Orange Line Metro: LDA to open bids for remaining works today

Court gives go-ahead for Package 2 bidding process

LAHORE: The Lahore Development Authority (LDA) will open financial bids today (Friday) for the remaining civil works between Chauburji and Ali Town of the Lahore Metro’s Orange Line project after the Lahore High Court gave the go-ahead for the bidding process.

The builder’s contract for Package-2 of the mass transit scheme was cancelled on sluggish progress after several warnings about the pace and quality of work. Four companies, including the Orange Line’s Package-1 contractor Habib Construction Services, Habib Rafiq, ZKB Reliable JV and Din Sons are in the race for the new contract.

While speaking to The Express Tribune on Thursday, Orange Line Steering Committee Chairperson Khawaja Hassaan said the court had dismissed the petition of Maqbool Calsons JV, the original contractor of package-2, and allowed the LDA to complete the bidding process.

Hassaan said the court had ordered the LDA to return the land and manufacturing equipment to the petitioner and settle disputes through arbitration. LDA was of the view that most of the machinery and equipment for the project was purchased from the contract amount and it was the legitimate right of the authority to recover losses by confiscating such assets.

“Right now the authority is busy in completing the bidding process, but it will definitely take up this matter after consulting with its legal experts as public money is involved in procurement of the equipment,” he added.

After cancellation of the original contract, the LDA had floated a tender for remaining work of the OLMT package-2 on October 4. Initially, LDA had fixed October 20 as deadline for submission of bidding documents, but later this date was extended to October 24. The LDA had opened technical proposals on October 24, but held financial bids as Maqbool Calsons JV had challenged LDA’s action in the court.

Maqbool Calsons JV, through its counsel Ali Zafar, had requested the court to declare LDA’s action as unlawful. The company claimed the LDA had issued back dated contract termination letter which showed mala fide intention. In addition, the authority forcefully took over the contractor’s possessions.

Published in The Express Tribune, October 28^th, 2016.