Tuesday, January 18 2005 18:31 Hrs (IST) - World Time -

Islamabad: In a move that could have a bearing on the Indo-Pak peace process, Pakistan today (Jan 18, 2005) announced its decision to seek the World Bank arbitration in the dispute over the Baglihar hydro-power project being constructed in Jammu and Kashmir, contending that bilateralism has failed to settle the issue.

"We have decided to approach the World Bank under the Article 9 (2)(a) of the (1960 Indus Water Treaty) for appointment of a neutral expert," foreign office spokesman Masood Khan told reporters in Islamabad.

Pakistan's Ambassador to US Jehangir Karamat would approach World Bank President James D Wolfenson with the plea today itself, he said.

Islamabad's decision to seek the World Bank arbitration came 11 days after the Water Secretary-level talks between the two countries failed in New Delhi with Pakistan insisting that its concerns had not been addressed by India.

"We have exhausted each and every channel" of resolving the matter bilaterally under the treaty, Khan said.

"India has violated the treaty. A wrong has been committed which needs to be corrected," he said. Asked if the decision would affect the ongoing confidence-building exercise, Khan said, "It is not a good omen. It will cast its shadow on the composite dialogue process because this project was one of the most durable CBMs."

Khan ruled out any further bilateral negotiations on the issue, saying Pakistan would agree to it only if the work on the project is suspended.

He said Pakistan wanted revision of the design of the dam in accordance with the parameters and guidelines provided in the treaty brokered by the World Bank in 1960.

"We want work to stop at the dam. Even if we go to World Bank they (India) can share with us details of construction work and timetable and methodology to resolve it," Khan said.

However, he said the entire talks process with India, including the meeting of the two Prime Ministers in Dhaka and the visit of External Affairs Minister K Natwar Singh to Islamabad in February would go ahead.

Asked whether Pakistan would favour scrapping of the treaty as it had failed to resolve disputes over river waters with India, Khan said, "re-negotiation of the treaty was not on cards."

He said the decision to notify the World Bank, seeking its arbitration in the Baglihar issue, was taken at a high-level official meeting presided over by Prime Minister Shaukat Aziz.

Aziz took the decision after listening to reports on the status of construction of the dam as well as failure of "Pakistan's persistent" efforts to settle the issue bilaterally with India within the mechanism of the treaty, he said.

Khan said it was determined that Pakistan was left with no choice after India did not respond to its request to stop the construction of the project aimed at generating 450 mw of electricity for Jammu and Kashmir.