4.1.7 PROCEDURAL OBLIGATIONS: DISPUTE RESOLUTION PROCEDURES
Article 33 of the UNWC, supported by the only
Annex to the Convention’s text, provides the
UNWC legal fr
amework for the settlement of
disputes. Article 33(1) stipulates that in the absence
of an applicable agreement, in the event of a
dispute between two or more parties concerning
the interpretation or application of the UNWC,
states are obligated to “seek a
dispute by peaceful means.”
State parties to the UNWC are bound by the
subsequent provisions under Article 33. Article
33(2) dictates that if such parties to a dispute fail to
reach an agreement via negotiation = they can then
“jointly seek the good office, or request mediation
or conciliation by, a third party, or make use, as
appropriate, of any joint water course institutions
that may have been established by the agreement
to submit the dispute to arbitration or to the
International Court of Justice.”
Article
33(3) provides detailed timelines and
procedures whereby, if after six months from the
time a state party requests negotiations the parties
to the dispute have failed to negotiate a solution,
the dispute must “be submitted, at the request of
any of the parties to the dispute, to impartial fact-
finding in accordance with paragraphs 4 to 9,
unless the parties so otherwise agree.” The legal
role and relevance of impartial fact finding in the
overall scheme of the UNWC dispute resolution
procedures cannot be underestimated because it is
largely unique to this framework agreement within
the field of international water law and
transboundary basin or
Furthermore, given the range of dispute settlement
mechanisms provided by Article
the only truly non-
negotiable, binding procedure
within the UNWC.
The Kosi Agreement envisages that disputes be
settled peacefully but does not clearly stipulate the
level at which parties need to engage for
settlement of such disputes. The Agreement states
that “in the event of disputes arising out of the
construction of the Kosi Project or the
interpretation of the meaning of this Agreement, or
with respect to rights and liabilities of the parties
hereunder, has to be first settled by discussion and
then arbitration.”
The Agreement also stipulates how arbitration be
carried out. If a dispute arises, any of the parties
may give notice in writing to the other party of its
intention to refer the dispute to arbitration. Upon
the delivery of such notice, within 90 days, the two
parties shall nominate an arbitrator. If the dispute is
not resolved, the Agreement requires an umpire be
appointed through mutual consultation. The
umpire’s decision shall be final and binding.
The mechanism appears to be three-tiered but has
inherent weaknesses. Firstly, the parties are not
obligated to inform each other of their intention to
go to arbitration. Secondly, the precise wording is
that a dispute is to be “determined,” not resolved. If
the parties fail to appoint arbitrators, then they are
not obligated to settle the dispute by any other
means. If an issue requires urgent attention, 90
days to nominate an arbitrator is too long. Failure
of arbitration can lead to a total failure of the
dispute mechanism, as it
defeated if the two parties do not agree on the
umpire they want to appoint.
• The Kosi Agreement does provide for a dispute settlement mechanism. With inherent weaknesses in
the process as highlighted above, the mechanism is almost insignificant as the dispute can only be
‘determined’ and not necessarily resolved. The parties have no obligation to appoint an umpire in
case of disagreement. Another major gap compared to UNWC is that countries under the Kosi
Agreement have no locus standi to seek third party help if harm has been done.