RAWALPINDI – The long-standing dispute over awarding contracts for Lot Two and Lot Three of the Chahan Dam Dream Project remains unresolved, raising concerns over potential delays in the Rs20.4 billion Asian Development Bank (ADB)-funded water supply initiative.
The Lahore High Court’s Rawalpindi Bench has suspended the cancellation of contracts initially awarded to Turkish firm Five H Insat. Justice Jawad Hassan has directed that the matter be settled through mutual agreement within two weeks.
Following the court’s directive, the government removed Project Director Hamza Salik and replaced him with Additional Secretary Finance Omar Javed. The Steering Committee for the Dream Project will now review the contracts in light of the court’s instructions.
The joint venture company involved in the project had objected to the awarding of Lots Two and Three to Five H Insat, prompting an investigation by the Chief Minister’s Inspection Team and subsequent contract cancellation—a decision now under judicial scrutiny.
If the issue remains unresolved, it could delay the project’s goal of supplying 17 million gallons of additional water daily to Rawalpindi upon completion of all four lots. Lot One has been awarded to China Construction Third Engineering (Rs6.36 billion), while Lot Four is being handled by MS Metracon BDL and Five H Insat (Rs7.19 billion), both of which are currently under development.
Additionally, the project aims to enhance Rawalpindi’s water supply with 5 million gallons daily from Khanpur and Rawal Dams. However, any delay in resolving the contractual impasse could jeopardize the timely disbursement of ADB funding and postpone much-needed water relief for the city.
Story by Jamil Mirza
