I. PROCEDURAL HISTORY

A. THE INDUS WATERS TREATY AND THE INITIATION OF THIS ARBITRATION

1. On 19 September 1960, the Government of the Republic of India and the Government of the Islamic Republic of Pakistan (the “Parties”) signed the Indus Waters Treaty 1960 (the “Treaty”).1 The Treaty was also signed by the International Bank for Reconstruction and Development (the “World Bank”) in respect of the World Bank’s role under certain provisions of the Treaty. Instruments of ratification were exchanged between the Parties on 12 January 1961; the Treaty entered into force on that date with retroactive effect as of 1 April 1960 as stated in Article XII(2).

2. Article IX of the Treaty provides for a system for the settlement of differences and disputes that may arise under the Treaty. Article IX states in part: