World Bank develops cold feet in Baglihar project dispute
clouds of uncertainty shroud the future of the Indus Water Treaty (iwt) between India and Pakistan, with its arbitrator, the World Bank (wb), shying away from intervening in a dispute related to the treaty. Following the failure of the recent secretary-level talks between the two countries on the controversial Baglihar hydro-electricity project (see Down To Earth, 'Water discord', January 31, 2005,), Pakistan approached the wb on January 18, 2005, for adjudication. The same day, the bank issued a press statement saying it was not a guarantor of the treaty. "As a signatory to the treaty it has completed most of the requirements", it clarified. But Pakistan has for long alleged that India's Baglihar project on the Chenab River violates the iwt and stressed on the need for wb's intervention.
The iwt aimed to solve water sharing problems between India and Pakistan by allocating three western rivers (Indus, Jhelum and Chenab) to Pakistan and three eastern rivers (Ravi, Sutlej and Beas) to India. Under the treaty, the bank can be asked to resolve any dispute related to iwt as a last resort. Pakistan invoked the provision after several rounds of talks with India.
According to the iwt, when asked to help resolve a dispute, the wb can appoint a neutral expert, in consultation with both the countries, and also establish a trust fund for the expert. If the expert cannot resolve the dispute, the bank can establish a court of arbitration. Ramaswamy R Iyer, leading water expert and former secretary, Union water resource ministry, says: "The treaty provides for arbitration and there can be no objection in this regard." But Dale Lautenbach of wb's south Asia external affairs department, Washington dc, argues: "The treaty does not envisage a role for the wb in the determination of any issue which might be brought before a neutral expert. The bank will not participate in any discussion or exchange beyond its role in the process of appointing a neutral expert."
Amid this melee, it seems certain that the Baglihar dispute's resolution will be a long and arduous task. Salman M A Salman, International Law Group, wb, recently said: "If there is no compromise between the two parties over a neutral expert, the matter could drag on for a long time".
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