ISLAMABAD: The World Bank (WB) on Monday announced a pause in arbitration between Islamabad and New Delhi on the matter of the two dams being constructed by India, calling on both countries “to consider alternative ways to resolve their disagreements”.
In the aftermath of rising cross-border tensions following the Uri army base attack and an alleged Indian ‘surgical strike’, Indian Prime Minister Narendra Modi in November threatened to stop honouring the Indus Waters Treaty and block the flow of water into Pakistan.
India is constructing two hydropower projects on the Chenab River. Pakistan has objected to the construction of the 850 megawatt Ratle and 330MW Kishanganga hydropower schemes, saying that both projects would have adverse impact on the flow of the Chenab and Neelum rivers.
Both countries had initiated separate processes in the World Bank under the Indus Waters Treaty, with India requesting the body for appointment of a ‘neutral expert’, and Pakistan calling for the appointment of the chairman of the court of arbitration.
The World Bank explained the pause, saying, “Both processes initiated by the respective countries were advancing at the same time, creating a risk of contradictory outcomes that could potentially endanger the treaty.”
World Bank President Jim Yong Kim said Pakistan and India should look to resolve the conflict mutually and within the bounds of the Indus Water Treaty.
“This is an opportunity for the two countries to begin to resolve the issue in an amicable manner and in line with the spirit of the treaty rather than pursuing concurrent processes that could make the treaty unworkable over time,” he said. “I would hope that the two countries will come to an agreement by the end of January [2017].”
“Pausing the process for now, the bank would hold off from appointing the chairman for the court of arbitration or the neutral expert – appointments that had been expected on December 12 as earlier communicated by the bank,” a WB statement said.
