Water project contract dispute lands in court

LHC's Pindi Bench has given both parties two weeks to resolve the dispute amicably

RAWALPINDI:

The Lahore High Court's Rawalpindi Bench has taken notice of a petition filed by a Turkish firm against the cancellation of two contracts worth Rs20.4 billion under the Asian Development Bank (ADB)-funded Developing Resilient Environment and Advancing Municipal Services (Dreams-I) for water supply improvement at Chahan Dam.

Justice Jawad Hassan has granted both the petitioner and the Dream-I project director a two-week period to resolve the matter amicably, highlighting its significance as a case involving foreign investment and international relations.

The petition was filed by Turkish company MS 5H Insaat, one of the original winners of the Lot 2 and Lot 3 contracts alongside Pakistani firm Qasim & Co. Although both firms had secured the bid, the contract was ultimately awarded solely to MS 5H Insaat, citing performance guarantees and other reasons.

Upon learning of the situation, Punjab Chief Minister Maryam Nawaz ordered a fact-finding investigation by the Chief Minister's Inspection Team (CMIT), which identified serious flaws in the procurement process.

It noted that the project, despite being foreign-funded, had not undergone quarterly reviews by its Steering Committee as required.

Following the findings, the project's Steering Committee, chaired by Punjab Planning & Development Chairman Barrister Nabeel Awan, decided to cancel the contract and reinitiate the tendering process.

The committee also recommended disciplinary action against the officials responsible for the contract award and mandated quarterly reviews for all future foreign-funded projects to ensure transparency.