to violation of Indus Water Treaty (IWT), existing position and future line of action at an in-camera meeting which continued for three hours.

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Ministry of Water Resources team comprising the then Secretary Dr Kazim Niaz and acting Indus Water Commissioner Mehar Ali Shah shared a completed “report” in a sealed envelope with the Committee members, besides sharing violations by India and the “contentious” role of World Bank in this regard.

According to sources, Pakistan has also raised objections on the designs of other hydroelectric projects being constructed by India in Held Jammu and Kashmir.

Copyright Business Recorder, 2022