ADB approves re-tendering of Dream project lots

RAWALPINDI:

The Asian Development Bank (ADB) has allowed re-tendering of two out of four lots of its Rs33.95 billion loan-funded 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, permitting them to re-award the contracts.

The re-tendering process is expected to result in savings of approximately Rs2 billion. The dispute over the contracts of the two lots had been ongoing for the past year.

According to officials, the project aims to supply an additional 12 million gallons per day of water 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 solely to the foreign company for Lot-2 and Lot-3 at a cost of Rs20.40 billion.

Following notice taken 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. Consequently, the Dream Project Steering Committee cancelled the contracts.

When the matter reached the Rawalpindi Bench of the Lahore High Court, the Punjab Housing Secretary was appointed as mediator, who recommended re-tendering.