Govt pays Rs787m for case on Kishenganga, Ratle disputes

ISLAMABAD: The government has paid Rs787 million to a law firm for arbitration to settle the dispute on Kishenganga and Ratle hydropower projects against India. 

The budget documents say that the government has extended Rs377.934 million to M/s Allen & Overy – a law firm for resolution of dispute on design of Kishenganga project being constructed by India on Jhelum River and Rs409 million for Ratle Hydropower Project also being constructed by India on the Chenab River. 

India is constructing the 330MW Kishenganga Dam on Jhelum River and 850MW Ratle Hydro Power Project on the Chenab River with faulty design against which Pakistan has moved the Court of Arbitration.

Both India and Pakistan, parties to the dispute, have locked their horns on how to proceed as Pakistan wants the World Bank to constitute a court of arbitration (CoA) to resolve the disputes, but India wants the solution through the mechanism of Neutral Experts which is why the Bank announced ‘pause’ on December 12, 2016, till the agreement on procedure or mechanism between the parties to the dispute--Pakistan and India. 

Since December 12, 2016, there is a deadlock. To break the dead lock, there was a proposal that both countries would meet in Washington at secretary level, but on this account no progress has been made so far. However, the World Bank is trying to develop consensus between Pakistan and India on mechanism to start legal battle.