RAWALPINDI: The Asian Development Bank has approved the re tendering of two major components of the Rs33.95 billion Dream Water Supply Project in Rawalpindi after terminating previously awarded contracts worth Rs20.40 billion. The decision marks a significant development in the loan funded project aimed at addressing the city’s growing water shortage.
The ADB has issued a formal No Objection Letter to the Water and Sanitation Agency Rawalpindi and the Project Management Unit, allowing them to re award contracts for two out of the four project lots. Officials said the approval clears the way for a fresh and transparent bidding process.
According to project authorities, the re tendering is expected to generate savings of nearly Rs2 billion for the public exchequer. The contracts under dispute had remained stalled for almost a year due to concerns raised over the bidding and award process, causing delays in the execution of the project.
The Dream Water Supply Project is designed to provide an additional 12 million gallons per day of potable water to Rawalpindi from Chahan Dam. The new supply will benefit six densely populated union councils, including several localities along Adiala Road, which face chronic water shortages.
Officials disclosed that although a joint venture comprising a foreign and a Pakistani firm had qualified in the bidding process, the contracts for Lot Two and Lot Three were awarded exclusively to the foreign company at a total cost of Rs20.40 billion. This raised questions about transparency and compliance with procurement rules.
Following notice taken by Punjab Chief Minister Maryam Nawaz, the Chief Minister’s Inspection Team conducted a detailed inquiry and declared the contract awards non transparent and in violation of applicable regulations. As a result, the Dream Project Steering Committee cancelled the contracts. When the matter reached the Rawalpindi Bench of the Lahore High Court, the Punjab Housing Secretary was appointed as mediator and recommended re tendering, a proposal now endorsed by the Asian Development Bank.
