The 450MW project is being constructed on India’s Chenab river, but Pakistan is concerned that the dam will reduce water flow into the country. It claims that the Baglihar project breaks the Indus Basin Waters Treaty (1960) on the even distribution of waters from the countries’ six shared rivers. However, India denies breaching the treaty on the basis that it is not taking water from the dam for irrigation purposes.
The neighbouring countries have already spent 4-6 January in meetings that are seen as a last-ditch attempt to resolve the dispute. If unsuccessful, Pakistan can seek the involvement of the World Bank as a third-party arbitrator.
If talks go well, the US$1B project is likely to be completed in spring 2005.