RAWALPINDI:
The Asian Development Bank (ADB) has allowed re-tendering of two of the four lots of its Rs 33.95 billion loan-funded Dream Water Supply project in Rawalpindi, terminating awarded contracts worth Rs 20.4 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 re-tendering process is expected to generate savings of approximately Rs 2 billion. The dispute over the contracts for the two lots had been going on since last 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 company and a Pakistani company had qualified for the tender, the contract was awarded solely to the foreign company for lots 2 and 3 at a cost of Rs 20.4 billion.
Following the notification received by Punjab Chief Minister Maryam Nawaz, the Chief Minister’s Inspection Team conducted a fact-finding inquiry and declared that the award of the contract was not transparent and violated the rules and regulations. Consequently, the Dream Project Steering Committee canceled the contracts.
When the matter reached the Rawalpindi Bench of the Lahore High Court, the Punjab Housing Secretary was appointed mediator, who recommended a fresh tender.
