ISLAMABAD, Pakistan: The World Bank has asked Pakistan and India to resolve amicably their differences over Kishenganga and Ratle hydroelectric projects in line with the spirit of Indus Basin Treaty.
In a press release, the World Bank said that its President Jim Yong Kim on Monday announced a pause in the separate processes initiated by both the South Asian Countries under the Indus Waters Treaty to allow them to consider alternative ways to resolve their disagreements. He also wrote letters to Finance Ministers of Pakistan and India in this regard.
“We are announcing this pause to protect the Indus Waters Treaty and to help India and Pakistan consider alternative approaches to resolving conflicting interests under the Treaty and its application to two hydroelectric power plants,” the World Bank Group President Jim Yong Kim said.
“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. I would hope that the two countries will come to an agreement by the end of January,” Jim Yong Kim said.
The announcement temporarily halts the appointment of a Neutral Expert as requested by India, and the Chairman of the Court of Arbitration as requested by Pakistan, to resolve issues regarding two hydroelectric power plants under construction by India along the Indus rivers system.
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.
The pause was announced by Kim in letters to the finance ministers of India and Pakistan and emphasized that the Bank was acting to safeguard the Treaty. 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.
The current processes under the treaty concern the Kishenganga (330 megawatts) and Ratle (850 megawatts) hydroelectric power plants. The power plants are being built by India on, respectively, the Kishenganga and Chenab Rivers. Neither of the two plants are being financed by the World Bank Group.
