RAWALPINDI:
The Asian Development Bank (ADB) has cleared re-tendering of two out of four packages of its Rs33.95 billion loan-funded Dream Water Supply project in Rawalpindi, terminating awarded contracts worth Rs20.40 billion.
The bank 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 save around Rs 2 billion. The dispute over the contracts for the two lots had lasted for a 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 comprising a foreign company and a Pakistani company qualified for the tender, the contract was awarded only to the foreign company for packages 2 and 3 at a cost of Rs 20.40 billion.
Following an advisory taken by Punjab Chief Minister Maryam Nawaz, the Chief Minister’s inspection team conducted a fact-finding probe and declared the contract award non-transparent and in violation of rules and regulations. As a result, the Dream Project steering committee canceled the contracts.
When the matter came before the Rawalpindi bench of the Lahore High Court, the Punjab Housing Secretary was appointed as mediator and recommended a re-tendering.
