Latest news with #Rs20.4
Express Tribune
7 days ago
- Business
- Express Tribune
Water project contract dispute lands in court
The Lahore High Court's Rawalpindi Bench has taken notice of a petition filed by a Turkish firm against the cancellation of two contracts worth Rs20.4 billion under the Asian Development Bank (ADB)-funded Developing Resilient Environment and Advancing Municipal Services (Dreams-I) for water supply improvement at Chahan Dam. Justice Jawad Hassan has granted both the petitioner and the Dream-I project director a two-week period to resolve the matter amicably, highlighting its significance as a case involving foreign investment and international relations. The petition was filed by Turkish company MS 5H Insaat, one of the original winners of the Lot 2 and Lot 3 contracts alongside Pakistani firm Qasim & Co. Although both firms had secured the bid, the contract was ultimately awarded solely to MS 5H Insaat, citing performance guarantees and other reasons. Upon learning of the situation, Punjab Chief Minister Maryam Nawaz ordered a fact-finding investigation by the Chief Minister's Inspection Team (CMIT), which identified serious flaws in the procurement process. It noted that the project, despite being foreign-funded, had not undergone quarterly reviews by its Steering Committee as required. Following the findings, the project's Steering Committee, chaired by Punjab Planning & Development Chairman Barrister Nabeel Awan, decided to cancel the contract and reinitiate the tendering process. The committee also recommended disciplinary action against the officials responsible for the contract award and mandated quarterly reviews for all future foreign-funded projects to ensure transparency.
Express Tribune
03-05-2025
- Business
- Express Tribune
Water project components' contract cancelled
The Punjab government's project steering committee has cancelled a contract worth Rs20.4 billion awarded to a foreign firm for Lots 2 and 3 of the Chahan Dam Water Supply project and has ordered a fresh tendering process following a fact-finding investigation by the Chief Minister's Inspection Team (CMIT). The Asian Development Bank-funded project had originally been awarded to a Turkish firm, Five-H Insaat, despite the successful joint venture bid having also included a Pakistani company, Qasim & Co. The steering committee questioned how the contract was awarded solely to the foreign firm when the bid was won as a joint venture. CMIT's intervention, prompted by Punjab Chief Minister Maryam Nawaz, is being credited for preventing a potential financial scandal. A high-level meeting chaired by Punjab Planning and Development Board Chairman Barrister Nabeel Awan, and attended by all relevant secretaries, their representatives, and Hamza Salik, Project Director of the "Dream Project," reviewed CMIT's findings before deciding to cancel the contract. The committee also decided that necessary action against the officials responsible for the contract award would be taken by the chief secretary. Additionally, in line with the Chief Minister's directive, all future foreign-funded projects will be reviewed by the steering committee every three months to ensure transparency. The contract in question had sparked legal action from Qasim & Co., who challenged the exclusion in court. After the matter was brought to the chief minister's notice, she instructed CMIT to conduct a fact-finding inquiry and submit a report within seven days. The CMIT investigation, led by Chairman Salman Ejaz along with members Ahsan Waheed, Ghulam Abbas Warraich, and an engineering specialist, found significant flaws in the procurement process, including the absence of regular quarterly reviews despite the project being foreign-funded. Now, under the guidance of the Chairman of the Planning and Development Wing Punjab, the Steering Committee of Dream Project-1 will decide within three weeks whether to reinstate or fully terminate the contract. If cancelled, the contract will be retendered. For context, Lot 1 of the Dream Project-1bringing 12 million gallons of water daily from Chahan Damhad previously been awarded for Rs6.36 billion to a joint venture between China Construction Third Engineering and a Pakistani partner. Meanwhile, Lot 4, worth Rs7.19 billion, was awarded to a joint venture of MS Mirakhan KBDL and Five-H Insaat. Lot 4 covers the upgrade of filtration plants, pumping stations, and old pipelines at Rawal and Khanpur dams to ensure 24/7 water supply to the Khayaban-e-Sir Syed area.
Express Tribune
02-03-2025
- Business
- Express Tribune
WASA 'fails to satisfy' CM inspection team
Rawalpindi Water and Sanitation Agency (WASA) Managing Director Muhammad Saleem Ashraf and Deputy Managing Director Zeeshan Shaukat Gondal appeared before the Punjab Chief Minister's Inspection Team in Lahore to explain alleged irregularities in the awarding of the Asian Development Bank (ADB)-funded Chahan Dam Water Supply project contract. However, sources said the officials failed to satisfy the inspection team, and a final report will soon be submitted to Punjab Chief Minister Maryam Nawaz. They said the contract for Lot 2 and Lot 3 of the Chahan Dam Water Supply Project, valued at Rs20.4 billion, was awarded solely to the Turkish company Five H Insaat, despite a successful joint bid by Five H Insaat and the Pakistani company Qasim & Co. In response, Qasim & Co. challenged the decision in court, prompting the matter to be brought to CM Maryam Nawaz's attention. Concerned over transparency violations, she ordered a fact-finding inquiry by CMIT, directing the team to submit a report within seven days. Following the directive, Chief Minister's Inspection Team Chairman Salman Ijaz, along with members Ahsan Waheed, Ghulam Abbas Warraich, and an engineering expert, initiated the investigation. WASA MD Muhammad Saleem Ashraf and DMD Zeeshan Shaukat Gondal were summoned to Lahore with all relevant records. Sources reveal that during the initial inquiry, both officials failed to provide satisfactory answers to the team's questions, leaving the inspection team unconvinced. The investigation is examining all aspects of the case, particularly why a contract worth Rs20.4 billion was awarded in violation of transparency laws and regulations and whether it was done under pressure or on someone's instructions. The fact-finding report will be presented to CM Maryam Nawaz, who will decide on any action against those responsible.
