ISLAMABAD: Contractors of the World Bank–funded Islamabad–West Grid Station (IWGS) project have served suspension notices citing the National Grid Company’s (NGC), formerly NTDC, alleged failure to meet contractual obligations, well-placed sources told Business Recorder.
In a formal notice under contract WB-DTLP-IWGS/2024, the Joint Venture (JV) of NWEPDI–TBEA accused the Employer of non-performance and outstanding reimbursements. The World Bank Resident Mission and the Ministry of Economic Affairs have also conveyed the matter to the Power Division.
The JV — comprising Northwest Electric Power Design Institute Co. Ltd. of China Power Engineering Consulting Group — pointed to repeated but unresolved correspondence, including notice Ref: NWEPDI-ISW-NTDC-354 dated July 30, 2025. It alleged that NGC’s failure to reimburse Rs284.6 million under Schedules 2 and 4 has disrupted vendor production, stalled site activities, and triggered cascading project delays.
The contractors stressed that the delays stem entirely from the Employer’s non-performance and reserved the right to claim time extensions and liquidated damages. They also recalled a pending request of August 25, 2025, seeking a clear reimbursement timeline for outstanding sales tax amounts, warning that the continuing uncertainty has created “unacceptable operational and financial risks.”
The JV has demanded an immediate reimbursement schedule and resolution of all outstanding issues, cautioning that failure to comply will force them to slow down or suspend works under GCC Clause 41.2(a), with all costs and consequences to be borne by NGC.
The Ministry of Economic Affairs has urged the Power Division to address the concerns on priority to prevent disruption of the strategically significant, World Bank–backed IWGS project.
Story by Mushtaq Ghumman
