ISLAMABAD, Dec 3: The World Bank has sought reports from Pakistan and India on their dispute over the construction of the Baglihar power project in occupied Kashmir in violation of the 1960 Indus Waters Treaty.

Diplomatic sources told Dawn on Wednesday that the Bank had written letters to the two governments seeking updates on the matter and their positions on the appointment of neutral expert to resolve the issue.

The World Bank is a guarantor to the treaty. Both India and Pakistan had deposited $5,000 each in the World Bank’s account at the time of the signing of the treaty that has now translated into a couple of millions owing to mark-up.

“Yes, the World Bank has moved in the dispute and has sought a report on the appointment of the neutral expert,” an official in the water and power ministry confirmed.

Pakistan decided last month to serve a second and final notice on India to settle the dispute by Dec 31. However, such a notice has not been issued yet.

The official said the ministry had already asked the foreign office to issue the notice because the time was fast running out. He said Pakistan’s technical experts who visited the project site in October, had reported to the government that India was violating the treaty.

The experts noted that India had constructed low-level spillways which are clearly meant for manipulation of Chenab waters to Pakistan’s disadvantage.

In reply to a question, the official denied that the World Bank was planning for renegotiation of the treaty. He said it would open a Pandora’s box and no one could afford that at this stage.

He said the ministry had already got approved a $12 million amount from the prime minister which would be required for the appointment of a neutral expert under the aegis of the World Bank in case India failed to resolve the dispute.

Pakistan served the first notice on India in June, asking it to immediately suspend the construction work, arrange for an inspection tour of the site, and resolve the issue by Dec 31.

The experts team led by Syed Jamaat Ali Shah, the Pakistan Commissioner for Indus Waters, found against the Indian contention that the site was not suited for ungated spillways and concluded that the pondage facility exceeded twice the storage capacity allowed under the treaty.

The bilateral water-sharing treaty gives both countries a third party option in case of a deadlock over any issue. Article IX of the treaty provides for settling disputes through neutral experts or arbitration if they are not resolved between the two commissioners.

The cause of contention is the project design, which, according to Pakistan, provides for submerged gated spillways, and therefore, Indian control over Pakistani waters in breach of the treaty.

Pakistan’s main concern is that the gated structure will enable India to manipulate flow of water to Pakistan’s disadvantage. One serious consequence is that it will arm India with the capability to cause water shortages in Pakistan because the structure will reduce Pakistan’s share of water in Chenab by 8,000 cusec per day.

India has been dragging its feet over the issue since May 1999 when Pakistan first raised objection against its design. Launched in June 1999, the 450-megawatt Baglihar hydroelectric plant project is to begin generation by 2004.

Pakistan had set Sept 30 as the deadline, making it clear to India that if it failed to fix dates for a visit by Pakistani team it would approach the World Bank for appointment of neutral experts. India obliged just a day before the expiry of that deadline and arranged the visit by experts in October.

The WB brokered the treaty between the two rivals in 1960 for water sharing and stands as its guarantor. Under the treaty, Pakistan has exclusive rights over waters of western rivers — Jhelum, Chenab and Indus — while eastern rivers — Ravi, Beas and Sutlej — belong to India.