Despite benefiting from a lengthy delay in the dispute resolution mechanism led by the World Bank, India finds itself under scrutiny for its controversial water infrastructure projects in the Indian Illegally Occupied Jammu and Kashmir (IIOJ&K) region. Last week, India boycotted proceedings at the Court of Arbitration and instead participated in a two-day meeting of the Neutral Expert in Vienna regarding the disputed 330MW Kishenganga and 850MW Ratle hydroelectric projects with Pakistan. The meetings took place on September 20-21, 2023.
An official from Pakistan’s Permanent Indus Commission has commented on these recent developments, alleging that India has benefited from over five years of indecision by the World Bank. The delay in the resolution process has allowed India to avoid accountability by sidestepping participation in the Court of Arbitration proceedings established to address the contentious water infrastructure projects constructed on western rivers in the held Kashmir region.
Pakistan contends that India’s efforts to harness hydroelectricity at Kishenganga and Ratle violate the Indus Waters Treaty. This dispute resolution mechanism was put on hold for over five years, effectively granting India the opportunity to proceed with its contentious projects.
On December 12, 2016, the World Bank suspended separate processes under the Indus Waters Treaty to explore alternative dispute resolution methods. This decision was made despite Pakistan’s objections to India’s construction of Ratle and Kishenganga hydropower projects on the Chenab and Jhelum rivers, respectively, upstream in the held Kashmir region.
Remarkably, when Pakistan formally requested the World Bank to establish a Court of Arbitration to resolve the dispute, India surprisingly demanded the appointment of a Neutral Expert for the same purpose. This move by India was seen as an attempt to derail the dispute resolution process outlined in the 1960 Indus Waters Treaty.
The World Bank justified its decision to pause the appointment of the Chairman of the Court of Arbitration requested by Pakistan and the Neutral Expert requested by India, stating that both processes were advancing simultaneously, potentially leading to contradictory outcomes that could endanger the Treaty. However, it was argued that both countries had initiated these processes by asking the World Bank to launch them. This pause persisted until April 6, 2022, during which India was able to advance work on the 850 MW Ratle Hydropower Project, completing all construction requirements. This leaves the possibility that if Pakistan’s objections regarding the design of these disputed hydropower projects are upheld, they may not be rectifiable once the water reservoirs are completed. The Ratle Hydropower Project is scheduled for completion by 2025-26.
The World Bank’s decision to lift the pause after approximately 2,000 days, enforced from December 12, 2016, to April 06, 2022, without making substantial progress, has raised questions. Many believe that if this decision had been taken in 2016 instead of early 2022 on the same premise, India might not have had the opportunity to evade accountability and potentially alter river flows downstream.
The dispute over these water infrastructure projects continues to be a point of contention between India and Pakistan, with the World Bank’s role and decision-making process coming under scrutiny.
