RAWALPINDI:
The Asian Development Bank (ADB) has allowed the re-tendering of two out of four lots of its Rs33.95 billion loan-financed Dream Water Supply Project in Rawalpindi by terminating the awarded contracts worth Rs20.40 billion.
The bank has issued a No Objection Letter (NOL) to the Water and Sanitation Agency (WASA) and the Project Management Unit, allowing them to re-award the contracts.
The retendering process is expected to result in savings of approximately Rs 2 billion. The dispute over the contracts of the two parties had been ongoing for the past year.
According to officials, the project aims to supply an additional 12 million liters of water per day from Chahan Dam to six densely populated union councils, including areas along Adiala Road. Although a joint venture of a foreign and a Pakistani company had qualified in the tender, the contract was awarded exclusively to the foreign company for Lot-2 and Lot-3 at a cost of Rs20.40 billion.
Following notification by Punjab Chief Minister Maryam Nawaz, the Chief Minister’s Inspection Team conducted a fact-finding inquiry and declared the contract award non-transparent and in violation of rules and regulations. As a result, the Dream Project Steering Committee canceled the contracts.
When the case reached the Rawalpindi bench of the Lahore High Court, the Punjab Housing Secretary was appointed as the mediator who recommended retendering.
