Controversial Indian dams: World Bank agrees to court of arbitration on Kishenganga, Ratle hydropower projects

ISLAMABAD: World Bank, after a lapse of five years and four months, has lifted the 'stay' it took in December 2016 and has announced to reinitiate the process to constitute the Court of Arbitration (CoA) as demanded by Pakistan. Islamabad had sought a decision on the fate of 330 Kishenganga and 850 MW Ratle hydropower projects being built by India with ‘designs’ violative of provisions of the Indus Waters Treaty.

The Bank also announced to accommodate the demand of India seeking the forum of a neutral expert to decide about the two projects being constructed on Pakistan’s rivers. The Bank also decided to reach out separately to both Pakistan and India to follow up on the next steps to be taken to continue the processes from where they were left off on December 12, 2016.

This was communicated in the World Bank’s latest letter dated March 31, 2022, addressed to Pakistan’s Attorney General Khalid Jawed Khan and Indian Secretary of Department of Water Resources P. Kumar.

The World Bank decided to break the pause arguing that lack of success in finding an acceptable solution, despite the best of efforts, over such an inordinate period is also a risk to the treaty itself. The Bank also said in the absence of a mutually agreeable solution between the two parties (Pakistan and India), the Bank is obliged to find a way forward from amongst the options available to it to fulfil its responsibilities under the treaty.

When contacted, Pakistan’s Commissioner for Indus Waters Syed Mehr Ali Shah confirmed the development saying that the World Bank has lifted the stay. Shah said he had first approached the World Bank seeking the constitution of the Court of Arbitration and his assertion has prevailed. The World Bank has after more than 5 years decided to constitute a court of arbitration. He also confirmed that the World Bank has also announced its intention to constitute a neutral expert. He said it was Pakistan that moved the World Bank first, seeking the constitution of the court of arbitration to resolve the fate of the Kishenganga hydropower project, which is operational on the Jhelum River and the 850MW Ratle hydropower project being built on Chenab River. However, India also, later on, asked the World Bank to appoint neutral experts to allay its concerns of Pakistan on the designs of both the projects. But the top management of the World Bank took a stay on December 12, 2016, and halted the process to move for the mechanism to resolve the objections raised by Pakistan to save the Indus Waters Treaty between the two nuclear countries, which it had brokered in 1960. Now his argument seeking a constitution for a court of arbitration has prevailed.

Top official sources said World Bank’s inaction for over 5 years has provided enough time for India to make 330MW Kishenganga project operational on the Jhelum River and construct the 850 MW Ratle project to a reasonable extent on the Chenab River. So much so, India has submitted to the United Nations its final design of the Ratle project without allaying the concerns of Pakistan for qualifying the carbon credits.

India had erected the Kishenganga project with an objectionable design in 2017, one year after the pause taken by the World Bank and now it is advancing its construction on the site of the Ratle hydropower project again with a design that does not conform to the provisions of waters treaty in line with the objections raised by Pakistan. Pakistan had written a letter to the World Bank on April 3, 2018, saying that the pause taken by the Bank has allowed time for the Indian side to erect the Kishenganga project.

And in case the Ratle project is completed in the presence of the ongoing pause taken by the World Bank, Pakistan would have to bear a 40 per cent loss in water flows that are destined to reach Head Marala, Sialkot. This means a huge loss to irrigation of various crops in Punjab, which is the food basket of the country. Ratle project once completed will directly damage the food basket of the country. Pakistan believes that Kishenganga’s poundage should be maximum of one million cubic meters instead of 7.5 million cubic meters while its intake should be up to four meters and the spillways should be raised to nine meters.

Pakistan had four objections to the Ratle project. The freeboard should be one meter instead of two meters, poundage should be a maximum of eight million cubic meters instead of 24 million, the intake level should be at 8.8 meters and spillways must be located at the height of 20 meters.

As far as Ratle project is concerned, top sources said, India has completed significant civil works, including two diversion tunnels, including upstream bridge, upstream and downstream roads and will soon start construction work on the dam portion having a height of almost 134 meters. The Indian authorities will soon initiate the construction of the pressure shaft and powerhouse as well.

However, in case of failure, the Ratle Dam having a gross reservoir capacity of 18,646 acre feet and a live storage capacity of 8,107 acre feet, with a height of 191 feet may have a significant impact on Pakistan. It is located upstream of dams under construction such as Baglihar and Sawalkot, while the Salal hydropower project is under operation.