The Sindh High Court (SHC) has issued a show cause notice to the Water & Power Development Authority (Wapda) chairman for not complying with a court order with regard to the Nai Gaj Dam project in Dadu, and directed him to appear in person and file a compliance report.
The show cause notice was issued on a petition of a private joint venture construction firm that sought implementation of a memorandum of understanding (MoU) for the completion of the Nai Gaj dam project in Dadu.
A division bench of the SHC headed by Justice Mohammad Karim Khan Agha had directed Wapda to remove obstacles hindering the smooth operation of the project and clear the outstanding dues of the petitioner, if any, on account of any price escalation as stipulated in the original agreed upon MoU that was in place before the disputed decision caused such escalation.
The high court had directed the petitioner to complete any necessary remedial or other works on the project within four months stating that Wapda would make separate provisions and reimburse the petitioner for those works undertaken during these four months, subject to the work being completed on the spot.
The Sindh High Court further observed that reimbursement rate would be based on escalation in the originally agreed upon MoU which incorporated the issue of price escalation. The SHC had told the parties to renegotiate an extension of the existing contract if the same was coming to an end so that the project could be completed through continuity in a timely fashion for the benefit of the people of Sindh and it was not left as a half-built project/monument to the wastage of taxpayers’ money.
The SHC had also the asked the parties to jointly appoint a well-qualified senior member of the Pakistan Engineering Council who should ascertain precisely the amount of work completed by the construction company whose cost of appointment shall be borne equally by the parties whose assessment may assist the parties in determining whether or not to extend the contract. The high court had directed the Wapda chairman to submit a compliance report on directions of the court.
The bench observed that no compliance report had been filed by the Wapda chairman in compliance with the court order and issued a show cause notice to him telling him to appear in person and file a compliance report on the next date of hearing.
The SHC directed the Wapda chairman to ensure that the compliance report was placed on record. The high court observed that no counsel for Wapda had appeared before the court in spite of the fact that it was a date-fixed matter.
The bench ordered that the show-cause notice shall be sent to the Wapda chairman through fax and electronic modes.
It is pertinent to mention that the petitioner and Wapda had entered into a contract on April 12, 2011 in relation to a public-sector development project for the construction of the Nai Gaj Dam in Dadu but the same could not be completed due to price escalation and multiple litigations by the parties over the implementation of the contract.