The much-touted "Dreams Project" for additional water supply to Rawalpindi has been hit by a year-long delay due to disputes over contracts funded through the Asian Development Bank's loan of Rs33.95 billion.
Under the project, Rawalpindi was to receive an additional 17 million gallons of water daily from the Chahan and Rawal dams.
However, two of the four contract lots remain unresolved, putting the project's timely completion in jeopardy.
According to sources, 12 million gallons of additional daily water meant for Rawalpindi under Lot 2 and Lot 3 have been stalled after the cancellation of Rs20.40 billion worth of contracts due to disputes between two firms.
The matter was referred to the secretary of local government as arbitrator, who informed the court that the cancelled contract could not be reinstated.
Meanwhile, work is ongoing on Lot 1 and Lot 4, which together promise 5 million gallons of additional water supply.
Lot 1, awarded for Rs6.36 billion to China Construction Third Engineering, and Lot 4, awarded for Rs7.19 billion to a joint venture of Metacon KBDM and Turkish firm FiveH Insaat, have been under construction since January 2025.
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