Express Tribune
28-02-2025
- Business
- Express Tribune
Report on 'controversial' Rs20.4b water contract sought
The Punjab government has recently taken notice of the award of a Rs20.4 billion contract for Lot 2 and Lot 3 of the Chahan Dam Water Supply project to a Turkish company after terminating a partnership with a Pakistani company, seeking a report within a week. Up to 25 million gallons of water have to be provided from Chahan Dam and Rawal Dam to Rawalpindi daily under the Rs33.859b loan funding from the Asian Development Bank (ADB). The contract was awarded solely to a Turkish company after terminating the partnership with the Pakistani company. The lack of transparency in the contract award and violation of laws and regulations have prompted the formation of a fact-finding committee, led by the Chairman of the Chief Minister's Inspection Team (CMIT). The committee has begun reviewing the records at WASA Rawalpindi, and a report will be submitted to the Punjab chief minister after a week. The committee, under the leadership of CMIT Chairman Salman Ejaz, and members Ahsan Waheed (Member Four) and Ghulam Abbas Work (Member Engineering), is investigating the record at WASA Rawalpindi regarding the bidding process for the project. The bidding involved a joint venture between the Turkish company, 5H Insaat, and the Pakistani company, Qasim & Co. However, the contract for Lot 2 and Lot 3 was awarded solely to the Turkish company. According to the law, no foreign company is allowed to secure a contract without forming a joint venture with a Pakistani company. Sources say the contract for Lot 2 and Lot 3 was awarded seven months later, after the contracts for Lot 1 and Lot 4 had already been granted. In this context, WASA sought guidelines from the local government. A letter regarding the formation of the fact-finding committee was issued by Sajad Zafar Dal, the Principal Secretary to the Punjab CM. It is worth noting that the contracts for Lot 1 and Lot 4 had already been awarded. The contract for Lot 2, valued at Rs8.3b, and Lot 3, worth Rs12.1b, were granted to the Turkish company 5H Insaat. Work on Lot 1 and Lot 4 is already underway. For Lot 1, the contract for a 12 million-gallon-per-day water treatment plant at Chahan Dam, worth Rs6.36b, was awarded to China Construction Third Engineering Group (Penty V). Meanwhile, for Lot 4, which involves upgrading the filtration plant and pumping machinery at Rawal Dam and Khanpur Dam, as well as rehabilitating the old water lines, the contract worth Rs7.199b was awarded to a joint venture of 5H Insaat and MS Metra Khan BD Ltd. These two contracts are set to be completed within three years. For Lot 2, the contract for the installation of a main pipeline from Chahan Dam to Chak Jalal Din, worth Rs8.3b, and for Lot 3, the contract for laying the distribution network to supply water from Chahan Dam to the city's residents, worth Rs12.1b, have been awarded. The completion of these four contracts will significantly improve the water supply system in six union councils (UCs) along Adiala Road, as well as in the areas of Khayaban-e-Sirsyad and other parts of Rawalpindi city. It is important to note that this project, initiated with a loan of Rs33.859b from the ADB, has appointed Hamza Salik as the Project Director in Lahore and Zeeshan Shaukat Gondal as the Deputy Project Director at WASA Rawalpindi.
Express Tribune
16-02-2025
- Business
- Express Tribune
Water supply project gets funding
RAWALPINDI: The Chahan Dam Water Supply Project, aimed at supplying an additional 25 million gallons of water per day from the Chahan Dam and Rawal Dam, has received a funding boost of Rs33.859b from the Asian Development Bank (ADB). Under this project, the contracts for Lot 2 and Lot 3, worth Rs20.4 billion, have been awarded to the Turkish company 5H Insaat, with a delay of seven months. The contracts for Lot 1 and Lot 4 had already been awarded. The completion of all four contracts is expected within three years. Details show that the delay in awarding the contracts for Lots 2 and 3 stemmed from a disagreement between the Punjab government and the Rawalpindi Water and Sanitation Agency (WASA). WASA had initially proposed that the contracts be awarded as a joint venture with a Pakistani company. Still, the Punjab government ultimately decided to award them exclusively to the Turkish company. The contract for Lot 2 is valued at Rs8.3 billion, and for Lot 3 at Rs12.1 billion. Work on Lot 1 and Lot 4 is already underway. Lot 1 involves the construction of a 12 million gallons per day water treatment plant at Chahan Dam, for which Rs6.36 billion contract was awarded to China Construction Third Engineering Group. Lot 4 includes the upgradation of filtration plants, pumping machinery, and the restoration of old water supply lines from Rawal and Khanpur Dams. The work will ensure 24-hour water supply to areas such as Khayaban-e-Sir Syed. The contract for Lot 4, valued at Rs7.199 billion, was awarded to a joint venture between MS Metra Kan and 5H Insaat. The completion of these projects will significantly improve the water supply system in Rawalpindi, particularly in the six union councils along Adiala Road and the city areas of Khayaban-e-Sir Syed. The project, funded by Rs33.859 billion loan from the Asian Development Bank, also includes the installation of a main pipeline from the Chahan Dam to Chak Jalal Din under Lot 2, and the development of a distribution network from Chahan Dam to supply water to residents under Lot 3. Hamza Salik has been appointed project director for the initiative, with Zeeshan Shaukat Gondal serving as deputy project director at WASA. WASA Managing Director Muhammad Saleem Ashraf confirmed that these projects, alongside the filtration plants at Rawal and Khanpur Dams, will resolve water shortages for 46 union councils in Rawalpindi and six adjacent union councils along Adiala Road. The completion of these projects will also help reduce operational costs, including the elimination of 70-80pc of WASA's tube wells, leading to a significant decrease in electricity expenses.
