Court Suspends Cancellation of Contracts for Lots Two and Three Awarded to Turkish Firm
RAWALPINDI:
The dispute surrounding the awarding of contracts for Lots Two and Three of the Chahan Dam project in Rawalpindi remains unresolved, with the Lahore High Court suspending the cancellation of the previously awarded contracts to Turkish company Five H Insat.
The Rs20.4 billion contract—funded by the Asian Development Bank (ADB)—was intended to provide an additional 12 million gallons of water per day to Rawalpindi under the broader “Dream Project.” The High Court, while hearing a petition filed by the Turkish firm, issued a stay order and directed all parties to resolve the issue amicably within two weeks.
In response to the ongoing controversy, Project Director Hamza Salik was removed from his position, and Additional Secretary Finance Omar Javed has been appointed as the new project director.
The Chahan Dam project, once completed, is expected to supply 17 million gallons of water daily to Rawalpindi. Lot One was awarded to China Construction Third Engineering for Rs6.36 billion, and Lot Four to a consortium of MS Metracon BDL and Five H Insat for Rs7.19 billion. Work on both lots is currently underway and includes the supply of 5 million gallons of additional water per day from Khanpur and Rawal Dams.
The issue arose when a joint venture company involved in the project objected to the awarding of Lots Two and Three to Five H Insat. Following a fact-finding report by the Chief Minister’s Inspection Team, and on the recommendation of the project’s steering committee, the project director cancelled the contracts.
However, the Turkish company challenged this decision in the Rawalpindi bench of the Lahore High Court, where Justice Jawad Hassan ruled in its favour, suspending the cancellation and urging resolution through mutual agreement.
Now, the final decision on awarding the disputed contracts lies with the Dream Project’s steering committee, which will proceed in light of the court’s instructions. Delays in settling the dispute risk stalling the ADB-funded initiative, potentially pushing back the completion timeline of the critical water supply project.
