In the heart of South Asia, India and Pakistan, two neighboring nations, have long grappled with a disagreement that revolves around the Indus Waters Treaty, a pivotal agreement signed in 1960 with the assistance of the World Bank.
At the heart of this latest dispute lie two hydroelectric power plants: Kishenganga and Ratle. The disagreement centers on the technical design features of these plants, both situated in India on the tributaries of the Jhelum and Chenab Rivers.
The Indus Waters Treaty splits the region's six major rivers, allocating the Western Rivers to Pakistan (Indus, Jhelum, Chenab) and the Eastern Rivers to India (Ravi, Beas, Sutlej). However, it also grants each nation specific usage rights on the rivers allocated to the other.
In 2016, Pakistan requested the World Bank to establish an ad hoc Court of Arbitration to address concerns over India's planned plant designs. Conversely, India sought a Neutral Expert for the same purpose.
Now, the World Bank plays a procedural and neutral role, designating individuals for the Neutral Expert or Court of Arbitration when requested by the Parties. After years of collaborative efforts, on March 31, 2022, the World Bank decided to resume the process, appointing a Neutral Expert and a Chairman for the Court of Arbitration.
The Neutral Expert process abides by the Treaty's provisions, affording both parties an adequate hearing, with the decision being binding. The duration varies, with past cases taking around one and a half years.
The Court of Arbitration process, also subject to Treaty provisions, shapes its procedures by majority vote. Each arbitrator, including the Chairman, holds one vote, with the Chairman casting the deciding vote in case of a tie. The duration is unpredictable, with previous cases lasting up to three years.
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