The Permanent Court of Arbitration (PCA) at The Hague on Thursday rejected India’s objections to its jurisdiction in a dispute between Delhi and Islamabad over the Kishanganga and Ratle Hydroelectric projects, ruling in favor of Pakistan.
According to local media, the PCA ruled it was the competent authority to determine the Kishanganga dispute between Pakistan and India in light of the Indus Waters Treaty. “In a unanimous decision, which is binding on the parties and without appeal, the Court rejected each of the objections raised by India and determined that the Court is competent to consider and determine the disputes set forth in Pakistan’s Request for Arbitration,” the Reuters news agency quoted a court statement as saying.
The dispute concerns Pakistan’s objection to India’s construction of the 330MW Kishanganga hydroelectric project on the River Jhelum and its plans to construct the 850MW Ratle hydroelectric project on the River Chenab in India-held Kashmir.
Islamabad had initiated legal proceedings on Aug. 19, 2016 by requesting the establishment of an ad hoc Court of Arbitration, pursuant to Article IX of the Indus Waters Treaty. Initially, it had placed its concerns before the Permanent Indus Commission for Kishanganga in 2006 and Ratle in 2012 before seeking a resolution to the dispute through government-level talks in July 2015. After India’s persistent refusal to address the concerns, the government decided to initiate legal proceedings.
Under the Indus Waters Treaty, disputes can be settled either through a court of arbitration or through a neutral expert. Citing sources, local media said Pakistan had sought arbitration because it had systemic questions requiring legal interpretation. India responded to Pakistan’s request for arbitration by seeking the appointment of a neutral expert, prompting the World Bank to step in and push both countries to negotiate on a single forum for dispute resolution.
When both sides failed to achieve consensus, the World Bank—after India had already completed the construction of the Kishenganga project—created a court of arbitration and appointed a neutral expert.
Reuters reported that it remained unclear when the case would proceed.